Stay financially healthy with SIP (Systematic Investment Plan)

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In our previous blog we have learned the zest of what are SIP, SWP and STP . In our today’s topic we will learn about the role of SIP in our financial health. Let us see why we need SIP but first and foremost lets get the brief idea what financial health and goals are What are Financial Goals For instance, we all have our future goal where we want to get something like a private flat and as the time pass so does our needs grow, and we would want to buy a more luxurious car and go holidaying in the foreign countries. This is like natural progression if we look at it there is a pattern here, our need increase as we start to earn more and all these needs are classified as our financial goal like retirement and child education. How to achieve the Financial Goals The problem with growing needs is that only saving won’t be of much help. So now the question arises how do  we achieve all our financial goals? And the answer to this is we need a plan and a systematic way to execute t
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A Beginner's Guide to What is Mutual Funds

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What is a Mutual Funds?

First let us learn the definition of Mutual Funds, it is an investment programme funded by shareholders that trades in diversified holdings and is professionally managed'.

In the more simple language the word 'Mutual' means 'A group of people coming together' and 'Fund' means 'pooling of money'. Therefore the term Mutual Funds suggests a group of people putting their money together to buy stocks and bonds and in some cases the combination of both.
Well we can take an example of a baker making a million pound cake and this cake is made out of variety of ingredients, each ingredient of the cake are the bonds and shares. And just like combining different ingredients give makes a cake, bonds and share makeup a portfolio.

But now the question is how to invest the bonds and shares

And the answer is a professional Fund Manager. Fund manger manages the pool of money and builds a portfolio which is in line with the investments object of the scheme. Just like a baker bake cakes of different flavor by mixing different ingredient a fund manager makes the best combination of bonds and share to get the best returns on the investment in your portfolio.
Now depending on your investment you will be allotted bonds and shares which are known as units holdings. Just like there are different flavors of cake. You will also find many option in Mutual Fund like debt fund, equity fund, liquid fund and the combination of debt and equity fund. Just like you need to choose a good bakery to get fresh cakes, you need to opt for the right mutual fund scheme to seek your expected return.

Now we know what is Mutual Fund and a portfolio so lets learn about the risk in Mutual Funds

Invest bonds are spread across a wide cross-section of industries and sector. This insure that risk is controlled because let's be practical all the stocks does not move in the same direction in the same proportion at the same time, thus it helps to minimize the risk.

Well this is it and if the concept of mutual funds seem interesting to you and you are thinking when is the best time to start investing? Your answer is, the sooner you begin the more returns you will get, thus bigger the difference to your portfolio.

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Stay financially healthy with SIP (Systematic Investment Plan)

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In our previous blog we have learned the zest of what are SIP, SWP and STP . In our today’s topic we will learn about the role of SIP in our financial health. Let us see why we need SIP but first and foremost lets get the brief idea what financial health and goals are What are Financial Goals For instance, we all have our future goal where we want to get something like a private flat and as the time pass so does our needs grow, and we would want to buy a more luxurious car and go holidaying in the foreign countries. This is like natural progression if we look at it there is a pattern here, our need increase as we start to earn more and all these needs are classified as our financial goal like retirement and child education. How to achieve the Financial Goals The problem with growing needs is that only saving won’t be of much help. So now the question arises how do  we achieve all our financial goals? And the answer to this is we need a plan and a systematic way to execute t
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