So, due to various reasons they end up with nothing financially sound during each part of their life. In this post, I wish to share with you a technique through which you can start small and end up big financially irrespective of ups and downs which regularly happen around the world.
Root cause of Financial Problems
There are some root causes due to which people end up with financial problems though their monthly income is substantial.
Can’t save money
Many people claim that they can’t save money because they mistake the idea of saving with cutting down current pleasure, but saving never means that. Saving can be done intelligently without disturbing present enjoyment.
Don’t know where to invest
And, people who can save money but they don’t know where to save it and they go for traditional saving like FD, bonds with no risk possible which won’t yield them desired result.
Though you save money each and every month and deposit it in the banks then the money grows at the Savings interest rate which is almost equal or less than the inflation rate of a nation due to which the value of your savings will always be the same.
Investing money is risky and time-consuming
So, if one goes for any stock market investing or other real estate investing then the return is higher than inflation rate but there is a good amount of risk and not everybody is trained or expected to succeed at those investment areas.
So, unless you save money and invest it properly, the money you save or earn can never help you to get out of your financial problems.
The answer to all the above problems is SIP – Systematic Investment Plan into Mutual Funds.
Mutual Fund SIP
Money that grows constantly ensures its master is free from financial worries
The investment technique which both leverages the risk of investing and returns through investing properly to suit your inflation is Mutual Funds. Let us look at the benefits of Mutual Funds in comparison to the above problems
- Can’t save money – Mutual Funds aren’t very expensive, one can invest in them starting from Rs. 500 (every month through SIP).
- Don’t know where to invest – Your Mutual Funds are managed by high skilled financial experts or Fund Managers who know where your money grows well and which area is best in the current financial scenario.
- Inflation – Mutual Funds are well known to meet the inflation rate as they have the capacity to progress at a rate of 2 – 4 times the inflation percentage which means your money not only gets saved along with that it gets multiplied.
- Try to understand the investment value growth through this sip calculator
- Investing is Risky and time-consuming
- There can be no gain with zero risks. So, we have to choose an option which promises high growth and low risk – Mutual Funds offer one such option.
- Time-consuming? No, you just have to spend time in choosing the fund and fund manager then there ends your time investment, the rest of the job is taken care by the Fund Managers only.
So, start with an analysis of which mutual funds suit you the best, in the coming blog posts, we shall discuss more on which mutual fund is better for you. Hope this blog post was helpful to you.
Thanks for reading. Share your views about Mutual Funds – SIP and the post content with me through comments, I would be very happy to hear.
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