Save Cash, Spend Digitally & Invest In Growth Assets!

Every New Year brings with it a new start, a reason to begin again, a time when we promise ourselves to do something different. That's why we make resolutions. We are sure that you care about your money. After all you spend a significant portion of your life, and a considerable amount of your efforts and resources to earn it. So it makes sense to make some resolutions on your financial life as well!

As a rational investor you should keep the following factors in mind before making any financial decisions in the year to come:

Save more money - Saving can be viewed as the practice of paying oneself first. Most people save money, but how much remains an individual choice. You must draw a plan for your financial needs and figure out exactly how much you want to save and how you'll allocate those savings (cash, equity, gold, etc.). Many tools are available online to help with this.

Spend less cash, have a digital wallet - We are moving towards the cashless economy. The next phase is the digital economy. You should keep eye on upcoming technology which is set to change the face of the financial world. A digital wallet is a necessity, not merely a luxury. It can be net banking on your smart phone or services like PayTM.

Start a budget - As mentioned above, there are dozens of tools available in the market which will guide you on spending and investment but you should create your own budget which will meet your financial needs without stressing your income level.

Smart Investors prefer investment in growth assets - growth assets are typically those assets that have the potential to give capital appreciation over the long term, as against generating current income. Examples are equity shares, equity mutual funds, real estate and gold. These assets help in building wealth.

Generally a balance of income assets and growth assets would be required for an investor at any life stage, but the asset allocation will differ. The role of proper asset allocation for achieving investment success cannot be understated, so avail of some of the many tools online that can help you with this. Here are some quick rules of thumb:

Financial Goals	Types of Asset Class
Buying a Car	Debt & Money Market
Buying a House	Debt & Equities / Diversified Mutual Funds and move to Debt and Cash
Child's Education	Equities / Diversified Mutual Funds and move to Debt and Cash
Child's Marriage	Equities Diversified Mutual Funds & Gold and move to Debt and Cash
Retirement	Equities / Diversified Mutual Funds and move to Debt and Cash
Wealth Creation	Equities / Diversified Mutual Funds & Real Estate
Inheritance	Equities / Diversified Mutual Funds & Real Estate

The above chart is for illustrated purpose only

How long you let your investments compound is a major factor in determining how large they grow. So it's good to follow the old thumb rule that says invest as early as possible, as often as possible...and as much as possible! Much like India's freedom struggle, achieving financial independence is a slow process and one cannot hope to reach it overnight, over a few weeks or even a few months. However, every step you take in that direction will bring you closer to the goal. As always, before making any investment decisions please consult your financial advisor. Meanwhile, on the threshold of the New Year, we hope that 2017 brings you the needed discipline for a happy financial life!

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

Mutual fund investments are subject to market risks read all scheme related documents carefully.

Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.

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