Agreed, bank accounts have traditionally been one of the best options for parking your savings. However, times have changed and so have economic dynamics. Inflation has become a huge factor to consider while planning your finances and investments.
The returns provided by bank savings accounts and bank fixed deposits do not grow at a rate at which they can beat the growth of inflation. Therefore, in the long-term race, unfortunately, inflation will end up nudging well past your bank fixed deposits and bank savings, if you don’t act quickly on time.
One of the best ways for you to fight inflation in the long run, while making your corpus grow as desired is by investing your money in mutual fund SIPs. You can invest in hybrid mutual funds, debt mutual funds, or equity mutual funds. Mutual fund SIPs not only help you inculcate an investment discipline, but also ensure that your money gets compounded every year. Moreover, the fact that differentiates mutual fund SIPs from bank fixed deposits is that they invest your money in the equity markets, which provides you with higher returns than bank FDs.
Investments in mutual fund SIPs are managed by highly experienced fund managers who spread your money into diversified asset classes, which also mitigates your risks, while fetching you higher returns.Therefore, do not let your money lie idle in your bank account, think about investing in mutual fund SIP.
In case you find it daunting to choose the best mutual fund scheme to invest in, don’t worry, take help from a professional expert. They will first understand your financial objectives and then help you create a financial plan that will be mapped to your objectives. They will provide you with timely recommendations, tips, advisory services, and investment guidance.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.