Invest today for a better tomorrow

  • Posted By : reliancesmartmoney.com
  • Thursday Dec 06, 2018

Your pay cheque might be enough to buy all your necessities today. You might even be able to afford the luxuries of a trip to your dream vacation or a designer bag but what about the days when you won’t have a salary to rely on. We’re talking about your retirement years.

Unless you have an inheritance to take care of you, you might want to plan for your retirement.

A planned retirement can help you maintain the lifestyle you have today, even later in your future.

Until recently, most people believed in accumulating savings as a means of a retirement plan. However, with the current rate of inflation, merely parking your money in a savings account might not be enough to fund your retirement years.

Instead, you could try investing in mutual funds. Mutual funds are a more robust platform that could help you generate potentially higher returns.

Here’s why you could consider investing now for a better tomorrow.

Higher returns in the long run

If you’re looking for high-return retirement options, Equity Linked Savings Scheme (ELSS) could be a good pick. These equity investments deliver good returns in the long run. They initially come with a lock-in period of three years. However, since you’re more likely to hold on to them for longer as part of your retirement plans, you might benefit significantly from the power of compounding. 

Goal-oriented planning

A planned retirement, calls for a planned investing scheme. You can use online tools to help you choose the perfect investment to match your retirement goals.
reliancesmartmoney.com has the RoboAssist tool to help you analyse your salary and financial goals and, choose the appropriate investment plan for you. This way you can be assured that your investments will provide adequately during your retirement. 

Ease of investing

If you don’t have a lump sum to invest in one go, ELSS schemes allow you to invest through SIP (Systematic Investment Plan) . When you opt for it, a fixed amount is deducted each month from your bank account to be invested in mutual funds of your choice. This gives you the benefit of easy and systematic investments. 

Economical investment 

Moreover, if you’re starting to invest early in life, you can start with a small amount too. You can opt for a SIP as low as Rs. 500 per month. Think of it as setting money aside for your savings, except that unlike a savings account, your money in mutual funds has the potential to draw higher returns. 

Tax benefits

Investing in mutual funds can help build wealth for your retirement and save tax. Schemes like ELSS are tax-saving instruments . When you invest in ELSS, you can claim tax deductions under Section 80C of the Income Tax Act. 

Transparency in investments

The SEBI has introduced regulatory norms that make it mandatory for asset managers to disclose fund manager compensation levels as well as manager investments in their funds. These critical guidelines help you know exactly how your investments are being used. 

If you’re starting to plan for your retirement, there’ll be plenty of retirement options available for you. However, if you’re looking for a robust plan that might actually deliver on your monetary goals as planned, you could consider investing in mutual funds now. 

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