Wealth Management

5 ways to teach kids about money

At Morningstar, the concept of economic moats is a cornerstone of our stock-investment philosophy.

5 Ways To Identify Economic Moats

Senior citizens have plenty of reasons to cheer post the Union Budget. One of the biggest is the increase in deduction limit under Section 80D of the Income Tax Act.

Section 80D limit hike

Whenever you are travelling towards any destination, you look for directions to reach that destination. Likewise, your financial advisor may act as your navigation to achieve your financial goals within the desired time.

One can indeed minimise their tax burden by utilising various eligible investment options to reduce the tax impact, and one of the most promising avenues therein is the Equity Linked Savings Scheme (ELSS).

It is said, "If you don't know where you're going, any road will take you there." Just like you must know your destination before you start your journey, you must determine the financial goal before you start investing. You must have a specific financial goal in sight. Be it saving for your child's education, buying a new house or saving for your retirement, linking your investments with your financial goals help you accomplish your goal in a better way. 

When we discuss mutual funds, we come across the standard warning when, “mutual fund investments are subject to market risks.” However, such risks can be classified into two categories – systematic risks and unsystematic risks. Systematic risks arise because of macroeconomic changes in the domestic and global economy. Such changes can include economic growth, fiscal deficit, current account deficit, forex movements, etc.

Systematic Investment Plan (SIP) has clearly emerged as preferred investment route for investing in mutual funds especially for investing in equity-oriented funds. This trend is visible from the relatively stable monthly SIP inflows. As per AMFI (Association of Mutual Funds in India) data, monthly SIP flows have continued to stay above Rs. 8,000 crores for the last 11 months and the SIP inflows during November 2019 were Rs. 8,273 crore.

The year 2020 has just started, and probably you have made your new year resolutions. But have you decided on financial resolutions for the new year to improve your financial habit and create wealth? Your financial resolutions should be more prudent and long term in nature.