It’s in our human nature to procrastinate – be it for want of something better or simply because of our hesitation in taking a decision. Like Mr. Late Lateef, we often tend to put things off until the last minute, which could be beneficial in some situations in our attempt to achieve perfection, but most often it backfires!
Systematic Transfer Plan (STP) is a variant of Systematic Investment Plan (SIP) which is one of the best risk mitigation strategies of the market. The STP is a plan where one invests a lump sum amount in a particular scheme, mostly in a debt fund and then transfer a particular amount to some other scheme (equity fund) in a predetermined interval.
One of the biggest drawbacks today is the lack of awareness. We often follow what is blindly told to us, either by our parents, friends or financial advisor. Every step that one takes while making decisions, especially financial, must be well thought of.
Most of us think that asking questions portray lack of knowledge and ignorance, but what it actually shows in curiousness and the eagerness to learn. How many times have we stopped ourselves from asking a question on investments?
Choose your fixed income portfolio as per your goals and investment horizons
1) Overnight Fund^: Investment in overnight securities having a maturity of 1 day
2) Liquid Fund^$: Investing in debt and money market securities with maturity of up to 91 days only
Every time you fill up a form for an investment, whether it’s a Fixed Deposit or Insurance, Shares or a Mutual Fund or even if you’re opening a new bank account, there will be a separate section that will ask you to mention a ‘Nominee’. This column is often left blank by a lot of people who are investing or opening an account, but it shouldn’t be, and here’s why.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.