My savings were all traditional. Insurance was thought to be a great savings plan in the early days. A lot of investment was made that way. My other investments were in Fixed Deposits (FD) and Provident Funds (PF) in my early career days. I did not know any other way of saving beyond this. It was then that I came to know about US 64 Mutual Fund. As there was no computer, internet or other facilities like today, it was from some news in a newspaper or magazine. Then came SBI and other financial institutions with mutual fund investment. After 1993, many mutual funds came, but some did not give the intended benefits. Some wrong selections on my part also contributed to it. Since 2000 I have steadily increased my investments in mutual funds. I studied various plans well and made investments. Today most of my investments are in mutual funds. SIP takes care of not getting stuck and adding a fixed percentage every year.
Everyone has their own financial needs and goals. Therefore, the method of earning will also be different. You may want to own a house or a car or pay for your children's higher education or get a pension after retirement. These can be short-term, medium-term and long-term goals. These goals determine the amount of savings you should accumulate and how you should invest it.
Also, traditional investments may not live up to our
expectations due to rising inflation and other costs. This is where investing
in mutual funds comes in handy. Whatever the objectives, mutual funds are there
to fulfill them. Whether you are a conservative or aggressive investor, have
short-term, medium-term and long-term goals, whether you want to invest small
or large amounts, mutual funds have something for everyone. Different types of
mutual funds with different investment objectives can be used to reach your
goals. It is the choice that matters most.
Thus, mutual funds become an important step towards achieving financial goals. Remember, mutual funds are always good for those who choose the most suitable fund and invest in it with precision.
