Long term return and achieve financial security and independence
- In today’s world financial security is very important; this is not only due to job uncertainties but also due to the kind of environment we live in. With proper financial planning most of these uncertainties can be addressed to a large extent.
- Having a good financial plan will not only help you in growing your assets but also your mental health. That help you plan for all your future requirements be it short, medium or long term, example- vacation, purchase of vehicles or other household items, education expenses, marriage, job uncertainty and even retirement.
- We Indians have always given great deal of importance for financial discipline - minimum expenses and maximum saving but these saving not will be enough to deal with decreasing purchasing power due to inflation.
- Historical average inflation for 16 years from 2001 to 2017 has been 6.45%, hence investor will have to invest in security that are realising more than or equal to 6.45% after paying taxes for his returns.
- It should also be noted that FD’s are not completely tax free. In-order to achieve more than or equal to 6.45% post tax returns it is advised to invest in assets other than saving a/c and FD’s. There are numerous ways to achieve this target rate.
- Investing in equities and fixed income securities indirectly through Mutual funds have been fruitful over longer investment period.
A combination of good assets and regular and disciplined investments is bound to tackle any situations life throws at you..
Remain tax efficient by optimizing the investment portfolio
- We will be assessing the impact of taxes on your returns based on your necessity or requirement of liquidity and your risk tolerance. Considering these there are various securities available and you can decide the most suitable security per your requirement and your willingness and ability to assume risk.
Through monthly systematic investment or one time investments.
- It’s a common belief that 95% of returns are due to the right asset allocation and only 5% is your ability to invest at right times.
- We strongly believe that timing the market is counterproductive to long term wealth creation. Hence we steadfastly practise the ageold principle of dollar cost averaging in acquiring any asset. The mode of investment could bein one shot that is Lump-sum investment or through periodic regular investment.
Plan for regular monthly saving
- It is considered a good practice to invest regularly, particularly into volatile markets such as equity markets. SIP is an approach where the investor invests constant amounts at regular intervals.
- A benefit of such an approach, particularly in equity schemes, is that it averages the unit-holder’s cost of acquisition since more units are bought for the same amount of investment when the price/markets are down and fewer units when the price/markets are high.
- Through this there is not only efficient movement of saving to investment but also a better and conservative approach of averaging the purchase price.
- It also brings in an hassle free investment discipline for the family
Plan of Lump sum Investment
- Once you invest a lump-sum in a debt oriented mutual fund, you can withdraw a fixed amount from your debt fund investment and invest in equity oriented fund.
- You can direct your fund to do this and the fund will withdraw money automatically from your debt fund and put into equity oriented fund every month.
- What this strategy achieves is that it essentially acts as a defence against market volatility and helps in achieving dollar cost averaging.
Provide regular liquidity to meet short term goals and emergency requirement with no lock-in investments.
- Our motto is to always take care of investor’s liquidity requirement. All our transactions are made through online Nation Stock Exchange Platform, thus enabling the investor to view his/ her fund status online at their convenience. Investors can themselves redeem the amount when necessary through this platform. Almost 90% of investments provide instant liquidity (1 to 3 working days).
- Just as investors do not want to buy all their units at a market peak, they do not want to risk redeeming all their units in a market trough. Investors can therefore opt for the safer route of offering for repurchase, a constant value of units over a period of time.
- Mutual funds make it convenient for investors to manage their SWPs by registering the amount, periodicity (generally, monthly) and period for their SWP.
- Some schemes even offer the facility of transferring only the appreciation or the dividend. The advantage of a variable SWP relative to a fixed amount of withdrawal is that the capital invested will not be withdrawn.
- This plan is highly suitable for retired person and senior citizens who desire a tax efficient regular income.