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Young people are often confused about their financial goals. Their savings are negligible. As soon as they land their first job, savings should be their priority. It helps to stabilize your financial situation and make them more focused on their financial goals.  Many youngsters do not have adequate financial knowledge since the educational system does not delve deep into the subject of personal finance. Hence, there is substantial ignorance on this subject.  In the era of rapid technological changes and job insecurity, it is important to be financially literate. Every youngster requires financial security in terms of savings investment and insurance.  Many youngsters invest in short-term fixed deposits thinking that it will provide them easy access to money as and when required. They depend upon the group insurance provided by the employer. This could be a costly mistake. The bank deposits, though safe, do not provide adequate returns that can beat inflation. The excessi...

The markets are trading at lifetime high seas but many investors are jittery and are hesitant to invest in the present market. Historical e equity funds have delivered above-average returns and will continue to remain the best asset class. However, equity investments are volatile and one should always and sure of the safety of their investments during volatile times.  If you find present levels of the markets quite high and fear volatility you can invest in arbitrage funds. The objective of the arbitrage fund is to preserve capital while delivering modest returns on capital invested. Arbitrage funds invest an equal portion of equity and futures. For example, if the fund buys 1000 shares of X company encash market it sells the same number of shares in the futures market. They also invest up to 35% in debt. This strategy ensures that if there are no arbitrage opportunities present in the equities they can generate the income from the debt investments.  Arbitrage funds make money...

Many never give retirement a serious thought. Probably, it is the least of priority especially for someone who is in the mid-30s or early forties. People often think that they have a long way to go and retirement planning should be undertaken only when is approaching retirement. This is a wrong assumption. This does not mean that you should start worrying about retirement now, but you must consider various options and start investing as and when the opportunity presents itself.  Metlife India Insurance carried a survey that revealed eye-opening statistics. Nearly 75% of working people rarely gave any thought to retirement planning. This is shocking considering that this figure stands at 55%, 45%, and 30% for Australia, the US, and the UK respectively. Indians, on the other hand, have a lackadaisical approach towards retirement planning. Nearly 70% of Indians are concerned about outliving retirement money. Astonishingly only 22% of Indians actually plan for retirement.  When it...

Watch Abhinav Angirish founder of  InvestOnline.in , talk about Mutual Fund, and answering live investors on the Zee Business show "Mutual Fund Helpline" on 19th November 2020.

It is important to undertake a periodical review of one's investment. The objective of this exercise is to check if the investments are in perfect sync with the short, medium, and long term goals of the investor. If the investor finds any deviations then he can rectify his mistakes. This ensures that he gets optimum returns from his investments, for example, if the interest rates are falling then it makes sense to invest in equity instead of debt.  Mutual funds have become preferred investment vehicles for small investors. However, like stocks even in mutual funds quality is important than quantity. The haphazard investment decisions can hamper returns, besides if you invest in many funds it might become difficult to monitor the performance of each one. Remember it is not just enough to invest, it is also important to constantly monitor the investments and conduct a periodic review of the portfolio.  The first step in undertaking the rebalancing exercise is to make a list of a...

While the majority of people actively track their finances regularly, it is also important to make the kids aware of financial planning while they are young. By the time children are seven, their money habits are set. A good money habit can help a child to avoid costly financial mistakes in later life. Here are some handy tips to make a child develop good money habits : Open a savings account for them According to Abhinav Angirish, Founder and Managing Director InvestOnline , it is a good idea to open a savings account for kids at an early age. “This teaches them to read and analyze the bank statements which in turn helps them to learn about the concept of savings and interest. One could set the rule of spending some, saving some. Children always find delight in tracking their balance,” he opines. Make them aware of the concept of goal setting Parents could also make their children familiar with the concept of goal setting. In the words of Angirish, “Instead of buying a toy or gadget r...