Plan your Investments 2021: Top 10 performing Mutual Funds in 2020
Who doesn't want to be moneyed and affluent? Just dreaming or aspiring isn't enough to dress with that golden crown. However, the best option is if you act towards it with a goal in mind and discipline. Overnight tales of rags to riches are just a stroke of luck and not for you!
Wealth Management is a long-term process. With the best information and plan, one can easily achieve financial goals. There are golden rules of wealth management, you need to make certain you are following these rules of wealth management.
Before we tell you more about financial planning let's get down to some basics.
Spend less, save more
It may sound unexciting and almost every financial advisor will tell you that to create wealth you need to have surplus funds to invest. As simple it could be, exhausting your income and not saving is not going to make you rich. Act now, keep a track of your spending and have a strict budget. Try working on reverse gear, save first and then spend.
Better be safe than sorry – Be insured
You can never be certain of life's plans for you. Nothing could be a better example than the Covid 19 outbreak, I mean to say the way it has ripped all of us apart, Right? Make sure, whether it's you or your family – get proper health insurance coverage that will take care of you and your family in case of emergencies. If you do not have health insurance, you're risking your savings and investments. Talk to your financial adviser to help you with the right plans. Do not mix your investments with insurance.
Plan your taxes – Paying taxes is like a pinch in the pocket, wealth management isn't just about investments. It would be best if you had a strategy for your taxes as well. Taxes are not going to leave you and be there all your life – so plan them well in advance. Avoid the last moment tax filings.
Retirement Plans – Thinking of retirement plans can get you stressed, but all your investments will come to your rescue during retirement. The more you save the more you're at ease during your retirement. Ensure you have a retirement fund, talk to your financial advisor to chalk out the best for you.
Mutual Funds Investment tips across various age groups
Well, age is no bar when it comes to securing your finances. Even in your 40's, you'll still find a fund to help you achieve your life's goals.
Depending on your appetite, if you have a high-risk appetite, then you can consider investing in equity or stocks via mutual funds. Or if you seek income generation rather than high returns, then you may consider debt funds as your go-to options. You can also invest in both equity and debt.
Investing in mutual funds are best for young and beginning investors:
Simplicity: Most of the young investors in their 20s and 30s don't have complex financial needs. Mutual funds are easy to research and buy, they make good choices for young investors.
The power of diversification: Since mutual funds hold dozens or hundreds of other securities, such as stocks and/or bonds, a young investor can get started and do well with just one or two funds. It's a good idea not to put all your eggs in one basket
The best part is its accessibility: With little money or financial skills necessary you can invest in Systematic Investment Planning (SIPs). You can just get started as low as Rs 500 and climb up. You will not require a broker or advisor to buy them. You can find a plethora of apps that offer you to invest in Systematic Investment Planning - it is a way of investing in mutual funds. (Be careful with fake apps and websites they come in disguise)
Don't just blindly sit on your Investments. Make a habit to review your investments periodically
Patience is a virtue, but it will not help you earn returns unless you monitor your investments often. Periodic review will help you re-balance your portfolio to stay aligned with your changing goals and needs. Identify underperforming assets and get rid of them. Underperforming funds need to be reallocated to better. It is advisable to set a time, quarterly, half-yearly, or yearly, and make sure you are reviewing your investments.
Here below we bring you the best SIPs plan (Policybazaar.com) of 2020 keeping a return horizon of 1 year to 5-year
Disclaimer: The information on this site is provided for discussion purposes only and should not be misconstrued as investment advice. Under no circumstances www.Bizzbuzz.news recommends this information to buy or sell securities.