Money Guru: Experts give 9 mantras of investment this Navratri

In this edition of Money Guru, Zee Business News Anchor Swati Raina speaks to personal finance experts Prableen Bajpai, Founder of FinFix and Priti Rathi Gupta, founder Lxme to know the 9 mantras of investment, this Navratri.  

Start your investment from this Navratri

The Goddess of Wealth – Lakshmi will bless you

Which mistakes to avoid while making investments

Where to increase wealth from?

Know these 9 mantras:

Movement in Rupee

Rupee is witnessing huge fall against the US Dollar

The rupee has fallen over 50 per cent over the last 10 years.

In 2022, Rupee has depreciated over 8 per cent versus the Dollar

Rupee has seen 9 consecutive months of decline

The Dollar Index has appreciated by over 20 per cent this year

Falling rupee, heavy on pockets

The inflation is set to rise significantly amid the weakening rupee

It is important for interest rates to increase to deal with growing inflation.

Higher inflation will lead to increase in the EMIs

Travelling overseas will become expensive

Studying abroad will become dearer

Health treatment abroad will become expensive

The fall in Rupee is impacting everything

What to do?

Keep in mind currency depreciation while planning to study abroad

1) Diversify your portfolio

Keep in your portfolio, foreign funds and gold

You can take loan to fund your foreign education

You can postpone foreign travel for some time

Always invest in different asset classes

Invest in equity, gold and debt

Never invest more than required in one asset class

Invest in different classes to reduce risks

Put more money in equity while you are young. Rest in debt and gold

Increase your debt allocation as you grow old

Allocate 10 per cent in gold

2) Keep Inflation in mind

See for real returns and not the nominal returns in investments

Real rate of return = Interest rate – inflation rate

Invest where return is higher than the inflation rate

Always consider education inflation

The average increase in inflation in education is 10 per cent annually

Investments in equity will overcome inflation

3) Exit Plan in funds

Never decide on investments based on market movements

It is not always right to book profits when the markets are on a high

It is not always advisable to stop investments on market declines

Trying to time the markets is not the right strategy

4) Performance

Never just focus on 1, 3 and 5 year returns on the investments

Do not always select those funds which are giving highest returns

The last returns may not be the true barometer for selecting a fund

Always select those funds which have the potential to meet our goals

Always analyse the funds based on different market cycles

If the fund has returned better income than the index, then it can be considered as a good fund

Always select a fund based on strong reasons

5) Never take decisions based on emotions

Never stop investing in haste or fears

Look for opportunities on a market fall

Invest in a gradual manner via SIP

Never try to time the markets

6) Emergency Fund

Make emergency to meet expenses up to 6 months

Invest in liquid funds of Debt Mutual Fund

Bank FD, RD or keep some cash

Liquidity a prerequisite in emergency fund

7) Money for retirement

Start planning for your retirement while still under employment

Only 2 per cent women do retirement planning – LXME report

Start investing early. It will give advantage of compounding

Equity mutual fund will give high returns over a long term period

Keep insurance and investment separate

8) Insurance before investment

Always buy insurance before making investments

Stay away from products which look like investment

Always buy health and life insurance first

Invest to fulfill all other investment goals

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9) Never try to copy others while making investment decisions

Never try to make investment decisions based on what others do

Not correct to invest in rising market and selling in falling market

Herd mentality not good and may cause losses

Stick to strategy whenever markets are on rise or fall