We are part of a conservative culture where conservation practices are built into our DNA. As a country, we prefer to save rather than spend money, unlike developed economies driven by spending in the local economy. Saving is automatic and we all save for the future in our own way. Whether investing in FD bank savings or contributing to PPF or reducing the cost of managing a borrowed EMI, savings are all we do. But what about raising your money to something more than your savings that may bring you back 8% – 9%, half of which is plagued by inflation?
This is where savings and investment come together to help you build wealth and feel financial security. Having a job is not enough to make you feel financially secure because what you have left over after your monthly expenses are paid is not enough to pay for future lumpsum expenses that will be needed over time. Salary and salary savings cannot provide major ticketing items in life such as children’s higher education, their marriages, health care costs in adulthood and the cost of a long life in retirement where income can no longer be restricted. It is important to put your savings into investment strategies where they can grow repeatedly over the long term.
You need to understand the difference between short-term and long-term investment decisions in order to take a holistic approach to building financial security and wealth.
Protect Short-Term Terms
Short-term goals are usually defined as the milestones you want to reach in the next 1-3 years. If you have short-term goals that you can not afford, go and look for savings options like bank FD or better still invested in the right debt when you are comfortable with mutual funds. Converted joint funds or loan funds are safer than equity-directed joint ventures and have the potential to give you higher returns on bank FDs. But you should do some research or get the help of an investment adviser to select the right funds for your investment and risk management strategy.
Do not allow your money to remain in the bank
Most people just let their money stay in their savings bank account even if the amount is much higher than what is needed to manage their daily expenses. Don’t let too much money into the savings deposit. Instead invest in a liquid mutual fund that can give you a higher return than what the bank can offer you. Liquid funds are ready to operate as they have no entry and exit loads and redemption money is available to you on the next business day when you want to sell your money in a wallet. Liquid investments are best suited for investing for accumulated capital over a period of 1-90 days and are slightly variable in all joint ventures.
Invest in Balanced Mutual Funds for Medium Term Goals
If there are certain requirements that you expect to meet in the next 3-5 years, choosing a mutually beneficial fund or hybrid mutual fund would be a good option. Beneficial funds in the form of a hybrid mutual fund invest in a mix equity and debt securities. They capture your features of both equity and debt while providing a medium-term risk return to their investors that suits those who prefer safe play while seeking some higher equity power.
Invest in Equity for long-term options
If your financial policy has long defined your retirement life starting at 15 or your daughter’s higher education at 7 years of age, the best option would be a well-balanced equity fund. Equity funds are best suited for long-term investments over 5 years as prices tend to be highly volatile in the short term but can offer good returns in the long run. Invest wisely in a few equity pockets that fit your personality i.e. your willingness to take risks. You may also consider investing directly in the equities, but mutual funds are best suited for those who do not wish to take risks with stocks. Always try to understand everything about mutual risk funds before investing in them.
Be flexible, monitor and re-evaluate your portfolio from time to time
Once you have invested in various mutual funds, FDs, stocks, ULIPs, PPFs etc. function is complete. You need to monitor your portfolio regularly and make adjustments if needed. Redesign is required to reflect any changes in your health conditions. For example, you change jobs from MNC to the beginning when the risk is high. Under such circumstances, your exposure to the portfolio of stocks should be reduced as your personal investment is now invested in high-risk stocks. Working for beginners is as good as taking a very risky balance.
Seek professional advice
It is best to seek professional advice from another investment adviser or get the help of mutual fund distributors to get paper work and transaction requirements. An Investment Adviser will create your risk profile and assess eligibility before recommending any investment plan. It may be helpful to have such assistance when investing your hard-earned money in a long-term plan. Give yourself time to understand
You can learn more about financial planning, how to invest in mutual funds, different types of mutual funds, how to select mutual funds on the site called Mutual Funds Sahi Hai created by the corporate fund industry organization, AMFI, for young people. you.