Few years back, investment is not so much important as now. Why you may also think why it is high important now even your father or grandfather not followed all the investment principles. Why stress on investment now? Effort to create awareness of investment to everyone. New investment avenues started such as mutual funds, stocks, Gold, real estate, FD and RD. Why all these investments avenues initiated and advice on investments. Only one answer to all the question is “Basic needs for survival”.
Investment is no more rich man game . It is “Basic needs for Survival”. Even you don’t agree, this is the truth.
You try to remember that how much money you spent for your education including all school fees, higher education fees. It might cost you between 2 – 5 lakhs for your whole education including higher education. Now think of education fees for your kid. It becomes too costlier. For junior KG, LKG and UKG, they collect fees in lakhs. Now it comes with all kind of fees tuition fees, sports fees, extra curricular activity fees, music class fees and transport fees. Kids education, we have to spend in lakhs and plan for their higher education.
For school fees, we have to spend in Lakhs. Think and start investment now
Earlier days, student would concentrate only on studies. Extra curricular activities were rare and only few student explored that in school days. Now every kid wants to explore on music, sports, games. Kids require support from parents for their dream. To goto special coaching for music, sports or coaching institute for higher education. For higher education, children expects to study their dream course. If they unable to get the course by their effort, they may expect support from parents to join the course in private colleges.
Give wings to your kid’s dream by small monthly contribution on investment.
Children get ready for their dream by their intelligence and effort. We should go one step further by start investing for their education. We should get ready for their dreams. After their achieve their goals by marks and ranking, We should support them financially. If we do not have money to support them, it is kind of failure on us and we are wasting all their efforts. I agree, education loan would give support to their education. But I feel make them free from all the financial worries. As a responsible parents, we should maximum support them by financially. Let them free from financial worries. Plan for your kids higher education and start investment now.
Let them free from financial worries. We should be get ready by initiating investment now.
In india, every person spends minimum 30% of their income for medical expenses. Major expenses for parents and kid’s medical expense. Plan accordingly and take medical insurance to help in emergency. Do not think medical insurance not required. It may be helpful in emergency. Few organizations provide medical insurance coverage for their employees. But employees are not aware of their policy coverage information. Employees take it for granted. Read your organization provided insurance coverage and be ready with network hospitals.
Read your employer provided medical insurance coverage and network hospital information.
Apart from medical insurance coverage, money may require in emergency. Keep money for emergency in FD or debt mutual funds. Easily you can convert it to cash in emergency.
You have to pay for all your daily expenses after you retire. Everyone thinks retirement age is 60. It is only applicable for government employees, not for you. In corporate environment, you may want to retire early. Start saving for your retirement. It does not mean that invest all money for your retirement. Start with 2000 rupees monthly for your retirement from now. It will grow over time and will get lump sum after 20 years. It will not be burden now by plan 1000 – 2000 rupees monthly for retirement.
Monthly 1000 rupees for retirement is not a burden for you now. Moreover You will not be financially burden for your children in your retirement period. Let them plan their life’s and not yours.
I hope now you understand the importance of investment. Why it is to important in 21st century. Education, medical expenses and retirement planning are basic for survival. Investment is required for basic survival. Retirement and child education are long term investment.
At least 10 years of investment planning required for child education and retirement. Select equity oriented mutual funds for your retirement and child education plan. All your long term investment should be tied with Equity investment for better returns. Equities will have to be an integral part of every long-term portfolio. You cannot build a long-term portfolio without equities. You will have to use equities to grow your wealth as it is one of the best asset classes to invest in from the long-term perspective.
Equities will have to be an integral part of every long-term portfolio. You cannot build a long-term portfolio without equities.
You can start with a large-cap and a flexicap fund, plus the existing ELSS Funds. Top funds to start with monthly SIP. You can start with a large-cap and a small cap fund. Select any 2 funds and start monthly investment in SIP
- Mirae Asset Large Cap Fund (Large)
- Mirae Asset Emerging Bluechip Fund (Large)
- Kotak Emerging Equity Fund(Small)
- SBI Small Cap Fund(Small)
- SBI Focused Equity Fund
- IDFC Tax Advantage Fund
- SBI Equity Hybrid Fund
After that, it is important for your goals as well such as homecare and foreign trip. We would discuss more on financial planning for your goals and tax planning in upcoming session. Happy investing.:)
What is Personal Finance?
Mutual Funds in India