DON’T START A SIP WITHOUT KNOWING THIS.
Watch the whole reel to know why.
This is Episode 1 of teaching my younger sister about finances.
Ideally, you should save for your nearest goal first. But if you only focus on short-term goals, you might miss out on long-term compounding.
So, you can start an SIP for the long run with a fixed amount, say ₹5,000–₹10,000 depending on your salary. Then, save whatever is left towards your short-term goals in safer assets.
The Point is –
The closer the goal, the safer and more accessible your money should be.
For short-term goals, we choose safer assets because you don’t have much time to recover if the market falls.
For long-term goals, you can take more risk and invest in the stock market through mutual funds. Even if the market falls, you have more time for it to recover.
One exception: if your short-term goal is something important, like funding higher education, that money should also be kept in safer assets.
Stay tuned for the next episode.
[Anushka Rathod, Finance, India, Investment, Series]
#anushkarathod #finance #india #investment #series
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