Importance of mutual funds in India

-->

India has emerged as one of the biggest economic power in the last one decade. The growth rate has witnessed a tremendous increase in terms of percentage and productivity. Apart from this savings and investment has been a constant culture in India which has evolved through all these years taking different forms and manifestations. There is so much f importance laid upon mutual fund India as our elders believe in saving for the future not only for a secured tomorrow but also to ensure the well being of their families. Mutual funds have become the new age mantra for increasing the income apart from the savings bank account, fixed deposit and gold. Earlier mutual fund was meant only for a limited section of industries like banking, jewellery and reality, but looking at the huge potential that the sector offers not only to its customers but also to the investors, the bar has risen to include infrastructure, FMCG and telecom industries.

Mutual funds India are categorized mainly in four categories- money market funds, bond or fixed income funds, stock or equity funds and hybrid funds. There are different rules that guide the investment policy for each of these types of funds but the ground rule that applies to all these funds is that one needs to look at three things at the time of investment. These three things are risk factor- usually it is said that higher the amount invested, higher is the risk and greater are the returns, time duration- total time period for which the money is invested in mutual funds and the portfolio which is investing in many types of funds in order to maximize the returns that come from each funds. Therefore mutual fund investors can invest in a variety of instruments like stocks, bonds, money market securities, gold or a combination of these which provide diversification to the individual who is investing.

Investments are considered to be one of the best tools to maximize the financial goals of an individual. Every investment policy is unique in its own way as it offers over 1000 schemes to boost the financial goals and suits the investment objective of the individual. Another factor that makes mutual funds a lucrative market is the fact that money is managed professionally once invested, it helps in diversifying the portfolio of the investor, low cost of investment due to economies of scale, and the market is well regulated and highly liquid in nature. Apart from this at the time of investment the person should be careful about the nature of the market and the profit margin before making a purchase or sale of funds respectively as the market knowledge factor determines how successful the returns are going to be for the individual.

What is the best way to invest money?

Money is the most important factor that drives your life. If you see a nice pair of jeans, you will ask yourself, ‘Can I spare 1500 bucks for this?’ If you were to watch a movie, you calculate whether a pop-corn would be economical or an entire combo meal with cold drink? We calculate so much because we always want to save and have more money for later. We spend a lot of time everyday just calculating our incoming and outgoing money, just to see whether we’ve enough for that get-together we planned to attend with friends. So much so that daily our mind asks the same question again and again, ‘what is the best way to invest money?’

While there’s no single solution that can adequately satisfy the question ‘what is the best way to invest money?’ there’s definitely one of them which have worked the maximum number of time for people. It is wealth management. Wealth management is about investing money in the best possible financial schemes that can offer you the maximum returns on the most reasonable investment. Wealth management solutions offer complete guidance to an individual regarding where to invest, with regards to his discretionary income. 

Wealth management should be considered a seriously important facet of life because in the future, this is what can make you lead a comfortable life.  People even spend a lot of time worrying about their future and as to how they will lead their life after retirement. This question hits harder to those without kids to support them in their old age. Whatever be the case, wealth management solutions can put a rest to those premature graying hair that happen to due excessive worrying! 

Some important tips regarding wealth management that can ensure a smooth journey of life are:

·         Take control of your life: If you are dependent on someone to take care of your finances, it will be too late before you can start understanding how to invest and where to invest your money? 

·         Get your family together: Getting your family together will catalyze the process of working towards a common goal. The entire family can mutually decide how much they can commit to saving. If everyone’s together, they can plan better and save better for a safe future.

·         Hire a good financial services firm: Firms that provide financial services are experts in the field of wealth management. They are well versed with every type of policy according to all income range. They are definitely a good place to visit and get some initial consultation.

·         Be focused: At times, you might exceed your spending. Don’t let a period of drought dishearten you. The only thing that can get you going is your focus! Always be committed towards your goal so that you can reap what you have started sowing.

Wealth management solutions are gaining importance since people are realizing the importance of investing their money in the right place. Without saving, the future might look a bit dull. And with savings, the future will be full of bright smiles!

Securing your family's future with sound Financial Planning

Financial independence is perhaps the best feeling a man can get. To be able to buy anything you wish to, to be able to live life your way without asking anyone. Isn’t it truly marvelous how life would be at that stage? Almost everyone struggles to reach that stage of financial independence in life. While some achieve it, the remaining people strive hard daily to reach that transcendence.

You might know a lot of people who aren’t satisfied with their jobs but are still clinging on to it. Whyare they still carrying on? Because they need that certain inflow of cash every month till they reach financial maturity. There are so many businessmen who have seen their competitors rise but they are still where they were. Why? Because they aren’t financially secure to take a deep plunge into a risky territory! 

Considering all the above things, you can break free from this clutter of people waiting to achieve financial independence by doing personal financial planning for the benefit of your family. Personal financial planningis very vital, because very often life will confront you with demanding questions and you need to be ready with the answers. Incidents in life such as your child’s higher education, marriage of your daughter, planning a much needed vacation and finally your retirement will come one after the other, and you need to be prepared for them. 

These decisions require a lot of planning, and just as you start making a career, you should start thinking about these things as well and hire a financial consultant. A financial advisor is a one who’s well versed with everything that has been going, that goes on, and that will go in in this world run by money.  He is quite knowledgeable about the various policies offered by investment and insurance companies, as well as the financial schemes of the government machinery. A trip to some good financial planners will make youfeel secure about your future as they will provide you guidance in the best of your interest.

These financial planners have a good experience of doling out amazing pieces of advice depending on your income and expenditure. They will help you to curtail unnecessary expenses and inform you about the various schemes offered by the investment companies such as those for your child’s education, your daughter’s marriage and so on. Retirement schemes are a big hit in India, with every firm trying to outdo the other.

But as they say, “investment policies are subject to market risk, read the offer document carefully before investing!” Trust only financial planning India experts who have had an excellent track record of guiding people to the right path. If you have saved enough money and wish to invest that for a better future, then too you can hire financial planning India experts that can suggest you proper places to invest, in order to sleep sound on every night of your old age, without having to worry about having enough money for the next day.