FINANCE SPECIAL - INVESTING IN TIME IS IMPORTANT

FINANCE - INVESTING IN TIME IS IMPORTANT

In order to save for your retirement, choose good schemes and prepare for long-term investments

Investment - whether at an early stage of your life or later on - is a crucial practice that every person must consider. Having said that, once one begins earning, it is important to start investing immediately to build a decent corpus for your retirement. A wellplanned investment helps build a good financial corpus. Here are a few ways of investing for your retirement:

MUTUAL FUNDS ARE A GOOD OPTION

Equity mutual funds always give positive returns. Keeping the current economic scenario in mind, one must invest at an early stage for their retirement. As financial advisors, we always recommend investing in long-term equity mutual funds. Do not be disturbed by the short jerks in the market. Of course, while there is no guarantee, the risk factor involved is lesser in comparison to other investment options. Keep in mind that as investors, our prime goal is to make good returns on the investment we make. Choose good schemes. Ideally, it is advised to hold on to it for at least 20-25 years.

WHAT'S A BETTER BET - SIP OR LUMP SUM?

Our mission is to make sure that every house has at least one person investing in SIP, thanks to the many benefits it provides. However, again, there's no right or wrong choice when it comes to investment through SIP or Lump sum. The choice is made based on an individual's goals and income pattern as well as the market scenario. This also depends on the amount one wants to invest. For example, for a 27-year-old, with an income of Rs 50,000 per month, it is advised to invest at least Rs 20,000 per month regularly. In a situation where they earn a chunk of money together, they must invest lump sum as well. However, let the SIPs keep going. This ensures regular, disciplined savings. Initially, this may feel taxing but as time passes, one realizes the importance of continuous saving.

ETW 13AUG18