Why Mutual fund is RIGHT?

What if two teams are playing a foot ball match without a goal post. What will happen if you get into a train without deciding where to get down. Similarly, most of the funds are open ended and you can enter any time or exit anytime. It is an advantage if you set a goal for each of your investments. It’s like tailor made. Not readymade. You can invest in a fund and with the same fund, you can attach your various goals say,

  • Purchase of a Car or House
  • Child’s dream education or marriage
  • Comfortable Retirement
  • Pension plans with regular income
  • To meet your shortterm goals.

So if you attach a goal mutual fund is right. If you don’t attach, it may not be right. Next question is Why we should invest in a mutual fund when we have safer investments: One of the safer investments if Fixed deposit. Let say your income is 6lakh, you invest 1lakhs in FD. You get 8% interest => 8000. But your tax on that is 20%, 1600 = 6400 =>6.4%. if Inflation is say 5%=>1.6% is the real return.

So to beat inflation we have two choices

  • Direct stocks
  • Mutual funds.

Why stocks are not for everyone. Most of the investors in stocks think that returns from stocks are derived from buying. No, it’s by selling stocks at right time. And people say buy and hold. Buying a stock in IPO at 10Rs or 100rs and leave it for longtime. It’s not a guaranteed strategy. Many companies in Nifty50, 20yrs before are not even in the list now. Same way many companies who were not even listed 20yrs before is in top 50 list. A smart investor will exit a stock before it collapses. But many investors who don’t have time to track it lose big money. Why companies fail, various factors, government policies, culture, technology, taste of people. So if you invest in a mutual fund. There is an expert in the industry who will take care of your funds. Who is the fund manager and he has approximately 10analysts & agencies who will give him correct data on the company’s sales performance, potential. Based on this data they will decide whether buy or sell a stock. Their job is identify when to buy and when to sell. When your money is managed by an expert, you can be relaxed. Our job is to choose the funds for our duration based our financial goals.

Children’s Education & Marriage

Right formula to create wealth :
Income - Investment = Expenses

Wrong formula:
Income - Expenses = Investment
Expenses + EMI’s – Income = Borrowings
Income - Savings = Expenses


Planning for your child’s Dream education and Marriage must be the primary goal of every parent. If not planned in early stages, the parent has to save a higher amount at a later stage or he has to borrow for education as well as for marriage. Below is the cost in an important education institution in Coimbatore & cost of delay you have to pay if you don’t start early.

Education cost in 2020
B.COM: 52000 B.E: 2.5 lakhs
MBA: 1.04 Lakhs per SEMESTER
2Degrees: 2Degrees:
BE + MBA BCOM + MBA
Today : 30L Today : 15L
5Yrs : 40L 5Yrs : 20L
10Yrs : 54L 10Yrs : 27L
15Yrs : 73L 15Yrs : 36.5L
20Yrs : 1Cr 20Yrs : 50L
CREATING WEALTH FOR BE + MBA
Wealth Required:
20Yrs : 1Crore
SIP Required:
10000 SIP
Total Cost:
24 Lakhs
15Yrs : 73 Lakhs 14585 SIP 26 Lakhs
10Yrs : 54.5 Lakhs 23000 SIP 28 Lakhs
5Yrs : 40 Lakhs 51000 SIP 31 Lakhs

Let’s see the below two examples. Mr. Raj is unable to save due to his high commitments and luxurious life. Whereas Mr.Ram invest first and spends. Mr.Raj is forced to work even after retirement.

MR. Raj - Age 40 Loans
Daughter : 7Yrs 50Lakhs: EMI: 60000.
Marriage: 15years At 12% interest
Current Exp: 20Lak Total payment: 1.08cr
Inflation: 6%
Future Exp = 49Lak Extra 58lakhs.
MR.Ram SIP
Daughter : 7Yrs SIP: 10000.
Marriage: 15years At 12% Growth
Current Exp: 20Lak Total payment: 18Lakhs
Inflation: 6%
Future Exp = 49Lak Maturity: 50lakhs.

If the cost of your child's college fees is raising your fears, then this planning is crucial for you. Even if you are late and difficult to manage, you invest through top up sip and create wealth for your child. I’ve put below an example to create 50Lakhs wealth in 15years

Top up SIP: 2000. Increase Every year 2000

At 10% Growth | Total Payment: 28.8 Lakhs | Maturity : 51.8Lakhs.

So take the Right action at Right time. Remember the wealth creation formula.

Retirement planning : Financial freedom

In today's fast moving world, the word Retirement has changed. Now people call it FINANCIAL FREEDOM. No one wants to work till 55 or 60. They want to earn quick and retire quick to live the life they want. But is it possible without proper planning and execution?





Planning towards your retirement can no longer take a back seat. Retire with dignity, sounds great in itself. Ensure that the time when you retire you should be liable in carrying enough funds, which prospers in meeting with your expenses by maintaining the same established life style. Right Fulfillment curve: survive, comforts, Luxury, Enough, Life purpose, peace of mind & financial freedom.

How crucial is retirement planning for you? What time appears to be best for you to invest? How planning in advance turns out to be fruitful for your coming years? Our experts can help you with the best solutions to the above questions and any others that may be of concern to you Choose excellent retirement planning services from us and let your money grow for your previous retirement years.

Wealthy life:

Creating wealth is for the future. To live happily at current stage we need to invest wisely for our short-term goals as well.

Car Purchase or House purchase:

Investing for short-term goals needs to be invested in a secure investment options


You may have a goal to buy a house or purchase a car. Loan options are available. Still down-payment is required. So create a corpus in secured investment and pay atleast 50% as down-payment. This will reduce your burden by way of paying Higher EMI’s.


Don’t go for a housing loan or an EMI’s until you are financially ready. Invest in Hybrid funds or in Debt mutual funds or in Fixed deposits if it is lessthan 5years duration


Emergency fund:

Saving money for your emergency medical expenses or unexpected travel or a job loss is an factor in financial planning. Upto 3times of your monthly active income should be your emergency fund. Invest this money in flexi-FD or in short term mutual funds.


Travel goals or School fees or Insurance premiums:

Create a liquid fund SIP to manage these regular expenses. As it will earn interest as well as offer liquidity at any point in time.

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