PLAN YOUR RETIREMENT BY INVESTING IN MUTUAL FUNDSadmin
Plan your retirement by investing in Mutual Funds through PTIC INDIA – Financial Planner in Delhi. At some point of time, we all consider what after retirement or pension. Despite the fact that in the youthful years of working, we might take it lightly. Yet conditions of life do put over the question in front of us and get us worried. Our ways of life presently require a secure tomorrow when the flow of income will see a gradual slowdown and expenses rise due to inflation. So, planning for your Retirement is an important financial goal. And to make it to that goal you can plan your retirement by investing in Mutual Funds.
To move forward with your Retirement Planning, it is essential for you to have an overview of how Retirement Planning works. Starting investment in the mutual fund at a young age gives you little liabilities and more risk-taking ability. Gradually it gets to maintaining the funds and lastly getting the payout and withdrawal option when you require it the most. The mutual fund follows the similar way for your Retirement Plans.
In order to plan your Retirement, you first must have to understand the types of funds that are available in the market. So you can choose the best fitted according to your requirement, risk appetite, the term of investment etc. Some of the mutual fund investment that is best for your retirement:
Diversified Equity Funds:
- Investing in varied kinds of equity funds makes this scheme aggressive. It has potential to get you high returns but is quite risky as well.
- Equities perform well in the long run and make a good investment fund if you begin investing at a young age.
Asset Allocation Funds:
- A fund that spreads its portfolio among a wide variety of investments, including domestic and foreign stocks and bonds, government securities, gold bullion and real estate stocks.
- Some of these funds keep the proportions allocated between different sectors relatively constant. While others alter the mix as market conditions change.
- These funds get more specific with the sector you want to invest in and also go high on risk. Suitable for an aggressive investor, there is the option of mid-cap, small and very small cap stocks.
- These funds are sensitive to economic parameters and each year there’s a new leader in performance.
If you are good at investing in equities but need a more systematic and controlled approach. Systematic Investment Plans (SIP) plans are the best way to go about it. This keeps the volatility at bay and continues investing regularly a fixed amount, on a predefined date of every month. So when the market falls, you get more units at a lower price and when the market rises, the value of your investment goes up.
This is the most favorable scheme for both your long-term investments and tax savings. These too offer diversified equity funds but have a lock-in period of only three years and are eligible for tax deductions as well. So both the dividends and the capital gains come tax-free under section 80C. Also being equity-linked these tend to bring better returns with the benefit of tax savings.