Today it is important to save your expenses and invest them in the right direction. Where to invest, setting goals, understanding the time horizon and the potential for anorexia is essential. One of the most common inquiries we receive is from young people starting their careers asking what investment products we recommend. Although the query is usually about mutual funds or which assets to buy, this is a reverse approach to starting your investment journey. To choose the investment products that are best for you, you must first be clear about your investment goals, time horizon, and potential for appetite loss. This is how beginners should invest.
Many beginners believe that the secret to creating wealth lies in betting the savings on products with a high probability of loss and high returns. It really isn't. You need savings to make savings, so the secret to creating wealth is maximizing your savings that can be directed into investments. Running a monthly SIP of $5,000 for 10 years in a Mutual Fund (MF) offering 15% compound annual return will help you accumulate 13.93 lakh, but double that SIP to $10,000 and can fetch you 20.65 lakh with 10% profitability.
This is why it is helpful to set a consistent savings goal, no matter what. Warren Buffett's principle: “Do not keep what is left after spending, but spend what is left after saving,” a good way to ensure a high level of savings. Set a goal of saving 10% or 15% of your home salary to start, and increase that amount to 20-25% as your income increases. Set up automatic deductions on your salary account which should deduct, for example, 15% of your salary, before the fifth of every month, to be used for investments such as recurring deposits, SIP in MF, or contributions to your NPS/EPF account. Try investing in mutual funds will also help you out to do better Investments. In pursuit of the goal of becoming a unique financial supermarket, we have ventured into the areas of banking products and services to meet the growing needs of our clients. As a step towards that, we have entered into a distribution agreement with the following AMCs to distribute their mutual fund products.
The answer to this will largely depend on your financial goals. However, it is always a good idea to have a good mix of short and long-term investments in your portfolio. Short-term investment plans will allow you to achieve your short-term financial goals, such as amassing enough money to buy a car, while a long-term investment plan may allow you to achieve your long-term goals, such as accumulating enough money. to buy a house. Generally, long-term investment plans are preferred, as safer investment tools can be used to enjoy better returns in the long run.