#mutual fund sip plan in Hyderabad

[pragatiwealth]

What makes the best SIP plan to invest in Hyderabad a smart choice?

Consistent investment leads to steady growth. Pragati Wealth helps you identify the best SIP plan to invest in Hyderabad, ensuring your funds grow systematically and contribute to achieving your long-term financial objectives while benefitting from compounding and rupee-cost averaging. For more information, visit https://www.pragatiwealth.com/mutual-fund-expert-in-hyderabad.php

[divyarani]

5 Tips to save money for buying one’s dream home

Investing in a residential space is a sensible purchase, as nowadays property prices are on the increase. Best real estate companies can help out. In case a person is considering buying a house then the best places to invest in real estate in Hyderabad.

Property purchase is indeed a major life decision as it involves heavy monetary investments. There are no doubt plenty of housing loan alternatives to facilitate the purchase, yet, it is necessary to save sufficiently to pay for the down payment. There are also additional expenditures to consider such as property tax, stamp duty, as well as registration charges.

There are the best real estate companies that can help out make a proper investment.

Start small, to begin with

Rather than getting overwhelmed by heavy down payment, it is better to start saving small. To start with a person has to decide when he or she would like to buy and how many months away from the purchase. Before investing in real estate, it is better to cut back on expenses and then earn additional income. It is also good to consider a pay savings plan, implying a certain amount of one’s regular payment will go directly into a savings account.

Investing in profit earning instruments

To build a corpus of Rs 50 lakh or more in the next 10 years, it is necessary to invest different kinds of money growth instruments, which will in due course earn a decent rate of appreciation in a given period. It is also possible to consider investments in mutual funds, or perhaps even fixed deposits (FDs), or even Public Provident Funds (PPF).

It is worth noting that the best places to invest in real estate in Hyderabad.

Try Systematic Investment Plan (SIP)

A Systematic Investment Plan (SIP) does permit an investor to invest a fixed amount in a mutual fund scheme regularly. It is possible to invest in a mutual fund scheme via SIP with a minimum investment of about Rs 500 and then hoping to gain from the power of compounding and rupee-cost averaging. If investing continuously is carried out despite market conditions, then it is possible to get more units when the market is low and fewer units when the market is high. This does lessen the overall cost of investment.

Check whether you are eligible for PMAY-CLSS Scheme

In case of showing interest in availing a home loan to finance the purchase, it is good to check out whether a person is eligible for the Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY). The scheme does cover most of the sections of the Indian society, including the economically-weaker section (EWS), lower-income group (LIG), and middle-income homebuyers. It does offer subsidies on the interest payable on one’s home loan, subject of course to certain conditions. The best aspect of the scheme is that a person can get the subsidy directly transferred to one’s account. This makes it much easier for a person to manage the monthly installments.

Accumulate one’s savings in a high-yield savings account

Accumulating one’s funds in a savings account is probably the easiest choice that can be made. Regular savings account usually consist of a low rate of interest and, thus a person gets only meager returns on the funds. In case a person desires to earn a higher interest rate as compared to one’s regular account, then opting for a high-yield savings account can be considered.

Conclusion

Before deciding to save, it is necessary to have an idea of the cost of the home. The market needs to be studied well to save properly. It is good to consult an expert for guidance. The best places to invest in re

[moneycafe]

Which mutual fund schemes will help me create Rs 50 lakh for my dream home?

Which mutual fund schemes will help me create Rs 50 lakh for my dream home?

I am planning to invest Rs 60,000 per month for 5 years. My aim is to build Rs 50 lakhs from this. My dream is to buy a house for my family with this corpus. Suggest a suitable portfolio for my goal. — Sri Ramakrishna Chittabathina Subir Jha, founder, Buckspeak, a financial planning firm based out of Hyderabad, responds: 5 years is not the ideal investment horizon for a SIP in equity funds. I…

[investocafe]

NEW MONEY MANAGING PRACTICES - AN EYE OPENER !

  The change is continuous in every sphere of life. The one who adopts the changing trends leads a better life especially in the field of finance. The conventional financial rules our parents and grandparents followed are not beneficial in present time. We at Investocafe analyzed how the new money managing practices are more beneficial today.

INVESTING

Earlier Saving and Investments were synonymous to  PPF or FD’s to protect capital and earn a decent interest. Today, post tax returns of most such schemes can’t beat inflation. For long-term goals like retirement, higher education for children, children’s wedding etc, a large allocation to equity is necessary to build wealth that beats inflation in a tax-efficient manner. So the new trend is LOOK FOR HIGHER INFLATION BEATING RETURNS INSTEAD OF GUARANTEED RETURNS. Have a look for various investment instruments below

  Diversified Equity Mutual Fund (@ 15% CAGR),Value of rs. 1 Lakh in 5 years will be: 2, 01,135

 Balance Mutual Fund (@ 12% CAGR) ,Value of rs. 1 Lakh in 5 years will be: 1, 76,234

 PPF (@ 8.5%),Value of rs. 1 Lakh in 5 years will be: 1,50,365

 FD (@ 8 %),Value of rs. 1 Lakh in 5 years will be: 1,46,932

   HOUSING

Earlier, a house meant financial security and a good long-term investment but today, buying a house implies a huge EMI burden. Paying off a home loan early in your career compromises your other financial goals. So the new trend is RENT A HOUSE INSTEAD OF BUYING. The renting a house is more affordable than buying a house as per the Artha Yantra Buy vs Rent Report 2017. Have a look that in present scenario in different cities what is the rental cost and what will be the monthly cost to buy :

Mumbai : Avg Monthly Rental Cost : 42,084 : Avg Monthly Cost to buy: 1,56,887

Kolkata : Avg Monthly Rental Cost : 18,174 : Avg Monthly Cost to buy: 47,737

Bengaluru : Avg Monthly Rental Cost : 19,176 : Avg Monthly Cost to buy: 52,280

Chennai : Avg Monthly Rental Cost : 17,911 : Avg Monthly Cost to buy: 68,908

Delhi NCR: Avg Monthly Rental Cost : 21,094 : Avg Monthly Cost to buy: 70,115

Hyderabad: Avg Monthly Rental Cost : 13,706 : Avg Monthly Cost to buy: 30,955

Kochi : Avg Monthly Rental Cost : 12,347 : Avg Monthly Cost to buy: 41,670

Jaipur : Avg Monthly Rental Cost : 12,150 : Avg Monthly Cost to buy: 36,488

Indore : Avg Monthly Rental Cost : 11,677 : Avg Monthly Cost to buy: 29,965

  TRANSPORT

Earlier, owning a car was seen as a status symbol. Fuel was cheaper too. Today, an efficient public transport system and app-based taxi services made owning a car superfluous. You are also spared the trouble of high fuel bills, vehicle maintenance, driving in traffic or looking for parking space. So the new trend is RENT A CAR INSTEAD OF BUYING ONE. Have a look at the calculation below for average per day cost of possession of a car:

  Average Cost of a hatchback car in India : Rs 6,00,000

Scrap value of car after six year: Rs1,00,000

Net amount goes in effective life of six year : Rs.5,00,000

Cost of car possession (5,00,000/2192 (6 years)) : Rs.229/day

Approximated Car insurance (Averaged at 10,000 yearly) : Rs.27/day

After every 3 year tyre & battery replacement charge : Rs.23/day

Car Maintenance (@ Rs 9000 yearly) : Rs.24.5/day

Interest on car buying amount(@8% on Rs 6,00,000) : Rs.160/day

 Average per day cost of car possession (excluding the fuel expenditure and driver) is Rs 463.5

 Cost of renting a car with driver generally available in India is Rs 12/km to Rs 20/km (Uber )

 Renting a car is much cheaper than actually owning a car.

 GOLD

Lack of awareness and traditional inclination towards gold made earlier generation invest heavily in physical gold. Today, gold bonds/ gold ETFs or mutual funds prove to be more beneficial over physical gold, on many fronts. So now the new trend is BUY GOLD BONDS INSTEAD OF GOLD JEWELLERY OR PHYSICAL GOLD. Have a look:

  Liquidity;

 Gold Bonds: Low

Physical Gold: High

Gold FTE : High

 Interest;

 Gold Bonds: 2.75%

Physical Gold: Nil

Gold FTE: Nil

 Charges;

 Gold Bonds: Nil

Physical Gold: Locker, Making Charges, Insurance Premium:

Gold FTE: 1% on Expense Ratio

 Taxation;

 Gold Bonds: Tax on Interest

Physical Gold: Nil:

Gold FTE : Taxes if sold before 1 year

 Risk;

 Gold Bonds: Nil

Physical Gold: High

Gold FTE : High

  INSURANCE

The conventional or conservative approach towards insurance is a mix of insurance and investment. Insurance is a bad investment and investments don’t provide insurance. They don’t actually provide the best of either. Insurance should be taken to cover your liabilities and Term insurance is low-cost insurance that comes with higher cover for a lower premium. It does not provide returns and is treated as an expense. But a comparison between endowment policy and term insurance clearly emerge Term insurance as winner. Have a look at the comparison between Endowment plan and mix of Term Plan with SIP below.

LIC Endowment Vs Term Insurance Plan with MF investment:

 LIC new endowment plan for Rs. 50 lakh cover:

  At 30 years age for a period of 30 years or 60 years age

  Monthly premium is Rs. 13293 for 360 months (30 years)

  Total maturity amount at the age of 60 years would be Rs.1.77 crore

  Term Insurance plan of ICICI Pru for Rs. 50 lakh cover and SIP in ICICI value discovery fund

  From 1 st to …… 360 months

Term Plan Premium:  426……..426 :  Total (@ 12% CAGR)

SIP Amount:  12867……………12867  : Total Rs.4.54 Crore

  Visit www.investocafe.com to know about mutual fund investment options and stay on path of financial freedom

Happy Investing!!!

  Written by: Anvesh Pandey, SEBI Registered Investment Advisor

To get in touch, write on anvesh.pandey@investocafe.com or reach through www.investocafe.com

[pragatiwealth]

Which Is the Top Hybrid Mutual Fund Plans in Hyderabad?

The top hybrid mutual fund plans in Hyderabad blend equity and debt investments to balance risk and returns. You should contact a financial expert like Pragati Wealth who can help identify the best hybrid plans based on individual investment goals. For more information, visit https://www.pragatiwealth.com/mutual-fund-expert-in-hyderabad.php

[pragatiwealth]

Should I Work with the Best Broker for Mutual Funds in Hyderabad?

Partnering with the best broker for mutual funds in Hyderabad, such as Pragati Wealth, simplifies your investment journey by providing access to mutual fund products so that you can select suitable funds based on your financial goals, risk tolerance, and investment horizon. For more information, visit https://www.pragatiwealth.com/

[pragatiwealth]

SIP or Lumpsum? Can a SIP Investment Advisor in Hyderabad Help?

Financial planning often feels like a maze with many options available. Yet, at its core, the goal remains the same, achieving financial security and building a corpus over time. Among many investment avenues, mutual funds stand out as accessible and effective tools for investors. That's why you need Pragati Wealth, an AMFI registered mutual fund distributor in Hyderabad that offers a structured approach tailored to various financial goals.

Why Financial Planning Matters for Everyone?

Financial planning is the blueprint that aligns your income, expenses, and investments with your life goals. Without a plan, money tends to slip away, leaving you vulnerable to unforeseen expenses and missed opportunities. Mutual funds via SIP provide a disciplined path to financial stability, making sure that your money works as hard as you do.

What is a Mutual Fund?

A mutual fund is an investment vehicle managed by professional fund managers. It collects money from many investors, creating a large pool of funds. This pooled money is then put across various asset classes, such as equities, debt, or hybrid instruments. The aim is to provide potential returns that align with the fund’s stated goals. Whether they aim for growth, income, or a balance of both.

SIP vs. Lump-Sum Investments

Choosing between SIPs and lump-sum investments often confuses investors. While both have their merits, they serve different purposes. SIPs offer a disciplined approach to investing, making them ideal for salaried individuals. Lump-sum investments, on the other hand, work well for those with large funds looking to capitalize on specific market opportunities. A SIP investment advisor in Hyderabad can help you understand which strategy works for you.

What is a Systematic Investment Plan (SIP)?

A SIP allows you to invest a fixed amount periodically, monthly, quarterly, or annually, into a mutual fund of your choice. This method promotes consistent savings and investment habits. It also removes the stress of timing the market, as your investments are spread out over time, averaging out the purchase cost of units.

Lump-Sum Investments

Lump-sum investments are ideal for those with a large corpus of funds ready for deployment. They are particularly effective in bullish markets. Where immediate investment can lead to higher potential returns. However, they need a strong understanding of market conditions and may not suit risk-averse investors.

Which One Fits Your Goals?

The choice between SIP and lump-sum depends on your financial situation and objectives. SIPs are perfect for building a corpus gradually and mitigating market volatility. Lump-sum investments, while riskier, can yield higher potential returns if timed correctly.

Conclusion

Smart investments are the key to financial independence. By using tools like SIPs and mutual funds, you can turn your financial goals into reality. Take the first step toward your financial freedom today and secure your future.

[pragatiwealth]

Start Your SIP Journey With Top Rated Financial Advisors In Hyderabad

Are you trying to save for something important like your child's education, or your retirement? But as you look at all the options available to invest, you feel overwhelmed and unsure about where to begin. How do you make sure your money grows to meet these goals?

This is a challenge many face, and the good news is that there’s a simple, effective way to start investing: Systematic Investment Plans (SIPs). In this blog, we’ll explore how SIPs can help you build wealth over time. And why working with experts like registered investment advisors in Hyderabad can make the process easier?

What Are SIPs?

A SIP is a way of investing a fixed amount of money regularly into mutual funds. You can invest monthly, quarterly, or even annually, depending on your preference.

Why Are SIPs Great?

● The Power of Compounding

One of the biggest perks of SIPs is the power of compounding. When you invest regularly, the money you earn from your investments also earns returns. Over time, this cycle can lead to significant wealth growth. Even small investments, made regularly, can grow into large amounts over many years.

● Rupee Cost Averaging

Another advantage of SIPs is rupee cost averaging. This means that, because you invest a fixed amount regularly, you buy more units when the market is low and fewer units when the market is high. Over time, this averages out the cost of your investments, reducing the impact of market ups and downs. This makes SIPs a less stressful way to invest, especially for beginners.

● Discipline and Consistency

SIPs encourage you to invest consistently. By committing to a set amount each month, you’re building a habit of saving and investing. This discipline helps stop you from impulsive spending.

How to Make the Most of SIPs

● Selecting the Right Mutual Funds

When investing through SIPs, it’s essential to choose the right mutual funds. Look for funds that match your risk level and financial goals. Pragati Wealth provides the top rated financial advisors in Hyderabad which can help you with the right mutual funds that show growth potential.

● Regularly Reviewing Your SIPs

As time passes, your financial goals and the market may change. It’s essential to review your SIP investments periodically to ensure they’re still on track.

● Staying Invested for the Long Term

The key to successful SIP investing is staying invested for the long term. The market will go up and down, but by continuing to invest regularly, you’ll benefit from the long-term growth potential of your SIPs.

Conclusion

SIPs are a powerful way to build wealth over time, even if you’re just starting with small amounts. They offer the advantages of compounding, rupee cost averaging, and consistent investing. Which makes them a great choice for anyone looking to secure their financial future.

[investocafe]

Higher education available but unaffordable commonly

Mr. Nair works at a bank and has a beautiful small family in which he lives with his wife, Rachna and daughter Ananya. In 2006, Mr. Nair after understanding the aspiration of his daughter Ananya to become an MBA started investing in a recurring deposit for 10 years @ 8.5% rate of return to accumulate funds for higher education of Ananya. He included the coaching fee and college fee in his calculation and set a target of Rs 6, 00,000 to achieve in 10 years. However, he didn't take inflation into his calculation to reach the financial goal, which Mr. Nair realized in 2016 when Ananya cleared the entrance exam and found that the college fee in 2016 was Rs 18.5 lacs.

Mr. Nair was taken aback looking at the fee structure because what he planned for his only child was not enough. Ultimately he had to take loan for the bright future of his daughter Ananya.

An analysis on the increase in the fees of higher education indicates that the tution fees in top management institutes have risen faster than inflation. Between 2007 to 2016 the average inflation on conservative outlook was 8.44 % whereas the increase in the fees of top management institutes in the country rose at 12 to 19 % per annum.

In case of Mr Nair it is evident that the money he invested in recurring deposit for last ten years might have increased in numbers but has not increased his purchasing power. In fact the purpose for which the investment was done, got defeated at the hands of inflation in education sector.

We at Investocafe analysed the case study of Mr Nair and further research indicated that inflation in education sector has actually increased cost of education manifold. A brief comparison of fee structure in 2007 and 2016 in respect of main course (MBA) offered by top management institutes in India is as following:

1. IIM AHEMEDABAD: Fee in Year 2007: Rs 5.50 Lakh: Fee in Year 2016: Rs 18.50 Lakh: Fee Growth in 9 years: 236.26 %

2. IIM Bangalore: Fee in Year 2007: Rs 5 Lakh: Fee in Year 2016: Rs 14 Lakh: Fee Growth in 9 years: 180 %

3. IIM Calcutta: Fee in Year 2007: Rs 4 Lakh: Fee in Year 2016: Rs 19 Lakh: Fee Growth in 9 years: 375 %

4. IIM KOZHIKODE: Fee in Year 2007: Rs 4 Lakh: Fee in Year 2016: Rs 13 Lakh:Fee Growth in 9 years: 225 %

5. IIM INDORE: Fee in Year 2007: Rs 4 Lakh: Fee in Year 2016: Rs 13 Lakh:Fee Growth in 9 years: 225 %

6. IIM LUCKNOW: Fee in Year 2007: Rs 4 Lakh: Fee in Year 2016: Rs 11.80 Lakh:Growth in 9 years: 195 %

7. IIFT DELHI: Fee in Year 2007: Rs 3.4 Lakh: Fee in Year 2016: Rs 15.70 Lakh:Fee Growth in 9 years: 348.57 %

8. MDI GURGAON: Fee in Year 2007: Rs 5.89 Lakh: Fee in Year 2016: Rs 18.86 Lakh:Fee Growth in 9 years: 220.20 %

9. ISB HYDERABAD: Fee in Year 2007: Rs 14 Lakh: Fee in Year 2016: Rs 35 Lakh:Fee Growth in 9 years: 150 %

The above comparison clearly indicates that the cost of education will continue to increase at a faster rate than CPI inflation. Experts opinion in this gard is also positive on the uptrend in the fee structure since globally the management institutes have to invest lot of money in buying case studies, faculty salaries including visiting professors and international collaboration to expose students to other markets.

Hence it is suggested to all such parents or going to be parent that you need to invest regularly with discipline a certain amount, which you can calculate at the tools section on https://www.investocafe.com/sipCalculation, keeping the inflation at 10 percent for education. For instance, cost of a course in today's value is Rs 20,00,000 then considering inflation at 10% for 15 years hence (in 2032), the value of the same course would be around Rs 83,54,496 and to reach this goal @14% rate of return you just need to invest Rs 13,791 per month in equity mutual fund for 15 years.

Remember the saying 'Fail to plan is plan to fail' therefore make a prudent decision today and set a financial goal and start investing through SIP way in mutual funds.

Best Wishes. Happy Investing!!! Team Investocafe

Written by: Anvesh Pandey, SEBI Registered Investment Advisor To get in touch, write on anvesh.pandey@investocafe.com or reach through www.investocafe.com.