Investing Mutually: Mutual funds for the Newlyweds

Meet Mr. Nitin and Mrs. Shruti a newlywed Couple, both working in order to balance their financial goals with their dreams. As they start their journey together, they recognize the importance of building a strong financial foundation by Investing regularly.

> Dreams and divergence

Shruti, cautious by nature, is risk averse. She cherishes stability and has dreams of buying a cozy home and starting a family. On the other hand, her husband Nitin is an adventurous risk taker. He envisions life filled with exotic travels and enjoys the thrill of financial growth.

> The Mutual fund Dilemma

As they discussed their financial goals, the difference in their risk tolerance became clear. Shruti, with dreams of homeownership, leans towards safer options like debt funds, while Nitin is attracted by equity funds due to their growth potential.

> Striking a balance

To Bridge the gap, they evaluated their Financial goals into short, medium and long term goals. Whether it’s buying a home, going on a vacation, buying a new car or preparing for retirement, they classified them as short, medium or long-term to determine the appropriate mutual fund schemes.

For goals with a longer time horizon they opted for Equity Funds, like HDFC Flexi Cap Fund.

For their Short-term goals to ensure Stable returns and to create an emergency fund they opted for Debt funds, like HDFC Short Term Debt Fund.

They also considered Hybrid funds that combine both equity and debt. As these are great for couples seeking a balanced portfolio, Offering growth potential alongside some stability, like HDFC Balanced Advantage Fund.

> Beginning of a Life Long Financial Journey

You can refer the below graph to evaluate your goals and understand how an individuals net worth gets effected at different stages in life.

Disclaimer: The above Illustration is only an example to explain how an Individual’s Net worth gets effected at different stages in life. This example may not be applicable for every individual. In view of the Individual circumstances and the risk tolerance, each Investor is advised to seek appropriate professional advice.

SIP - Systematic Investment Plan.

> SIP for Disciplined investing

Recognizing the need for uniformity, they decided to start SIP. This decision allowed them to invest regularly, providing a steady flow of contributions to their mutual fund portfolio. This decision balanced the cautious approach preferred by Shruti and the more adventurous spirit of Nitin.

Here is a Goal SIP calculator that we recommend you use along with your spouse for better alignment of your goals.

> Evolving together

As seasons changed, so did the dynamics of Nitin and Shruti’s Financial journey. Regular portfolio reviews became a ritual, offering opportunities to adapt and adjust based on market conditions and shifts in their goals. Shruti discovered the potential of growth and Nitin appreciated the stability that came with a balanced approach.

You can refer to the below Performance of HDFC Balanced Advantage fund (As on 30th November, 2023) to understand the Potential growth of Investing in Mutual funds.

For Performance of Other Schemes Managed by the Fund Managers, please click here

Mutual Funds can serve as a bridge between two different risk appetites due to variety of schemes offered, which can help in shaping a future where dreams and financial stability can co-exist in harmony.