Greetings For The day!!
Diwali is just around the corner, and you're going to buy gifts and make sure you prevent mistakes while enjoying them. Well, how often do you think you need to plan and make sure you are insured to enable you to face any future financial strain easily?
This Diwali 2021, plan to light up your Financial Life, do read and understand the following financial tips that will help you do so!
Manage your Portfolio On Intervals
Whenever Diwali comes to mind the first thing we discuss or focus on is getting our homes and offices cleaned. Bad attributes and the objects that are no longer of use will be removed.
New goods that will be helpful in the future are bought or purchased. It is said that Goddess Lakshmi — the money goddess comes into well-organized, immaculate households only.
Your Investing portfolio also has the same mindset. You must manage your portfolio efficiently so that all such assets that lie unduly and are useless get disposed of. You should instead plan new assets that may aid you in the future. Your portfolio's purity is vital as it has a huge impact on your future growth.
Remove the Obscurity of Financial Ignorance
Diwali is celebrated by lamps that light up the darkness around. A lamp here resembles knowledge that eliminates darkness. Therefore, you should also decrease the financial and investment-related obscurity or ignorance.
You should identify your previous financial errors like Selecting an incorrect financial product: A product-oriented approach rather than a financial planning process-oriented approach. Use an incorrect financial scheme or fund to keep your Income below the projected level, which won't assist you in achieving your financial objective.
You need to take corrective action after recognizing financial errors so that the same financial errors don't happen next time. You must follow an adequate financial planning method and identify your short and long-term objectives. A financial advisor can assist you in that.
Focus On Future Planning
Indians love Diwali, and during the celebration, they don't resist spending on presents, clothes, cars, and jewelry. You plan to finance the expenses you will have throughout the festival. With your finances, you can apply the same preparation and passion and start investing at a higher premium and benefit from the composition.
The sooner you start investing, the higher the compound interest will benefit you. If you have invested INR 1 lakh today and get a compounded 8% interest, you will earn INR 4,66,095 in return at the end of 20 years.
If, after a decade, you invest, you will be getting INR 2,15,892 for the same amount at the same interest rate. The difference is INR 2,50,203 in both figures, and that is the amount you lose.
Get Your Shield Ready: Life Insurance
When the crackers burst, your parents make sure that you wear clothes that do not catch fire readily and follow steps to prevent malfunctions.
Also, in insurance-related affairs, you must take the same care. If you're young and have no severe problems with a health policy, its economic and premium payments will be reduced, and wide coverage will be supplied to you.
But this will not happen if you acquire health insurance in the future, and the lenders would demand a large price for not so extensive coverage if there are any health-related problems.
If you don't want it, buy health insurance as it might prove to be highly helpful at any instance. On the other hand, Life Insurance at a premature stage of life is more profitable. The need for life insurance over 25-40 years is high, as you will not save enough to satisfy your needs.
If you die, the money from the insurance company ensures that the financial needs of the family are covered. The premium amount of life insurance that you pay depends on your age. If you take the policy from a young age, you can enjoy it.
Invest According to Your Goals
You buy gifts for Diwali depending on preference, age, and other considerations for your loved ones. Similarly, you need to invest to accomplish your wedding objectives, to buy a house, to train children, to retire, etc.
If you have chosen a target, you can start to invest in achieving these goals from an earlier stage. The aims assure that in the future, you have a cash flow. It never hurts to have more money than a financial disadvantage.
Do Not Forget To Diversify
Diwali is a celebration of lights, but alone, lights aren't enough to celebrate a joyful Diwali. Your festival should be a great combination of buying, celebration, lights, fires, and much more.
It is vital to organize, so you don't miss anything. Your investments are also subject to the same formula. As the old phrase goes - don't just put all your eggs in the same basket.
Your investment portfolio should be diversified to prevent hazards in the Market. To diversify your portfolio, you can invest in different funds like Equity mutual funds, Debt funds, Hybrid funds, ELSS, and many.
Preparing for Emergencies
Whenever several firecrackers have to be burnt, fire extinguishers are kept handy to prevent possible accidents.
If you plan investment, you also need a backup by choosing the proper insurance policy, which helps to address certain uncertainties. When unplanned losses occur, preparation with an insurance cover will help.
You can contact your fund manager or can visit Ashutosh Securities Pvt. Ltd. for any further assistance in mutual fund investment. Keep reading our article and stay updated with the latest news about Mutual Funds!
For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).