A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other Securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, Professional managed basket of Securities at a relatively low cost.
Evidence shows that investors -investors in anything –make no money over a 10-year period. There are several reasons for this tragic statistic, including:
Not setting a goal
Chasing trendy investments
Relying on reports from the financial press
Making emotional mistakes and so on
Without a clear-cut investment plan, you will fail eventually. Why do we save money? The future is uncertain. Cost of living (education, marriage) is rising – INFLATION Needs and aspirations are increasing – better housing, vehicles, holidays abroad It is not possible to continue working for long hours beyond a certain age…time to sit back and make your money work for you, essential retirement planning
Not setting a goal
Disciplined investments
(Remember, an investor’s worst enemy is not the stock market, but his own emotions)
Reach your financial goals
Take advantage of Rupee Cost Averaging
Grow your investments with compounded benefits
Do all this effortlessly
Invest regularly
Start early
Control consumption and exercise self-control
Benefit from power of compounding
Four friends plan to save and invest for retirement at the age of 60.
Due to their individual circumstances, cash flows etc. each of them start saving at different periods of time / ages.
If you start saving and investing early enough, you’ll get to a point where your money is supporting you.
This is what most people hope for, a chance to have financial independence where they’re free to go places and do what they want, while their money stays home and works for them.
It will never happen unless you get into the habit of saving and investing and putting aside a certain amount of money every month wisely.
