Wealthness FAQs

Saving is keeping aside money from your earnings for emergencies & near future expenses with no risk & to make money available in no time.

Investment is engaging your money in different investment instruments with intension to earn with anticipated or calculated risk. It allows passive income.

The biggest difference between saving and investing is the level of risk taken. Saving typically results in you earning a lower return but with virtually no risk. In contrast, investing allows you the opportunity to earn a higher return, but you take on the risk of loss in order to do so.

It’s a safe entry to stock market. It’s advisable to start exposure in stock market with Mutual Funds as it’s a safest entry to the market. It is a trust that collects money from a number of investors who share a common investment objective. Then, it invests the money in equities, bonds, money market instruments and/or other securities.

Each investor owns units, which represent a portion of the holdings of the fund. The income/gains generated from this collective investment is distributed proportionately amongst the investors after deducting certain expenses, by calculating a scheme’s “Net Asset Value or NAV.

A Systematic Investment Plan (SIP), more popularly known as SIP, is a facility offered by mutual funds to the investors to invest in a disciplined manner. SIP facility allows an investor to invest a fixed amount of money at pre-defined intervals in the selected mutual fund scheme. It is like Recurring Deposit in Banks.

Example – If you start SIP of RS 10000 for 5 years, your total investment amount would be 6 lacs. Bank would give you RS 691965 but with Mutual Fund SIP investment your corpus would be RS 8,96,817

SWP or systematic withdrawal plan is a mutual fund investment plan, through which investors can withdraw fixed amounts at regular intervals, for example – monthly/ quarterly/ yearly from the investment they have made in any mutual fund scheme. Still end of the term you create good corpus.

Example if you would have started SWP in some balanced fund with 50 lakhs, 20 years back with Rs 8000 per month withdrawal. Today the ‘corpus’, after total withdrawal of RS 1,60,000, is RS 62,27,426.

A financial plan is a comprehensive sketch of your current finances, your financial goals and any strategies that one adopts to achieve those goals. successful financial planning should include details about your cash flow, savings, debt, investments, insurance and any other elements of your financial life. It helps to have control of your income, expenses and investments such that you can manage your money and achieve your goals.

Financial freedom is non dependency on earning money. In simple words, making your hard earned money work for you, you should have enough passive income which will give you financial freedom. It does not mean just sacrifice and save but rather spend & fulfil your goals & dreams. It provides many benefits to the one who desires to be independent with the finances. It actually allows you earning without working.

Investing comes with choices. Apart from which schemes to invest in, one can also choose how invest in mutual funds.

Investor can either go for one-time investment or can regularly invest certain amount as SIP (Systematic Withdrawal Planning) this options may bring a difference in one’s investment portfolio. SIP help enjoy the trends of the market while one-time helps you create wealth with patience. Power of compounding, long term capital appreciation, Rupee cost of averaging etc. are some of the benefits of SIP. Both options allow you easy liquidity & good returns.

Returns from Equity are volatile but are high if compared with other options available in India. So, one gets tempted exploring stock market easily. It’s a risky affair as no one can predict market accurately & most of us cannot understand the algorithms of it too. So Mutual fund is a safest entry to Stock Market as qualified Fund Managers take strategic decisions of investing in MF.

Mutual Fund is a great convenience for those who need to invest their money for future requirements. A team of professionals manages the money and the investors can enjoy the fruits of this expertise without getting involved in the mundane tasks.

Partial withdrawal, diversification, high returns per your risk appetite & fulfilling your goals is possible with Mutual Fund. You can start investing in Mutual fund with small amount like RS 500 up to any amount.

Diversification is a technique that reduces risk by allocating investments across various financial instruments, industries, and other categories. It aims to maximize returns by investing in different areas that would each react differently to the same event.

Risk appetite is a broad description of the amount of risk an investor is willing to accept to achieve their objectives. It shows the attitude towards baring the risk.

In the financial world, risk management is the process of identification, analysis, and acceptance or mitigation of uncertainty in investment decisions. Effective risk management means attempting to control, as much as possible, future outcomes by acting proactively rather than reactively. Therefore, effective risk management offers the potential to reduce both the possibility of a risk occurring and its potential impact.