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To get started with family investments, you need to make a list of goals you want to invest towards. These will create different funds that can be utilized for your family's needs when those moments arrive. This might be your first time as an investor. Worry not for it is always a good time to start investing - be it as a collective unit or individually. However, if you are investing as a family, there will be some added responsibilities.  You can follow a few pro tips so as not to get confused when you have more than one investment to deal with.  Separate investments from savings  Investments are a lot like savings. We invest or save money for future use. But investments are a better method of securing your future because, unlike your savings, investments can generate more wealth by themselves. Thus, to enjoy the blessings of compounding, you are advised to separate your savings and investment. This means that you are required to not mix them up. It also means that you can have separate saving goals and investment goals. List down your saving goals and investment goals so that you do not lose sight of them. Keeping track of this will also help you decide how much money you can afford to invest depending on your income and expenditures.  Fixing your investment goals Once you can tell your investments apart from your savings, the next step is to compartmentalize your investments. Like savings, investments must also be divided according to different financial goals. That is to say, do not put all your money in one place with just one goal in mind. Divide your priorities and list them down. It is advisable to separate your personal financial goals from your family goals. Your investments can be directed towards creating funds for emergencies, healthcare, childcare, education, housing, retirement, and so on. These are the common needs of a family unit but you might have special requirements. Prepare your list of priorities accordingly.  Creating diverse investments  Simply compartmentalizing your investments is not enough; you are also required to diversify your investments. The trick is to invest in different places instead of investing in the same company stock or fund.  You must remember that, as a family, your investment goals can be quite distinct and miscellaneous. They vary not only in terms of the time you can give for the money to grow but also in terms of the amount you can invest in the first place. There are other factors like the level of risk involved and the percentage of returns you will enjoy in the long run. There are various kinds of mutual fund schemes you can opt for - large-cap equity funds, small-cap equity funds, mid-cap funds, debt funds, taxing saving schemes, and so on.  When you diversify investments, you play safe by ensuring that if you incur a loss on one investment, it will be balanced by the profits earned on another. Moreover, you can invest in International Equity funds to satiate goals like your child’s education abroad. This will ensure that you do not get affected by the market fluctuations of the Indian stock market. Also, your returns will have more value because a foreign currency like the US dollar is more stable. FAQs What should a family invest in? Investing as a family is important, from starting a PPF to SIP for mutual funds, you can explore a huge set of diverse options. Remember, investing is different from savings so make sure you do both as a family because there are many expenses to care for. What is the number 1 rule of investing? The number 1 rule of investing is to start early and never lose money. The power of compounding helps you save money and generate wealth for big goals like education, buying a house or starting a fund for travelling. What do 30 year olds invest in? There are many investment options for 30 year olds such as stocks, ETFs, mutual funds, etc. What are 3 good investments? Stocks, index funds, mutual funds and ETFs are 3 categories of investments that are considered good. Conclusion When you make investment decisions as a family, your kids learn from you. Thus, as a financial role model, your responsibility increases. As a married person, sharing investment goals with your partner as well as having separate individual funds is an example of healthy investing. This is the most organized way to make sure that one fund does not get compromised to fulfill a goal it was not originally meant for.  Similarly, try not to use up your life savings or retirement fund to send your kids abroad for a college education. Only prior well-planned investments can prevent such bewilderment from occurring. Investing systematically also means zero stress in your retirement life. Consult an expert advisor to get the right plan TALK TO AN EXPERT

In this blog, we have shared top tax saving options for salaried individuals. Every assessment year, the tax filing season serves as a signpost for anxieties and a frenzy among paid people. You seek tax-saving strategies since you must pay money for taxes for the relevant fiscal year. Top tax saving options for salaried individuals Following are the top saving options for salaried individuals:  1. Employees' provident fund (EPF)  The Employees' Provident Fund, or EPF, is one of the most well-liked ways for salaried individuals to save on taxes. The Central Board of Trustees oversees the Employees' Provident Fund and Miscellaneous Act of 1952, which established it. Under this plan, 12% of the employee's income is contributed by both, the company and the employee to the EPF. The employees earn interest at a specific rate on their contributions.  For salaried workers, tax savings through EPF take the form of tax exemption. The money accrued in an employee's PF account and any interest is tax-free. A salaried person's income plan is lacking without an investment in a Public Provident Fund, or PPF. You may start a PPF, a savings plan supported by the government, for as little as Rs. 500. Maximum investment allowed is Rs. 1.5 lakh. 2. Public provident fund (PPF)  PPF has the category of EEE or Exempt-Exempt-Exempt. This indicates that all contributions made to the fund, interest received, and maturity amount are tax-free. As a result, it's an excellent way for you to invest and save on taxes. 3. Equity-linked savings scheme (ELSS)  Consider ELSS if you're searching for financial solutions that let salaried workers deduct income taxes from their pay. One of the finest tax-saving choices for salaried people is the equity-linked savings scheme or ELSS. Investments in ELSS plans may be written off from an employee's taxable income under Section 80C. You should also be aware that it differs from all other mutual fund schemes because it qualifies for a tax deduction. For salaried persons, ELSS distinguishes itself from other tax-saving choices because of its dual benefit of relatively more significant returns that are partially taxable. For profits over Rs. 1,000,000 in ELSS returns after March 31, 2018, there is a 10% tax. 4. National Pension Scheme The National Pension Scheme, or NPS, is designed for those who wish to save for retirement but have limited tolerance for risk. Being directly governed by the central government, it is a secure alternative for investments and a great way for salaried people to save on taxes. Under section 80C of the IT Act, you may claim tax advantages for the donation. Additionally, you are eligible for further deductions of up to Rs. 50,000 under Section 80CCD (1b). 5. Health insurance Chronic health disorders have become more prevalent due to an increase in sedentary lifestyles, long work hours, bad eating patterns, and other environmental variables. Additionally, the rising healthcare expense has elevated health insurance to the status of an essential investment. It also offers tax advantages while protecting you and your family from health problems that might drain your bank account. Premiums paid under Section 80D are eligible for deductions. One of the tax-saving investments that have several advantages is health insurance. 6. ULIPs ULIPs, which stand for Unit Linked Insurance Plans, offer investment and insurance benefits. With the money you pay in premiums, you may give your family financial security and invest in various assets to earn returns via careful planning. ULIPs come under the EEE category. This means that you can save taxes* since the premiums paid, the returns earned, which are not subject to deduction, and the maturity sum are all tax-advantaged, provided certain requirements are met, and recent tax* standards are followed. 7. House rent allowance (HRA)  According to the relevant regulations, those who rent housing can take advantage of tax incentives for salaried employees. HRA, also known as House Rent Allowance (HRA), is not entirely taxed and is thus deductible from income for salaried employees. Because a portion of HRA is free from taxation under Section 10(13A) of the Income Tax Act of 1961, subject to certain restrictions, it is one of the tax-saving choices available to salaried persons. HRA is subtracted from the total income before calculating the taxable income. Additionally, you should be aware that HRA received from your employers is entirely taxed if you own your home and do not pay rent. It would help if you considered this fully to grasp how a salaried person might reduce their tax burden. 8. Gratuity It is tax-exempt under section 10 when given to an employee upon their death, dismemberment, retirement, or superannuation (10). The maximum exemption amount is Rs. 20,000,000. Remember that to be eligible for the payment, you must have served a minimum of five years in the company. Investments should be made early and frequently for effective tax planning. Your tax planning to-do list should also include studying your pay stub. Don't disregard the investment declaration form your company sent you; it contains a wealth of tax-saving information. FAQs How can I save more tax on my salary? There are many ways to save on taxes on your salary such as: National Pension System House rent allowance (HRA)  ULIPs Health insurance Equity-linked savings scheme (ELSS)  Employees' Provident Fund (EPF)  How much maximum tax a salaried person can save? Salaried individuals can save up to 1.5 lakhs in India on taxes. How can I reduce my monthly tax on my salary? Salaried individuals can claim up to ₹1.5 Lakh spent on such investments as tax waivers under Section 80C of the Income Tax Act. Consult an expert advisor to get the right plan TALK TO AN EXPERT

What can you do with Rs 500 today? Get an amazing lunch or dinner for two at a decent restaurant in town? Or get a Pizza for two? Or get a cool T-shirt from an online store? Alternatively, with Rs 500, you could have a large pot of money to send your child to their dream college and fulfill their aspirations. One can choose the route of saving Rs 500/ month through SIP plans with mutual funds and have a considerable sum of money by the end. What is a SIP? A Systematic Investment Plan or SIP is a way in which you can choose to invest a fixed amount with the mutual fund at regular intervals (say a month or a quarter). SIPs aid in creating financial discipline and saving towards a goal. They reduce the burden on the investor by allowing them to invest small sums instead of a large cash outflow or lumpsum amount at once and provide the investor with decent returns. To forgo lifestyle expenditure and to start investing would be difficult for early boomers in the starting stages of their careers. Once the investor opts for an SIP (or more SIPs), the amount as specified by the investor automatically gets debited from the bank account that is linked to the SIP. Hence, you are investing for your future automatically without you making any separate effort towards it. Can I save Rs 500 and have something tangible in the end? SIPs in India allow for investing with a minimum amount of Rs 500. Hence, as an investor, instead of ogling at the stock/trading screens and making desperate attempts to time the market and fanatically buying and selling stocks, you could simply invest in Mutual funds. Mutual funds take care of diversification (putting your eggs into different baskets), invest in the best stocks, and finally earn you a decent return. Let us consider some scenarios - Case 1 As a very young investor, a graduate who has earned his or her first paycheck, you could start saving Rs 500 into a SIP. Even if you maintain this as your amount and invest for 35 years, by the time you are 56, you will have Rs 1.76 Cr in your investment pot. Hence with an investment of Rs 2.1 lakhs, you would be creating a wealth of Rs 1.7 Cr. SIPAmount500Expected Return18%Number of years35At the end of the time periodInvested Amount2,10,000Wealth Created1,70,79,403Final Amount1,72,89,403 Case 2 Even if you do not have 35 years till your child starts to go to college, you can still create a large amount of wealth by having this discipline for 20 or 25 years. The results are as follows. SIPAmount500Expected Return18%Number of years20At the end of the time periodInvested Amount            1,20,000 Wealth Created          10,34,427 Final Amount          11,54,427  SIPAmount500Expected Return18%Number of years25At the end of the time periodInvested Amount            1,50,000 Wealth Created          27,18,627 Final Amount          28,68,627  In both cases, the wealth created is 9x or 18x times the amount invested by you. As one can see in the above charts a small difference of 5 years creates a great compounding effect where Rs 500 amounts to Rs 28.6 lakhs when invested for 25 years and amounts to less than half the amount of Rs 11.54 lakhs when invested for 20 years. Hence, by being an early saver, one can create a tremendous amount of wealth with minimal effort. You can start your investment journey today with a SIP in the top mutual funds in the country with EduFund. FAQs Is SIP really beneficial? Yes, SIP is one of the best ways to start investing in mutual funds, index funds, or ETFs. It allows you to invest in a systematic way over a long period of time. Can I start a SIP of 500 per month? Yes, many mutual funds allow investors to invest a minimum of Rs. 500 every month. It helps in growing your wealth over a period of time. Which mutual fund is best for 500 per month? There are many mutual funds that offer Rs. 500 per month such as Axis Long-Term Equity FundAxis Bluechip FundSBI Equity Hybrid FundParag Parikh Flexi Cap FundSBI Focused Equity Fund

Becoming financially independent is one of the ultimate goals behind pursuing any profession of your choice. Of course, everybody needs to work to earn money. But will earning money alone ensure your financial independence? We’ll discuss the possible ways to become financially independent in this blog. What financial independence means? Everyone defines financial independence in their own terms and goals. For most people, it usually means having financial freedom and not having to worry about finances and money-related issues. Financial independence comes when you intelligently invest and can afford a certain lifestyle of your choice. It also means you retire without worry or have the freedom to pursue your passion without second thoughts. 1. Set life goals A mere desire to achieve financial independence won’t help you reach your goal. If you wish to be financially independent as soon as possible, you should set realistic and ambitious goals. Setting life goals, big or small, would help you create a blueprint for achieving those goals. Be focused and specific about your goal and make timelines accordingly. This will not only help you meet your goal’s deadlines on time but also increase your chances of achieving your goal. 2. Make a monthly budget Making a monthly household budget is one of the best ways to control your spending and track your bills. Sticking to your budget is a great way to ensure that bills are paid and savings are on track. It also acts as a regular routine that reinforces your goals. 3. Start investing now In the midst of rising debt, financial emergencies, medical expenses, and excessive spending, achieving financial independence can be quite challenging. However, it is attainable with discipline and careful planning. Bad stock markets and low returns can make people question their wisdom in investing and whether they should keep investing their hard-earned money. But there is no better way to grow your money than investing. Investing is basically making your money work for more money rather than you working for the money. The magic of compound interest, dividends, growth in the share market, increments in shares you have invested in, etc., will grow your money exponentially. But you need a lot of time and patience to achieve this meaningful financial independence. Investing in the right tools at the right time with expert advice can help you reach your goal. Remember that not everyone is a professional investor from the beginning, so it would be a mistake to attempt the kind of stock-pinning and risky investments made famous by billionaires like Warren Buffett. Instead, start simply by opening an online brokerage account that will help you learn how to invest, create a manageable portfolio, and make weekly or monthly contributions to it automatically.  Track your investments on a regular basis and keep learning more about investments and better opportunities to invest in. More importantly, consult financial experts while investing your savings. 4. Avoid loans and debts and pay off your credit cards in full One of the vital hacks for becoming financially independent is to avoid loans, credits, debts, etc. You need to be smart when it comes to money and financial freedom. It might seem easy to pay back loans, but in reality, there are many challenges. When loans are being taken, they should be intelligently calculated and only be taken when necessary. Credit cards and other high-interest consumer loans may be hurdles to wealth-building. Make sure to settle the entire balance every month. Paying off mortgages, student loans, and other loans with comparable terms often have significantly lower interest rates, so doing so is not urgent. Even yet, timely repayment of these loans with lower interest rates is crucial. On-time payment of these loans would not only help you get financially independent early but also help you build a good credit score which is very beneficial. 5. Watch your credit score The credit score is a very important number for you as it determines the basis on which interest rate will be offered to you when you decide to take loans for any personal reasons like renovating your house or buying a new car, or taking any loans for any purpose. Credit score also plays an important role in determining the premium rate you will have to pay for any kind of insurance you take. Since someone with careless financial habits is thought to be irresponsible in other areas of life, credit scores are given a lot of importance. This is why it's crucial to obtain credit information on a regular basis to ensure that no incorrect defaults are harming your reputation. Stay educated on financial issues. 6. Create automatic savings Automatic saving basically means setting money aside the day you get paid so that it never reaches you. You can also call it paying yourselves to be ready for retirement. To be financially independent, it’s very important to enroll in an employer’s retirement plans and make full use of any matching contribution benefits, which are essentially free money. Having an emergency fund that may be accessed for unforeseen needs is a good idea as well. 7. Do not stop having fun And last, ensure your life does not seem too boring because you do not let yourself have a little fun and relax. Join parties, travel from time to time, and do not forget that you need to strike a reasonable balance between achieving financial independence and your everyday life as a young and happy person. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Do you know that the value of 1 crore after 20 years will be much less than what it is now due to inflation and high consumption?  Yes, over a longer time frame, the importance of inflation cannot be understated. The buying power of the rupee is reduced by inflation, and the value of each rupee keeps falling over time.  Twenty years from now, assuming a 5 percent annual inflation rate, the value of one crore rupees would be equivalent to about 37.68 lakh rupees. That is the crumbling effect of inflation on our money. Numerous SIP calculators and monthly savings formulas are available to assist you in determining how much you should invest each month if your goal is to save Rs 1 crore. For instance, if you invest 10,000 per month for 20 years at an expected annual growth rate of 12%, you may save Rs 1 crore.  In simple terms, you might have bought a lot more with 1 crore rupees 20 years ago than you can purchase today.  The actual worth of it at that point would therefore be significantly smaller even if you save for one or two decades and are able to accumulate Rs 1 crore or more.  One should remember that even if the economy is experiencing inflation at a 5–6% rate, inflation in the fields of education and medicine will be greater. Therefore, inflation is a crucial element that influences your financial plans, especially long-term objectives like retirement and schooling for your children. Value of 1 lakh after 20 years Read More How can you counter this devaluing of money?  The solution to this issue is to manage your assets by tying them to the rate of inflation. To achieve that, multiply that quantity of the savings plan by the rate of inflation. After that, you can begin a SIP to save for the adjusted inflation amount.  Let's imagine you have higher education plans for your child that will cost about Rs. 15 lakhs over the next twenty years. The cost of the course could increase to about Rs 40 lakh if inflation is projected to be 7%. As a result, you can start saving Rs 8000 per month to amass roughly Rs 40 lakh and put the plan together without difficulty.  In a similar manner, you can manage your long-term objectives by multiplying the present value by inflation. Investing so that you can beat inflation can be tough, which is why taking care of your expenses and seeking sound financial advice can help you maximize the value of your money.  FAQ What will be the value of 1 crore after 30 years?  The value or buying power of Rs 1 crore will be around Rs 23 lakh after 30 years if you really are trying to save Rs 1 crore for a target that is 30 years away.  What would be the value of 1 Cr after 25 years?  In 25 years, a rupee will be valued at around Rs 29.53 lakhs, given a 5% average annual inflation rate. What is the value of 1 lakh rupees after 20 years?  After 20 years, the price of one lakh would be approximately INR 37,000, using a 5% inflation target.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Saving money is tough and overwhelming. With the internet filled with different methods of saving money, it can get difficult to pick which is the best choice for you!  In this article, let’s find out what are the varied methods of saving money and where you should park your money for the best returns. Methods of saving money  Here are some methods of saving money that can help you achieve your long-term and short-term financial goals 1. Invest and Save  Investing and saving are one of the most crucial methods of saving money. It is also the most underrated method. Most Indians do not invest in the stock market or take benefit of its varied opportunities. If you want to invest and save then here are some investment options to explore 2. Direct mutual funds Direct mutual funds are a good way to start investing and saving. As there is no middleman in between, there is no extra cost.  Regular mutual funds are another type of mutual fund. These charge more in terms of expense ratio but are professionally managed and maintained by an experienced fund. This is a great investment for investors who are new to investing and need a helping hand to make the most of their investments. 3. Digital Gold Digital gold, gold bonds, or gold ETFs are also a way. There are alternatives for physical gold but it is a way of investing. You can do all of this online; there is no need to go to a jewelry store. It’s the more suitable way of buying gold. Investors who want to sell or buy gold can do it without any problems with one click in an app. The minimum cost of buying or selling gold can be as low as Rs 1. 4. US Stocks US Stocks are another method of saving money! That’s right. Suppose you plan to send your child abroad to study in USA or Canada. The currency difference between USA and India will make the education cost higher for you. Imagine if you start investing that money regularly in US dollars so that by the time your child is off to the USA, you will be able to fund his/her dream without any loss!   Real estate investment involves buying, managing, and selling a property. It’s a type of investment and has different parts. 5. ETFs ETFs (Exchange-Traded Funds) are somehow similar to mutual funds. It’s a type of pooled investment security. It can be sold and bought much like other stocks.  Daily savings and budgeting  Many people ignore saving and budgeting as a method of saving money. It can help you cut costs and recognize areas where you may be losing money.  Create a budget for the month. When there’s a fixed budget for the month, you tend to spend less. Settle everything under your budget.  Don’t just save your money, think about your future too. Set aside some money for an emergency fund. So that you are prepared for any emergency like job loss.  Start saving for your life after retirement. Make sure you have a retirement plan or fund in place way before time. This will help you amass more money over a long period of time. In fact, the sooner you think about your retirement, the more money you are likely to save up!  Save and invest your bonuses or tax refunds. Put them into your savings account and consult your financial advisor on how to make the most of it.   Manage your debts before making creating any extra costs like starting a new EMI.  Save electricity. It will also save you money. By not using unnecessary fans, lights can cost you more than you can think.  Cancel your automatic transactions, and memberships, and unsubscribe from unnecessary emails because by seeing offers you tend to make unnecessary purchases.  Decrease your mobile bills. Cut off unnecessary plans from your bill. Use free Wi-Fi instead of buying extra data plans.  Banking saving tips  Use your credit less. Pay your credit card bills timely to have less burden on your shoulder later.   Use only your ATMs or debit cards because every time you use your ATMs or debit cards, you are not charged any withdrawal charges.   Keep your monthly bills on automatic. It will free you from hassles and also pay your bills on time.  Entertaining saving If you love reading and like to have physical books then use your nearby libraries.  Watch films at home instead of going outside and spending more there. Going to a theatre means buying popcorn, seats, transportation, etc. but when you watch films at home you don’t spend extra.  Reduce your trips to coffee shops. It doesn’t cost you $2 - $3(Rs 200 - Rs 400), but it costs you more than that in long term.   Instead of eating out regularly, cook your own food at home.  Cut off your grocery expenses. Don’t shop extra from that grocery store. It helps you in saving extra money here and there. Make a budget for that too and stick to it.   Consult an expert advisor to get the right plan TALK TO AN EXPERT FAQ Are ETFs a good investment?  ETFs are actually low-risk investments because they are low-cost and hold a bag of stocks. What are the 2 methods of saving?  Cutting off extra expenses and investing money in mutual funds, digital gold, etc. Helps in saving money. How much should I save every month?  Saving 10% - 20% every month should be the goal so that in long run you will be saving more. Is investing money a good way to save more?  Investing money is a good way to save more but it’s an individual’s own choice to invest or not. But now, it’s a proven method to save money by investment.

What is financial planning? Financial planning refers to acquiring information about your financial needs and then making a comprehensive plan to reach your financial goals with as much certainty as possible.   Financial planning considers the following factors: your current financial situation, what you wish to do with the money you will acquire, and how you are willing to invest your money to achieve your goal.   Thus, to define it in a sentence, we can say that financial planning is a means to achieve your future goals through proper development and implementation in accordance with some general guidelines.  Financial planning includes applying globally accepted management principles like planning, directing, organizing, and procurement of funds to invest and generate the maximum possible returns.   It helps you prioritize your investment decisions based on the urgency of your goals. People have both short-term and long-term goals.   For example, a short-term goal like buying a car in two years requires a much different planning approach than a long-term goal like buying a house in 10 years.   Both these aims have entirely different capital, returns, and financing requirements.  We can say that financial planning will lead to asset management and not the other way around. Once a plan is laid out, the implementation requires proper management of the available assets to generate maximum returns to fulfill your goals. Source: pexels Importance of financial planning  A significant advantage of a financial plan is that it helps you build financial security for yourself and your family as well can grow your assets and prepare for financial emergencies.   It helps you fulfill your dreams. Some reasons why you should consider building a financial plan:  1. Give a perspective on your financial goals Once you have a clear goal in mind, you will be able to employ financial literacy in a well-defined direction to achieve your goals.   With a plan, you also employ popular money-management techniques like the 50/30/20 rule (See here: Tips to follow for 50/30/20 Money Management Rule) and the (15-15-15 rule of investing), according to your needs.  2. Income management Through financial planning, you can prioritize monitoring a fixed budget for your expenses and moving towards investing a chunk of your income.  3. Growth of assets The ultimate purpose of a financial plan is to increase your asset base. By investing intelligently (with proper diversification and allocation), you will earn high returns and preserve your wealth, thus extending your investments and increasing your net worth.  Start your financial planning journey now so that you don't miss your goals by the margin.  Steps to follow when creating a financial plan 1. Create an emergency fund The first and foremost step towards saving is to create an emergency fund so that you do not want to disturb your financial routine if any emergency arises. There are many formulas to create an emergency fund. One way is to create an emergency fund for six months of your expenses. So, in situations like job loss, your emergency fund can take care of your expenses until you find another job. You can park your emergency fund in liquid funds to maintain liquidity.  2. Make a monthly budget Making a monthly budget will help you save money better, as you will be able to identify and analyze your income and expenses better. In this step, identify all your income first and then expenses, where you spend most of your money. Making a monthly budget will assist you in segregating income and expenses into different categories. To create a proper budget, you can follow the 50-30-20 rule. It says that 50% of your income should go towards your needs, 30% toward wants, and 20% for saving and investing. By following this rule, you can manage your monthly budget.  3. Spend wisely Spending wisely is as critical as making a budget. After making a budget, you can evaluate where to cut down your unnecessary expenses. And where you do not need to spend your hard-earned money. For example, you may have bought a monthly subscription to some adventure park, but you may not be utilizing it. So, you can cancel your subscription and save a lot of bucks. Also, don’t make quick decisions in buying things. Evaluate its cost and usage, then make a thoughtful decision. If you spend wisely, you can make a huge difference in future savings.  4. Set goals The next step is to set your short-term and long-term goals. Categorize your short-term and long-term goals based on their priority. And start saving for them. For example, sending your child for higher education after ten years is an example of a long-term goal, but paying for the school fees in the next 11 months is an example of a short-term goal. Identifying and prioritizing your goals is very crucial. Some parents could have a short-term goal to pay for a child’s higher education. So, it is essential to prioritize your goals based on time availability to achieve them.   5. Create a savings plan After deciding on your goals, create a savings plan for each goal. Try to save a fixed amount for each specific goal. Evaluate the cost of your goals; save and invest some money to quickly achieve your target. For example, if you want to send your child for higher education in the future, and the cost of IIM Ahmedabad in 2030 may cost Rs 60 lakhs, to save Rs 60 lakhs in the next eight years, you need to save and invest Rs 34000 every month in such asset class which can generate 14% annualized returns over the period. So, creating a savings plan for each of your targets is vital, such that you know how much you need to save and for how long. Before investing your money in any of the asset classes, please do thorough research on it.  6. Review the plan After creating the savings plan, try to review the same yearly and see whether the savings and investment are on track. If they are not aligned with your goals, review your savings plan and make the changes accordingly. FAQs What is the meaning of financial planning? Financial planning refers to acquiring information about your financial needs and then making a comprehensive plan to reach your financial goals with as much certainty as possible.   What is financial planning and why? Financial planning is a means to achieve your future goals through proper development and implementation in accordance with some general guidelines.  What are financial planning and its types? Financial planning is a means to achieve your future goals through proper development and implementation in accordance with some general guidelines.  There are three types of financial planning - cash flow planning, investment, and insurance planning. What are the steps in the financial planning process? Here are the steps in the financial planning process: Give a perspective on your financial goals Income management Growth of assets What is the main benefit of financial planning? The main benefit of financial planning is the ability to meet your short-term and long-term goals while building wealth for your future retirement. A good financial plan helps you achieve your goals with ease and gives you financial stability for the future. TALK TO AN EXPERT

Earlier, we saw some of the best investment plans in India for five years. In this article, we will learn about some of the best investment plans in India for one year.   The investment options for periods as small as 1 year are largely restricted, mainly because the equity exposure has to be reduced considerably because of the volatility factor.   Given the short duration, choosing an investment with no risk is preferable. Here are some options to invest in. Best investment plans in India for one year 1. Debt funds  A debt fund is a mutual fund, an exchange-traded fund (ETF), or any other pooled investment product with fixed-income securities as the majority of the underlying investments.   Because debt funds have lower managing costs, their fees are lower than equity funds. Debt fund investors have the option to choose between passive and active products.   Debt funds are often known as credit funds or fixed-income funds. Investors seeking to conserve their capital and achieve low-risk income frequently invest in these funds.   Debt funds invest in a wide range of securities, each with its own set of risks the safest is the debt of the United States. Companies with a steady outlook and high credit quality issue investment-grade debt. High-yield debt, which lowers credit-quality enterprises mainly issues with good growth prospects, delivers higher returns but also carries a higher risk profile.   Debt funds are appropriate for people with short to medium-term investment horizons, where “short-term” refers to a period of 3 months to one year (this is the period we are talking about in this article) and “medium-term” refers to a period of 3 to 5 years.  2. Short-term funds   These are open-ended mutual funds with a maturity duration of 15 to 91 days depending upon the underlying instruments’ maturity period. These funds primarily invest in high-quality, low-risk assets. Liquid funds are an amazing choice for risk-averse investors and a great way to park your surplus money.   If you have a longer time horizon, say 2 to 4 months, you can invest in ultra-short-term funds. Short-term funds give higher returns than bank deposits, along with the provision of liquidity. Returns on these funds have historically ranged between 6 to 8%.  3. Low-risk funds  Low-risk mutual funds are those funds that have a small number of risk elements. These funds have a greater return guarantee since they primarily invest in government bonds for infrastructure, real estate, and other uses.   The low-risk investment portfolios of these funds ensure that the inflation rate is taken care of. The investment horizon is short because these funds invest many of their assets in debt securities.   Investors wishing to put their money in tax-efficient schemes other than fixed deposits can choose low-risk mutual funds.  4. Money market instruments  For the short term, money market instruments are great investment options. The main feature of these kinds of securities is that they can be converted to cash with ease, thereby preserving the cash requirements of an investor.   Trading of money market instruments is through certified brokers or a money market mutual fund. Some funds aim to keep their portfolio as diverse as possible via a good combination of various money market products to maximize the yield.   Some money market instruments are treasury bills, certificates of deposit, commercial paper, and banker’s acceptance. Source: Pexels Some funds available in India  1. ICICI Prudential Medium Term Bond Fund - Direct Plan The plan aims to maximize income while preserving the best possible return of yield, safety, and liquidity by investing in various debt and money market securities with varying maturities.  2. Nippon India Short-Term Fund - Direct Plan The fund invests in debt and money market instruments to shell out reliable returns for clients with a short investment horizon.   3. Aditya Birla Sun Life Low Duration Fund - Direct Plan Seeks to invest in high credit quality debt and money market instruments of short maturities.  4. Tata Money Market Fund - Direct Plan Investors looking for a safer alternative to liquid funds can invest in this fund. It has a moderate risk profile and invests in short-term money market instruments.  5. Aditya Birla Sun Life Corporate Bond Fund - Direct Plan The scheme’s investment goal is to create optimal returns while maintaining high liquidity by actively managing the portfolio and investing in high-quality debt and money market instruments.  6. ICICI Prudential All Seasons Bond Fund - Direct Plan Invests in various debt and money market securities with different maturities to achieve a balance of return and safety. FAQs Which SIP is best for 1 year? Debt funds Short-term funds Low-risk funds How can I grow my money in one year? There are many ways to grow and invest your money for one year. You can consider the following types of investments: Debt funds Short-term funds Low-risk funds Money market instruments Can I withdraw SIP anytime? Yes, investors can withdraw the amount or stop their SIP whenever they want. Does SIP have risk? Yes, investing in mutual funds via SIP does involve some level of market risk. Risk differs based on the type of investment. Connect with an expert advisor to get the right plan for you  TALK TO AN EXPERT

Business Insider reports that “Indian household savings fell to the lowest level in 5 years. With inflation eroding the purchasing power, individuals tap their savings for survival after the pandemic.” Furthermore, "gross financial savings in FY22 stood at 10.8% compared to 15.9% in FY21." It demonstrates a clear saving pattern during the pandemic and erodes it soon after the ban was lifted. The importance of saving money aligns with the lifestyle and the goals you want to achieve within the decided time frame. 6 reasons to save money wisely From blowing off emergency cash requirements to ensuring financial freedom, there are plenty of reasons to save money. 1. Live a debt-free lifestyle Business Insider news says, “ An average Indian spends ₹14,500 a month on average on credit cards."  As per Statista, “In June 2022, nearly 121 million points of sale transactions were made via credit card in India.” It was pretty low in 2019-2020, owing to pandemic blues. Relying on credit cards for every big and small purchase may impact your savings. A credit card is a high-interest debt that one must pay monthly. Instead, save a portion of your income to savings. It will help meet discretionary expenses. 2. Budgeting for retirement As per the Financial Express report, “A survey by PGIM Mutual Fund and Nielson reveals more than 51% of the Indians participants have not planned retirement savings yet. “  Shockingly, children’s spousal security and lifestyle emerged as primary concerns rather than retirement.  The allocation of household income fell from 34% to 30% over the past two years. It impacted the saving corpus and budgeting. Around 89% of respondents living in Joint families find themselves more financially secure than nuclear families in India.  The report reveals that 42% of Indians lack any secondary income source or have any thoughts about it. One must consider inflation and market conditions before choosing a retirement saving plan to counter this. Employers must work towards awakening employees on saving more towards PF or separate retirement accounts. The key aim here is to push the employees towards ensuring financial freedom. 3. Paying effortlessly toward a child’s education dreams As per the Economic Times, “the average yearly fee for middle school is around ₹1.6 lakhs to ₹1.8 lakh/year. It totals up to ₹9.5 lakh to 12 lakh for Higher Secondary Education.” Parents must ensure nearly 10 lakhs for legal education in India.   Parents pay ₹25000/year towards sports, extracurriculars, and school transport alone. The education expenditure graph goes up to ₹20 lakhs after including general education for up to college years. EduFund lets parents plan and save for their child’s education with the help of financial experts. 4. Attending Medical Emergencies However, there are other emergencies too, like - urgent cash needs, cash to suffice sudden job loss and fulfill a time-sensitive requirement, and medical tops them all.   It is the worst situation to encounter when one goes cashless in medical emergencies. Illness does not wait. Thus, it is ideal to invest at least 30% of your income in medical insurance and savings. However, the statistics are good regarding health insurance coverage awareness. The Times of India says, “Every 3 in 5 Indians saw their health insurance premiums shoot by 25% or more in 2022.” It impacts savings and discourages one from taking life for granted. 5. Leaving behind a legacy Financial freedom must travel from generation to generation. “Around 72% of Indians do not know the potential ways to save and invest money.” They encounter confusion while walking up to the aim of financial freedom If you are a first-time investor, you can begin by investing in low-risk instruments. Dedicate only a small and comfortable income portion to long-term investments. Go for fixed-income generating opportunities that reduce the risk of losing your wealth. It will help you analyze the importance of saving money as a source of multiplying wealth sources. 6. Purchasing big-ticket items and investments Big-ticket items or lifestyle-enhancing instruments like- car and home investments require significant savings. Buying a home is one of the common dreams that Indians share. As per Indian Housing Report, “Only 69% of urban households have their own home. Rest are migrants.” It is far lower than in rural areas (95%). The reason is – Affordability. For a mortgage, you must ensure at least a 20% deposit. For that, you must save. If you could provide a 20% deposit for the mortgage, you could fetch affordable interest rates and use the rest of the savings for renovation or cover moving costs. Conclusion Saving is crucial for every life goal. EduFund is an ideal platform to save for your child and family’s future: Financial planning and goal management assistance College Cost Calculator to find future costs Variety of savings plans - mutual funds, US ETFs, and digital gold Educational counseling and financial guidance Consult an expert advisor to get the right plan TALK TO AN EXPERT

We already saw some of the best investment plans in India for one year. Here, we’ll get to know some of the best investment plans in India for five years. There are many investment options available, majorly in the equity and debt funds segment. Investment plans in India for five years.  a) Equity funds and Hybrid funds  Equity mutual funds are investment instruments that primarily invest in stocks of various companies across different sectors. Equity mutual funds are the riskiest category of mutual funds because of the high exposure (at least 65%, according to the rules laid down by the Security and Exchange Board of India) to equity markets.  On the other hand, Hybrid funds are less risky than equity funds because they are a mix of equity and debt funds; also, hybrid funds are less liquid than equity funds. Both hybrid and equity funds are for investors with a time frame of 5-7 years.  b) Above-average to high-risk funds  If you search for more than the market returns, you should bear more than the usual risk. The best option, in this case, are equity mutual funds because of their very high exposure to the equity markets.  Within equity funds, small-cap and mid-cap funds are riskier. However, these funds provide the chance to make unusually high gains.  c) Long-term funds  When your investment horizon is long, say ten years. Your best road is to have equity in the highest proportion in your portfolio because, in the long run, the share markets outperform nearly every other standard asset class.  The best options for this type of investment are either purely equity-based funds or hybrid funds with very high exposure to equity (and a small investment in debt).  d) Other funds  Regarding the instruments mentioned above, there are other options as well.  1. Index funds  Track particular indices in the market and invest in the movement of the index.  2. Flexi-cap funds  These funds diversify the investment because they invest in a mix of large-cap, small-cap and mid-cap companies for greater exposure to the entire market.   Another less discussed investment option is the Dynamic Asset allocation fund – these funds are a type of hybrid fund, and, as the name suggests, the funds are invested and dispersed across stocks, bonds, real estate, etc.   Balanced funds that invest primarily in equities with some exposure to FD-like securities are known as aggressive hybrid funds; because of the diversification of investments, these funds are less risky than pure equity while providing nearly identical long-term returns. Source: Pexels Which funds are available in India?   Some available funds are:  1. Axis Midcap Fund  This scheme aims to achieve long-term capital appreciation by investing primarily in mid-cap stocks and equity-related assets.  2. DSP Midcap Fund  It primarily aspires to achieve long-term appreciation by investments in midcap firms and other equity-related assets.  3. Tata Index Nifty Fund  The Tata index super funds strategy generates medium to long-term financial returns by investing in equity shares of just those firms' part of the Nifty 50 index, in the same proportion index.  4. Navi Nifty Index Fund  The investment objective is to produce a return comparable to the Nifty 50 index by investing in stocks of companies that make up the index, subject to tracking error.  5. Parag Parikh Flexi Cap Fund  The fund’s aim is to achieve long-term capital growth from an actively managed portfolio comprising majority equity investments.  6. DSP Dynamic Asset Allocation Fund  This hybrid, dynamic asset allocation fund considers the CRISIL Hybrid 50+50 Moderate index as the benchmark. Investment in this fund carries a moderately high level of risk.  7. Tata Balanced Advantage Fund  Investment is in a mix of equity, arbitrage, and debt portfolios to maximize capital appreciation and income distribution. The scheme tries to follow the market trend with a good balance of debt and equity.  FAQs What is the best investment in India 2023? Some of the best investment options in India in 2023 are: Public Provident Fund (PPF)National Savings Certificate (NSC)Post Office Monthly Income Scheme.Government BondsNational Pension Scheme (NPS)Sovereign Gold Bonds (SGBs)Equity Mutual Funds.Unit-linked Insurance Plans (ULIPs) What is best investment for future in India? The best investment for future in India are mutual funds, stocks, bonds, index funds, ULIPs. Investment options are determined by your time horizon, risk tolerance and financial goal. Which SIP is best for 5 years in India? Some of the best funds that offer SIP are: Axis Midcap Fund DSP Midcap Fund Tata Index Nifty Fund Navi Nifty Index Fund Parag Parikh Flexi Cap Fund DSP Dynamic Asset Allocation Fund Tata Balanced Advantage Fund This is not an investment advice. Please consult your financial advisor before investing. Which investment is best for 5 years? Public Provident Fund (PPF)National Savings Certificate (NSC)Post Office Monthly Income Scheme.Government BondsNational Pension Scheme (NPS)Sovereign Gold Bonds (SGBs)Equity Mutual Funds.Unit-linked Insurance Plans (ULIPs) My son is in 9th grade, and I want to save for his college. What are some top fund options for a 5-year investment plan? Some of the top SIPs for 5 years in debt and equity funds are the following - ICICI Prudential Technology Fund, DSP Equity Fund, HDFC Balance Advantage Fund, Quant Infrastructure Fund, TATA India Consumer Fund, Nippon India Large Cap Fund, etc. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Are you looking for ways to start your investment journey? Are you confused between the lumpsum vs SIP investment route? Maybe mutual funds can be the right way of starting but which one you should choose?  Don’t worry, we’re here to help you!  Let’s get to know about Lumpsum and SIP: which is better and when to choose?  What’s lumpsum?  Investing in a mutual fund as lumpsum refers to investing a big sum of money to get locked up into a one-time investment. This is a one-time investment rather than spreading it out over time, like in SIP (Systematic Investment Plans).   Lumpsum investments are usually preferred by big players or investors who are actually dependent on company stocks for capital creation. For an investor with a massive funding quantity and a high-chance capacity, a lump sum mutual fund funding may be an amazing opportunity.  Suppose you get the whopping bonus at the end of the year and after settling all the expenses, you still have around Rs. 50,000 - 75,000 left! In this scenario, you can invest the money as a lump sum investment wisely as a lumpsum order in a fund of your choice. Benefits of lumpsum  With the lumpsum investment method, people can invest a large amount in one go. As a result, when the market shows a growth period, then the value which you have invested also increases.   Lumpsum investments are great for those who wanted to invest for the long term and have a bulk amount ready.   Lumpsum investments are great for the long term. If you are interested in a time horizon of nearly 10 years or more.  Investing in a long-term investment can be risky but still, it gives better returns.  While investing in long-term investment, gives the money more time to grow potentially. When to choose lumpsum investment?  If you have got a whopping bonus and after settling your expenses you can opt for lumpsum investment. If you are a freelancer and you’ve got a big amount after completing a big project then you can opt for a lumpsum investment. What’s SIP?  A Systematic Investment Plan (SIP), popularly called SIP, is a facility provided with the aid of using mutual funds range to the buyers to spend money in a disciplined way. SIP scheme allows investors to invest money at defined intervals in a selected mutual fund.  The starting Investment can be as low as Rs 500 and the defined interval can be weekly/monthly/yearly. It’s convenient as you can give instructions to debit the price every month.  SIP has been gaining a reputation amongst Indian Mutual Fund investors because it enables them in making an investment in a disciplined way without annoying marketplace volatility and timing of marketplace. Systematic Investment Plans presented by Mutual Funds are effortlessly an excellent manner to go into the arena of investments. Benefits of SIP  With SIP, you can even invest as low as Rs 500 each month and let it grow. SIP is super easy, easy to track, and also lets you save more.  The best feature of SIP is rupee cost averaging, where you can buy more, when the market is not at a peak point and buy less when the market is at a peak point. This is because of the built-in feature of SIP, where whenever the market is low, you can buy more which reduces your cost and gains more.  SIP provides amazing flexibility. Long-term investments are not that flexible. You can withdraw whenever you want to at your convenience. You can either withdraw the whole amount or half of it.  As compared to other investments, SIP provides you with better and higher returns.  SIP operates at the percept of receiving compound interest on your investments. In different words, a small quantity invested for the long term collects higher returns than a one-time investment.  When to choose a SIP?  If you are a person who earns every month or you are a salaried person then it can be suitable for you that you can save and invest every month. Or, if you earn very little then you don’t need to wait for a big sum of money, you can just start investing a little amount every month.  If you can’t opt for long-term investment or can’t invest a large sum of money then you can definitely go for SIP to start your investing journey. SIP vs Lumpsum Now that you know what is the lump sum vs SIP investment route, it's time to analyze which is better for you.  Investment as lumpsum or SIP has its own set of benefits and advantages. It’s hard to choose just one because both are good ways of investing.   The biggest difference between the two depends on how you are investing. In lumpsum, you need to invest in one go while in SIP, you can invest monthly.  Many investors choose SIP as it’s more convenient and more flexible. It is also a good choice for small investors who are just starting off and do not have a huge income. As a SIP investor, you can start saving with as little as Rs. 100 with certain mutual funds. Conclusion  You can never say that SIP is better than lumpsum or vice versa. There will be something in both of them which will be better than the others. An investor can never choose only one.   Both have similar benefits and differences. That’s the reason why it’s important to start investing early so that you can learn while investing in your journey.  It’s advised you to choose one which is better for you and suitable for you.  TALK TO AN EXPERT

Want to invest in India? Here are the best top 10 investment options in India available to park your money!  Every investor wants to enjoy ultra-high returns by undertaking ultra-low risk. However, this possibility is non-existent in reality. The risk-reward equation says that one has to experience more trouble to get high returns.   So, a sound risk-reward analysis must reap the highest possible benefits before choosing an investment. India is the land of possibilities. The Indian economy is growing at a great pace, with a vast population dividend to reap.   With India's ever-expanding infrastructure, high level of competitiveness with the other major global economies, and very significant economic influence, India will be a powerhouse of economic growth in the future. For you to become a part of this growth journey and increase your wealth in the meantime, we'll tell you about ten ways to invest in India.  There are two categories of investments in the broad aspect  Financial investment  Non-financial investment Financial investment includes stocks, bonds, and different bank products, whereas non-financial investment assets include gold and real estate Top 10 investment options in India 1. Equity shares Among all the investment products listed here, direct equity investment offers the highest returns in a combination of stock appreciation and dividends. Equity markets often tend to be considerably volatile in the short run but give better inflation-adjusted returns when a long-time horizon (10 years and beyond) is taken into account.  You can directly buy and sell shares of companies listed on the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange). You can take different types of trades like intra-day trade (buy and sell on the same day), swing trade (buy and sell over a week or a month), and invest for the long term. You can diversify your portfolio by purchasing stocks of companies from different industries – thus, taking into account the growth in various sectors of the economy. Because of the unpredictability of the world markets and the possibility of sectoral turbulence, equity is the riskiest asset class (not considering cryptocurrency here) out there to invest in. There always remains a chance of potential capital wipe-out when the markets crash during challenging economic scenarios.   2. Equity mutual funds Equity mutual funds are packages that invest in inequities. For example, instead of purchasing individual stock from a particular industry, you can purchase a mutual fund that encapsulates the growth of that industry, these are less risky because of their diversified nature.  According to SEBI rules, an equity mutual fund invests more than 65% in equity. An equity mutual fund may either be managed actively or passively. The returns on these mutual funds also depend on the fund manager's expertise.   3. Debt mutual funds As the name suggests, debt mutual funds invest most in debt securities – these funds appeal to investors with a low-risk appetite with the request for steady returns. Debt mutual funds make investments in government bonds, corporate bonds, treasury bills, and other money market instruments.   Low risk does not mean any risk. Debt mutual funds bring along credit risks and interest rate risks that you need to study well before investing in debt mutual funds.   4. Fixed deposits (FD) A bank FD is safer than almost all investment options out in the market. With a high degree of safety come meager returns. FDs are a way to keep your money (the returns are often so low that they do not even match inflation figures), not an instrument to grow your money.   In the case of bank default, the depositors get insurance for up to Rs 5 lakh each (under the Deposit Insurance and Credit Guarantee corporation).   5. Bonds Bonds are fixed-income securities representing a loan advanced by a borrower to the investor. When governments or even listed companies want to raise money in debt, they issue bonds to the public. You can purchase these bonds in the bond market.   Bonds offer fixed interest payments to the bondholders (a variable interest payment system is also there). Prices of bonds and the rate of interest move in the opposite direction. At maturity, the entire principal has to be paid back. There are different types of bonds, like government bonds, corporate bonds, and municipality bonds.    The risk of investment in bonds also arises from potential inflation outstripping the rate of interest on the bonds. Furthermore, when you buy bonds that are not well-rated, there remains a chance of default, wherein you might lose out on what you lent out.   6. Pradhan Mantri Vaya Vandana Yojna (PMVVY) This investment instrument is for senior citizens (age > 60 years). PMVVY provides a guaranteed return of 7.4% per annum. The payout offered is pension income payable either monthly, quarterly, bi-annually, or annually, with pension amounts ranging from Rs 1000 to Rs 9250.   The upper limit for the investment amount is Rs 15 lakh, with a tenure of 10 years. The senior citizen (or the nominee in case of the senior citizen's demise) receives the maturity amount.  7. National Pension Scheme (NPS) This is a retirement-oriented investment instrument managed by Pension Fund Regulatory and Development Authority (PFRDA). It is a mixture of equity, debt, fixed deposits, and liquid funds. You can decide the proportion of your investment according to your risk appetite. You can invest in this for as low as Rs 1000.    There exists a risk factor here as well – it comes from the underlying assets that the scheme invests in; depending upon the exposure to equity and debt (etc.), the risk is determined.   8. Public provident fund (PPF) PPF is a 15-year-long tax-free (interest) instrument. The interest on PPF accounts is reviewed by the government every quarter. A minimum of Rs 500 every month also works for a PPF account. A sovereign guarantee backs the interest earned here, and thus, PPF is a very safe investment.   9. Gold Gold is often known as a haven for investors. Gold will act as a hedge in your portfolio. Historically, gold has been a winner in times when the economy is in the doldrums. In the long run, the increasing price of gold makes it a good investment.   You can buy digital gold, sovereign gold bonds, gold ETFs, and physical gold. It is also a very liquid asset to possess.   10. Real estate Real estate investment is a humongous task for the general public. The real success of the investment depends on the type, location, and possible rental yield of the property. Also, the houses you reside in are not investments, because they do not generate positive cashflows.  The profits in real estate are generated through the price appreciation of the property and the rent that it yields. A suitable property can overhaul all negative returns in your portfolio, while a bad one can block your capital with no growth possibility. With the high investment amounts, asset illiquidity, and many regulatory approvals, real estate remains a less popular investment choice among the commoners.   Use your risk-reward analysis to choose the best option for you. FAQs How to choose the best investment options? To choose the best investment options, you need to first understand your goals, when you want to achieve them and the cost required. For example, your goal is to send your daughter to the UK to study abroad. You may have a time span of 10 years- 12 years (assuming your daughter is in school). This means you need 50-60 lakhs to fund her education and maybe more considering inflation. Once, you know your goal, you can now approach a financial advisor or explore yourself to figure out your investment options to get the amount. What types of investment options in India are suitable for an average person? There are many investment options in India that are suitable for the average Indian. They can go for Mutual funds, ETFs, Indian stocks, US stocks, Bonds, Gold, Digital Gold and much more. The investment options depend upon the short-term and long-term goals that the investor has set for themselves. Why should I check my risk tolerance before investing money? Risk tolerance refers to how much risk one is willing to take and how much money are they willing to expose. Markets are volatile by nature and are driven by multiple factors that can affect your investment. Understanding the risk involved and ensuring measures to minimize the impact allows you to check your risk tolerance. What do you mean by a diversified investment portfolio? A diversified investment portfolio gives you exposure to different investments. For example, investing in stocks, mutual funds, ETFs and US dollars can bring diversification to your portfolio. Diversification does not mean taking on different types of investments, it means seeking a balanced portfolio and exposure to different investments. It is important to consult a financial advisor for a diversified investment portfolio. Consult an expert advisor to find the right plan for you TALK TO AN EXPERT

Mutual fund companies offer flexibility to invest in their schemes through SIP (Systematic Investment Plan). While some choose the date of SIP based on their salary credit, others may try to time the market by selecting specific dates based on different factors one may choose to invest at the end of the end because of the high volatility and F&O expiry of the month-end contract. So, is there a best date for SIP investment? In this blog, we’ll see whether the date of SIP will make a huge difference or not. Read on!! We have analyzed the data of the past ten years, from Jan’11 to Sep’22, of BSE Sensex based on daily returns to understand it in a better way. Note: When there is a holiday, the date of the previous/next working day has been considered.Source: BSE, EduFund Research Team The above calculation shows that there is hardly a marginal difference in returns based on the period under observation. So, there is no strong relationship between the SIP date you choose and the returns. Any date will work if you are investing through SIP. Experts suggest that one should never try to time the market; instead, remain invested with discipline over a longer period to get the most benefit of compounding. SIPs are designed to deal with the volatility in the market. SIP helps your investments to average out the cost of buying, which is called rupee cost averaging. This helps investors to buy mutual fund units at lower prices and higher, which averages out the cost of buying the units. What is Compounding? Compounding works as a multiplier in your investment. You not only get the returns on the invested amount but also get the returns that keep getting added back to your invested amount. In short, earning returns on principal & returns as well. The best thing about compounding is that at one point your amount of returns will be more than your invested amount. What is the rupee-averaging cost? In this concept, a fixed amount is invested at regular intervals. This allows you to buy more units of a mutual fund when prices are low and fewer units when prices are high. Over the period, this averages out the cost of buying. Timing the market is challenging. The market goes through different phases, and you never know when the market is going to rise or fall. So, disciplined investing will help you to accumulate wealth over the period. When we try to time the market, we invest with emotions which can lead to wrong decisions. SIP helps to ignore all these factors and helps to invest regularly. Conclusion SIP can do wonders with your investments if you do discipline and regular investing over a longer period without thinking of the date, by Just following the normal process. Consult an expert advisor to get the right plan TALK TO AN EXPERT