Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Saturday 15 March 2014

Start Inveting early to meet your financial goals

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 

 

Rahul and Rohit were friends from school days and attended the same college, but after opting for different careers, they gradually lost contact. After almost fifteen years when Rahul was surfing a social networking site, he found his old friend Rohit. He sent Rohit a friendship invitation, which Rohit instantly accepted and the two decided to meet.

After reminiscing old memories and enquiring about each other’s family, they discussed finances and investments. It was time for Rahul to be shocked. His friend Rohit has already made a portfolio of more than Rs 56 lakh!

How can that be possible? When Rohit’s monthly gross salary is around Rs 48,000 per month. Did he win a lottery then or received a large legacy? Or is Rohit involved in some illegal activities to make money? Rahul’s own portfolio is not even half of Rohit’s, but he earns more than his friend. What is the Rohit’s secret formula to make money?

Rohit understood his friend’s mind and decided to clear the air. He said: “The success lies in starting early. I decided to save and invest from the day I took home my first salary.”

Rahul: But friend, if you don’t mind, how could you accumulate so much money in just 15 years?

Rohit: I was disciplined in my approach from the beginning. When I started working some 15 years back, the pay package was not very high. But in those days, I had few unavoidable expenses. Can you believe I used to save almost three-fourths of my earnings in the first few years? I didn’t have any financial responsibility, didn’t pay rent since I was living with my parents, and so I decided not only to save money, but also to invest it properly.

Rahul: It was a great decision friend. I used to spend so much in my early days that I would often borrow money in the last week of almost every month. Eating out, merry making, spending on gadgets and clothes took all my money away.

Rohit: That is the mistake most young people make. They earn well, but spend even better. As a result, a large portion of their salary goes out in paying credit card bills and funding many avoidable expenses. They have little left to save and invest.

Rahul: But still how did you manage to create such a large portfolio?

Rohit: It is the power of compounding my friend. An investment of Rs 12,000 per month for 15 years in a good diversified equity mutual fund scheme, with an average return of 12% per year, will fetch you Rs 56,57,494. Though I initially used to save three-fourths of my earnings, but with growing financial responsibilities, I now can save one fourth, or 25% of my earnings. The disciplined approach all through helped me build a big corpus, though my salary has never been astronomical.

Rahul: What prompted you to save from such an early age?

Rohit: I saved from a young age because I knew it would give me more time to reach my financial goals. An early start helps one to build a bigger corpus for retirement, children’s education and marriage. Apart from this if one has plans to buy a residential property, starting savings early helps, as you then have to borrow less from banks.

Rahul: Can you give me some more tips so that I can manage my finances in a better way?

Rohit: Sure, why not? Here are your tips:

·         Build an Emergency Fund: This is an absolute must for any individual. Set aside at least three month’s to six months’ expenses in relatively liquid assets so that in case of an unforeseen incident (like losing one’s job or an accident), you can access this money at short notice.

·         Protection: Buy a term insurance plan, where the insurance cover should be at least 10-12 times your annual earning, so that in case of untimely death of the main earning member, the family doesn’t fall into a financial mess. Ensure that every family member has adequate health insurance coverage. This will take care of the expenses related to illness and will not wipe out your savings.

·         Invest in mutual funds through SIP: Invest a certain amount of your income in mutual funds through SIP mode. Diversified Equity Mutual Funds are a time-tested vehicle for meeting one’s long-term goals as equities have the best return potential over a long period of time. However, proper homework should be made before starting (you can refer to mutualfundindia.com for a thorough analysis).

·         Make a budget: Proper budgeting helps to stay away from unnecessary expenditure. Calculate your total income - fixed and variable - and then your expenses. Targets and priorities should be set for each.

·         Earn, Save and Spend: The best pattern to follow is - earn, save and spend. Set aside funds for your long-term and short-term goals and use the rest of the money to meet day-to-day expenses.

Rahul: Thank you so much Rohit. I am going to start from today. I want to make savings and investments a regular habit from now onwards.

Rohit: It’s better late than never, Rahul. My best wishes will always be there with you and never hesitate to consult me whenever required.

Power of Compounding: An illustration to show how a SIP investment of Rs 10,000 per month will grow after 10, 15, 20, 25 and 30 years. We have made different calculations on the basis of a defensive 12% return, an aggressive 15% return and a very aggressive 18% return.

 

 

 

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

 

 

Leave a missed Call on 94 8300 8300

 

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

 

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

 

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

 

Best Performing Mutual Funds

    1. Largecap Funds             Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds         Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds          Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds   Invest Online

      1. DSP BlackRock MicroCap Fund

2.       Franklin India Smaller Companies

E. Sector Funds          Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds      Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds        Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds         Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

No comments:

Post a Comment

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Popular Posts

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications