What is financial immunity?

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If you invest Rs. 10,000 per month in an equity fund, you can accumulate about 4,30,00,000 over the next 30 years at a return of 13%. For today's young generation, it is not that difficult to set aside 10000/- per month.


It is very important to invest goal-wise to achieve financial freedom before retirement. For short-term goals, you should consider debt and for long-term goals equity is the most appropriate asset class. The best way to invest in equity is through a mutual fund where an expert fund manager manages your funds. Choose the right financial advisor who can help you achieve your financial goals.

In addition to achieving financial freedom, it is also necessary to purchase term insurance and health insurance to protect your loved ones from financial problems.

In 2020, Covid-19 was an eye-opener for people who were not disciplined when it came to financial planning and awareness. This is the time when people realize the importance of term insurance, health insurance, emergency funds and savings.

Discipline is important when it comes to health and wealth. Just like 1 hour of exercise a day helps you stay fit, SIP is the proven method for wealth building. The biggest advantage of SIP is the power of compounding, market timing is irrelevant, Light on pocket and disciplined investing. 

For example, if you invest 20000/- every month for the next 20 years and earn a return of 13%, you can have a wealth of more than 2+ crores.

DO NOT FORGET:

Emergency Fund: Have a contingency fund equivalent to at least six months' expenses in a combination of a sweep-in deposit and a liquid fund.

Term Life Insurance: Buy adequate term life insurance to protect your loved ones in your absence. Ideally, the life cover should be 10-15x of your annual income + Debt. You need term life insurance only if you have financial dependents.

Health Insurance: An adequate health insurance cover for all the members of the family is a must. An unforeseen medical expense can derail your financial plan. 


Disclaimer:

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.

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