Posted On Monday, Nov 06, 2017
Let us start with a story. In a Euro-trip group from India, was an old couple. While talking among the group the man shared that he was a postman and delivered several letters from all over the world. He said looking at those different stamps from different countries he always dreamt of travelling the world with his wife. He saved for his dream and made it come true.
Travel could bring such happiness to many. You might also have a dream to visit that beautiful destination you have always seen in posters and films. Sadly, some of us simply write off the dream tagging it as impossible.
Fortunately, there is a postman uncle from a small town in India who instigates the belief to not just dream but plan for that wishful itinerary. If he could save/invest from his salary, so could you.
How could you get there? Do you need a bigger amount to invest? Are there any small steps to accumulate wealth?The answer is SIP. Systematic Investment Plan in a good diversified equity fund will help you enjoy your grand vacation. Mutual Funds allow us to invest very small amounts (starting from Rs. 500/-) in SIP. This makes investing easier as it does not strain our finances. SIP takes the hassles of timing the market away since whether the markets move up or down, you remain invested. An SIP gives you the ease to manage your investment commitment like any other regular expense that you have.
Therefore whether you plan to travel in the next 3 years or 5 years SIP as an investment option should get you through. What it also does is empowers your money with the power of compounding (so this gets too technical, we’ll simplify it for you). With the power of compounding the interest you will earn from your invested amount will be re-invested, and thus increase your principle amount. So yayy! This helps you prepone your travel dates.
Below is an illustrative example that shows how the power of compounding helps you be a disciplined investor from an early age by investing with SIPs.
|Monthly SIP Amount (in INR)
|Years of SIP
|Amount Accumulated (in INR)
Note: Assumes investments are made at the beginning of the month & rate of return is 12% per annum. The above table is for illustrative purpose only.
You could also customize your SIP calculation as per your requirement here.
Looks doable, isn’t it and all this time you were giving your kids excuses to spend Diwali vacation by joining yet another activity class. Dear investor, investing prudently could help you not just travel but to achieve other important financial goals (like retirement, marriage, higher education, etc) in your life. All you need to do is select a good fund. Your financial advisor could help you with it too.
Let us give you some more reasons to invest through SIP -
Reduces the average cost
Systematic Investment Plans are recommended as the best way for investments in the volatile markets. With the power of “Rupee Cost Averaging", SIPs have the potential to minimize losses and generate returns. An SIP may ensure disciplined investment irrespective of the market movement.
Market timing becomes irrelevant
While, investing in a mutual fund solves the issue of where to invest, SIP helps us to overcome the problem of when to invest. Not timing the market reduces your worries about the state of your investments in volatile markets. Always remember markets will fluctuate but your financial goals won’t!
Opportunity for building wealth
India being one of the fastest growing economies in the world, at Quantum, we are firm believers in the India growth story. Of course, this growth depends upon infrastructure and open government policies which will encourage rather than discourage this entrepreneurial spirit.
Therefore it makes perfect sense for you to invest in equity mutual funds for the long term, to help you achieve your financial goals.
However for now, you can focus on your travel planning and start an SIP to get there soon. We hope this article has helped you to chase your high flying dreams. Moreover you can always check with your financial advisor before taking any investment related decisions.
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The views expressed here in this article 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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