This week we advise on what to do about your money goals and how to plan a getaway investment in the greens.
The Mutual Fund Industry Recently Crossed Rs 50 Trillion In Assets Under Management (AUM) Mark | Representational Image.
In this week’s lead story, Bindisha Sarang delves into key financial strategies for 2024. She emphasises the importance of reassessing one’s financial goals, setting up an emergency fund, reducing debt, and putting in place a prudent investment strategy. For investors looking for actionable insights, this article is a must-read.
In the second story of the newsletter, Namrata Kohli explores the appeal and practical considerations of owning a farmhouse. Read it to understand the legal intricacies, financial opportunities, and design elements involved in owning a farmhouse.
The tax-saving season has begun. If you are looking for a product that can combine the high returns of equities with the shortest lock-in period (three years only), go for an equity linked savings scheme or ELSS (also called tax saver fund). Do look up Morningstar’s review of HDFC ELSS Tax saver Fund.
Investors who wish to stick to the safety of fixed deposits, but want returns that are slightly higher than what bank deposits can offer, may consider investing in company fixed deposits. Do look up Paisabazaar.com’s table for comprehensive insights into the ratings and returns offered by various players over different horizons.
Number of the week
Rs 50 trillion: Assets under management of mutual funds
The mutual fund industry recently crossed Rs 50 trillion in assets under management (AUM) mark. This development was the result of a strong rally in the equity markets in 2023. Riding this rally, retail investors invested large amounts into equity mutual funds via the systematic investment plan route.
According to Reserve Bank of India data, household savings invested in financial assets (net of household debt) amount to barely 5.1 per cent of gross domestic product. Mutual fund assets comprise just 13 per cent of those financial savings.
While reaching the Rs 50 trillion mark should be celebrated, more investors need to climb onto the mutual fund bandwagon if they are to succeed in saving adequately for their major financial goals: Children’s education and marriage, house purchase, retirement savings.
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