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Frequently Asked Questions
The investment avenue that is suitable for you depends on many factors, such as your finances. SIPs allow you to invest in consistent, manageable instalments and can spread market risk over time. Lumpsum investments may work if you have a large amount upfront and can handle slightly higher volatility risk.
You would need to determine the car’s cost, your timeline. current savings and expected investment returns. Then, you would need to account for inflation and the potential compounding effect on your savings or investments. A calculator does this maths for you and gives you instant estimates.
Inflation reduces the purchasing power of money over time, meaning the value of your savings might not grow enough to meet your goal unless your investments offer returns that outpace inflation.
Mutual funds offer diversification, professional management, and higher return potential compared to traditional avenues, particularly if they are equity oriented. They can help grow your wealth over time to bring you closer to your goal.
Yes, most types of mutual funds offer liquidity, allowing you to withdraw money before reaching your goal. However, early withdrawals may affect your long-term investment plan and growth potential.
Look for funds with a strong management team and investment strategy. Also make sure that the scheme’s risk level aligns with your investment horizon and risk appetite. Consider consulting with a financial advisor to match the fund with your goal and risk tolerance.