Mutual funds

Our parents have taught us to save our earnings in savings accounts. But, did you know that you can depreciate the value of your money by keeping it in savings accounts while paying more taxes?

Let’s understand how this happens:

Currently, the inflation rate is around 6% and on average, a savings account gives you 3.5% interest. 

Due to the worldwide pandemic,  digital transformation in every sector has been a necessity and financial services is no exception. To provide customers with a seamless online experience, BajajCapital, traditionally brick and mortar retail financial services company. is evolving into a digitized click-and-mortar organization.

Retirement Planning, though prevalent in the western world since long, is a relatively new phenomenon in the Indian society. The joint family system where a son took care of his parents, obliterated the need for retirement planning. A competent son used to be the best investment Indian couples made for retirement.

However, this has changed with the advent of urbanization, employment-led migration, nuclear families and rising aspiration levels of young Indian couples. Retirement planning has become a necessity in Indian society today.

The stock market crash of March 2020 had erased a lot of gains from the mutual fund portfolio. But, then against popular perception and opinion, the reversal started to happen. After falling from January highs, the market has covered a lot of ground. Investors also need to understand that volatility is part of the equity markets. Government policies may take time to be fruitful. The global stock markets may show its own volatility thus impacting Indian markets to some extent.

To make sure that your future is financially secure, you need to plan in advance. How much to invest, where to invest, and when to invest are the most common questions that come to mind. Rajiv Bajaj, our MD, and a financial expert gives his suggestions on it.

Question:

I am a 64-year old doctor with savings of around Rs 1.5 crore. My monthly income is Rs 2-2.5 lakh, I want to work for another five years. What kind of mutual fund investments should I make to ensure a comfortable retirement?

Retirement planning is a sensible and essential step that every working professional must take upon to retire wealthy. It's true that by the age of 60, you will most likely accomplish all your financial goals and thus will have fewer liabilities but that doesn't mean your need for financial security will minimise once you grow old. Post-retirement, most likely, you won't have a regular source of income, your medical needs will increase, inflation will make things much costlier, you will feel an increased need of domestic help, convenience help, etc.

At the onset of a financial year, with a lot of enthusiasm, we all hear out the Budget, especially the personal finance section, announced by the finance minister. The budget of FY 2018-2019 has incorporated some new areas that can help you to save tax. As tax-saving time is here, so it is right for you to quickly know about the newly introduced improvements or sections where you can save tax. 

“Mutual funds are subject to market risk. Please read the offer document carefully before investing.”

You must have heard the same in umpteenth disclaimers, but are you really aware of the different investment risks, posing a threat to your hard-earned money.

The statutory warning in the disclaimer is an attempt to wake you up from your slumber that has been keeping you oblivious of the different investment risks you could confront while investing in mutual funds.