Financial Planning for Future
Every one of you wants to invest some money anywhere so that would be helpful for you in future or might be for your children’s marriage or education. Let us take this situation where you want to invest your money for your children’s education and marriage expenses and how do you plan your investments in mutual funds accordingly? Here are some suggestions for the same.
Let us consider that you are a young unmarried or a newly married person. This stage in which if you start your investment, it is called as “Accumulation Stage”.
Accumulation Stage:
In this period, you can choose to invest in SIP Mutual Funds for a very long term i.e. SIP equity schemes. Because in this stage, there is not much need for liquidity or urgent cash. So if you invest in SIP equity schemes, you can get good returns as the schemes are equity schemes.
You can continue your investment in equity schemes, till you feel that you are reaching the next stage based on your needs.
Transition Stage:
Consider that your child might go for higher studies in another 2 years or your child might get married in another 2 years, then you should withdraw your investments from the equity mutual funds and then invest in “Bond Funds”. In Bond funds, your investments are much safe when compared to the Equity Mutual Funds.
Reaping Stage:
Once the preparations for your child’s education or marriage has been started, then you can withdraw your funds from bond funds and keep invested in “Liquid Funds” where your funds will be much safer with much liquidity. Or else you can also invest it in the bank deposits.
In each and every stage, you have to consult and find the best funds in the particular category and then invest accordingly.
Happy Investing!!
Disclaimer:
“Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the Scheme will be achieved. Please read the Statement of Additional Information and Scheme Information Document carefully before investing”.
“In Mutual Funds, the past performance is not guaranteed in future”.
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