Are you serious about your financial future? Do you really want to spend the next decade or more locked into a career and/or a specific company? If not, then you might want to think twice about investing your money. Even though corporate debt has become a well-known risk, most individual investors are reluctant to get involved in this sector. This is especially when compared with other possible investments such as real estate or stocks. In the following article, we’ll look at mutual funds as an investment option that could potentially increase your retirement income while reducing your risk profile and expenses. Read on
Many of us have heard of investing, but relatively few go on to invest. This is because not many know about the perks of investing. We all need money for emergencies, we need money to fulfill our desires and daily expenditures. If we hope to sustain our lifestyle even after retirement, investment is a must.
Portioning a part of your income aside for investments can save you from financial disasters. Many investment options are available in the market, Mutual funds, Equities, NPS, and Corporate FDs.
To choose the right investment avenue, you need to check your time frame, risk appetite, goals, outside liabilities, the amount you can invest, and other factors influencing your financial position. Your investment tenure in the market is an important factor in delivering superior returns. Therefore, it is recommended to start investing as early as possible. So what are you waiting for? Start investing!
Mutual funds are an investment product in which our invested money works for our future with comparatively fewer risks than equities. With a wide option of investment avenues and funds to choose from, one’s investments are to be made based on their goals and time frame. With hassle-free withdrawals, your invested amount is fairly liquid. But the most important factor of all is the fact that investing in mutual funds helps us stay financially strong.
Financial emergencies are something one cannot avoid. When considering a working professional who invests in a SIP regularly vs another professional who neglects the same citing reasons that aren’t avoidable emergencies, the possibility of regret for one during a financial emergency will always be strong with the latter.
In this case scenario, the invested professional has the option to withdraw his investments which have been compounding over the years and the un-invested professional has to go into debt to tackle the emergency. As always, debts are something that compounds negatively and digs in deep into your financials.
Mutual Funds have always been a tool to overcome such tricky situations. A true boon during financial distress.
That being said, Mutual funds investments are among the best ways to get started when it comes to investing. Let’s not regret our financial mismanagement later on - Start a SIP now!
We can understand the hesitation of investors to invest in mutual funds. But, as with any other investment option, Mutual funds also possess some risks due to market volatility. However, there are also a number of factors to choosing mutual funds as your next investment.
- Firstly, mutual funds are managed by professionals. Therefore you are making informed choices when you start investing in Mutual funds.
- Secondly, mutual funds offer a variety of funds based on your cash flow and risk potential. Hence, you can choose the mutual fund that best fits your needs.
- Thirdly, you can choose the frequency of your investment with mutual funds. You can either invest in lump sums or make periodical SIP payments. Either way, you can multiply your wealth with mutual fund investments.
- Finally, with mutual funds, your portfolio is already diversified. Mutual funds consist of different types of investment tools hence, your risk is minimized to a certain extent. Therefore, investments in mutual funds are very much beneficial in the long term.
Mutual funds are one of the most talked about investment instruments in the past years. Mutual fund investments can be done by anyone based on their risk tolerance, goals, and cash flow. To begin your investment journey, you should start by opening a Demat account.
You can start your first mutual fund investment online or offline through a mutual fund company or an intermediate. Select your mode of investment, either lumpsum or SIP.
Once you do the payment, your orders for certain units of Mutual funds will be allocated to your account. It might feel scary to make your first step toward investing. Don’t worry. Contact an investment coach to get better ideas and strategies for maximizing your wealth and securing your future.
Investing in mixed investment funds
Before we decide to invest in participation units or certificates, we should clarify our preferences and expectations and seek the necessary information about the fund and the fund manager.
Depending on the goals of saving money, investing through funds provides greater opportunities to diversify the expected effects and the risk of saving.
If we are planning an investment for a short period (up to 1 year), then a money market fund will be appropriate.
Medium term (1-5 years) investors should rather choose the money market bond fund.
Mixed investment funds invest in different asset classes, e. g. equity securities (including stocks), fixed-income securities (bonds, money market instruments).
