Build your team for your financial goals – The New Indian Express

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Express press service

When it comes to international cricket, we all turn into commentators. After a turbulent T20 World Cup, conversations on social media range from the future of Indian T20 cricket to the right team mix.
There is a clear desire to create a team that can win consistently. Although the result could go anywhere, you would like the India cricket team to choose the best eleven players.

Just like your passion for sports, your finances also deserve your attention. A survey published by TV9a media group, recently revealed that an overwhelming 69% of Indian households struggle with financial security and vulnerability.

The poorest households save less, while only 3% of Indian households have a luxury standard of living. About 70% of households have some form of financial savings. Two-thirds of this sum is placed in bank deposits. You need to work on the right mix when looking at your finances. You can take steps to move from where you are today. For example, if you can’t save every month due to high expenses, there are only two things you can do. You either need to reduce your expenses or make more money. A monthly surplus is a necessity to begin with financial security. There can be no financial planning if you cannot save money for the future.

Many households in India who manage to create a monthly surplus place money in bank deposits. These savings will not even protect you against inflation. Your savings should be channeled into various asset classes based on your financial goals. To get out of this situation, you either need to educate yourself about the investment or get a financial advisor to help you come up with a plan.

Those who have excess money don’t plan it well. There is a tendency to place most of the money in government schemes that guarantee a rate of return or fixed deposits offered by banks or corporations. Despite all the noise around financial inclusion and stock market investing, barely 10 million people have a demat account. However, most of these accounts are inactive because fewer of them invest in the stock market. A number of you use mutual funds to access stock markets.

Investing in the stock market is essential if you want to achieve your long-term financial goals. The S&P BSE Sensex went from 100 in 1980 to 3000 in 2000 and 60,000 today. The average return given by Sensex is 12-13% every year. Your retirement savings, or the money you want to save for your child’s college education, needs to find a place in equity-linked assets.

Many of you are wrong about when to invest in stocks. Many people get retirement savings and dabble in the stock markets to make a quick buck. Some people also put money into equity assets for short-term goals. Not only can this lead to losses for your portfolio, but it can also hurt your opinion of stock assets.

You need to invest in stock assets that you don’t need right now. The money you need now should be kept in fixed deposits or postal public deposit systems. Stock prices tend to follow corporate earnings. There are years when companies have slow growth in profits or losses. Overall, companies exist to make money for their shareholders. You can ride through stock market cycles if you are a long-term investor.

What is your good team
If you have just started your financial planning and investments, you must first take out a life insurance policy. The next thing to do would be to get good health insurance. Creating an emergency fund to cover expenses in times of crisis would be your next step. This money must be kept in fixed deposits.

Once you’re done with the basics, you need to allocate as much of your long-term savings as possible toward equity assets. A regular investment in an index fund or an exchange-traded fund based on benchmarks such as Sensex and Nifty is enough to provide you with this long-term financial security.

Plan your surplus money well
Investing in the stock market is essential if you want to achieve your long-term financial goals. The S&P BSE Sensex went from 100 in 1980 to 3000 in 2000 and 60,000 today.

Rajas Kelkar is the editor of www.moneyminute.in.

When it comes to international cricket, we all turn into commentators. After a turbulent T20 World Cup, conversations on social media range from the future of Indian T20 cricket to the right team mix. There is a clear desire to create a team that can win consistently. Although the result could go anywhere, you would like the India cricket team to choose the best eleven players. Just like your passion for sports, your finances also deserve your attention. A survey released by TV9, a media group, recently revealed that an overwhelming 69% of Indian households struggle with financial security and vulnerability. The poorest households save less, while only 3% of Indian households have a luxury standard of living. About 70% of households have some form of financial savings. Two-thirds of this sum is placed in bank deposits. You need to work on the right mix when looking at your finances. You can take steps to move from where you are today. For example, if you can’t save every month due to high expenses, there are only two things you can do. You either need to reduce your expenses or make more money. A monthly surplus is a necessity to begin with financial security. There can be no financial planning if you cannot save money for the future. Many households in India who manage to create a monthly surplus place money in bank deposits. These savings will not even protect you against inflation. Your savings should be channeled into various asset classes based on your financial goals. To get out of this situation, you either need to educate yourself about the investment or get a financial advisor to help you come up with a plan. Those who have excess money don’t plan it well. There is a tendency to place most of the money in government schemes that guarantee a rate of return or fixed deposits offered by banks or corporations. Despite all the noise around financial inclusion and stock market investing, barely 10 million people have a demat account. However, most of these accounts are inactive because fewer of them invest in the stock market. A number of you use mutual funds to access stock markets. Investing in the stock market is essential if you want to achieve your long-term financial goals. The S&P BSE Sensex went from 100 in 1980 to 3000 in 2000 and 60,000 today. The average return given by Sensex is 12-13% every year. Your retirement savings, or the money you want to save for your child’s college education, needs to find a place in equity-linked assets. Many of you are wrong about when to invest in stocks. Many people get retirement savings and dabble in the stock markets to make a quick buck. Some people also put money into equity assets for short-term goals. Not only can this lead to losses for your portfolio, but it can also hurt your opinion of stock assets. You need to invest in stock assets that you don’t need right now. The money you need now should be kept in fixed deposits or postal public deposit systems. Stock prices tend to follow corporate earnings. There are years when companies have slow growth in profits or losses. Overall, companies exist to make money for their shareholders. You can ride through stock market cycles if you are a long-term investor. Who’s your right team? If you’re just starting your financial planning and investing, you should first get a life insurance policy. The next thing to do would be to get good health insurance. Creating an emergency fund to cover expenses in times of crisis would be your next step. This money must be kept in fixed deposits. Once you’re done with the basics, you need to allocate as much of your long-term savings as possible toward equity assets. A regular investment in an index fund or an exchange-traded fund based on benchmarks such as Sensex and Nifty is enough to provide you with this long-term financial security. Plan your excess money well Investing in the stock market is a must if you want to achieve your long-term financial goals. The S&P BSE Sensex went from 100 in 1980 to 3000 in 2000 and 60,000 today. Rajas Kelkar is the editor of www.moneyminute.in.

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