Time is Money
Why most people fail in making the right strategy for their investments is because they don’t think about the timeframe in which they will need the money.
Think of different life goals and ask how much money you will need to meet them. Also ask if you need the money in immediate future (~1-2 years) or distant future (after 10 years)?
It is very important to clearly state the timelines and purpose before investing your money.
If you need money in near future to buy a house, for your marriage etc, you should prefer keeping that money in savings account/fixed deposits/debt funds, etc.
This is simply to ensure that your money is protected even when the markets are not performing well.
For long term investment, money invested in mutual funds can do wonders. When you invest in a mutual fund, you may incur loss in the short term.
However, if you stay invested for a long time you will definitely reap benefits of your patience. We suggest you to have a minimum of 3-5 years of time horizon if you are planning to invest in equity mutual funds.
Mutual Funds have a strong potential to outperform other investment products if chosen carefully. Let us see how we can benefit from Mutual Funds in our next section.
Download the app now by clicking on Google Play link below. Learn everything about mutual funds on Fintra app.
