Financial Awareness Level
Why Mutual Funds are a Suitable Investment for the Newly Married?
Investing in mutual funds can be a suitable choice for newly married couples for several reasons. Mutual funds aim to offer professional management, better long-term returns, liquidity, transparency, and customization options, making them a good investment opportunity.
Goal-Based Investing with Mutual Funds
Goal-based investing is a popular approach that helps investors choose customized investment offerings that align with their wealth goals. Mutual funds generally offer various investing categories that couples can choose from to meet their specific goals. Newly married couples should review their joint incomes, expenses, assets, and liabilities and discuss and prioritize their wealth goals. Some popular mutual fund options that couples can consider for different goals are as follows:
Table 1
| Sr No. | List of options | Goal |
|---|---|---|
| 1 | Wealth building | To build long term wealth |
| 2 | Dream goals | To buy a new apartment or a house |
| 3 | Children's fund | Equity & Equity related instruments-between 65% and 80% of total assets; Debt instruments-between 20% 35% of total assets |
| 4 | Tax Saving | To avail 80C deduction under Income-Tax Act on annual income tax by investing in tax saving funds |
| 5 | Retirement planning | To save for retirement |
| 6 | Pension plan | To generate recurring pension during retirement |
| 7 | Income generation | To generate recurring income |
Benefits of Mutual Fund Investing
Mutual fund investing offers several advantages for newly married couples. Some of these include:
- Professional Management: Mutual funds are professionally managed by fund managers who have expertise in selecting the right stocks or bonds to generate returns.
- Long-term Returns: Mutual funds have generated long-term returns as compared to traditional asset classes like gold or real estate.
- Liquidity: Mutual funds are generally liquid and can be redeemed easily.
- Transparency: Mutual funds offer complete transparency in terms of their investments, costs, and performance.
- Customization: Mutual funds offer customization options based on the investor's goals, risk tolerance, and time horizon.
When and How to Start Mutual Fund Investing
The best time to start mutual fund investing is now. Newly married couples can use the cash received as wedding gifts to start investing in mutual funds. They can also channel their incremental savings into mutual funds through Systematic Investment Plans (SIPs). It is essential to start investing early, invest regularly, and stay invested for a longer time to achieve wealth goals.
Inculcating Healthy Saving and Investing Habits
Inculcating healthy saving and investing habits can help manage finances better. Saving before spending can bring budgetary discipline, but it is essential to channel savings for building wealth. Mutual fund investing is good and is an easily accessible option to consider for building wealth, achieving financial well-being, and securing marital life.
Conclusion
Mutual funds offer professional management, long-term returns, liquidity, transparency, and customization options, making them a suitable investment opportunity for newly married couples. Goal-based investing with mutual funds can help couples achieve their wealth goals. Starting early, investing regularly, and staying invested can help achieve financial well-being in marital life.
The information contained in this document is for general purposes only and not an investment advice. Readers should seek professional advice before taking any investment related decisions.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY
FAQ Section
Why are mutual funds a suitable investment choice for newly married couples?
Mutual funds offer several benefits such as professional management, long-term returns, liquidity, transparency, and customization options, making them a suitable investment choice for newly married couples. They can align with the couple's wealth goals, provide diversification, and are easy to start and manage.
How can newly married couples choose mutual fund options that align with their wealth goals?
Newly married couples should review their joint incomes, expenses, assets, and liabilities and discuss and prioritize their wealth goals. Mutual funds offer various investing categories that couples can choose from to meet their specific goals such as wealth building, dream goals, children's fund, tax saving, retirement planning, and income generation.
What are the benefits of mutual fund investing for newly married couples?
Mutual fund investing offers several advantages for newly married couples such as professional management, long-term returns, liquidity, transparency, and customization options. They can provide diversification, flexibility, and are easy to start and manage.
When and how should newly married couples start mutual fund investing?
The best time to start mutual fund investing is now. Newly married couples can use the cash received as wedding gifts to start investing in mutual funds or channel their incremental savings into mutual funds through Systematic Investment Plans (SIPs). It is essential to start investing early, invest regularly, and stay invested for a longer time to achieve wealth goals.
How can inculcating healthy saving and investing habits benefit newly married couples?
Inculcating healthy saving and investing habits can help manage finances better and bring budgetary discipline. Mutual fund investing is good and easily accessible to consider for building wealth, achieving financial well-being, and securing marital life. Planning, investing early, and staying invested can help achieve financial well-being in marital life.
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Disclaimer
An Investor Education And Awareness Initiative Visit https://www.hdfcfund.com/information/key-know-how to know more about the process to complete a one-time Know Your Customer (KYC) requirement to invest in Mutual Funds. Investors should only deal with registered Mutual Funds, details of which can be verified on the SEBI website (www.sebi.gov.in/intermediaries.html). For any queries, complaints & grievance redressal, investors may reach out to the AMCs and / or Investor Relations Officers. Additionally, investors may also lodge complaints directly with the AMCs. if they are not satisfied with the resolutions given by AMCs, they may raise complaint through the SCORES portal on https://scores.gov.in. SCORES portal facilitates investors to lodge complaint online with SEBI and subsequently view its status. In case the investor is not satisfied with the resolution of the complaints raised directly with the AMCs or through the SCORES portal, they may file any complaint on the Smart ODR on https://smartodr.in/login.
