FINANCIAL MISTAKES

     

Are you a Mutual Fund Investor? Don't Make These 4 Financial Mistakes.

"The proactive approach to a mistake is to acknowledge it instantly, correct and learn from it." -Stephen Covey

To err is human. We all make mistakes in different aspects of our lives. And mistakes act like stepping stones. It helps us to figure out where we went wrong and learn from our mistakes.

While mistakes help us grow, mistakes regarding your finances can have a long-lasting negative impact. It is easier to get confused in the current scenario. The pandemic has caused global upheavals.

In this article, we have listed down some financial mistakes that you should avoid in the current scenario.

  Not having an adequate emergency fund

Everyone should have an emergency fund. It will help you take care of emergencies such as job loss or a health emergency. Under normal circumstances, an emergency fund should be able to suffice expenses for three to six months, you can look at building an emergency fund that can take care of your expenses for a year.

It is because, in the current scenario, there are likely to be job losses that can leave you without a source of income. You can do this by saving more money. Look at your bank statements to find out any recurring costs such as subscriptions that you no longer use.

You can look at building your emergency fund through liquid funds and savings accounts. Many liquid funds offer instant redemption to their customers.

  Stopping SIP Investments

While you may want to build a bigger emergency fund, stopping your running SIPs may not be you more units for the same SIP investment amount.

Before making a good idea. Rupee cost averaging is one of the most important benefits of SIP. It averages out the cost of buying mutual fund units. In times like these, when the market is down, the fund house will allot any hasty decisions such as stopping your SIP and redeeming your investment, trying to figure out if the decision that you are about to take will help you with your long-term financial goals. If not, then you can continue with your SIP.

Checking your portfolio several times

One reason you are probably thinking of stopping your SIP investment can be because you are checking your portfolio several times in a day or week.

In the current scenario, your portfolio is likely to witness tremendous fluctuations. While it may scare you, it is best to focus on the goals rather than the market levels.

Refrain from continuously checking your investment portfolio. To make sure that you are attempting to see how your mutual fund investments are performing, log out of your account and uninstall investment apps. This can help you see the bigger picture. 

Avoiding new mutual fund investments

The current scenario has made many investors risk-averse and they are shying away from making one-time lump sum investments in the mutual fund of their choice. If you have a running SIP investing in a long-term financial goal, making a lump sum investment in the fund can help you reach your goals faster. It is because you are likely to witness higher returns when the market bounces back.

As the interest rates on fixed deposits and other traditional instruments have gone down, you can look at making further investments in your existing mutual funds or new funds. It is important to select mutual funds in line with your risk-taking capacity and time horizon. Your financial advisor can help you select the right fund for you.

Conclusion:

In these tough times, it is easy to be influenced by different people. It is of utmost essential to act rationally and think through our impending decision before taking any action.

It is better to avoid doing things that you may later regret. These were the four mistakes that mutual fund investors are prone to do in the current scenario. You can consult your financial advisor to avoid mistakes and make the right investment decisions.

                                                                                             AMFI Registered Mutual Fund Distributor 
                                                                                                                                             6306522855
          Hazratganj, Lucknow, 226001
                            customercare@vsix.co.in || www.vsix.co.in

 

                         Steps to never run out of money  

       Simple Steps to Never Run Out of Money

Do you earn a handsome amount of money but have no clue where your money goes? Do you run out of money every month? This blog is about the best ways of staying in control of your finances and never running out of money. We will discuss how to stay in control of your debt, avoid frivolous spending, and optimize your income.

1. Keep track of your income and spending

Keeping track of your everyday spending may appear tedious, but it is the most effective approach to voiding unnecessary financial withdrawals. You will become more aware of how you spend your money after this exercise. You may find the flaws in your budget by looking at the cash withdrawals at the end of each month. Once you identify the flaws, the following step is to eliminate any unnecessary costs to free up resources that may be put to better use elsewhere.

2. Make projections for future requirements

Determine your sources of income and spending. Future financial obligations or needs, such as the amount of money that you will need to maintain a particular quality of living, the amount needed for retirement, and so on, can be predicted in advance. For correct calculations, you need to include inflation. When your financial situation changes because of shifting life objectives, you must account for these changes in your future forecasts.

3. Make saving a top priority

We all have seemingly limitless ambitions. Prioritizing helps you to discover and focus your efforts on the most essential goal at any given time. The first item on your priority list should be “saving.” Saving compels us not to get goods now so that we can have greater ones later. Once you receive your pay, you should set aside a portion of it for savings. Ideally, you should set aside 20% to 40% of your salary for savings. You can spend the rest of your money for other purposes.

4. Investment is equally important

Saving is a good habit. But it’s also vital to put your money into growth opportunities that will help you develop a healthy portfolio. As a general guideline, invest a percentage of your money equal to 100 minus your age in stocks. For example, if your age is X, invest (100-X) % of your funds in equities. Equity has traditionally delivered a CAGR of about 15-16% over 15-20 years, making it an appropriate investment instrument for medium to long-term goals. The easy way to invest in stocks is through mutual funds. You may get the benefits of diversification by going the mutual fund way.

5. Put the power of compounding to good use

Using Systematic Investment Plans, investors may make compounding work to their advantage. This also helps them to be more disciplined in their investment. After 30 years, a monthly investment of Rs 10,000 in a SIP in an equities mutual fund with a 12% annual return results in a corpus of Rs 3.2 crores. Even if one does not have much money, beginning a SIP early on can help one gain a lot of money over time.

6. Save for a rainy day   

      

Any emergency has the potential to deplete your resources. In the event of such a calamity, having an emergency fund separate from your savings and investments can assist you in meeting unanticipated financial obligations. An emergency fund should keep you afloat for at least three months, even if there are no inflows. You may automatically save a specific amount from your salary towards an emergency fund. You can also invest in options such as short-term debt funds or liquid funds as an alternative.

 These were the six tips that can help you from running out of money. Consult us to know more and make sure that you never run out of money. This blog is purely for educational purposes and not to be treated as personal advice.

 Mutual fund investments are subject to market risks, read all scheme related documents carefully.

                                                     

                                                                                      AMFI Registered Mutual Fund Distributor  

6306522855

Hazratganj, Lucknow, 226001

customercare@vsix.co.in || www.vsix.co.in

 

                  कभी भी धन की कमी न होने के सरल उपाय             

क्या आप अच्छी-खासी रकम कमाते हैं लेकिन यह नहीं जानते कि आपका पैसा कहां जाता है? क्या आप  रन आउट हर महीने पैसे का? यह ब्लॉग आपके वित्त के नियंत्रण में रहने के सर्वोत्तम तरीकों के बारे में है और कभी भी पैसे से बाहर नहीं निकलता है। हम चर्चा करेंगे कि कैसे अपने कर्ज पर नियंत्रण रखें, फिजूलखर्ची से बचें और अपनी आय को बेहतर बनाएं।

1. अपनी आय और खर्च पर नज़र रखें

अपने दैनिक खर्च पर नज़र रखना कठिन लग सकता है, लेकिन यह सबसे प्रभावी तरीका है अनावश्यक वित्तीय निकासी से बचें। आप इस बारे में अधिक जागरूक हो जाएंगे कि आप अपना पैसा कैसे खर्च करते हैं इस अभ्यास के बाद। अंत में नकद निकासी को देखकर आपको अपने बजट में खामियां मिल सकती हैं प्रत्येक माह का। एक बार जब आप खामियों की पहचान कर लेते हैं, तो निम्नलिखित कदम किसी भी अनावश्यक लागत को खत्म करना है संसाधनों को मुक्त करने के लिए  जिनका कहीं और  बेहतर उपयोग किया जा सकता है।

2. भविष्य की आवश्यकताओं के लिए अनुमान लगाएं

अपनी आय और खर्च के स्रोतों का निर्धारण करें। भविष्य के वित्तीय दायित्व या जरूरतें,  जैसे कि जीवन  की एक विशेष गुणवत्ता को बनाए रखने के लिए आपको कितनी धनराशि की आवश्यकता होगी, इसके लिए आवश्यक राशि सेवानिवृत्ति, और इसी तरह, अग्रिम में भविष्यवाणी की जा सकती है। सही गणना  के लिए, आपको  शामिल करने की आवश्यकता है मुद्रा स्फ़ीति। जब जीवन के उद्देश्यों में बदलाव के कारण आपकी वित्तीय स्थिति में परिवर्तन होता है, तो आपको इसका हिसाब देना चाहिए आपके भविष् के पूर्वानुमानों  में इन परिवर्तनों के लिए

3. बचत को सर्वोच्च प्राथमिकता दें

हम सभी की असीमित महत्वाकांक्षाएं प्रतीत होती हैं। प्राथमिकता देने से आपको अपने प्रयासों को खोजने और उन पर ध्यान केंद्रित करने में मदद मिलती है किसी भी समय सबसे आवश्यक लक्ष्य।आपकी प्राथमिकता सूची में पहला आइटम "बचत" होना चाहिए। सहेजा जा रहा है हमें अभी माल नहीं  लेने के लिए मजबूर करता है ताकि हम बाद में और अधिक प्राप्त कर सकें। एक बार जब आप अपना वेतन प्राप्त कर लेते हैं,आपको इसका एक हिस्सा बचत के लिए अलग रखना चाहिए। आदर्श रूप से , आपको अपने वेतन का 20% से 40% तक अलग रखना चाहिए बचत के लिए। आप अपना शेष पैसा  अन्य उद्देश्यों के लिए खर्च कर सकते हैं।

4. वेश निभी उतना ही महत्वपूर्ण

बचत करना एक अच्छी आदत है। लेकिन अपने पैसे को विकास के अवसरों में लगाना भी महत्वपूर्ण है जो आपकी मदद करेंगे एक स्वस्थ पोर्टफोलियो विकसित करें। एक सामान्य दिशानिर्देश के रूप में, अपने पैसे का एक प्रतिशत 100 . के बराबर निवेश करें स्टॉक में अपनी उम्र घटाएं। उदाहरण के लिए, यदि आपकी उम्र X है, तो अपने फंड का (100-X)% इक्विटी में निवेश करें। इक्विटी ने परंपरागत रूप से 15-20 वर्षों में लगभग 15-16% का सीएजीआर दिया है, जिससे यह उपयुक्त है मध्यम से लंबी अवधि  के लक्ष्यों के लिए निवेश साधन। शेयरों में निवेश करने का आसान तरीका है म्यूचुअल फंड्स। च्यूअल  फण्ड के रास्ते जाने से आपको विविधीकरण का लाभ मिल सकता है।

5. कंपाउंडिंग की शक्ति को मदद करने के लिए

कामयाबी हासिल करने के लिए इस यह भी सहायक होता है। 30 साल के बाद, व्यापार का इन्वेंटरी एक तेजी से तेजी से घटना में 12% की वापसी के साथ 3.2 केएस में परिणाम यह राशि बढ़ने में  मदद करेगा। समय के साथ पैसा।

6. बरसात के दिनों के लिए बचाएं

किसी भी आपात स्थिति में आपके संसाधनों को समाप्त करने की क्षमता होती है। ऐसी विपदा की स्थिति में,आपकी बचत और निवेश से अलग आपातकालीन निधि अप्रत्याशित को पूरा करने में आपकी सहायता कर सकती है वित्तीय दायित्वों। एक आपातकालीन कोष आपको कम से कम तीन महीने तक बचाए रखना चाहिए, भले ही कोई अंतर्वाह नहीं हैं। आप अपने वेतन से एक विशिष्ट राशि को स्वचालित रूप से एक . की ओर बचा  सकते हैंआपातकालीन निधि। आप शॉर्ट टर्म डेट फंड या लिक्विड फंड जैसे विकल्पों में भी निवेश कर  सकते हैंविकल्प। ये थे छह टिप्स जो आपको पैसे से बाहर निकलने में मदद कर सकते हैं। अधिक जानने के  लिए हमसे परामर्श करें और सुनिश्चित करें कि आपके पास कभी भी पैसे की कमी न हो। यह ब्लॉग विशुद्ध रूप से शैक्षिक उद्देश्यों के लिए है और इसे व्यक्तिगत सलाह के रूप में नहीं माना जाना  चाहिए। म्यूचुअल फंड निवेश बाजार के जोखिम के अधीन हैं, योजना से संबंधित सभी दस्तावेजों को ध्यान से पढ़ें।

              

                                                                                               

                                          

      AMFI Registered Mutual Fund Distributor  

6306522855

Hazratganj, Lucknow, 226001

customercare@vsix.co.in || www.vsix.co.in

 

 

 

 

 

 

 

Use of Emergency Fund

                                       Use of Emergency Fund

 

Build Your Emergency Fund? Know When to Use Your Emergency Fund

In the current state of affairs, it has become important to build a sizeable emergency fund corpus to take care of any emergency requirements.

It is important to build an emergency fund. Similarly, it is important to know when to use your emergency fund.

Typically, you can accumulate your emergency fund in a savings account and liquid fund. We suggest that you park one-third of your emergency corpus in a savings account to meet your short-term emergency expenses and two-thirds in a liquid fund to take care of your long-term expenses.

In this article, we will find out when you should use your emergency fund.

Questions to ask yourself before using your emergency fund?

Before you dip into your emergency fund, you can ask yourself these three questions.

                Is it unexpected?

 Unexpected events such as job loss or house repair call for an emergency fund. Diwali shopping or yearly car maintenance or health check-up are expected events and take place every year.

            Is it necessary?

 This question will help you figure out between a need and a want. It is because, at the moment, it may be hard for you to figure out whether it is an emergency.

                    Is it urgent?

 Ask yourself if the situation is urgent or whether you can postpone it to a later date. If you can postpone it with no negative implications, there is a higher probability that it is not urgent.

When you should use your Emergency Fund?

The three questions mentioned in the previous section will help you understand whether you need to use your emergency fund. However, there are certain situations where it is essential to use your emergency fund. Here are six such circumstances:

              1.  Job Loss

Many people have lost their jobs in the current scenario. Jobs of many people are at risk. An emergency fund can help in such circumstances. The emergency fund can take care of the expenses till you find a new job. Other than taking take care of expenses, you will also be able to pay your outstanding EMIs and insurance policy premiums on time. It will keep your family protected, protect your credit score from slipping, and avoid piling up credit card debt. As in worst circumstances, you may be without a job for a few months; an emergency fund accumulated in a liquid fund can support you and your family.

               2. Medical Emergency

Medical emergencies are unexpected events. When you face any other medical emergency, an emergency fund can come to aid in these situations.

If you don’t have health insurance, you may have to shell out thousands on medical treatment. Even if you have health insurance, depending on your health insurance plan, you may need to take care of pre-hospitalization and post-hospitalization costs from your pocket.

              3. Car Repairs

 Your car just like any other form of machinery requires proper maintenance. Even if you take your car for annual maintenance, there can be an unexpected need to get your car repaired by a mechanic. The amount required to repair your car will depend on the damage. As it is an urgent situation, there is no harm in dipping into your savings account emergency fund to repair your car.

                   4. Home Repairs

 Home repair is another unexpected urgent expense. Your roof falling down with no warning, water pipes bursting and your AC failure in the blasting summer are a few of the examples that will require your immediate attention. You can use your short-term emergency corpus to take care of these requirements.

                   5. Family Emergency

 Families form an integral part of our lives. Our family members may face emergencies and may not be financially well equipped to handle the situations. In these situations, it becomes our responsibility to take care of our family members. Whether they are facing a medical emergency or any other emergency, it is important to help them navigate difficult times with your emergency fund. 

                  6.  Urgent travel requirements

In this era of globalization, many people are living in metro cities that are hundreds of kilometers away from their hometowns. Hence, people may want to visit their hometown for any family emergency. As booking flight tickets at the last moment is expensive, one can use their emergency savings account to book flight tickets.

Also, urgent relocation to another town may also require dipping into your emergency fund.

Conclusion:

The emergency fund is a must-have for everyone. There can be scenarios where you may be tempted to use your emergency fund for non-emergency purposes. In that case, it is important to ask yourself the three questions and figure out if your emergency is any of the six emergencies listed above. This will help you access your emergency fund for the right reasons.

                

                   AMFI Registered Mutual Fund Distributor  

                                                                        6306522855
                                                          Hazratganj, Lucknow, 226001
                                                  customercare@vsix.co.in || www.vsix.co.in