The popular television show “Shark Tank” continues to captivate audiences around the world, providing a platform for entrepreneurs to showcase their business ideas and seek investment from the most successful business leaders.
The show provides valuable insight into the world of entrepreneurship while also highlighting the importance of financial planning and investment strategy.
One of Shark Tank India's newest sharks, Radhika Gupta, CEO of Edelweiss Mutual Fund, shares some insightful investment tips that will put investors at ease. Ta.
Mr. Gupta emphasizes the importance of saving a portion of your income and investing wisely. She advises that you should try to save at least 20%, 30%, even 50% of the amount left after taxes and expenses are deducted from your income.
Alternatively, you can create a monthly Systematic Investment Plan (SIP) to develop your investing habits. While this may seem difficult to some, Mr. Gupta reminds us that saving and investing are essential for long-term financial security.
Introducing the importance of saving and systematic investment plans
Financial security and emergencies: Savings allow you to deal with unexpected expenses and emergencies without having to rely on debt or asset liquidation. Savings provide a cushion during difficult times and help maintain personal financial stability.
Achieving financial goals: Whether you're saving for a down payment on a home, funding higher education, or planning for retirement, it's important to have financial goals. Mutual funds SIPs offer a disciplined savings approach and allow individuals to invest systematically towards their goals. With regular savings, your investment will grow steadily and your returns will compound over time.
Diversification and professional management: Mutual funds pool money from different investors to invest in a diverse portfolio of stocks, bonds, and other assets. This diversification reduces risk by spreading investments across different sectors and securities, making it easier for individuals to access professionally managed portfolios. Mutual fund managers are professionals who aim to maximize returns and ensure optimal growth for investors while managing risk.
Flexibility and convenience: The monthly SIP approach provides flexibility to investors. You can start with a small amount and gradually increase your investment over time. This flexibility allows investors to adjust their savings and investments to their changing financial situation and goals. Additionally, SIPs are easy to set up and manage online, making the investment process convenient and hassle-free.
Long-term wealth creation: Investing in mutual funds through monthly SIPs can generate significant wealth in the long run. By investing regularly over a long period of time, investors can benefit from the power of compound interest. The compounding effect refers to the reinvestment of generated profits, which can lead to accelerated growth over time. If you start investing early and stay invested, you can accumulate significant wealth.
Tax benefits: Certain mutual fund schemes such as Equity Linked Savings Schemes (ELSS) offer tax benefits under Section 80C of the Income Tax Act. Investing in these schemes through his monthly SIP helps an individual save tax while building wealth.
Here is a comprehensive three-minute summary of what Finance Minister Nirmala Sitharaman said in her budget speech: Click to download!
