While doing Job, we are always told to save the money for future. We live in an uncertain world and we don't know when we need much money.
But saving in Traditional plans like LIC as suggested by our parents and near dear ones, doesn't mean a good saving to match the speed the speed of financial appetite to beat the inflation.
We must need to keep ourselves updated with the latest Saving Trends. However there may be some risk factors too involved but one has to choose his financial goals with the right set of tools with the same enthusiasm we put up while choosing a consumer durable for our home.
Which color, what size, its make, model, it warranty, electricity consumption and the best deal and the authentic dealer from whom to buy the product we always take care of these criteria while purchasing a consumer durable. Same way we must need to be cautious enough where we are
going to put up our money. Don't decide just by someone's advice. However the advice should also be taken into consideration but one has to think and take step by understanding and putting an extra eye on your investments regularily.
One of the best and good return investment tool has been proven through MUTUAL FUNDS. I started learning MF fundamentals in 2004 with a min. amount of 25000 which has given me more than 50%t return. All I needed to be extra cautious and keen to learn. Those 25000 became 65,000 in 2008. Seems unbelievable but it is the fact about Mutual funds. No any other investment can give this much return.
To heads up further with the trust in MFs, I started finding good agents who can suggest me the fund names to invest into. I also kept me updated with these names by listening CNBC TV18 and Zee Business channels. Those were quite helpful but again the dependency and time wastage was involved into it. If I need to invest minimal amount like 5,000, I need to call agent. He comes till evening and my money gets invested next day.
To overcome this, I found a new tool called www.fundsindia.com
One of the best company who works just like an agent and helps us to invest on a matter of mouse click.
Amazing speed and amazing processing time. The only hurdle you pass through is to get documents ready and let your Fundsindia account to connect with your bank. However there are another options also available these days to invest in MFs but this FundsIndia is proven to be greatest value. The another good factor about fundsindia account is it is absolutely free. You need not to pay any single penny.
Thank you FUNDSINDIA
Now I come to SIP (Systematic Investment Plan)
At earlier stage investment in MFs was one time payment. But since last few years, MF companies has given the provision to investors to invest their money through SIP which means one can decide monthly amount and can opt for number of months. After that period of time SIP gets closed. These days all agents are adhere to investment through SIP. However one time payment is also possible today too but SIP is proven to give better returns. I am going to explain how:
Each MF scheme is recognized by its index value called NAV (Net Asset Value). When someone invests money in that scheme he is allocated the units. The money invested divided by the current NAV for that scheme. Lets say you has invested Rs. 20,000 and at that time the scheme NAV is Rs. 200. So you are given total 100 units (200 per unit x 100 units = Rs. 20,000). Now you have to sit back and relax and to wait till the NAV jumps up. Once NAV is quite higher lets say jumps from 200 to 300 when sensex goes up, you can redeem it to earn profit. If the market is going down, you need to wait and watch when the market becomes back in Profitable position.
In SIP, you choose these 20,000 invested in 10 months (2000 per month). So when you invest the money first month, you are allocated the units at current NAV. Hence Rs. 2,000 invested gives 10 units @ 200 NAV. Next month when 2000 are invested, you might get another 10 units or may be lesser or may be more than 10 because market is never consistent every month. Hence NAV goes up or down even each day with Sensex. So this way after 10 months with a positive result from Market, you gain more points than you can get through one time Investments. But here I want to mention there is no guarantee but historically it has been seen that SIP gives better units. These days there are more flavors of SIP have been seen common. Flexi SIP is one of them.
Flexi SIP is a regular SIP but the amount invested per month is choosen by investor based on the fact if market is high then invest lesser and if market is going lower side then invest a bit higher amount. This way you gain more units at the end of your SIP.
I am running short of time so I would be adding more to this article soon. Keep waiting.
But saving in Traditional plans like LIC as suggested by our parents and near dear ones, doesn't mean a good saving to match the speed the speed of financial appetite to beat the inflation.
We must need to keep ourselves updated with the latest Saving Trends. However there may be some risk factors too involved but one has to choose his financial goals with the right set of tools with the same enthusiasm we put up while choosing a consumer durable for our home.
Which color, what size, its make, model, it warranty, electricity consumption and the best deal and the authentic dealer from whom to buy the product we always take care of these criteria while purchasing a consumer durable. Same way we must need to be cautious enough where we are
going to put up our money. Don't decide just by someone's advice. However the advice should also be taken into consideration but one has to think and take step by understanding and putting an extra eye on your investments regularily.
One of the best and good return investment tool has been proven through MUTUAL FUNDS. I started learning MF fundamentals in 2004 with a min. amount of 25000 which has given me more than 50%t return. All I needed to be extra cautious and keen to learn. Those 25000 became 65,000 in 2008. Seems unbelievable but it is the fact about Mutual funds. No any other investment can give this much return.
To heads up further with the trust in MFs, I started finding good agents who can suggest me the fund names to invest into. I also kept me updated with these names by listening CNBC TV18 and Zee Business channels. Those were quite helpful but again the dependency and time wastage was involved into it. If I need to invest minimal amount like 5,000, I need to call agent. He comes till evening and my money gets invested next day.
To overcome this, I found a new tool called www.fundsindia.com
One of the best company who works just like an agent and helps us to invest on a matter of mouse click.
Amazing speed and amazing processing time. The only hurdle you pass through is to get documents ready and let your Fundsindia account to connect with your bank. However there are another options also available these days to invest in MFs but this FundsIndia is proven to be greatest value. The another good factor about fundsindia account is it is absolutely free. You need not to pay any single penny.
Thank you FUNDSINDIA
Now I come to SIP (Systematic Investment Plan)
At earlier stage investment in MFs was one time payment. But since last few years, MF companies has given the provision to investors to invest their money through SIP which means one can decide monthly amount and can opt for number of months. After that period of time SIP gets closed. These days all agents are adhere to investment through SIP. However one time payment is also possible today too but SIP is proven to give better returns. I am going to explain how:
Each MF scheme is recognized by its index value called NAV (Net Asset Value). When someone invests money in that scheme he is allocated the units. The money invested divided by the current NAV for that scheme. Lets say you has invested Rs. 20,000 and at that time the scheme NAV is Rs. 200. So you are given total 100 units (200 per unit x 100 units = Rs. 20,000). Now you have to sit back and relax and to wait till the NAV jumps up. Once NAV is quite higher lets say jumps from 200 to 300 when sensex goes up, you can redeem it to earn profit. If the market is going down, you need to wait and watch when the market becomes back in Profitable position.
In SIP, you choose these 20,000 invested in 10 months (2000 per month). So when you invest the money first month, you are allocated the units at current NAV. Hence Rs. 2,000 invested gives 10 units @ 200 NAV. Next month when 2000 are invested, you might get another 10 units or may be lesser or may be more than 10 because market is never consistent every month. Hence NAV goes up or down even each day with Sensex. So this way after 10 months with a positive result from Market, you gain more points than you can get through one time Investments. But here I want to mention there is no guarantee but historically it has been seen that SIP gives better units. These days there are more flavors of SIP have been seen common. Flexi SIP is one of them.
Flexi SIP is a regular SIP but the amount invested per month is choosen by investor based on the fact if market is high then invest lesser and if market is going lower side then invest a bit higher amount. This way you gain more units at the end of your SIP.
I am running short of time so I would be adding more to this article soon. Keep waiting.
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