Latest news with #SIPs
India.com
14 hours ago
- Business
- India.com
CA Explains How FOMO And Undisciplined Spending Is Killing Your Savings Despite High Income
New Delhi: Managing money successfully isn't simply a matter of how much you earn. Instead, it's about how well you align your finances with your personal aspirations. This is a lesson highlighted by Abhishek Walia, Chartered Accountant and Founder of Zactor Tech, who uses real-life examples from his practice to drive home the point. Clarity of Purpose: The Game Changer Walia recalls a recent case involving a young professional earning ₹90,000 per month. 'She had no side hustles, no major investments, and no debt,' he explains. What set her apart was her clear financial vision: she maintained a six-month emergency fund and was disciplined about her Systematic Investment Plans (SIPs) to fund her MBA, planned for three years later. Her straightforward yet intentional approach kept her financially stable and stress-free as she pursued her long-term goals. High Income, Low Stability: A Cautionary Tale In contrast, Walia describes another client earning ₹2.5 lakh per month who lived paycheck to paycheck. 'Despite the higher income, she was constantly broke by month-end,' he says. 'There was no emergency fund, no investments—just lifestyle upgrades and spending driven by FOMO (fear of missing out), with no clear financial direction.' This scenario illustrates how a lack of planning can lead to financial instability, regardless of income level. Mindset Over Money Walia emphasizes that true wealth is rooted in mindset, not just income. 'People often mistake a bigger paycheck for financial success,' he notes. 'But real wealth is what you keep, not what you earn. Without a plan, even ₹2 lakh a month can vanish before the month is over.' This insight serves as a powerful reminder of the importance of financial literacy and structured planning. The Power of Clarity Walia identifies clarity as the critical factor. 'It's a clarity issue,' he says. 'The ₹90,000 earner knew her 'why.' The ₹2.5 lakh earner didn't.' Understanding your financial priorities can make all the difference in achieving long-term stability and growth. Money With Purpose Compounds 'Money without clarity will quietly disappear,' Walia observes. 'But money with purpose? That compounds.' His advice is clear: intentional financial management, driven by a defined purpose, is the foundation of sustainable wealth. Shifting the Focus He also warns against the common obsession with simply earning more. 'We live in a world obsessed with earning more. But wealth starts with more intention,' Walia advises. He urges a shift in perspective—from chasing higher income to managing existing resources more effectively. This change in approach can lead to more meaningful and lasting financial success
News18
3 days ago
- Business
- News18
'India's Savers Turn Investors': Uday Kotak Says Mutual Fund Assets Surge To 31% Of Bank Deposits
Kotak says the trend is beneficial for the economy as it "grows domestic risk capital and creates an equity culture", but he cautioned investors against "excessive exuberance". India is witnessing a shift in household savings preferences as mutual fund assets under management (AUM) have surged to nearly a third of the total bank deposits, according to the latest data shared by veteran banker Uday Kotak. In a post on social media platform X, Kotak said mutual fund AUM, driven largely by equity investments, has climbed to 31% of bank deposits as of May 2025, up from just 13% in FY15. He said it reflects structural change in financial intermediation. It also grows domestic risk capital and creates an equity culture. But let's be alert about excessive exuberance. 'India's saver turns investor. Post Covid, mutual fund AUM share, mainly equity,has doubled to 31% of bank deposits. Reflects structural change in financial intermediation. It grows domestic risk capital and creates an equity culture. But let's be alert about excessive exuberance," Kotak said in the post on X. India's saver turns investor. Post Covid, mutual fund AUM share, mainly equity,has doubled to 31% of bank deposits. Reflects structural change in financial intermediation. It grows domestic risk capital and creates an equity culture. But let's be alert about excessive exuberance. — Uday Kotak (@udaykotak) June 20, 2025 Over the past decade, mutual fund assets have steadily gained ground, especially after the COVID-19 pandemic. From FY21 onwards, the AUM-to-deposit ratio began accelerating, rising from 21% in FY21 to 26% in FY24 and reaching 31% by May 2025. This is seen as a sign of growing investor participation in capital markets, supported by digital access, awareness campaigns, and a rising appetite for equity. However, he also cautioned investors and policymakers to remain vigilant against 'excessive exuberance." The rise of mutual funds, particularly systematic investment plans (SIPs), has been instrumental in channelling long-term household savings into the markets. Industry experts say this evolution could reduce India's reliance on foreign capital while strengthening financial resilience domestically. The monthly inflow into mutual funds through the Systematic Investment Plan (SIP) route hit a fresh high of Rs 26,688 crore in May, according to the latest data from AMFI released on June 10. However, the net equity inflow fell 22 per cent month-on-month in May to Rs 19,013 crore from Rs 24,269 crore in April 2025. The number of contributing SIP accounts in May rose to 8.56 crore against 8.38 crore in the previous month. The monthly SIP inflows for April were at Rs 26,632 crore. The total SIP assets under management (AUM) rose to Rs 14.61 lakh crore against Rs 13.90 lakh crore in April.
Time of India
5 days ago
- Time of India
Noida techie moves in with man she met online, cheated of Rs 80 lakh
Noida: An IT engineer was cheated of nearly Rs 80 lakh by a man she met on a matrimonial site. The two had been in a live-in relationship for months under the pretext of marriage down the line, and the accused also convinced her to quit her job. Additional DCP (Noida) Sumit Shukla said that the complainant, a Bhopal native who currently lives in the city, met a man named Nehul Surana from Jaipur in August of last year on a matrimonial site. Surana, who claimed to own his own business, connected with the complainant and the two agreed to marriage. They also introduced each other to family and friends. However, Surana claimed his business was not doing well and delayed the marriage. The two took a trip to Goa, after which Surana said he would move to Noida and run his business from there. He convinced the complainant to enter into a live-in relationship with the promise of marrying her soon. A few months later, he convinced her to quit her job as well, promising to buy a house and a car as his business was doing well. While they lived together, Surana siphoned Rs 13.5 lakh that the complainant had invested in SIPs and also took out loans worth around Rs 40-50 lakh in her name. When she questioned him, he said he bought his parents gold and silver jewellery and a car and a flat for their wedding. She spoke to his parents, and they confirmed the same. However, after this Surana went to Jaipur and did not return. He stopped answering calls and when the complainant's mother spoke to Surana's mother she was told the marriage was off. Surana and his family later threatened to kill the complainant if she tried to contact them again. Distraught, she approached the police to get her money back. An FIR has been registered under BNS sections 69 (Sexual intercourse by employing deceitful means etc), 318(2) (cheating), and 351(2) (criminal intimidation). The man is being traced and will be arrested soon, Shukla said.
Time of India
15-06-2025
- Business
- Time of India
ET Women's Forum: No finance degree, no guru. Take a SIP of confidence, start walk to freedom
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Being financially independent is not just about having money, it's about having control over your life. That was the central theme of a thought-provoking discussion held at The Economic Times Women's Forum in Mumbai. The panel, titled ' Financial Independence : Own Your Worth,' brought together three influential voices, Devina Mehra, founder of First Global, Nilesh Shah, managing director of Kotak Mahindra AMC, and Rachana Ranade, finance educator and well-known opened the session by stressing the importance of introducing financial literacy in school curricula. While awareness has grown over the last three decades, she noted that young boys are often exposed to financial discussions earlier than girls, who typically begin engaging in it only after starting a job or marriage. She underlined how women themselves develop mental blocks due to social conditioning, often underestimating their capability or deferring to male family pointed out that a meaningful change will take time and must be driven both by shifting mindsets and greater participation from women. "Women need to ask questions, make decisions, and claim their space in money conversations," he cited a story from Nashik, where even men are starting to understand the importance of including their wives in financial discussions. She highlighted how financial empowerment is not just a women's issue but a collective panel agreed that risk-taking is not inherently gendered. Mehra explained how women, though great savers, hesitate to invest due to fear or lack of confidence despite evidence showing women often outperform men in Mehra and Shah advocated starting with systematic investment plans (SIPs) to build discipline and gradually gain confidence. "You don't need to know everything to start investing," Mehra said. "Just begin wisely and consistently."Ranade, who commands a wide audience on social media, spoke about the transformative power of digital platforms in driving financial awareness. While her early YouTube channel had a 90:10 male-to-female ratio, she has since narrowed the gap with her Marathi channel reaching 35% female recalled how her videos inspired a small village in Maharashtra, where women began investing even ₹100 through SIPs. "This is the ripple effect," she said. "Even one small step can spark big change."When the conversation moved to risk-taking, Mehra said that women often go to extremes. They either stay away from investments completely or leave all decisions to someone else. The smarter approach, she said, is balanced asset allocation, a mix of equity, debt, and even global exposure."Never be 100% in equity," she warned, adding that diversification is important for long-term financial encouraged women to take small steps to begin their investment journey. She said starting a monthly SIP of even ₹500 can be a great beginning. "You don't need a finance degree to begin," she on her YouTube experience, she noted that women tend to engage more with financial content when it comes from someone relatable, especially another woman. That's why role models are so also said that more women are needed in top finance roles. For women starting businesses, she advised them to confidently pitch their ventures and not let doubts, especially from others, slow them down. "Be ready to steer the narrative back to your strengths," she said."A man will apply for a promotion if he meets 60% of the criteria. A woman waits till she checks every box," Mehra observed. She also shed light on systemic biases in venture capital funding, where men are asked about growth potential and women about risks."Be a great salesperson for your idea. You will face more rejections, but don't take them personally." The session closed with a strong message: financial independence is not optional, it's essential.
Time of India
14-06-2025
- Business
- Time of India
Explained: What all Gen-Z should know about mutual funds
As Gen-Z steps into the workforce and begins earning, managing money smartly becomes more important than ever. While savings accounts and digital wallets are familiar territory, it's time to look beyond just storing money and focus on growing it. Mutual funds offer one of the most accessible and effective routes to long-term wealth creation , especially for young investors just starting out.. What are mutual funds? A mutual fund is essentially a pool of money collected from multiple investors, which is then invested in a diversified set of assets—such as stocks, bonds, or a mix of both—by a professional fund manager. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like You Might Want To Buy Baking Soda In Bulk After Reading This Read More Undo Instead of buying shares of individual companies on your own research, one can invest in a fund that owns a portfolio of them. It's like taking part in a group project where an expert handles the work, and you share in the results. The key advantage is that the investment gets diversified, which means the risk is spread across multiple companies or sectors instead of being tied to the performance of just one. Also Read | ITC and BSE among stocks that mutual fund bought and sold in May Why mutual funds make sense for Gen-Z Live Events For Gen-Z investors—many of whom are earning their first salaries or starting small side hustles—mutual funds offer a low barrier to entry. One can start investing with as little as Rs 100 through Systematic Investment Plans (SIPs), which makes it easy to get into the habit of investing regularly. Mutual funds are managed by trained professionals who track the markets, research opportunities, and adjust the fund's portfolio as needed—saving the investor from the pressure of having to be an expert. Another major advantage is diversification. By investing in a mutual fund, the money is automatically spread across different assets, reducing the impact of poor performance from any one stock or sector. Mutual funds are also liquid, which means one can redeem their investments easily if they need money (unless the fund has a lock-in period, like ELSS). They're also a great option for goal-based investing—whether you're saving for travel, a new gadget, higher education, or your first car. Different types of mutual funds one can choose Mutual funds come in various forms, each serving a different investment need or risk profile. Equity funds invest primarily in shares of companies and are ideal for long-term wealth creation , although they carry higher risk. Debt funds invest in government securities, bonds, and other fixed-income instruments and offer more stable but lower returns. Hybrid funds combine equity and debt, striking a balance between growth and safety. If you prefer low-cost, passive investing, index funds mirror the performance of a market index like Nifty 50 or Sensex. These are great for beginners who don't want to actively manage their portfolio. Another important category is ELSS (Equity Linked Savings Scheme), which not only gives you market exposure but also offers tax benefits under Section 80C of the Income Tax Act. Also Read | NFO Insight: Baroda BNP Paribas Health and Wellness Fund opens. Is it the right prescription for your portfolio? Tips for Gen-Z to make the most of mutual funds Starting early is the single most powerful decision one can make as an investor. Even small amounts invested consistently through SIPs can grow significantly over time, thanks to the power of compounding. Mutual funds allow the investor to build that discipline without needing large lumpsums. However, it's important to invest based on one's own financial goals, risk appetite, and time horizon. Avoid following tips or trends blindly on social media. What worked for someone else may not work for you. It's also smart to track the investments periodically—once or twice a year is usually enough—to make sure they align with your goals. Don't panic when markets are down; mutual funds are designed for long-term investing. Focus on consistency rather than quick returns, and be patient with the investment portfolio. Things to keep in mind before investing While mutual funds are beginner-friendly, there are still a few details worth understanding. Look out for the expense ratio, which is the fee charged by the fund house to manage your investment. Lower ratios usually mean more of your money stays invested. Also, some funds charge an exit load if you withdraw your investment within a specific period—so read the scheme documents carefully to know the exit load charged along with the period. Always compare a fund's performance against its benchmark rather than just looking at past returns, and remember that past performance doesn't guarantee future results. How to get started Getting started with mutual funds is easier than ever. One can invest directly through the websites of Asset Management Companies (AMCs), which often offer lower-cost 'direct' plans. Alternatively, one can use different investment platforms for a more guided experience. Some platforms also offer goal-based planning tools to help one choose the right type of fund based on investment horizon, goals, and risk appetite. Mutual funds are one of the smartest and most convenient ways for Gen-Z to build long-term wealth. With minimal capital, professional management, and access to a wide range of investment options, they make financial growth achievable for everyone. Whether you're saving for short-term goals or laying the foundation for financial independence, mutual funds can be a powerful part of your journey. Start early, stay consistent, and let your money work for you.
