investment strategy: Have a SIP mutual fund? You have to review it from time to time. here’s why

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When we are young and single, our goals may revolve around buying fast cars and motorcycles or an exotic vacation. But, with the changing times, additional responsibilities, and increasing maturity, old goals may be replaced with new ones that focus more on owning a home for your family, saving for their health expenses. , medical and educational, securing their future, owning a family car. , go on family vacations and give them a good life.

When your financial goals can change over time, why should your mutual fund SIPs stay the same?

So, in order to keep up with your changing goals, use the power of compounding to make your money more money for you, and achieve your desired goals when you want it, it is extremely important to reconsider your mutual fund SIPs. investment with your changing money. goals.

If your dreams are big, your SIPs should be too
Instead of owning a normal house, a normal car, and a normal life, if you prefer to own a high-end house, a high-end car, and live a long life, the amount you invest in SIPs should also be high.

For example, if you want to buy a house of approx. Rs 1.5 crore in 10 years without taking out a home loan, given a growth rate of 12% per year, your monthly SIP amount should be around. Rs 65,000 for 10 years.

And if you want to buy a car worth Rs 25 lakh in 5 years, given a 10 percent growth rate, your monthly SIP amount should be around. Rs 32,000 for 5 years.

Additionally, starting your SIPs in stocks, especially during market corrections or declines, is more beneficial, as a rise in the market and inflation-adjusted returns can also help you build considerable long-term wealth in taking calculated risks. However, investing in the stock market is subject to marketing volatility and therefore investing through SIP will be more beneficial. It is therefore important to consult your wealth manager before making such decisions.

How important is it to have a wealth manager?
Investing is not as easy as it sounds. It has a lot more aspects than investing in the top rated and recommended investment options.

Investment planning is a detailed and complex process that involves analyzing your current financial situation, current income, likelihood of income growth, risk profiling, financial goals, future needs, exploring options investment that match your risk profile and financial goals, identifying the credibility of investment options and much more.

So, you need a certified, experienced and expert wealth manager who guides you every step of the way on your financial journey to growth, security, stability and freedom.

Whatever happens… savings come first!
While everything can change, some rules never change. And here is such an investment rule that never changes and continues to be the backbone of savings and investment planning.

Most people tend to save the money that is left over after handling their essential and luxury expenses. Most of the time, everything you earn is spent and there is no more money to save. This modus operandi will never allow you to reach your savings goals and achieve the dreams you want to achieve using your savings.

If your dreams are your priority, so should your savings. So instead of saving the remaining amount, you should use the following formula:

Total Income – Total Savings = Expenses
After you’ve saved at least 30% of your income, manage your spending in what’s left. This strategy will definitely help you reach your savings goals and make your dreams come true.

So the next time you start your SIPs, remember to consult your wealth manager, save first, and change your investment allocations whenever you change your goals.

(The author, Manish Hingar is the founder of Fintoo. The opinions are his)


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