Posts in category: Investing

If you’re asking yourself “Is it too late for me?”

When it comes to investing, the sad truth is that for many people in their 40s and older, the answer may be “yes.” Waiting too long to start investing can make it very difficult to catch up.

For example, if your goal is to have a Rs.10,00,000 nest egg by age 60, and you assume a 10% annual return, an 18-year-old would only need to invest Rs. 1,850 annually to reach that goal. Meanwhile, a 40-year-old would need to invest Rs.16,000 per year, and a 50-year-old would need to invest a staggering Rs. 57,000 per year.

The key to achieving financial independence is to start investing early. By starting early and investing consistently, anyone can achieve financial independence and secure their future.

The Securities and Exchange Board of India (SEBI) has extended the deadline for mutual fund investors to specify nominee details to September 30, 2023. Earlier, the deadline was March 31, 2023. This decision was made in response to representations received from market participants. The circular, which was issued on March 28, 2023, stated that the provision mentioned in the SEBI circular dated June 15, 2022, regarding the freezing of folios, will come into force with effect from September 30, 2023, instead of March 31, 2023.

The move to extend the deadline for specifying nominee details is a welcome relief for mutual fund investors who were facing a time crunch to meet the earlier deadline. This decision will provide investors with additional time to complete the necessary formalities and ensure that their investments are protected.

It is important to note that specifying nominee details is a crucial step in safeguarding one’s investments. A nominee is the person who will receive the mutual fund units in case of the investor’s demise. By specifying a nominee, investors can ensure that their investments are passed on to their loved ones without any hassle.

 It is also important to keep one’s nominee details up-to-date and review them periodically. In case of any changes in personal circumstances, such as marriage or divorce, investors should update their nominee details to ensure that their investments are protected.

To update the nomination in your Mutual Fund folios:

For CAMS visit (https://digital.camsonline.com/changeofnomination) and

For Kfintech visit (https://mfs.kfintech.com/investor/General/NCTNomineeUpdation)

Before investing, it is important to have a solid plan in place to ensure that you are making the most of your hard-earned money. Here are some key plans that you should have in place before you start investing:

1. Get Your Finances in Order: Before you start investing, it is important to review your finances and ensure that all of your bills are under control. This means creating a budget and tracking your expenses to make sure that you are not overspending. Once you have a handle on your finances, you can start putting together a plan for investing.
2. Create a Debt Payoff Plan: If you have any outstanding debts, it is important to create a plan to pay them off before you start investing. High-interest debt can be a major drain on your finances, so it is important to get rid of it as soon as possible. Once you have paid off your debts, you can start putting more money towards investments.
3. Build an Emergency Fund: Before you start investing, it is important to have an emergency fund in place. This is a separate savings account that you can use to cover unexpected expenses, such as a medical emergency or a car repair. Ideally, your emergency fund should cover three to six months’ worth of living expenses.
4. Set Your Investment Goals: Before you start investing, it is important to have clear goals in mind. This will help you determine the types of investments that are right for you. For example, if you are saving for a down payment on a house, you may want to focus on low-risk investments that provide steady returns. If you are saving for retirement, you may want to focus on long-term growth.
5. Create an Investment Plan: Once you have your goals in mind, you can start creating an investment plan. This should include the types of investments you want to make, the amount of money you want to invest, and your timeline for achieving your goals. It is also important to diversify your investments to minimize risk.
6. Consider Using an Intermediary Bucket: An intermediary bucket is a separate savings account that you can use to save up money for investments. This can be a good option if you want to take advantage of investment opportunities as they arise, but you don’t want to dip into your emergency fund or other savings accounts.

In conclusion, investing can be a great way to build wealth over time, but it is important to have a solid plan in place before you start. By getting your finances in order, creating a debt payoff plan, building an emergency fund, setting your investment goals, creating an investment plan, and considering an intermediary bucket, you can ensure that you are making the most of your investments and achieving your financial goals.