Important Milestones in Life.

Are we on track to achieve the Important goals in our lives?
Buying a house
Buying a car
Children education
Children marriage
Retirement
To achieve the above mentioned goal we should follow a unique goal achievement programme through systematic investment plan. Under this plan investor invest a specific amount for a continuous period at regular intervals, say monthly or quarterly. By doing this, the investor has the advantage of rupee cost averaging and also helps him save compulsorily a fixed amount each month. The money is invested in the stock market by experienced fund managers. When you opt for SIP, you automatically participate in the market swings. Your amount of investment remaining the same, you buy more number of units in a declining market and less number of units in a rising market so that you do not panic in turbulent market conditions. As said earlier, SIP results in rupee cost averaging, which means that, when you invest consistently the same amount at regular intervals, your average cost per unit will always remain lower than the average market price, irrespective of how the market is rising, falling or fluctuating. It is very easy to become a systematic investor. All you need to do is plan you savings effectively and set aside some amount of money every month for investing in a fund. So if you want to stay calm and sail smoothly in difficult times go for systematic investment plans.

Mutual Funds, an Overview

A mutual fund is a pool of investments managed by professional money managers who have in-depth knowledge of the equity as well as global markets. Investments may be in stocks, bonds, money market securities or some combination of these. When you are investing in mutual funds, you are actually pooling your money with other people who have similar investment goals. For the individual investor, mutual funds provide the benefit of having someone else manage your investments and diversify your money over many different securities that may not be available or affordable to you otherwise. Today, minimum investment requirements on many funds are low enough that even the smallest investor can get started in mutual funds. Just like shares units are allotted to investors for their investment. Units are allocated on the basis of NAV (Net Asset Value). This is the price at which investors buy fund from the company. NAV is calculated at the end of each trading day. For example if the NAV of a fund is Rs.50/- and the investor invests Rs 1000 monthly then he will get 1000/50 = 20units. Next month the investor will get units according to the NAV in that particular month.

Waiting for the Right Time

During the course of my consulting, I came across many people who have good income but yet they are in financial mess. People don’t give much importance to saving. There are many who wait for the right time to save or invest for the future. But one fails to understand about the so called “right time.” Ask anyone and you will get the reply that they don’t have enough to save. They fail to realize that they don’t need a big amount for saving. The pattern usually is to first spend and then save where as it is exactly just the opposite. By writing this I don’t mean that you shouldn’t enjoy life and squeeze out every penny for achieving you future goals. My only point is to accumulate for the time when we’ll have to slow down and then finally retire. There are various types of people 1.who think it is too early to save. 2. Who don’t believe in saving? Their motto, earn and spend today.3. Who want to save, but doesn’t know when and where to invest. And finally 4. Who have put aside and invested but if you ask them where they have put their hard earned money, they will go just blank. Reason, though they have taken the initiative to set aside some money, they don’t have the time to remember or go through the documents of their saving. We should only remember one thing. We work hard for money then why shouldn’t our money work hard for us. There is always a good reason for not investing, but there is actually even better reason to start investing right away. In fact, starting sooner rather than later is one of the best investment decisions you can make. So don’t wait for the right time, start with a systematic investment plan. Be smart. Be systematic.