Celebrate EID and gift financial security to your loved ones

EID is just around the corner, and the Muslim community is busy in making preparations for celebrating this festival. After the whole month of fasting and sacrifice our Muslim brethren enjoy the festival of EID by wishing each other, presenting gifts and having meals jointly. On the day of EID, the month of Ramadan ends and one can smell the sweet odour of Sheer Kurma filled in the air. The elders give gifts to the younger ones, and also the friends from other communities wish their Muslin friends. You might also have some friends who will be celebrating EID very shortly. You must be in a dilemma as to what gift shall be suitable for them this year. Till now you might have gifted watches, decorative items, clothes, etc. But, now it is time to change the perspective. The market tantrums are known to all of us. The inflation is growing like a giant monster day by day, and the income is not being sufficient to meet the requirements. In such a case people have to think differently to fight the inflation and lead a peaceful life.

This EID you can gift your relatives and friends a different gift to make them financially more strong and at the same time safeguard their money. A secured portfolio containing all the top mutual funds would be a gift which would really fill the lives of your loved ones with happiness. A financially secure person is able to meet the needs of his family and also meet the future expenses. But, the question here is that how to choose the correct portfolio and schemes for gifting it to the clients. Here are are some tips which will help you to pick the precise schemes and make EID a perfect moment to be cherished for the entire life span.

Tip 1 : Plan what you needYou must understand the requirements of the person to whom you intend to gift the portfolio. The reason for this is that there are a lot of schemes which have made their way to the list of top performing mutual funds. These schemes do not belong to a single category but have been included from various categories defined by the mutual fund industry. So, you should pick only those top mutual funds of India which would perfectly coincide with the wants of the person to whom you are gifting. For example, if a person has a keen interest in multiplying money at an or has been investing in the share market to earn more, then it is advised to include the top mutual funds belonging to the equity category of mutual funds. Hence, based on the needs, one should select the schemes so that the person does not have to redeem the schemes and then renew the portfolio soon.

Tip 2 : Don’t apply capital market strategies hereIt is a well-known fact that mutual funds are generally called as the best substitute for the capital market. So, the clients try to apply the same strategies to the mutual funds also. Hence, they tend to take the bearish market as the correct time to invest in mutual funds. But, the same is not true. Before gifting a portfolio to your near and dear ones, you should understand that there is no need to time the market while investing in the mutual fund as it takes to benefit from the bullish as well as bearish market conditions. So while selecting any top mutual fund, you need not think whether the market is trending upwards or is moving towards the bottom line.

Tip 3 : Long-term perspective is beneficialMutual funds are fruitful for parking your money surplus and also provides higher returns. However, top mutual funds provide maximum returns to the clients over a prolonged time spell. Before creating a portfolio make sure that you aim for those schemes which are capable of accommodating a longer time period which would be beneficial as we require to accumulate money for the rainy day and the expected expenses in the future. Hence, you should go in for those top performing funds which have a record of providing exhilarating returns over a span of 7-8 years. The benefit of opting for a long-term scheme is that your money will grow more if it is invested for longer time span.

Tip 4 : Consult a financial expert In the present situation, everything has gone online. People are able to make their investment decisions themselves without any intervention. The clients can compare funds, review the past performance of the schemes, know the goodwill of the company, analyze the fund manager’s efficiency, etc. But, still, it sometimes becomes difficult for the clients to judge which scheme should they prefer from the two top mutual funds. In this case, a financial expert can be of great use. You can share your investment strategies and the goals you want to achieve with the expert so that he can suggest you the best possible schemes for according to your requirements.

Thus, by following the tips mentioned above, anyone can gift a sound portfolio to their near and dear ones. The tips have been tried and tested by the professionals as well as many of the clients. Selecting a top mutual fund is an easy task. So, increase the happiness this festive season by gifting financial security this EID.

The key to having a successful portfolio management is build up a schedule for investing and stick to that without getting demotivated. The top mutual funds are a category of schemes which have been carefully chosen to make the clients get access to plans which are capable of providing good returns over a stipulated period. The most wealthy investors around the world are rich not because they have managed to earn money but because they have learned to invest their hard-earned money in the right places in a planned way. Warren Buffet said it best: "To invest successfully over a lifetime does not require a stratospheric I.Q., unusual business insight or inside information. What is needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework."

Dishika is well-versed with the ups and downs of the financial market and has published articles on mutual fund and SIP. She is associated with MySIPonline.com, which is an AMFI registered mutual fund company.