Republic Day: Time to Enjoy Right to Freedom of Financial Security
On the day of January 26th, 1950, Indian constitution first came into action, thus declaring the nation as Republic. The making of constitution provided us with our rights and duties. The ones that we enjoy today, including the right to freedom.
Considering the present day scenario, there are several aspects of freedom for the people. Some look forward to attaining the true right to freedom of speech and expression, whereas there are the other few who take it to a more personal level, thus seeking the right to freedom of financial security. In this write-up, we’ll talk about the latter; shedding light on the importance of financial freedom, and thus providing our recommendations with which you can achieve it.
Being a prudent investor, it is important to consider three simple steps to being financially secure which are discussed below:
First: Be Organized
In order to keep a track of the performance, it is vital to understand where you are starting from. To do this, clear out some time, and get together all your recent transactions including the online information from your financial accounts.
Second: Track Your Expenditures
The second main step is to track all your spending. This step does not want you to make any changes because the idea is to figure out what you’re doing right now. It helps you in planning how to tweak and optimize your spending to reach your financial goals in the future. Check if your overall spending in a week is more than the one you are earning; in case that’s true, it’s high time to work on it.
Third: Set a Realistic Action Plan That You Can Stick to
Too many people fail while planning their finances as in the beginning they are in rush and this makes them set arbitrary limits which do not fulfil their purpose in real time. It is important to learn the importance of investment and savings to ensure financial security by making realistic goals. You can always make money by keeping your life objectives in mind and investing with a long-term perspective.
Coming back to financial security, it is referred to as the peace of mind you feel when you aren't worried about your income being enough to cover your expenses. It also denotes that you have enough money saved to cover emergencies and fulfil your future financial goals.
Considering its utmost importance, on the occasion of our 69th Republic Day, let’s start with investing in equity mutual fund having a good track-record and consistency in performance across market cycles. Set your tenure to at least 7-10 years, and there is almost an implicit assurance that you will do well with your invested money.
Here are the five expert recommended schemes that you can consider investing in this year:
- SBI BlueChip Fund
Being a large-cap mutual fund which particularly invests in the stocks of giant bluechip companies, SBI BlueChip Fund is an ideal choice for the investors looking for long-term capital appreciation. The fund is managed by Ms. Sohini Andani, who has made sure that the fund maintains a high-grade return in the less volatile space. It has one of the lowest expense ratios in the large-cap active fund category. Across 3-year, 5-year and 10-year period, this fund has successfully beaten its benchmark by 3-6% on a Compound Annual Growth Rate (CAGR) basis.
- ICICI Prudential Focused BlueChip Fund(G)
A relatively new fund (less than a decade old), ICICI Prudential Focused Bluechip Fund has shown great performance from its inception. Today, it is over Rs. 15,000 crore fund which is excellently being managed by a veteran fund manager Mr. Sankar Naren who is also the chief investment officer at ICICI Pru AMC. The fund has successfully and very comfortably beaten both its peers and benchmark right from its inception. Our experts consider it to be one of the rarest bluechip large-cap focused funds which are available at the marketplace.
- ICICI Prudential Balanced Advantage Fund(G)
The fund was designed by ICICI Mutual Fund with an aim to offer well-balanced growth opportunities to the investors who are willing to generate a corpus in the future. The primary goal of the fund is to allow you to benefit from an in-house asset allocation model which aims at buying high and selling low. It has managed to safeguard its investors at times from risk exposure by providing them with rewarding returns as the market rises. Being a signature product of the asset management company, ICICI Prudential Balanced Advantage Fund also provides additional benefits with features like monthly dividends and automatic withdrawal plan.
- SBI Magnum Balanced Fund
Are you looking for a great balanced fund with an extremely long track-record? Then, SBI Magnum Balanced Fund is the fund you should consider. Having delivered 26.28%, 11.29%, and 18.02% trailing returns in 1, 3, and 5-year period respectively, this nearly 22-year-old fund is in a league of its own. Its healthy exposure to the large-cap as well as mid-cap companies in terms of equity and considerably good exposure to government securities on the debt side embellish the battle-hardened nature of this rewarding fund.
- HDFC Balanced Fund
Being an over 17-years old equity-oriented balanced fund, HDFC Balanced Fund has a total asset under its watch amounting to Rs. 19,169 crores which make it one of the biggest funds in its category. It is an ideal choice for the investors who are looking for security in returns but are not after to dip their feet in the ocean of equity. With a stellar trailing returns track-record of 26.68%, 12.46%, and 19.43% in one, three, and five-year time period respectively, this is among the safest funds for beginners if they are wandering for products with stable risk profile.
Henceforth, begin your journey to attain financial security by extending your first step towards investment in any of the schemes mentioned above. In case you are looking for some more options, visit recommended mutual funds section available on our website where you can filter out the schemes according to your suitability.
Lastly, we the team at MySIPonline wishes you a very Happy Republic Day!
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