which you may or may not need. We do get instant pleasure having such items, but most of these purchases lose value over time. What about buying something that appreciates in value? Yes, that’s how you should kick off this festive season. What is it whose value will appreciate over time? Investment instruments.
Let’s focus on investments over expenses as the festivities begin this year. Just as buying stocks on Muhurat trading on Diwali day is considered a good omen, start investing for your key financial goals from your preferred festival day. In any case, one can start SIPs in mutual funds the moment one wants.
Gold/silver funds
Buying some gold or silver is a ritual on Dhanteras or Diwali. One doesn’t have to buy physical gold or silver that involves extra charges, impurity, safety and storage issues. There are gold and silver mutual funds that you can consider. Edelweiss Mutual Fund recently launched India’s first-of-its-kind combination fund that allows investors to invest in gold and silver under a single scheme. Edelweiss Gold and Silver ETF Fund of Fund is an open-ended fund of funds scheme investing in units of Gold ETF and Silver ETF. Not only it is cost-effective but also gives you liquidity.
Debt mutual funds
Debt instruments must find place in every investor’s portfolio. Fixed deposits undoubtedly are part of most investors’ portfolio, but it’s time to upgrade oneself. There are target maturity funds whose maturity date aligns with the expiry date of debt papers in which they have invested. This structure makes them a safer form of investment, especially if you hold your investment till maturity. Edelweiss AMC was the first fund house to launch Bharat Bond ETFs, a target maturity ETF. Apart from the five tranches of Bharat Bond ETFs, there are three index funds as well in the target maturity space at Edelweiss. One can find target maturity index funds at other fund houses also, but Bharat Bond ETFs are exclusive to Edelweiss.
Hybrid funds
Another investment option that deserves attention is hybrid funds. Hybrid funds invest in a combination of debt, equity and other asset classes. There are seven types of hybrid funds. Balanced advantage funds, multi-asset allocation funds and equity savings funds are the three most popular ones. The debt portion in such funds gives you safety and equities growth. You can choose a suitable hybrid fund based on your risk appetite.
Equity mutual funds
If your risk appetite allows, you may go for equity mutual funds as well. The ideal way to start equity mutual fund investment is through index funds. You may start SIPs in those anytime in the year irrespective of market valuations.
Change is the only constant. Be different; do something different this year. Pledge to invest (not spend) your money this festive season.Ask others to invest theirs. Investments, not expenses, make you prosperous.
Disclaimer: Deepak Jain is the Head – Sales at Edelweiss Asset Management Limited (EAML) and the views expressed above are his own.
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