Mutual funds are a potential investment vehicle to cater to multiple needs from short term parking of funds, tax savings and wealth creation. While talking about mutual funds, it is essential to be aware about the concept of volatility and how volatility can impact your product selection.
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.
Come elections, and the whole investing fraternity gets busy predicting the effect they might have on the stock market and how will they make the Sensex dwindle. The upcoming General Elections 2019 are not untouched by the speculation either, especially in the aftermath of the state elections when a lot of predictions went haywire.
Warren Buffet once said, “do not save what is left after spending; instead spend what is left after saving.” This quote emphasised prioritising savings in our financial lives. However, a lot of modern day youngsters prefer doing precisely the opposite – living in the present and spending on luxuries rather than focusing on the saving for the future.
“Mutual fund investments are subject to market risks.” While the market risk in mutual funds is inevitable, the fund management team can mitigate it to a certain extent, with adequate research and analysis. Based on their risk tolerance ability, an investor may be classified as an aggressive investor, moderate investor, or a conservative investor. This article aims to discuss how to evaluate the risk profile of an investor, including various factors that affect it.
While Indians have historically been investing in physical assets like gold, real estate, etc., the millennials are reflecting an increasing preference towards investing in financial assets. Mutual funds are steadily emerging as a preferred investment option, as also being reflected by steady monthly SIP inflows (Source – Association of Mutual Funds in India, AMFI).
Mutual funds have been instrumental in channelising the household savings into financial markets, as the investors need not have expert knowledge about the financial markets to invest in mutual funds. Investors may rely upon professional fund management for their investments in mutual funds. Further, with the availability of a wide range of mutual fund schemes, investments in mutual fund schemes can be made as per personal risk appetite and financial goals.
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.
A wise man once said, “the best time to plant a tree was 20 years ago; the second-best time is Now.” This quote not only gains its relevance in the World which is getting warmer every year but is equally relevant in the financial world.
Systematic Investment Plan (SIP) allows the investors to invest in a mutual fund scheme of their choice at periodical intervals. It automates the investment process once the investor has completed the registration process, as the investments continue to be regularly made irrespective of market ups and downs.
