This Independence Day, Let’s Pledge for Freedom from Financial Worries
On the eve of 72nd Independence Day, it’s time we remember the sacrifices of the freedom fighters made during their struggle against the mighty British empire and cherish the idea of oneness. Independence might mean different from person to person; for several of us, it is about liberation from financial worries. Today, we’ll shed some light on this important topic.
August 15, 1947, became the day when Indians celebrate their sovereignty from the Britishers. This chapter became a golden record in the history and will be readdressed for the several years to come. As the years passed by, there were other struggles that people had to deal with. The subject of the fight might have changed, but the battle is the same. Considering the time now, some people are dealing with worries concerning their financial issues. Today, we will specifically address these problems and come to a relevant solution as we proceed to the end.
What Is Financial Independence?
Financial independence holds a different meaning for each one of us. For some, it may be being debt-free, while for others it might be breaking away from unnecessary financial practices or beginning a new journey on the right fiscal path.
While we take on and repay our debts to attain freedom from our past financial worries, we must also allocate some of our earnings into lucrative and smart investment options of the era. Gone are the days when we used to rely on fixed deposits or gold purchase for saving purpose. It’s time to invest in mutual funds which offer varied options such as digital gold, SIP insure, equity mutual funds, liquid funds, etc., for varying needs. This will help us create a healthy investment portfolio as our financial backbone, thus ensuring financial freedom.
How Can Mutual Funds Help Us Be Financially Independent?
Indian independence movement was a combination of a series of protests and encompassed activities which stretched for over 90 years, and to be independent, we, Indians, waited for around 200 years. You must consider yourself lucky enough that you don’t have to wait for so long, as with mutual funds by your side, you can easily achieve the required freedom in less than ten years. Here’s how!
- Life is unpredictable, and therefore, it is essential to secure our family’s future in case of any uncertainty. At times, emergency funds might be required. Such situations can be quickly dealt with debt mutual funds which offer consistent and stable returns and do not attract much risk. This requires an investment of around 1-2 years. One can also choose to invest in SIP insure.
- No financial planning is complete without having a definite plan for life after retirement. Financial freedom is when you are able to make decisions, without having to worry about money, especially in the old age. Early investments in equities and then shifting to SWP plans can help one fulfill such aims. One can even invest in solution-oriented retirement plans to ensure a happy life-after retirement. Retirement investment should generally be made for a long-term, it greatly depends on the age of the person.
- Everyone has got some liabilities to fulfill. For some, it may be daughter’s marriage, child’s college abroad, or setting up a new business. All these require a good amount of wealth, which one can only collect with disciplined small investments for a long-term horizon. For all such targets, investment in equity mutual funds is advised. To invest with an aim to build wealth, one needs a time horizon of at least 7-10 years.
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Pledges to Take This Year to Be Financially Independent
- Take a pledge to ensure you save before spending.
- Pledge that you will not try to time the market, instead invest in a disciplined way irrespective of how the market performs.
- Pledge to believe that long-term vision and disciplined investment are the only ways to accumulate the desired corpus.
- Pledge not to panic seeing the short-term volatility.
- Pledge to create an emergency fund to ensure your and your family’s well-being.
- Pledge to start sound retirement planning.
Well vowing is the easiest task of all; we all have a few financial goals and to achieve them, we will have to start right from today. Now, the question is, where to invest to ensure the success of our goals? We, the experts at MySIPonline, are here to answer this.
Just contact us any time as per your convenience and seek guidance. The suggestions might differ concerning one’s objectives, time horizon, and risk appetite. For our investors’ convenience, we have listed a few of the best SIP plans that one can consider to start investing now.
Best SIP Plans to Ensure Financial Freedom
Growth of SIP Investment of Rs. 1000/month
| Fund Name | 5 year risk | 10 year risk | ||||
|---|---|---|---|---|---|---|
| Investment (Rs.) | Growth Value (Rs.) | XIRR | Investment (Rs.) | Growth Value (Rs.) | XIRR | |
| ICICI Prudential Bluechip Fund (G) | 60,000 | 83,961 | 13.39% | 1,20,000 | 2,64,942 | 15.13% |
| L&T Mid Cap Fund (G) | 60,000 | 1,03,967 | 22.13% | 1,20,000 | 3,65,197 | 21.08% |
| Mirae Asset India Equity Fund (G) | 60,000 | 90,636 | 98.00% | 1,20,000 | 3,09,682 | 18.03% |
| SBI Small Cap Fund (G) | 60,000 | 1,15,369 | 26.46% | NA | NA | NA |
| Mirae Asset Emerging Bluechip Fund (G) | 60,000 | 1,05,797 | 22.86% | 1,20,000 | 2,54,287 | 23.72% |
| As on June 31st, 2018 | ||||||
| Scheme Name | Risk Vs category | 5 year risk | ||
|---|---|---|---|---|
| STDEV | BETA | SHARPE | ||
| ICICI Prudential Bluechip Fund (G) | Moderate | 13.40% | 0.93 | 1.03 |
| L&T Mid Cap Fund (G) | Moderate | 16.79% | 0.94 | 1.45 |
| Mirae Asset India Equity Fund (G) | Moderate | 14.28% | 0.98 | 1.23 |
| SBI Small Cap Fund (G) | Low | 18.91% | 0.78 | 1.46 |
| Mirae Asset Emerging Bluechip Fund (G) | High | 15.39% | 0.96 | 1.67 |
| As on June 31st, 2018 | ||||
With this, we end our discussion on financial independence. We hope you will be able to plan your finances smartly, taking into consideration your age, ability to take on risk, and income. It’s time to get yourself armed with all the tips listed above, asset your financial freedom on this 72nd Independence Day by choosing the right mutual funds to invest in. For personalized details, don’t hesitate to connect with us.
Jai Hind! Jai Bharat!
Have a very Happy Independence Day!
