This Independence Day Learn How to Achieve Financial Freedom

Every year, the festive season dawns bright and vibrant. All of us look forward to those energetic shopping sprees when we can buy things for which we have been saving up the entire year. Maybe your shopping plans included buying a new car, purchasing a nice piece of gold jewellery, or buying new clothes and lots of sweets.  In this happy and hopeful scenario, you are surely eager to begin your shopping adventures. But wait! Have you considered shopping for a new investment option? While your shopping plans would, undoubtedly, bring you great joy and a sense of accomplishment, investing a part of your shopping budget in a mutual fund scheme could bring you joy and satisfaction for a lifetime, along with the added bonus of financial freedom over the longer term. For example, you might be considering purchasing gold during the festive season.  However, directly buying gold is not the only way to invest in this precious metal. You can always consider investing in a gold exchange traded fund (ETF) instead. This will help you generate the same returns as gold without having to worry about the safety of your investment.

 Reasons why you should treat yourself to a mutual fund investment this festive season

Indians are, nowadays, more aware of the benefits of investment, as opposed to regular shopping for things that will bring immediate joy but fall in value over time. On the other hand, your investments will most likely grow over time, bringing you peace of mind as well as financial stability. Additionally, your mutual fund investments can ensure that, going ahead, you won’t have to dip into your savings for future festive shopping as the returns will offer you adequate spending power.

• An auspicious time:

  If you are someone who has not yet started investing, then the festival season could be just the right time to start your savings and investment journey. Even if you are not a new investor, and have been contemplating investing in a certain mutual fund scheme or starting an equity systematic investment plan (SIP), now might just be the right time to go ahead. An SIP allows you to invest a fixed amount of money into a mutual fund scheme of your choice at time intervals that suit you best. This means that you can start a fortnightly SIP, a monthly SIP or even a quarterly SIP. The best part is that you can start an SIP with as low as Rs. 500.

• A good time to achieve diversification:

  Just like you see many new products on the shelves of shops, the mutual fund industry also generally launches some new schemes during this time. From that perspective, your choice also increases and you can invest in schemes that best suit your requirements. This will help you diversify your investment portfolio by spreading your investments across multiple different schemes that spread your risk and can potentially enhance portfolio returns.Mutual funds ensure the optimal allocation of your money, based on your risk profile and goals, and help you attain good returns while minimising risk. They offer a variety of products, including equity funds, debt funds, ETFs, gold funds, etc. You can easily choose the investments that meet your multiple requirements.

• A time to invite the Goddess of money:

  During the festive season, we invoke the Goddess of money and ask her to keep our family healthy and prosperous. However, do you know what the path to prosperity is? It is investing. You work hard all year round. On Diwali, you might also get a Diwali bonus. While you can definitely spend some money on sweets and other purchases, you should also invest some of it so that the money can grow over a period of time, bring you prosperity, and help you achieve your financial goals.

If you are investing lumpsum, then you end up investing all your money in one go. This is a good approach to take when markets have corrected significantly, and stocks and mutual fund schemes are available at a lower price. On the other hand, if you don’t want to worry about timing the market and want to ensure that you continue investing in a disciplined manner, then you can simply start an SIP. Further, when you choose to invest through mutual funds, you have the benefit of having your money managed by expert fund managers. Overall, such an investment will allow you to enjoy the festive season with the knowledge that your hard-earned money is safe and growing well.

Shopping for mutual funds – how you can invest

Once you have decided to invest in mutual funds this festive season, you can either choose an SIP, or invest a lumpsum amount if you have already saved up some money. Investing in mutual funds is extremely simple and you can easily do it online on the mutual fund website after consulting with your financial advisor. Once you have chosen a fund house, you can sign up and fill in the KYC formalities by entering the necessary details. Based on your financial goals, the fund house can also suggest the best schemes for you and you can simply transfer the amount to start your investment. You can also choose to invest via many of the financial advise portals or from the physical offices of the AMC or mutual fund distributors.

As you celebrate this festive season, let it also be the time you begin a new phase of your life, a phase where you are on your way to financial freedom and stability.

An investor education initiative by Edelweiss Mutual Fund

All Mutual Fund Investors have to go through a onetime KYC process. Investor should deal only with Registered Mutual Fund (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit -https://www.edelweissmf.com/kyc-norms

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