Raksha Bandhan signifies the strong bond between brothers and sisters. Sisters tie Rakhi and wish for the wellbeing of their brothers, and in return, brothers promise to keep their sisters protected throughout their life under every circumstance. Brothers also present a gift as a token of their love for the sister.
The investment horizon plays a vital role in investing. Talking specifically about mutual fund schemes, equity mutual funds may be more suitable for long-term financial goals. Equities may be volatile over the short term but carry the potential of wealth creation over the long term.
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.
It is always advisable to hold an emergency fund corpus to meet any life contingencies. Such emergency fund should be equal to at least six months' regular expenses one needs to incur, for it provides sufficient financial cushion for any unforeseen situation in life. While maintaining an emergency fund is often on the agenda of many households, many savers keep such funds in the traditional savings accounts.
One of the expectations from fixed income asset managers this time of the year is their annual forecasts on inflation, repo rate or government bond benchmarks. Forecasting typically involves answering the following question: “Given the data we see today, what will be the value of a variable at a period”. It is often said that forecasting exists to make astrology look good.
On 15th August 2021, India will celebrate its 75th Independence Day. Millions of freedom fighters lost their lives in this endeavour of unshackling India from British rule. As the country prepares to celebrate this milestone, it could also be an excellent opportunity for us to focus on independence on a more personal level, especially for matters related to our financial life.
Starting your own business may call for some initial seed capital apart from your time and focus on the venture. When one plans to start a business, it is always helpful to have some accumulated savings.
Flexible Investment Horizon
As per SEBI (Securities & Exchange Board of India) guidelines on mutual fund schemes’' categorisation, liquid funds are debt funds that invest primarily in debt and money market securities with a maturity of up to 91 days. Accordingly, such funds invest in Treasury Bills (T-Bills), Commercial Papers (CP), Certificates of Deposit (CD), etc.
