When investing in a Mutual Fund, you must calculate your financial target amount correctly. If you take into account the inflation rate while deciding the amount of your financial goal, then in future you will be able to raise the right amount accordingly.
New Delhi
Many people want to get advice on adding money to their future financial goal. These can have financial goals like own retirement, children’s education, marriage, buying a car in future, going on vacation, buying a house. When investing in a Mutual Fund, you must calculate your financial target amount correctly. If you take into account the inflation rate while deciding the amount of your financial goal, then in future you will be able to raise the right amount accordingly. In this article on investing in mutual funds (MF), we are giving you information about raising funds for future financial goals through a question and answer.
:I received a decent amount of money from my office this month as a bonus. My wife is pregnant and is going to have a baby this month. I want to invest my money received in bonuses according to raising a fund. I want to invest in a fund where I earn 12% per annum. The purpose of this investment is education and marriage of the child. This investment is to raise 45 lakhs in 18 years according to the higher education of the child and 20 lakh rupees after 25 years of marriage. I can take a little risk, in which medium should I invest?
Answer: Inflation rate is not taken into consideration while calculating your own financial goals. Because of this you can get less money at the time of need. An amount of ₹ 20 lakh is not sufficient for the marriage of the child after 25 years from today. Given the current expenditure, if the annual rate of inflation is added, then accordingly you should improve the amount of your financial goal. If we also add the annual inflation rate of 6%, then after 20 years the cost of the current Rs 20 will be close to ₹ 70 lakhs at that time.
Which mutual fund is appropriate?
If you cannot take the risk and want to invest for a long period, then you should invest in a Flexicap mutual fund. You should also keep in mind that whether your bonus amount will meet your financial goals or you will need to invest extra for it.
Seek the help of an investment advisor.
If you cannot fix the amount for your financial goal or you cannot extract the right amount by adding inflation rate, then you should give the help of a trusted mutual fund adviser. Mutual Fund Advisor can help you choose the right mutual fund according to your risk appetite, financial target amount and duration of investment.
