Save and Invest

Like every Bollywood movie have a happy ending, it’s not possible that the movie of your life will also have a happy ending .We have to make that ending ‘happy’. Now the question arises that how can we make our life a happy ending like movies. It is simple, by doing everything which gives kick. But implementation of this is not that simple. Every person have different aims, dreams or goals and to achieve those desires we keep on working whole life and at the end we feel that our desires are not fulfilled. Hence the Happy ending become Sad ending.

But the story is not complete here. There is an alternative solution to this. You may be thinking about savings but savings is not the only solution. Rather investment is the better solution to this because savings does not generate any additional income which you expect as a return. As we know that scenes after scenes are co-related and the beginning is most important in the movie and if it is missed then you can find difficulty in understanding it. Similarly in investments you must be clear about your goals and how much amount you will need to achieve those goals. The next scene will be how much risk you can take? It depends upon individual’s characteristics like your age, liabilities, tenure etc and there are number of investment classes where you can invest according to your risk taking capacity, but we have know that “higher the risk higher the return.”

Then what to do? Go for the returns or minimize the risk??? What if we get both of them simultaneously, then we can earn more money at minimized risk? This is done through mutual funds where your money is managed by portfolio managers who have expertise knowledge as well as they diversify the money into different asset classes which ultimately reduces the risk. So your happy ending is awaiting for you

Written By: Sakshi Singhai,AMFI Certified Intern at Investocafe

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