Sip Mutual Funds Can Promise You Some Financial Freedom In Your Later Years

The availability of money is one factor that one needs to consider and this is obviously connected to the life stage the investor is in. For people in the age group of 25 to 40, regular family expenses along with a home loan EMI and other asset purchases often means that the amount to be invested is relatively defined. Exceptions can be in the events like yearly bonuses or variable pay. For such investors a regular automated SIP along with some specific one time purchases when extra money is available will be the way to go. In the latter stages of working life however, the situation changes quite a bit. Home loans get over, children go off to college and their expenses get funded through redeeming other financial assets and incomes tend to peak. It is not unusual for families to have high surplus for investment at this stage. One way to use this surplus will be to bump up your mutual fund portfolio through one time purchases of reasonably high amounts, while keeping the regular SIP going, another can be to invest aggressively in direct stocks so that you build up that portfolio now.

If we believe that our markets are going to go up in the long run, then the earlier we are able to invest in mutual fund portfolio the better for us. Compared to the stock portfolio, a mutual fund portfolio is more time sensitive, though both have greater chances of doing well over the long run. The suggested strategy therefore is to keep investing in mutual funds through SIP and one time purchases till you have covered your investment plans for that part and thereafter put more money into stocks. And you must know that when you invest your money this systematically, then you start taking control of your life. If you don’t start thinking about money when you’re young, it’s easy to get trapped into living beyond your means. Everyone needs to understand their financial situation in order to decide how much to spend, how much to save and how much to invest. The sooner you start saving and investing, the sooner you can buy something substantial like a house or a car. Investment means becoming financially independent. It isn’t wise to rely on others for your welfare. It makes sense to build your own nest egg while you can and take care of your own financial health. It doesn’t matter what you do for work, you should be able to control your life and take care of yourself. And for same, you can always take the help of some good financial planning company and then put your money in SIP mutual funds.

I write article On behalf of Wealthcareindia.com, a leading Wealth Management & Financial Planning Company in Delhi, offers Online Financial Planning, SIP Investment or SIP Mutual Funds services by Certified Financial Planner.