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How Mutual Funds Can Offer A Long Term Investment Plan?

Making the right investment decision often comes with many challenges. It requires good risk assessment, time as well as wide experience in the field to ensure that it is done right. And when we talk of investments, we talk of your hard earned money. So, you cannot make wrong investments in order to get the right experience. You ought to do it right so that you can profit from it. Unlike the common perception, making profits through investments is not pure luck. If you consider several market factors, you can do it right in one go!

With growing awareness about mutual funds companies, there are a lot of questions about financial investments and looking for a financial advisor or a manager to guide you with your finances. Still, there are many questions about the need for having a financial advisor. This article will walk you through all the aspects related to having a financial planner India.

Do you really need a financial advisor?
There are still a lot of people who wonder why is there a need to choose a financial advisor at all or why should they trust another entity or an individual with all their savings. This is a relevant question because there are many resources available online that can give you information about investments. However, this is only one side of the coin. When you are making regular investments, there is also a need to monitor those investments. With a plethora of investment options available in the category of equity and debt, you need to make sure that your choice is the right one. Also, you must monitor the investments consistently, especially when you don’t have a financial advisor.

Moreover, when you don’t have a financial advisor, you need to be alert about the changes in the political and market conditions. This also includes being vigilant about updating personal details with the bank such as email ID, address, phone number, etc. You also need to be thorough with your capital gains etc. So, in such a scenario, it is worth having a financial advisor? Well, the “advise: that you get between an ordinary and a good advisor.

Wealth direct helps you understand this need very well by offering some of the best mutual fund schemes. So, is it worth taking advice from an advisor? After interacting with more than 5000 investors, we have realized one thing – Investors are looking for information that is ‘honest.’ This advice should be without mincing any words. If there is going to be a downfall in the stock market, it must be communicated. Moreover, all the risks and other factors must also be communicated before people actually decide to make investments. Investors must be offered an investment guide, and they must be ‘educated about investments.’ This is what they want because financial planning is seldom taught in schools. Nevertheless, it is easy to understand, so a competent financial advisor must impart some primary education.

Moreover, investors expect their financial advisors must empathize with them so that they can understand the needs of savings and investments in a middle-class family. All their hard-earned money should be invested with caution. They usually have little or no idea about their financial goals, investment plan for retirement, inflation, risks, long term compounding, or adjusted returns. Hence, the investors expect the financial advisors to educate them and gives them all the information about the best invest option in India.

In terms of monetary gains, the returns that are generated by the advisor must always be more than the difference in the expenses of regular and direct plans. Investment tracker, excellent services, and a professional approach are the additional benefits that must be a part of the package.
How can you benefit from the services of Wealth Direct?
Wealth Direct is the best mutual fund advisor in India that helps people with all their fundamental as well as profound questions related to finance and investments. We have been working with people for a long time and advise them to get the right investment plan for retirement.

We take immense pride in calling ourselves the advisors Indians who belong to the middle class. Our investment approach is quite conservative, and we understand it correctly that more than 90% of retail investors end up losing money in the stock markets. We are happy to say that in the last decade of our service, not even a single investor has lost money through us. Our approach towards investment is extremely calibrated. We take a look at objective as well as subjective parameters before recommending a product or a scheme.

Following are the primary factors that we check before recommending an equity or debt scheme:

● Risk appetite and age of the investor: If the period is higher, we go for lower risks and vice versa.
● Several dependents or members in the family: When the family income is higher, the risk appetite is also higher. This factor also considers some other variables.
● Interest rates and market conditions: P/BV, PE, as well as dividends, are some of the variables that help us make a decision in favor of or against equity.
● Political Global Factors: International oil prices, political stability, geopolitics, domestic and international interest rates are given a lot of importance too.

How Can Mutual Funds Help You Become Rich?

You can use equity mutual funds to hold ‘shares’ or become a part-owner of many companies. Many retail investors see Equity Mutual Funds as a ‘black box’ and see it with a lot of negativity and skepticism. Normally, a layman thinks that mutual funds are subject to market risks, and the prices may go up or down at any time. This fear of losing money keeps investors at bay, and as a result, the total investors in the mutual fund arena is less than 2%.

So, what are mutual funds, and how do they work?

Let’s try to understand mutual funds in a simple language. So, Equity Mutual Funds or Equity oriented mutual funds are the vehicles that help you hold ‘equity shares’ for many companies. These shares are traded and listed on stock exchanges such as NSE or BSE. When you buy or invest in a unit of any mutual fund, this money is used in order to buy parts of these companies.

The next question that people often wonder about is – how does your money grow through mutual funds?

If you invest with top mutual fund companies, they tend to perform well. The key is to make the right investments, and the performance of any mutual fund scheme is directly proportional to the growth in profits and revenues of the companies in which they invest. In addition to that, the managers, as well as analysts, also play a crucial role. They make decisions on what to sell, what to buy as well as when to sell, and when to buy, or how much to buy etc. Also, other macro-economic variables and sentiments of the market play a crucial role in the price movements and performance of the fund.

Indian economy is one of the fastest-growing economies currently, and it has a growth rate that is close to 12% per annum in nominal terms. This is expected to increase in the coming years. The incremental growth in 2018 of the Indian economy was equal to the total economy size of 1996. This kind of path is expected to stay for a longer time.

Therefore, retirement planning India can be done through mutual funds. They are the way to own ‘shares’ in companies that are performing exceptionally well in the market. You don’t even have to worry about what to invest in and what not to invest in! Your financial advisor can do that for you.

How can Wealth Direct Help You With That?

Are you intrigued enough? Let’s check out how Wealth Direct can help you!

● Risk Profiling: Wealth Direct assesses your risk appetite before moving ahead. As a first step, we suggest a scheme or design a full financial plan for you. We understand that while making his/her first investment, a retail investor might not know their risk appetite. Therefore, we help in understanding this risk before helping you plan your investment.
● State of the Economy & Equity Market: These two things are very relevant to make sure your investment is a success. Wealth Direct assesses these factors before recommending a product. If you look at 2018, you will notice that the economy was not doing great because rupee was depreciating and oil prices were going up. Moreover, macros also didn’t look very good, and India was soon supposed to enter into a general election. Therefore, we suggested caution and patience at this time. We give advice to the investors to start a SIP or an STP for three years in order to get a clear picture of the future. Hence, we consider several factors before making a recommendation for a mutual fund.
● The objective of the Investment & Tenure investments: These two are essential variables that help you determine you should invest in debt or equity. Investors can choose to invest in high-risk equity with tools like SIP or STP. For example, an investor who is 35 and is thinking of a retirement plan can invest in equity and even take the SIP route but someone who has saved for his daughter’s wedding which would be next year might not be advised to take the equity route.
● Monitoring your investments proactively: When you invest through Wealth Direct, you will have a dedicated financial manager who will monitor your investments regularly and give you feedback once every six months (if not more). We also keep track of all the factors and recommend you change too. This helps in getting more ROI than expected.

We also help you with your current investments!

If you have already made some mutual funds investment and are not sure if these schemes are competent enough, we do the following things for you:

● We check all your paperwork, including PAN Card, Compliance of the KYC, FATCA, and much more.
● We take a thorough look at your financial objectives and assess if they are consistent with each other. We structure them properly into short term and long term financial objectives.
● We do a health check of your portfolio to see if there are any non-performing funds and replace them with better ones.
● You can also ask us if you have a special requirement regarding the cash inflow or any other thing. We will implement it for you.
Risks Associated With Mutual Funds
Risk is a word which is often used mainly when it comes to mutual funds. However, the term is not always appropriately defined. The word ‘Risk’ is used when a person has the possibility of losing something that is valuable to him/her. It can also be defined as an action that is intentional but might lead to unpredictable results. Hence, when an investor takes action, it might have “unpredictable and uncontrollable” outcome. This outcome can be defined as a risk.

This takes us to the subject of risk in financial investments or specifically in equity mutual funds or equity. Let us take an example: Imagine, there is an investor who is very new to the investment world and invests some amount in a mid-cap and a small scheme. After one year, his/her investment goes down by 50%. In this case, maybe when the investment decision was made, it might have looked smart. However, this was done without considering the various risk factors. Hence, it resulted in an unpredictable result. So, this can be very disappointing, especially if someone is entering the investment world for the first time.

There are three fronts on which a risk can be mitigated. Firstly, wiser intentional actions can be taken for investments that are zero risk products. Secondly, some predictions can be made about unpredictable results. Finally, the dosage of risk should be based on market valuations, the risk appetite of the investor, and some other macroeconomic factors.

Wealth Direct helps you with the management of risks by helping you pay more attention to the dangers than on the returns. We understand that, as an investor, you want to see good returns. Therefore, we take every effort to make sure that your funds are invested well, and you can get the maximum ROI in no time. Moreover, we also help with NRI investments. So, no matter where you are, we can be your best friend when it comes to investing your hard-earned money to see it prosper in the market.

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