We belong to a conservative culture in which savings habits are incorporated into our DNA. As a country, we prefer to save more than expenditures, unlike developed countries, which are supported by domestic economic expenditures. Savings come naturally, and we all save money for the future in our own way. Saving is our savings, contributing to PPFs, or reducing costs to manage mortgage EMIs. But how about expanding money to something that exceeds the savings that may get 8 % to 9 % return, is half of which inflation is eaten?
It is when savings and investments gather to build wealth and help them with economic safety. Working is sufficient to feel that it is financially safe because what is left from your salary after monthly expenses is not enough to pay the future temporary cost. There is none. Salary and salary savings are expensive items in life, such as higher education, weddings, health costs in old age, and salaries that are no longer alleviated with you. It cannot be provided. It is essential to invest in savings into investment means.
You need to understand the difference between short -term and long -term investment decisions. That way, you need to take an overall approach for financial safety and wealth construction.
Secure short -term goals
A short -term goal is usually defined as a milestone that you want to achieve in the next 1-3 years. If you have a short -term goal that you can’t afford to overlook, go to a savings options such as a bank FD and invest in the appropriate debt investment trust if you are satisfied with the mutual fund. Bond investment trusts or debt funds are safer than stock -oriented investment trusts and may provide higher profits than bank FD. But you must fully study the help of investment advisors or borrow the help of an investment adviser to choose the appropriate funds that match your financial goals and risk taking skills.
Don’t let the bank spent money
Most people only spend money on the savings bank account, even if they are much higher than the amount required to manage their daily costs. Excess cash should not lie in savings deposits. Rather, invest in Liquid Mutual Funds, which may provide higher profits than what you provide to you. Liquid funds are convenient to operate because there is no entry and exit load and redemption money wants to sell your ownership the next business day. Liquid fund is perfect for investing surplus cash over a 1-90 -day period, and is the most unstable among all mutual funds.
Invest in a balanced mutual fund for medium -term goals
If you have expected requirements in the next three to five years, choosing a balanced mutual fund or an appropriate hybrid mutual fund may be a good option. A kind of hybrid mutual fund, a well -balanced fund, invests in mixed ekuity and debt securities. They invest an investor who is suitable for investors who prefer to play safely while looking for the possibility of up -to -face, while capturing the characteristics of both stocks and debt. I will provide it.
Invest in a long -term fair -aim option
When your financial goals are long, your retirement will begin in 15 years or your daughter’s higher education will be 7 years. Stocks are more likely to be higher volatility in the short term, but can give good returns for a long time, making it ideal for long -term investment for more than five years. Invest in some stock funds that match your personality, that is, the willingness to take risks. You can also consider investing directly in stocks, but the mutual fund is more suitable for those who do not want to take risks in stocks. Before investing, always understand everything about the risk of mutual funds.
Make a flexible monitoring of the portfolio and rebalance
If you invest in various mutual funds, FDs, stocks, ULIPs, PPFs, etc., you can complete half of your work. You need to monitor the portfolio regularly and make changes as needed. To reflect changes in your living environment, you need a rebalance. For example, change the job from MNC to a high -risk startup. In this situation, portfolio exposure to stock should be reduced because human capital is currently invested in high -risk shares. Working in an emerging company is as good as owning a high -risk equity.
Please ask for specialized advice
It is best to seek advice for experts from some investment advisors, or to survive the requirements for administrative processing and transactions with the support of a mutual fund distributor.