9 GUARANTEED WAYS TO BECOME RICH FOR HAPPY LIFE

We all strive to become rich, create long term wealth and live a happy and peaceful life. However, at times, we lack the proper motivation, the right information and the plan required to reach our financial goals. And hence we look for a personal financial advisor. There are some golden rules that will always be relevant to your wealth management irrespective of your financial goals.

Wealth management is a long term process that grows with time.

1. Know your real worth 

This is the first step to create a solid financial plan for yourself. 
When you know your net worth, you also know your assets and liabilities. It offers you a snapshot of your financial position at a given point in time. 
Knowing your net worth allows you to confront the realities of your current financial situation. 
A review of your net worth helps determine where exactly you stand. It shows you the path of where you want to go in terms of personal finance. 
It also gives you a wake-up call if you are not heading in the right direction.
If you have trouble determining your net worth you can always consult a best mutual fund advisor online or offline depending on your convenience.

2. Spend less than your income

It sounds like very old advice, but as they say, old is gold.
To create wealth, you must have surplus funds to invest in the market. You should not simply exhaust all of your monthly income on pleasure instruments.
We are not suggesting you be overly frugal, but have a cautious approach while spending your hard-earned money.
Keeping track of your monthly budget is an excellent way to start.

3. Invest wisely with proper knowledge about the product

You need to have leftover funds to invest in. However, there are so many schemes and products on the market to invest in.
Do not gamble your hard-earned money on products that are difficult to understand.
Decent quality of assets can offer you capital growth as well as income.
You need to consider your risk limits before investing in any financial instrument.
It is recommended that you should speak to a financial advisor in Pune for an organized wealth management plan.

4. Don’t put all your eggs in one basket

This is an old saying, yet it is very appropriate while investing. You need to keep a standard variation in your asset allocation. Diversification of your investments has three key advantages:

1. It minimizes the risk in your investments with diverse asset allocation
2. It helps you to preserve the capital and protect your savings
3. It removes the dependency on one source of income and helps you generate returns through other investment channels

5. Be patient

Investments are always subject to market risks. It is important to not panic with the slightest fluctuations in the market.
You need to trust your investments, have patience and give it time so that it can settle and mature. Patience will ensure that you get the best returns for your investments.

In case of market fluctuations or when you are worried about returns on investments, it is advisable to speak with your financial advisor before arriving at any hasty decisions.
Always remember, volatility is an integral part of any investment and can be tackled with patience.

6. Monitor your investments periodically

Patience is good for any investment. However, only patience will not help you generate great returns. You need to keep a regular tab on all your investments. It will allow you to find out which investments are performing and those which are not. It will help reshuffle your asset allocation, so as to get the best returns over a period of time.

7. Be safe, be insured

You can never be sure of what life has planned for you. It is imperative to have proper insurance cover while creating wealth.

People purchase insurance to save taxes or as an investment or both. However, it is important that you do not mix your investments and insurance.

First, you need to have the proper coverage that will take care of your family and you in case of any emergency.

Next, choose those insurance policies such as endowment or child plans that will help you reach your financial goals. In the end, buy plans such as unit-linked insurance policies (ULIPs) that will help you create wealth.

8. Plan your taxes

One thing is certain in finance: taxes will never go away. The rules, regulations and tax brackets will change according to time, however, taxation itself will remain.

It keeps affecting your finances in every aspect. You need to have a strong approach in terms of dealing with taxes.

Don’t wake up when it is the final week of filing your returns. Plan your taxes well ahead.

Consult with a financial planning advisor who will guide you to make the necessary investments that will provide you a tax benefit.

Planning your taxes will not only save you from the chaos and hasty investment decisions, but it will also help you save money.

9. Plan for retirement

Retirement planning is an important part of your wealth management plan. You have to make sure that all the wealth creation ideas must be in line with your retirement too.

You need to invest in such a way that even after your successful professional life, you can have a steady source of income and continue building up wealth.

You can also avail of certain tax benefits. More importantly, you will have that peace of mind that you were always looking for!

Here's What Really Matters to invest in Mutual Funds

Mutual funds have become a very popular type of investment over the years. However, they can be a little bit tricky. They are also offered in a variety of alternatives. The sheer number of funds in the market alone can be a bit overwhelming for many investors. Thus, there are a few key things that can be helpful to know about mutual funds while looking for a mutual fund advisor in Nagpur and before making any type of investment.

Here are some of the key factors to be aware of before adding these investments to your portfolio.

1) What a Mutual Fund Really Is

First of all, it is important to understand what a mutual fund is. There are numerous mutual funds, each with a different goal and objective. Some invest in bonds, some in stocks, and some have a wide range of eligible investments. The strategies for these funds can vary widely, ranging from balanced, to conservative, aggressive, income-focused, and growth-oriented. 

One of the advantages of a mutual fund is that it allows you to capture the returns of an entire segment of the market without having to buy and sell individual stocks and bonds. This ability to diversify across many investments with the purchase of a single fund is one of the main reasons mutual funds are so popular.

To pick a mutual fund that will be a good investment for you, you have to define your investing goals and objectives. This will help you to narrow down your choices. For example, if you're not planning on using the invested funds for a long time, you can focus on long-term growth. If you don't like risk or need to use the money in the next few years you'll want to focus on safety. If you pick a growth fund when you needed safety - or vice versa - then the fund is not likely to end up being a good investment for you.

2) How Mutual Funds Charge

Fees are an important factor in investing and can be an obstruction for many investors. Generally, the lower the investment expenses you pay, the higher your returns. So mostly all investors typically like to minimize fees. You can study the cost of a mutual fund by looking at the fund's expense ratio which is always disclosed in the funds' prospectus - and today can usually be found online.

You'll want to look for funds that have low fees (ideally less than 1%). Fees can be a big factor when it comes to comparing returns. Keep in mind, last year’s results are no indication of what might happen in the future but a fund’s expenses can affect the returns. With mutual funds, returns are reported net of expenses. Management fees are one part of expenses, with these deductions are made usually once a year. Other fees may include trading costs and marketing fees.

3) The Way to Find the Best Funds

Once you have narrowed down the type of fund that matches your goals, a mutual fund investment advisor can show you the way to find funds that are most likely to have the best performance. This can easily be done through fund analysis.

4) Management Strategies

There are a variety of management strategies but the two most comprehensive include active and passive. It pays to learn the difference between these two as they have a significant impact on the expectations for a mutual fund. In a nutshell, actively managed mutual funds trade in and out of securities based on the direction of the fund manager, while passive funds buy and hold a specific collection of securities usually based on an index. The benefits of active versus passive investing are an ongoing debate in the investment industry. 

Each has its own advantages and disadvantages, especially through different market cycles.

5) How to Use Mutual Funds Most Effectively

Mutual funds can be quite an effective investment when used to build a portfolio that follows an asset allocation model. In simplified terms, a basic asset allocation model will tell you how much of your money should be in stocks versus bonds, and then within stocks how much should be in the country stocks versus international stocks.

This asset allocation plan should match your goals. If you are investing retirement money that you won’t need to touch for twenty years, you can pick a more aggressive fund like an equity fund, and leave it alone. If you are retiring in a few years then having all your money in an equity fund may not be such a good idea. Instead, you may want to look at a balanced fund. It can be helpful to use an investment risk scale to classify funds and match them to your goals.

6) Mutual Funds for Retirement

Mutual funds can be great investment vehicles for retirement portfolios. Some mutual funds are designed to produce monthly or quarterly income. Several mutual fund families have created a series of retirement income funds that are built around a glide path scale which reduces risk as retirement approaches. All of these can be good options for someone saving for retirement who wants to manage their own money.

Using mutual funds for retirement generally involves a disciplined risk management approach. Whether you are investing on your own or working with a financial adviser in Pune, you will want to make sure your retirement portfolio is regularly balanced to plan for the liquidity you need.

The Bottom Line

Mutual funds allow investors to invest in a diversified portfolio of investments. They can be complex because of their structure. If you are considering mutual fund investments and looking for the best mutual fund advisor, it is important to understand some of their key attributes. There are also a variety of mutual funds available so understanding your own goals and how a particular fund matches up will help you to optimize your returns.