Decoding Financial Product
We aim to help you decode the world of financial products and make them familiar to you. It can be overwhelming to navigate the plethora of options available, from mutual funds to provident funds, national pension schemes, and goal-based investments. Let’s understand a little few popular products. We will break down each product to help you make informed decisions about your finances.
Mutual Funds:
Mutual funds are a popular investment option where money is pooled together from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. The fund is managed by a professional fund manager who makes investment decisions on behalf of the investors. Mutual funds are a great way to diversify your portfolio and invest in multiple securities with relatively small amounts of money. They are available in various types, such as equity funds, debt funds, and hybrid funds.
Provident Fund:
Provident funds are retirement savings schemes offered by employers in India. A part of your salary is deducted every month and deposited in the provident fund account, along with a matching contribution from your employer. The accumulated amount earns interest and is available to you at the time of retirement. Provident funds offer tax benefits and can provide a secure retirement income stream.
National Pension Scheme:
The National Pension Scheme (NPS) is a voluntary, defined-contribution pension scheme launched by the Government of India. It is open to all Indian citizens aged between 18 and 60 years. The scheme offers multiple investment options, including equity, corporate bonds, and government securities, and has tax benefits. The accumulated amount can be withdrawn as a lump sum or in regular installments after retirement.
Goal-based Investment:
Goal-based investments are designed to meet specific financial goals, such as retirement planning, children’s education, or buying a house. They involve investing in a mix of asset classes, such as equity, debt, and gold, based on your financial goals and risk appetite. Goal-based investments are an effective way to align your investment strategy with your financial goals and maximize your returns.
In conclusion, understanding financial products is critical to making informed investment decisions. Each financial product has its unique features, benefits, and risks. There are many financial products in the market, and through our training, videos, articles, and social media, we try to decode them for you in an easy-to-understand manner. We hope this helps you make the right choices for your financial future.
