Investment: We are going to tell you about three easy rules, by adopting which you can increase your money over time.
Investment of the well-invested funds can help the investors to save money in the long term. For this, you just need to save rupees regularly from your monthly income and invest them. These investments can be in the form of equity, mutual funds, fixed deposits or any other investment option. Although this theory seems very easy to understand, it is very difficult to follow them with the rising prices of essential goods. But you can do this by adopting some rules. We are going to tell you about three easy rules, by adopting which you can increase your money over time.
Asset allocation approach
You should invest in different assets like equity, debt and gold to get maximum returns. A disciplined strategy will protect you from the two most common mistakes that occur during investment. At the same time, it will also help you in controlling your emotions (greed and anxiety). When there is excess in the market and want to stay away from equity, then a large corpus should be invested in equity. A financial advisor should also be consulted to help avoid major market downturns and follow a disciplined asset allocation approach.
Savings through Systematic Investment Plan
Systematic Investment Plan (SIP) brings the habit of regular savings by automatically reducing the predetermined amount from your bank account. Investors can start with a minimum SIP amount of Rs 1,000 (in some cases it is Rs 500). It is good to start SIP as soon as possible. This will help investors save money over a period of time and earn profits from compounding. SIPs can help you in reducing the cost of your investment during market downturn.
Invest money in short term funds
Most people keep a large amount in their savings account keeping in mind their short term needs. However, this increases the opportunity cost in the form of returns over alternative options. In this case, instead you invest your money in liquid funds or ultra short term funds which can give better annual returns.
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