Investment Advice: How do I create SIP account

You may think of financial planning and wealth management as Do-It-Yourself projects, but there is no need for you to muddle through these on your own. Other than the robust reef of literature on the subject both online and offline, you can also easily find financial consultant to guide you through it.

A common enough suggestion to a person starting with the investments is to look at mutual funds, as a good option. You have the choice to invest a lump sum amount or as a SIP in mutual funds.

If you are someone who regularly saves a part of your salary, then start by investing at least 10% of your salary as a SIP. Keeping a simple and balanced portfolio always helps. Our simple profiling tool can help you Get Started and invest in best mutual funds.

What is Systematic Investment Plan?

Systematic Investment Plan is a mode of investment where one can invest fixed amounts of money on a regular basis. Many prefer SIP investments chiefly because they lack the surplus money to invest. A systematic investment plan (SIP) allows investors to put any amount starting with as less as 500 per month into the selected mutual funds in a periodic manner (on a monthly or quarterly basis).

This mode of investment works to generate wealth in the long term, by making use of the magic of compounding. The earlier you start your investments, the longer is the time you have to compound money. Another thing to consider is that since the investments are made at regular intervals, the impact of market volatility is negated to a great extent.

SIP helps combat volatility

SIP is the route to take if you are looking for ways to beat the market volatility. As illustrated below, you automatically buy more units when the market is low and less when the market is high, thus averaging out the purchase cost over time.

In times of volatility, we have seen how people normally tend to stop the investment and even resort to withdrawing the accumulated amount. One needs to keep panic at bay when the markets are volatile and continue investing in SIP. Wait for the result to bear fruit in the long run.Our financial advisor can guide you on investments and they provide financial advisory services. Consistent, top performing mutual funds are sure to give optimum returns over a long time.

The difference between trading and investing?

Investment vs. Trading

There are a huge number of approaches to profit in the share trading system yet the most ideal approach to make benefits is Investing and Trading. Many individuals befuddle the two terms and may utilize them reciprocally however one must realize that they’re very extraordinary with the exception of the way that them two have a place with a similar market and have the normal point of making benefits to invest in top mutual funds.

Investing
The word speculation fundamentally implies buying a thing or an advantage, which is probably going to create salary or value its incentive with time. In the expressions of Economics, a speculation implies acquiring of a decent that will be devoured later on for the sole motivation behind making riches. What’s more, in back, a venture alludes to a money related resource (stocks, securities, shared assets and so forth.) bought with the possibility that the advantage will give pay/benefits later on or will be sold at a considerably higher cost to gain benefits.

Financial specialists more often than not are interested to discover the natural estimation of a benefit before distributing their assets. They ensure that their speculations are used to develop their riches as well as give a consistent wellspring of pay. They perform specialized or essential investigation to decide appropriate venture openings and furthermore like to lessen dangers while expanding the profits.

Contributing is the main money related instrument that causes you take the upside of the enchantment of compounding*.

*The process in which the estimation of a venture increments on the grounds that the winning on a speculation procure enthusiasm with time.

Here and now showcase slants and feelings don’t assume any huge part in financial specialist’s basic leadership.

It causes you to make standard pay out of the speculation.

Causes you design your retirement better.

Speculators – Investor is an Individual who commits his/her capital/stores into instruments which yields a future budgetary return. Financial specialists have distinctive hazard craving, assets, goal and residency. In straightforward, there might be financial specialists who might be content with preservationist returns yet will need their cash-flow to be secured. Then again, there are people who are prepared to go out on a limb however would need higher benefits.

A standout amongst the most persuasive financial specialists known for his long haul venture – Warren Buffet has worth about US $67 billion. He profited by putting resources into long haul interests in organizations whose stocks were being held by him for a considerable length of time. They give best monetary warning administrations .

Conclusion

Each coin has two sides also both exchanging and contributing have their favorable circumstances and impediments. It thoroughly relies upon the goal and the residency.

Truly, contributing is less unsafe, causes you secure your future and improves your insight then again exchanging gives you a chance to increase your cash in a limited ability to focus time.

Trading

The word speculation fundamentally implies buying a thing or an advantage, which is probably going to create salary or value its incentive with time. In the expressions of Economics, a speculation implies acquiring of a decent that will be devoured later on for the sole motivation behind making riches. What’s more, in back, a venture alludes to a money related resource (stocks, securities, shared assets and so forth.) bought with the possibility that the advantage will give pay/benefits later on or will be sold at a considerably higher cost to gain benefits.

Contributing is the main money related instrument that causes you take the upside of the enchantment of compounding*.

*The process in which the estimation of a venture increments on the grounds that the winning on a speculation procure enthusiasm with time.

Here and now showcase slants and feelings don’t assume any huge part in financial specialist’s basic leadership.

It causes you to make standard pay out of the speculation.

Causes you design your retirement better.

Speculators – Investor is an Individual who commits his/her capital/stores into instruments which yields a future budgetary return. Financial consultant have distinctive hazard craving, assets, goal and residency. In straightforward, there might be financial specialists who might be content with preservationist returns yet will need their cash-flow to be secured. Then again, there are people who are prepared to go out on a limb however would need higher benefits.

Conclusion

Each coin has two sides also both exchanging and contributing have their favorable circumstances and impediments. It thoroughly relies upon the goal and the residency.

Truly, contributing is less unsafe, causes you secure your future and improves your insight then again exchanging gives you a chance to increase your cash in a limited ability to focus time.

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Some financial tips that every student should know.

The years between ages 20 and 30 are certainly some of the most amusing years of one’s life. This is when most people experience some sort of financial freedom for the first time. Most people start earning regular income in their 20’s, which is accompanied by some intensive expenditure on trivial things. If you don’t strike a balance between your income and expenditure, you could fall into a potentially deadly debt trap. Financial mistakes that one makes in their 20’s usually have a long-lasting impact. You can invest in equity investment funds to meet the long-term needs of your child.

20’s is a phase everyone deserves to enjoy after having slogged for two full decades. However, one must exercise adequate caution to avoid certain financial mistakes that have the potential to ruin one’s future.

Here are the Top 5 Financial Mistakes You Should Avoid in Your 20’s:

Not Having Set Financial Goals:
Most people in their early 20’s has not even thought about setting financial goals. This is the first mistake that many people make. Financial goals are generally set after taking charge of your income and expenditure. Once you have income and expenditure under control, you can start investing money in financial markets according to your goals. Financial planning, as a whole is all about setting down goals, and then working towards achieving them. This means that your investment strategies should ideally differ according to your goals. For example, if you’re looking to save money to buy a new car, it would make more sense to invest in balanced funds that provide a decent rate of interest. It makes absolutely no sense to invest in equity-oriented schemes if you’re looking to invest in the short term, as equity-oriented schemes can be extremely volatile in the short-term, which could delay your financial goals. Invest Online in Top Mutual Funds and plans to make India Rich.

2. Not Being Adequately Insured:
Most people in their 20’s look at insurance as a tax-saving tool. It is time someone said it – insurance is so much more than a tool for tax-saving purposes. We’re not just talking about life insurance, you must also consider getting a good medical insurance.For life insurance, the rule of thumb is to ensure yourself for at least 10-15 times your annual pay. Look for a good term insurance that will help you work things out in a smooth manner. Remember, the sooner you get a life insurance, the lesser you will have to pay in premiums.Having adequate health cover is paramount, as well. Look for a good health insurance policy that suits all your requirements, while having a lesser premium. Look thoroughly into all aspects of all policies that you’re considering. This is to avoid trouble at later stages when you need to claim health insurance.

Lack of an Adequate Emergency Fund:
The importance of having an emergency fund that meets at least 4-6 months of your expenditure cannot be overstated. Emergency funds are very helpful when you need cash due to certain unforeseen events. Emergency funds can be used as a protection net in case of loss of job due to unforeseen circumstances. In other words, an emergency fund is aimed at supplementing expenditure in case of unexpected windfalls in income.As stated, your emergency fund should ideally consist of 4-6 months of expenditure. You can either invest this money in a low-risk ultra-short-term debt funds that provide significant protection to the investment while offering a decent return on the investment. Other than protection of capital, these ultra-short-term funds have no exit load. Alternatively, you can also keep your emergency fund in one of the private banks that offer a comparatively higher rate of interest.
Not Planning for Retirement:
“Thou Shalt Plan for a Good Retirement”
Retirement is often seen a distant future goal, and is often ignored by a lot of people in their 20’s. This happens because most youngsters don’t realize how important it is to plan for retirement. These days, life expectancy is seeing a higher trend, as is inflation. You need to build a good retirement corpus that will help you sustain in your retirement years. Obviously, you need to adjust inflation when calculating any kind of investment.Starting to invest for retirement early on in life has a lot of benefits. The most commonly heard benefit in this case is “compounding”. Start investing in a long-term investment horizon, such as equity-oriented mutual funds. Systematic Investment Plans (SIPs) are very helpful in setting investing discipline early on in life.

The above numbers are based on a 15% CAGR (Compounded Annual Growth Rate) for respective time periods.

Ignoring Credit History:
These days, almost everyone needs loans for some reason or the other. The first thing that financial institutions check when you apply for a loan is your credit history, or more specifically, your credit score. Credit history is basically a record of how well you manage credit, whether or not you repay the loans on time, etc. Absence of a credit history will cause trouble when you want to apply for a loan, such as four-wheeler loans, home loans, personal loans, etc.A credit card is among the best things to build up a credit history. However, credit cards should be used smartly. Do not spend any more than you have. Use credit cards where you would generally use cash and then pay the card company on time. This doesn’t affect any of your transactions but will have a positive impact on your credit history.

To know more about the Mutual Funds ,Visit: wealthapp.com and start investing now! As a conclusion, you can see that these tips help to instill the habit of saving, in children from a very young age. This also makes them a disciplined saver. Our financial consultant can guide you on investments and financial planning for your child. Consistent, top performing mutual funds are sure to give optimum returns over a long time.

International Funds

Diversification is among the most important things when it comes to investing in the securities market. Diversification should not only be done in terms of sector, market capitalization, etc., but also in terms of geography. Geographical diversification refers to diversifying your investments across different countries. It shouldn’t be seen as a way to make quick returns but as a protection against domestic volatility.

Here’s all you need to know about international mutual funds:

What are International Funds?

International funds are best mutual funds that invest in foreign markets. International funds differ in their underlying investment strategy – some international funds invest primarily in specific countries such as the USA, European countries, and other such developed markets, while a few others invest in a thematic way, i.e. in specific industries such as agriculture, mining, real estate, etc.

Features of International Funds:

(i) International Investments: International funds invest in foreign markets. Most of these funds invest in markets of developed countries to avoid the volatility of developing markets. Investing in developed markets is considered safer because of lower volatility. However, in case of underdeveloped and developing economies, there is huge potential for growth, but the economy is volatile.

(ii) International Fund – Asset Classes: International mutual funds come in various asset classes, the most popular ones being equity and debt. There are also funds which trade in currency, which is a lot more volatile than other asset classes. A few international funds may invest solely in one asset class, while a few others may go for a more balanced approach. You have some money saved up. It looks good, but you’ve been thinking about making this money grow by investing it in the best performing mutual funds in India, perhaps with even a goal such as tax savings investments in mind.

(iii) Professional Management: International funds are managed by the experts who have the requisite knowledge, global reach, technology and skills to research and analyse companies in the international market. As a small investor, you may not have the expertise and knowledge about investing in global markets. Time to time we should

Why One Should Invest in International Funds:

International funds can be an amazing addition to your investment portfolio if done correctly. As stated before, you should never chase international funds for the returns that they offer. A domestic investor with a moderate-to-high risk appetite should ideally not park all their investments in international funds and rather, add a small percentage of international funds to your investment portfolio.

The basic function of these international/foreign funds in your investment portfolio is to mitigate the volatility of the domestic market. Even if the domestic markets are down, investments in foreign markets may still provide decent returns.

Downsides of International Funds:

While they do have quite a few pros, international funds also come with a few downsides:

(i) Lack of Portfolio Customization: International funds are managed by fund managers along with a dedicated team of research analysts. This means that all decisions are taken by a centralized authority – herein the fund manager picks up various securities without regard for the investor’s personal research, and affinity to certain areas/commodities.

(ii) Geo-Political Risks: When investing abroad, geopolitical situations play an important role. A bad situation in the country you have invested in can result in your gains being wiped out. Therefore, it is better to choose countries with a stable economy and a strong government.

(iii) Risks of Currency Movement: The final returns that you get out of an international fund to depend on quite a bit on the currency exchange rates. Most international funds are vulnerable to currency movements and very few of them provide hedging against currency movements.

International funds can be a great investment option to diversify your portfolio but there are certain risks involved too. You can get in touch with the WealthApp Financial Consultant to understand which international funds may suit your financial requirements. It is an financial advisory service that will help you in personal financial planning to achieve your future goals. Now what is financial planning? It means planning for your future financial needs by investing in return oriented instruments. As an individual it will be difficult for us to evaluate various investment instruments and market cycle. Personal financial planning helps you to stop worrying about the secured investment for the future as we take care of the rest.

Large Cap Mutual Funds

Meaning of Large Cap Mutual Funds:

A large-cap fund is a type of fund where investment is made in a large portion with companies of large market capitalization. These are essentially large companies with large businesses and big teams. L arge cap mutual funds are also commonly referred to as blue-chip mutual funds. These are shares of well-established companies that have a strong hold on the market and are usually considered as safe investments. They are companies that have a market capitalization (MC= no of shares issued by the company X market price per share) of more than INR 10,000 crore.

Putting resources into expansive top assets has numerous points of interest as these organizations are reliable, steady and settled with solid administration homes.

Solidity:

The extensive top organizations are known for their solidity in the market, with little change in the costs. They are extraordinary compared to other speculation alternatives for singular amount venture due to their consistent and tried and true execution. They have settled a piece of the pie with time tried items that figure out how to create customary money streams. These organizations have turned out to be advantageous for riches age with consistent development in financial consultant riches throughout the years.

Profit:

The basic element of substantial top assets is the general instalment of profits to speculators. While they give out customary profits, their offer costs likewise have an unfaltering appreciation.

More secure speculation:

Interests in Best Large Cap common assets are inclined to bring down dangers contrasted with mid and Small Cap organizations. The fundamental element of these extensive top organizations is that despite the fact that these organizations can confront subsidence, they can hold over market variances. Vast Cap organizations are extremely fluid and are broadly exchanged on the securities exchanges.

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Research and valuation:

The long-standing business of these organizations mirrors their capacity to remain against the trial of time, and the data about these organizations is promptly accessible in the market. It is simple for the financial specialists to acquire and know data about the market esteem, gainfulness scale, and the organization activities. The traded on open market organizations are will undoubtedly give their speculators their exact and intermittent money related explanations. The estimation of the organization can be discovered by evaluating the organization history and its money related proclamations. Huge top assets at a normal have given returns more than 15% amid the previous decades.

Before putting resources into extensive top assets, it is reasonable to interface with your money related counsel to help you picked the Best Large Cap Fund/Best Large Cap Mutual Funds and adjust it to your monetary objectives.

To know more about the Mutual Funds, Visit- WealthApp and start investing now! While foraying into this world may seem daunting but at WealthApp, our financial consultants can help you with financial planning to make the right decisions about money – which sets you on path to achieve your financial aspirations. Should you require, our financial consultants also guide you on top performing mutual funds and their benefits.

Investing In Top Mutual Funds Is Not A Bad Idea

Say you and three of your friends decide to buy a piece of land that is sure to go up in value. None of you can buy that on your own. So you pool your money and buy the land. After a couple of years when the price of that land appreciates by say 40%, all of you decide to sell it and divide the profits among you.

MF is fund managed by Financial Consultant and invests in financial instruments like stocks, bonds etc. They constantly monitor the market and adjust their portfolio by buying, selling instruments. It is their 8-hour job like any other job.

Investors like us may not otherwise be able to buy those stocks by ourselves due to restricted amounts of money and little to no knowledge of what stocks to buy.

Advantages

Investing in Mutual Funds Is Easy
Mutual Funds Offer Professional Management
Mutual Funds Are Diversified Investments
Investment Costs Are Low for Mutual Funds
Investors Can choose Best Mutual Funds
Mutual Funds Are Versatile Enough to be Used By All Types of Investors

Disadvantages

Costs: You have the option to pick zero-load mutual funds with fewer expense ratios. We have to check that expense ratio and choose which will be fit in our budget. Otherwise, we will lose the cost of our money.
Price Uncertainty: Unlike stock prices, Net asset value prices are calculated at the end of each trading session. This means that investors cannot get real-time prices for the funds they hold.
Lack of Control: Investors may lose lack of control when their money is loosing. Nowadays we have to check and take full knowledge and then start to invest.

WealthApp – Robo advisor a user-friendly platform that provides you with Financial advisory services to select and invest in top mutual funds in India. While foraying into this world may seem daunting but at WealthApp, our financial consultants can help you with financial planning to make the right decisions about money – which sets you on the path to achieve your financial aspirations. Should you require, our financial consultants also guide you on top performing mutual funds and their benefits.