Smart Investment Mutual Fund – Now the question arose that what to do with the money saved so that the returns are good. First of all, collect about six times the money that is spent by you or your family in a month and get its FD done as suggested above. After this comes the turn of mutual funds.
Young people fulfill their hobbies before joining the job and pay less attention to savings and investment in the pursuit of fun. Often doing this, when the age of 30 is crossed, it is not known. Then marriage and expenses. Life changes. A few years went into this and the salary starts to be spent in the responsibility of the children. In this whole disaster, the matter of saving and investment is lost somewhere from life. When the age reaches near 40 then we remember that we have not made any investment. Haven’t paid much attention to savings.
(Insurance is not the investment)
What to do now, hand on forehead and many times the future seems dark. An important thing, usually jobs are found, most people have taken some or the other endowment policy of life insurance either through a partner or through an insurance agent. Because by taking it there is a benefit of tax exemption from the government, the insurance agent has done his job by selling the policy with maximum premium and ensures his commission earnings along with your premium for years.
If there is a substantial increase in the salary, then it is decided that some property is invested in it, which is seen as the only deposit. Means policy and property and bank balance in the bank, seeing which the pride of collecting money goes on.
This situation cannot be called good. It would have been better to see the bank balance, property as well as investment and amount in different accounts, which increase year by year and when you see it, you keep getting erased on your forehead.
For this, it is necessary that you make a smart savings and investment plan. This is not a hide and seek formula. There should be a little understanding and you will be saved from that vicious cycle of life in which most people get trapped and regret after half their life.
(How to earn money)
What do you have to do? Only money has to learn to make money. Earning money doesn’t mean that you have to change your job and just keep doing it. This is not possible at all.
It is important that along with earning money, attention should be paid to how much money is saved. What was done with the remaining money after saving is also very important. It is very important to understand what and where the savings were invested.
(Never Make This Mistake)
As already said, seeing money in the savings account gives relief. But do you know that in the opinion of most investment advisors, the money lying in the savings account is a deal of loss for you. They call it blunder. Why understand here. In today’s date, interest is available at the rate of 3-4 percent per annum in the savings account and outside inflation is increasing at the rate of 6-7 percent per annum. In such a situation, if we are not able to get the return of our money according to inflation, then it is giving loss only. That’s why the investment of money should be at least more than the rate of inflation so that we can get some profit. If not profit, at least try to avoid loss. In such a situation, it is advised that if you cannot do anything, then at least you can do FD, in which money is available at a higher interest rate than savings.
How to FD – Smart Investment Mutual Fund
We should also get FDs of different tenures… or of such tenures in which maximum interest is being received.
If nothing else, get FD done. Get FDs done for different periods as well… it makes a difference of lakhs of rupees. In the next 20 years…
What To Do After Saving Money
Now the question arose that what to do with the money saved so that the returns are good. First of all, collect about six times the money that is spent by you or your family in a month and get its FD done as suggested above. After this comes the turn of mutual funds. Many people are afraid of the fact that mutual funds are investments in the stock market and this money can sink anytime. Yes, it is possible if the whole economy is completely destroyed and all the big companies collapse. There is no chance of this happening. Anyway, mutual funds are regulated by SEBI. SEBI takes care that the company works according to the rules and investors’ money is safe.
Why are you scared of investing in mutual funds?
Now it is not necessary to invest directly in the stock market through stocks. If you do not understand the stock market, then it will be harmful to jump in haste here. That’s why SIP is a great option. How to choose SIP? This question becomes very important. If the market is stable and there are chances of going up in future, then investing in large cap funds is good. It would be good if a little resurgence is done on the fund and then investment is made. If possible, don’t shy away from the advice of an expert. While choosing SIP, do check the rating of the fund. It is better to take funds whose rating is 4-5 stars. It will be fine if you buy SIP yourself. If there is a lack of confidence, take the help of a broker. Brokerage will be charged for taking through a broker, just keep this in mind. Most of the brokers do not explain this clearly.
Fear of loss in mutual funds. / Smart Investment Mutual Fund
There Is A Risk of Investing In Mutual Funds
As mentioned above, before taking the risk of investing in mutual funds, people get scared of the market movements, they believe that if the market falls, the fund will collapse. That’s right. If the market falls, the fund will decrease, in plain words, there will be a loss.
Follow this method when the market is falling
People are afraid of coming down in mutual funds. What would be the way to avoid this. You just have to keep an eye on the stock market once or twice a day or three to four times a week. Means track the stock market. If the market falls 20 percent from the peak, then switch from large cap to mid cap. Do this because when the shares of big companies fall by 20-30 percent, then the small ones will fall by 50-60 percent. In such a situation, it will be beneficial to buy it, that is, as soon as the market recovers, you will come into profit quickly and then when the market is in the mode of complete recovery, then again go to large cap. By the way, this formula is not a hidden secret. Advisors working in mutual funds in the market for years are giving better service to their clients by adopting this. Hope you have understood this point.
The money is yours and the risk is also yours.
Before concluding, would like to clarify that investing in mutual funds comes with market risk. Therefore, it is important that you contact a good investment advisor and invest on his advice. Remember the investment is yours so the risk is also yours. Money is yours and you will also have to take the risk because the profit is yours.
Smart Investment Mutual Fund