Monday, January 28, 2019

Investment where returns does not matter !

Not all your investments would be linked  to definite goals.


This is a corpus kept aside to meet unforeseen expenses it 
is a fund that you can access at the hour of the crisis or for the unexpected and unplanned scenario if you invest this money to earn return you will compromise it's a safety by exposing it to volatility.
Savings bank account and liquid fund is the place to kept emergency fund
Liquid funds allow  instant withdrawal up to 50000 or  90% of 
the folio whichever is lesser.

A term plan will be pay your family or pre-determined amount of money in the event of your of your death. 
In attempt  to gain something out of money people pay to the insurance company as a premium. by mixing insurance with investments they defeat the purpose of both more importantly you end up paying hefty premiums for small cover. A man 30 years old buys LIC’s new endowment policy for 20 lakh cover over 25 years he will pay  77200.  if you want to pay a lower premium you will left with an even smaller cover.  Insurance should be linked only to the goal of providing financial protection to the family in case of one’s ultimate death.

Gold in itself is not a bad investment, taking the jewellery route is not a good idea.
First buying gold jewellery have to shell out 10-35% extra on a making and wastage charges.
Second selling gold is tough the jewellery for the whom  you bought the jewellery  in the first place may pay yu in cash but only after deducting the making and the wastage charges jewellery  is a symbol of the wealth which does not generate any profits. invest in a gold is a much better to invest in ETFs.

The house possession you consume you are the unlikely to sell your house to meet a future goal even if you sell your house, another house will have to be bought with that money or rent will have to be paid if you did not choose to buy so even if your house depreciates in a value should not get worried however a second property will be a part of your the personal wealth as it may generate an income and the change in its price will be affect your overall net worth.

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