Common Financial Goals of a Family
Exploring various investment options for your family’s financial goals?
Financial goals such as a child’s higher education, marriage, dream home and retirement are common aspirations.
Different ways to achieve these goals are through employment, business or strategic investments in gold, real estate, fixed deposits, insurance and mutual funds.
Each avenue comes with its own set of advantages and disadvantages.
Understanding Inflation
Inflation is a critical factor impacting future financial goals. Learn how it erodes the purchasing power of currency and why it’s crucial to consider when planning investments.
Scarcity, often compensated by loans or selling assets can be mitigated by strategic investment decisions at right time.
Disadvantages of Common Investments
Let us explore the dis-advantages of popular investment options like gold, real estate, fixed deposits and insurance since you know more about their advantages.
Gold Investments
The cost of acquiring gold includes making charges, value addition charges, and GST.
Safely storing this precious metal poses a significant risk. Additionally, the resale of outdated jewelry involves discount of making and value addition charges.
Emotional attachment to sentimental pieces further complicates the decision to sell.
Real Estate Investments
The process of acquiring and maintaining properties has its own challenges.
Thorough due diligence is crucial, particularly when purchasing in prime locations that can be exorbitantly priced.
Property transactions incur expenses like registration charges, and annual property taxes must be paid regardless of the property’s income-generating potential.
Maintenance costs, periodic upgrades, and the need for vigilant property safeguarding add to the complexities.
The process of selling or pledging real estate involves time consuming procedures.
Fixed Deposits
The returns from fixed deposits may not outpace inflation, leading to diminished real returns over time.
Premature withdrawals often result in penalties and yearly taxes are levied on the interest earned.
The guarantee provided by banks is limited to five lakhs of investments.
Additionally, interest rates change every quarter due to decisions made by the Reserve Bank of India (RBI).
Insurance Investments
They may not offer returns that beat inflation and discontinuing premium payments in the first year leads to the termination of coverage with no returns.
Surrendering a policy may yield poor returns on investment.
Understanding the advantages and disadvantages of these common investment options is crucial for informed decision making.
While each option serves a purpose, it is essential to weigh their advantages and dis-advantages against your financial goals.
Mutual Funds – The Investment Game-Changer
Consider these 15 compelling reasons to invest in mutual funds in 2024 for ensuring a secure and prosperous future for you and your family.
Low initial investment starting at just ₹500 a month.
Seamless online processes for registration, investment, withdrawals and monitoring.
Inflation beating returns with the potential for even one-time investments.
Complete transparency in portfolio management.
Tax deductions under Section 80(C) with a minimum lock-in period of three years in ELSS.
Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs), and Systematic Withdrawal Plans (SWPs) for flexible investing.
Nominee facility for added security.
Professional management by seasoned fund managers.
Options to invest in shares, bonds, gold, and real estate through mutual funds.
Ability to sell the entire investment in a single day.
Regulated by Securities and Exchange Board of India (SEBI).
Low expenses incurred in mutual fund investment.
Access to historical performance records for informed decision-making.
Availability of partial withdrawal options.
Potential for high returns through strategic investment choices.
The Power of Mutual Funds
Learn about the robust growth of mutual funds in India, with over 7.44 crore SIP accounts and a value of ₹17,073 crores in November 2023.
Kindly check the below link to verify the authenticity of the above data.
https://www.amfiindia.com/mutual-fund
Disadvantages of Investing in Any Asset Class
Understand the common thread of price fluctuations in all asset classes, including mutual funds. They are inherent, making investor awareness crucial.
Are you ready to unlock the full potential of your investments in mutual funds in 2024?
Finance Mantiri, with six years of expertise and a track record of guiding hundreds of clients, is here to handhold you on your financial journey.
Click the button below to begin your mutual fund investment and achieve your family’s financial goals.