I was living in a rented house since 2005 when I moved from my parent’s house. Buying a house was quite expensive and I was unsure that I would work so long. Tenure for loans were 15-25 years. EMI’s were more expensive than the rent. I was not sure of many things while buying a house :
Will this place have water ? Will it be as crowded / traffic congested as any other place ?
I was so excited! My first job. This actually would mean independence. This would also mean that I would have a bank account and there would be a number bigger than 0 in my account. However, with the uncontrolled expenses, my bank account quickly got depleted as soon as my salary came in. Thankfully maturity came and as years passed by, I started gaining different types of assets including a house, a car, few more savings account, a fixed deposit, mutual fund , stocks etc…
From childhood, we have been raised in a certain way, which shapes our opinion and attitude towards money. Some are conservative with money , some are willing to take risks . It is important to know where you stand and therefore invest your money in instruments which reflect your risk profile.
What is Risk Profile ? Risk profile determines our attitude towards money and it is best you allow a financial planner , whom you trust, help you determine your risk profile towards money as it is important to have a unbiased perspective (as far as possible).
Mutual Funds began in 1963 in India. Private mutual funds came into being in 1993. AMFI was established in 1995. Since then, there have been so many varieties of mutual funds. Based on your individual goals and risk profile, you would purchase a mutual fund. The question therefore begs to be asked is - is equity savings fund right for you ? What are equity savings fund ? Mutual funds are defined by their structure and tax applicable on them.
Inflation is a measure of rise in the general price level of all goods and services in the country. Inflation is often viewed as the reduction in purchasing power of money.
If you could buy a cup of coffee for Rs 10/- today and after 1 year, you are able to buy a cup of coffee for Rs 12/-, you have experienced inflation. In this case, inflation is 20%.
