Independence Day opens up a flood of emotions in every Indian. While the Indian freedom struggle teaches patriotism, grit and sacrifice, you can also learn valuable investment lessons. Following are some valuable lessons that we Indians can learn from the country's freedom struggle and its leaders.
"Swaraj is my birth right, and I shall have it."
While the Covid 19 pandemic took the world by storm, one of the lessons of this crisis is the realization that we must all prepare for any such eventuality in the future. It is imperative to properly plan and manage one’s finances for building a financially secured future. Here is a beginner’s guide to financial planning in 2021 and for the future years:
When investing in mutual funds, one must choose the mutual fund schemes that best suit their financial goals and risk appetite. In addition, selecting the equity investments basis their market capitalisation is one of the selection criteria, as different market cap segments carry different risk-reward trade-offs.
Systematic Investment Plan (SIP) is a facility offered by the mutual funds to investors. Here one can opt to invest in a mutual fund scheme on regular basis by registering a standing instruction, wherein mandated amount by the investor is deducted automatically from the bank account and invested in the mutual fund scheme as specified in the registration process.
It is always advised, "one should not have all eggs in the same basket." This advice works well in the investment world too, as no single asset class has always been a winner for investors. As such, the investors tend to prefer having a diversified investment portfolio across different asset classes.
When it comes to mutual fund investing, investors can choose between actively and passively managed funds. While both aim to provide market-linked returns to the investors, these funds tend to differ on many parameters.
Mutual funds are increasingly becoming the preferred option for retail investors, thanks to the growing awareness of this most transparent and professional money manager. The consistent monthly SIP inflows is a reflection of investor’s changing preference towards mutual funds. The data released by the Association of Mutual Funds in India (AMFI) shows that investors channelised Rs. 10,351 crores in mutual funds through Systematic Investment Plans (SIPs) in September 2021 alone and Rs.
With a wide range of mutual fund schemes are available for investments, it becomes imperative for the investors to carefully review the available options and then select the mutual fund schemes best suiting the risk profile, financial goals, and investment horizon. Different mutual fund schemes may be suitable for financial goals with varied investment horizons.
Debt funds are one of the five broad categories of mutual funds allowed by the Securities & Exchange Board of India (SEBI). Debt funds predominantly invest in debt securities and bonds. Such securities tend to provide income primarily through interest income from such securities.
It is always advised, "one should not have all its eggs in the same basket." This advice works well in the investment world, as no single asset class has always been a winner for investors. As such, the investors tend to prefer having a diversified investment portfolio across different asset classes.
