19 Jul 2023
Do you fantasize about a romantic international cruise with your partner or have you promised your young ones a trip to Disneyland, or aspiring for a foreign trip with your buddies? The most likely answer is yes.
Many of you may have invested considerable time researching sightseeing places; exploring different restaurants; and other adventures, and maybe thinking this is just daydreaming because of the costs involved. But guess what? It may not remain a daydream if you stop thinking and take a step to do something about it. It’s simple, you can map out a financial plan with SIPs in mutual fund schemes.
Here is how you can get started in 4 easy steps:
Step 1 - Shortlist your vacation goals - This is simple. Pen down where you want to travel. For how long and with whom? This will help you determine the next step of evaluating the total cost of the holiday.
Step 2 - Evaluate the costs – Once you know your vacation goals, it is time to compute the total cost of the journey, including the cost of tickets to your destination, accommodation, and other expenses. If you already have some savings set aside for this purpose, try to identify how much more you may require. Considering your monthly budget and savings will help you plan for the next step.
Step 3 – Decide on the mutual fund scheme – You can then decide on the category and the scheme for investment purposes. Depending on your risk appetite and the financial objective you can either opt for equity schemes or debt schemes. You can also opt for hybrid funds through which you can have both equity and debt exposure through a single investment.
One can seek the advice of a financial advisor or a mutual fund distributor to select a suitable investment option.
Step 4 – Start your SIP – For many of us, investing a considerable amount of money at once can be heavy on the pocket and may not be feasible. That is why once you have shortlisted your goals, investment amount and the investment option you can start with your investment journey through systematic investment plans (also known as SIPs), by which you can invest a fixed sum, which can be as low as Rs.100 periodically in a systematic and disciplined manner. SIPs can help you in the following ways:
- They offer you flexibility on the amount and frequency of investment. One can opt for daily, monthly, quarterly or even yearly frequency.
- You can start or stop the SIPs at any time.
- SIPs can help average out the costs of investments.
- So take a step today towards achieving your goals and start your investment journey, start your SIP now.
These materials are not intended for distribution to or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. The distribution of this document in certain jurisdictions may be restricted or totally prohibited, and accordingly, persons who come into possession of this document are required to inform themselves about and observe any such restrictions. Investors may consult their financial advisor and/or tax advisor before making any investment decision. Investors may make any decision/ investment decision after necessary due diligence, understanding the risk appetite, and as per the financial objectives.
SIP does not assure of any profit or guarantee protection against loss in a declining/upward market. Kotak Mahindra Asset Management Company Limited (“KMAMC”)/Kotak Mutual Funds is not guaranteeing or promising, or forecasting any returns/future performance.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.