The latest episode of Dhan Ki Baat is special.
In this first of the two-part series, personal finance guru Gaurav Mashruwala teaches you how to avoid simple mistakes when investing, so that your financial planning can be accelerated.
'Always Have Fixed Goals'
Gaurav says that before you start investing, you first need to set goals. This is because even if you make a mistake, it will not set you back a great extent as you know how to make reprimands. You know your goal, so that way you will know what to do to reach it.
Similarly, once you have decided your goals and then make the investment, then you won’t have to keep on checking the market conditions, interest rates, or cost of gold. All of this becomes meaningless.
The benefits of taking well-thought out decisions are:
- It provides for proper planning
- It saves you from the herd mentality
- You don't make emotional choices
- Effective decision making
Our audience, Vedrat Gautam, has asked – I have Rs 50,000 with me. In which mutual fund scheme should I invest? I can make investments of Rs 5,000 every month.
Don’t stick to a particular type of mutual fund. Decide your financial goal first. As I said earlier, if you haven’t fixed your financial goal, then the investment is pointless.
Once the goals are decided, if they are short-term goals then invest in a debt fund. Make investments through systematic investment plan (SIP). If it’s a long-term goal, then invest in an equity fund. If it’s a mid-term goal, then invest in a hybrid fund.
(This page was originally published on Quint Hindi)
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