Invest in Liquid Funds to Plan Your Finances at the Year-End
Are you a robust spender and let your money lie in the savings account? If yes, then chances are there that you may fall short in a case when you are in need of instant cash. Liquid funds are the sources which provide a way of setting aside a sum of money to be used in the case of uncertainties. We have tried to let you understand why and how you can plan your finances with liquid funds now when the financial year is on the verge of ending soon in March 2017.
It is a common phenomenon that at the end of financial year in March, the budget requires to be reset to manage one-off expenses at the same time. If you are confused, then we can help you to pointing out the upcoming expenses for which you need to make an arrangement from now. Some of them are as follows:
- Your tax liability- as per which you will have to submit your taxes for the current financial year by the end of July which is the cut-off time.
- Beginning of the new session in school- that requires a sum of money for readmission and other expenses for your ward to let him/her attend the new session at school.
- Time for vacation- as the exams end in March, it follows the summer vacation leaves for the children and they would definitely demand for a holiday trip requiring a huge sum of money.
These upcoming expenses being at first in the list would require the arrangement of money now only so that you do not lag behind from fulfilling your crucial responsibilities. And Liquid Mutual Funds investment can be of great help to you for managing these expenses efficiently as they ensure that money would be available to you at times when you require them the most. They will not only provide high security like your bank savings account; and would rather offer comparatively greater returns as well.
As it is not easy to set aside a greater sum easily, so we need to make better planning for the same. At present, when everyone is busy with their tax management plans to avail tax exemption under section 80C, the need to plan finances for the upcoming period is equally essential. And for doing so, here is a simple process to be followed:
- Check if you have surplus amount of money in your savings bank account after spending your monthly operating expenses. If it is so, then transfer some of the money from that account to liquid funds to let it grow at a higher rate. Moreover, if it is not so, you can opt for the SIP investment plans for liquid funds as well.
- Check if you have some investments which are about to get mature in the coming term and you have no goal associated with such investment amount. Then use that amount for investing in the liquid funds to enhance its worth some more.
- The last option that you have now is somewhat critical which needs to be taken with efficiency. If you think you would definitely be requiring a huge sum of money in the following month, then you can opt for switching your current investment to liquid funds. You need to make sure that your current investment which you are planning to switch is not associated with any goal.
By making such an arrangement, you can plan a better investment to accomplish your upcoming finance requirements. The SIP or lumpsum investment provide further convenience to opt for any one. You can choose any of the alternatives to giving way to your investment for growing higher. As we know that your requirements in the upcoming months would be of great importance and require a corpus to get accomplished, we recommend you to make a better investment in liquid funds to achieve the same.
My SIP Online and its team have always tried to provide the best investment solutions to the investors for helping them attain their financing needs. We recommend liquid fund investments to you for planning your finances at the year end. With this, you will not fall short for your instant cash needs and would be able to spend the money on different expenses easily. You can further take assistance from our financial advisory team to make better decisions of investing.
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