All of us have goals that we want to achieve in a predetermined timeline. One of the most common ones is investing for a car. It is not only a lucrative area of investment but also brings along with it an instant lifestyle upgrade. However, even though a lot of people would think of taking a loan for a car, somehow it is not always the perfect scenario. Today, even if you consider factors like mileage, look, and brand, an average car would most definitely cost upwards of Rs. 2 lakhs. To loan out an amount and having to pay for it for a longer tenure can sometimes limit other financial opportunities for you. So, for those of you who do not have surplus funds, a Mutual Fund Investment is the best way to save up for your dream car. This is because if you use up all your savings that you had kept aside for your future you might as well start from scratch. Stay rest assured that a simple investment plan through Mutual Funds is the best option for you, as also the power of compounding comes into play.
For people who are new in mutual funds investment must understand the importance of assessing their own risk-taking ability before starting to build their own mutual fund portfolio. Equity Mutual Funds are a possibility but then again it is associated with risks as there are chances of substantial fluctuations. In case you are looking at an option that has fewer risks attached to it, you can consider Debt Mutual Funds. But with low risks, comes a low rate of return as well. Now, if you wish to get the best of both worlds, you can choose a Hybrid Fund, that is a combination of both, Equity and Debt Mutual Funds. First timers can also put to use a mutual fund calculator, and get a clearer idea about mutual fund returns.
You might go for a Mutual Fund investment, but soon get disappointed waiting for the scheme to cross the break-even point. In that case, it could even take months or even years for you to buy your dream car if you go with this alternative. So, firstly, you need to ascertain how much are you investing for your dream car or what approximately your goal amount sums up to. You then need to decide on which Mutual Fund is the best for you after assessing your gut towards taking risks. Once that is done, you need to chalk out a plan regarding your investment amount. You need to be rational and practical when it comes to this. The last and final step is to stick to your routine. Always remember that endurance and a strict saving habit is the only Mantra to achieving your dream car! Impatience leads to making hasty decisions.
Say, in a simple investment plan, if you choose an Equity Mutual Fund, then, in order to buy a car worth Rs. 5 lakhs, approximately, you will have to save about Rs. 7000 per month for 4 years. It is not a lot of time if you start early. There are different permutations and combinations for different fund types. In order to help you with determining the time horizon and investment amount, there are many mutual fund calculators available online.
The moot point is dreams are beautiful if you are determined to achieve it. Buying and owning a car is very achievable and Mutual Fund through an online investment simply brings you closer to it. It is simple, uncomplicated and secure. It is suitable for people who are new to the market, as it requires the least amount of involvement. So start early and reap the benefits of an online investment in mutual funds, the power of compounding in the short run and owning a car in the long run. Reach out to Indiabulls for further assistance!