Most of us want to travel the world tour. They want to spend a holiday at a tourist destination. They want to build their own home, live a dignified life in society. One thing that is very important to fulfill all these needs is money. If you deposit a lump sum for yourself, then you can leave work and start fulfilling your dreams. But for this, you have to be regular and cut your daily expenses and use them to reach your goal. Tell us how to do all this Vishwajit Parashar, Chief Marketing Officer, Bajaj Capital।
It is important to know before investing
By deducting daily expenses, you can invest this deposit in an investment plan regularly. By doing this, you can reach your goal as soon as possible. Although there are many investment options available in the market, which is the better option for your goal, it will be known by your risk-taking ability. We tell you how to find the risk-taking ability.
How to know how to take the risk for investment?
To know how to take the risk for investment, you must first know what your goal is and how far it is. For example, if you are 34 years old and you want to retire with Rs 1 crore at the age of 55, then your goal is 21 years away. Since your goal is 21 years away, which is better for you, then your risk-taking ability is ‘high’. That is, to achieve this goal, you can choose an investment option that is market-linked. Such as equity mutual fund schemes.
Why mutual funds?
Mutual funds are managed by experts. These specialists work for an asset management company. Your deposit goes to a Pool Account, which is secure. There is also transparency in mutual funds to know where your money is being invested. Mutual funds have different schemes for each kind of goals. You can start investing in mutual funds very easily.
SIPs (Systematic Investment Plans) in mutual funds are a wonderful way to raise money outright for your financial goals like retirement. You invest with a fixed amount for fixed intervals through SIP. Through SIP, you become more disciplined in saving the month, because your money is invested in it on a fixed date.
Not worried about the rise and fall of the market
In the long run, if the stock market is taking any position, you do not have to worry about the market. By keeping the amount deposited for a long time, you are able to take advantage of the effect of compounding. The most important thing about SIP is that you can start it at just Rs 500 and link it to any of your medium-term or long term financial goals.
You will have to invest so much every month
If a person is 34 years old and wants to retire with a fund of Rs 1 crore when he is 55 years old, then he will have to invest Rs 8000-9000 every month. He will have to make this investment for 21 years. But, if you start this SIP at the age of 30 and want to retire at the age of 55 with a corpus of Rs 1 crore, then you only have to invest Rs 5,000 a month.
The shortage also according to market conditions
We have calculated the return based on 12% compounding. It can also decrease or increase according to the market. In this situation, you can achieve your goal a few months in advance or a few months ahead. Here you saw that you have to deposit Rs 2,500 less every month than you started investing only 4 years ago. Meaning that the sooner you start investing for your long-term financial goal, the less you have to invest. The most important thing is that you can be mentally confident by starting the investment early. This is because you are adding money to yourself, not spending.
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