New Financial Year: As the new financial year, FY27, commences, financial experts are stressing the need for disciplined planning, effective risk management, and goal-based investing in the midst of market volatility and changing tax environment.
Key questions answered in this article:
- How should you handle market ups and downs in FY27?
- Why is it important to have an emergency fund and insurance first?
- How can you manage loans and credit cards without stress?
- How should you construct your portfolio in FY27?
- How does automating your investments help grow wealth steadily?
- What should you know about taxes when planning investments?
- How can you make sure your investments match your goals?
- Why is making a will important for your family’s future?
In a conversation with Zee Business, Pankaj Mathpal, Managing Director of Optima Money, and Vikas Puri, Senior Partner at Complete Circle Capital, shared seven essential financial mantras for investors navigating the new year ahead.
How should you handle market ups and downs in FY27?
Highlighting geopolitical tensions and market fluctuations, Mathpal advised investors not to panic. He noted that volatility is inherent to equity markets and urged investors to maintain patience.
Mantra 1: Stay calm amid volatility, invest gradually
“If you already have investments, stay calm. If you have surplus funds, invest in a phased manner instead of deploying all capital at once. At the same time, align your strategy with tax planning,” he said.
Why is it important to have an emergency fund and insurance first?
Before constructing an investment portfolio, Puri emphasised the importance of securing a financial base through emergency funds and insurance.
Mantra 2: Build a risk-protected foundation first
He noted that investors should assess their financial ‘risk factors’ just as one evaluates conditions before making strategic decisions. Essential steps include maintaining an emergency fund and ensuring adequate insurance coverage—both term life and health.
He further added that it should cover liability and future risk, suggesting a term insurance for 10-15 times income. He further added that even if employer-sponsored health insurance is present, independent health insurance is still required, considering the increased medical costs and future financial risk.
How can you manage loans and credit cards without stress?
The experts cautioned against mismanaging debt, particularly credit cards and personal loans.
Mantra 3: Manage debt prudently
Mathpal said that credit cards should not be treated as additional income and warned against carrying forward balances due to high interest rates. He advised paying dues on time, controlling discretionary spending, and avoiding unnecessary luxury expenses, including foreign travel amid currency fluctuations.
How should you construct your portfolio in FY27?
On portfolio construction, Puri highlighted diversification across asset classes as critical to managing uncertainty.
Mantra 4: Diversification is key to stability
Puri has suggested an allocation model for long-term investors, which is 60 per cent in equities, 20 per cent in debt, 10 per cent in commodities like gold and silver, and 10 per cent in international assets. He further explained that no one can predict which asset class will perform better, and hence a diversified portfolio helps to reduce risk.
How does automating your investments help grow wealth steadily?
Automatic investing was highlighted as a powerful tool for disciplined wealth creation.
Mantra 5: Automate investments to avoid emotional bias
Mathpal further explained how SIPs, RDs, and STPs help avoid emotional decisions like market chasing or waiting for market corrections to invest. These systems help in investing at regular intervals and earning rupee cost-averaging and compounding benefits.
What should you know about taxes when planning investments?
On taxation, Mathpal advised investors to understand tax rules thoroughly rather than making decisions solely to save tax.
Mantra 6: Focus on tax efficiency, not just tax saving
Mathpal emphasised the need to consider the old and new tax regimes, especially in the context of the new rules applicable from FY27. The changes include the new deductions related to child education and hostel allowance, etc., making the old regime more beneficial.
He also explained that the rate of tax on investment is determined by the income brackets and classes, and that taxpayers should not fall prey to the misconception that some investments are liable to pay the highest rate of tax.
How can you make sure your investments match your goals?
Both experts stressed that all financial decisions should be aligned with individual goals rather than short-term trends.
Mantra 7: Align investments with financial goals
They emphasised that disciplined planning, proper asset allocation, and long-term focus are essential for building sustainable wealth.
Why is making a will important for your family’s future?
In addition to the seven principles, the discussion of the topic also emphasised the significance of making a will. Experts explained that despite the fact that people may have fewer assets, they should make a proper documentation to avoid conflicts and ensure clarity among the family members.
The seven financial mantras for FY27 at a glance
Summarising the discussion, the experts outlined seven key principles for investors:
- Risk-aware portfolio management
- Emergency fund preparedness
- Responsible debt management
- Diversification across asset classes
- Automated savings and investments
- Tax-efficient planning
- Goal-based investing
They added that following these principles consistently can help investors navigate uncertainty and build long-term financial stability in FY27 and beyond.
