Summary: Secure your future by investing your funds. Also, in the given economic scenario it is all the more important to invest one’s money so that it generates good returns. With plenty of investment options available, know well pros and cons..
Investments are important for everyone to secure their future, and better it is start early than to repent later. Especially in recent economy scenario where inflation and cost of living has shot up at a relatively higher rate than growth of income. And in such times of crisis and tricky situations, one must know how to invest/save one’s money to generate good returns.
Though investment options are in plenty, but this often leaves people perplexed, as it is important to know in detail about different modes of investment. While one enquires about pros and cons of different investment types, there are several other questions that need to be answered when planning to invest. Some of them are as follows:
Periodicity - What is the duration for which you wish to park your money? Risk Involved- If you know your risk taking ability, it can clearly sort your investment options. Like equities are a no-no to a low risk investor as it may cause loss of even the principal.
Taxation- This is another factor that can be the basis of your investment and can affect the real returns of the investment, and hence should be considered before investing.
Liquidity- This is linked with periodicity as well and in case the investor wishes to have the fund back to him in shortest possible time, PPF with minimum of 5 years of lock in period and other investments like Equity Linked Savings Schemes etc..
Apart from the above if one were to define basis your financial goal or one was to take the route of goal based investing, which focuses more on risk capacity more than risk tolerance. It takes into notice the progress over goals. It resists any hurried investment decision by defining its process that lets one identify goals, and therefore allows choice of strategies to reach them. Such an approach to investment works well in case of goals like, school admission and studies of children or
So, once you know it all about your investment goals and returns, it becomes simpler to choose your investment kind; and mutual funds in India are one of the most popular kinds of investments. Anyone who plans or intends to invest in
mutual funds in India must keep a regular track on the market behavior and should constantly track their performance as well.
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Certain factual and statistical information (historical as well as projected) pertaining to Industry and markets have been obtained from independent third-party sources, which are deemed to be reliable. It may be noted that since NAM INDIA (Formerly known as Reliance Nippon Life Asset Management Limited) has not independently verified the accuracy or authenticity of such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrived at; NAM INDIA (Formerly known as Reliance Nippon Life Asset Management Limited) does not in any manner assures the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect NAM INDIA’s (Formerly known as Reliance Nippon Life Asset Management Limited)views or opinions, which in turn may have been formed on the basis of such data or information.
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.