Personal Finance – Let’s start with Mutual Fund
This means if we can afford a little amount every month and put it into a safety net of mutual funds over the period of at least 8 to 10 years believe me friends it will certainly give us a post tax return of 12 to 15% which is better than any fixed nature of securities.That does not mean Mutual Fund investment provides a guaranteed return or it does not have any investment risk associated with it,Of course it has investment risk associated with it.But we can beat this by staying invested for a longer time horizon.
I would also like to add one thing here that mutual fund is not any investment tool,rather it’s a medium of indirect investment in equities and debts.
This is really a great tool for those who don’t have any or want to have direct exposure to stock comes the safety hands of Fund managers who on behalf of investors push the money to stock market.
One important thing everyone must know that the market as previously the statistics shows if starts with a bull phase then it would certainly end with a bear phase within a span of 5 to 7 means during this period we need to consolidate our investment portfolio and wait for the money to grow to reach our financial needs with ease.Also to keep in mind that nothing is permanent in Equity market.Not necessarily the market would follow the past trends.It might not follow the trend and start a new trend itself.
In today’s scenario for the lower middle class people Mutual Fund has become the only medium to save a hefty amount for their future and sunset times.I personally feel that Mutual Fund should be everyone’s first priority if one can spare even if a very small amount even 100 Rupees monthly and start an SIP from the very beginning of earning period. SIP helps in reducing average cost of investment by investing your money at different market or index level.
Here I would end up with quoting a great saying of market Guru Warren Buffet “Spend what is left after investment”. That is Income – Savings=Spending.
Only this discipline approach will take you closer to your financial dreams more than your expectation.
Quick Tip: Never try to time the market, rather spend more time in the market.There is no perfect time for investment in Equity market.Investment in equity market at any index level is embraced by the market itself.