While the mutual funds help you to build wealth, you should also ensure that you buy life insurance to protect your family.
Saving more and investing one’s savings in the right mix of investment options is the way to achieving to one’s financial goals. It is no secret sauce, rather it is the disciplined approach that makes one richer over his lifetime. If you have just started working, here are some tips that can be of immense help.
If you are looking for some tips to invest better using mutual funds, here are some tips to get started. If you are not sure about the tax rules that govern the returns generated by the investments in mutual funds, do click here for a simple narration.
A diversified equity mutual fund portfolio can help you to generate better tax efficient returns. If you are investing for a time frame of more than five years equity mutual funds make a lot of sense. However, equity mutual funds come with a risk of volatility and not everyone can stomach it. Especially, if you are a senior citizen, investing in mutual funds appears like a cumbersome task. Here is how you can invest in mutual fund without losing your capital. Though this strategy takes time to shift your money from fixed income to equity mutual funds, it ensures that you do not take unnecessary risks. Neither your capital is put to stake nor you expose yourself to timing risk.
While the mutual funds help you to build wealth, you should also ensure that you buy life insurance to protect your family. But many of us do not know how much life insurance one should buy. You should take into account your liabilities while deciding on the extent of life insurance cover. You can also use a human life value calculator to ascertain how much of life insurance you should buy.
While the markets ended on a positive note after a downward move in stocks, experts advise caution. It is time to stick to your asset allocation and invest as per the financial plan. Avoid going overboard on any of the asset classes.
