Are you looking for the Financial Freedom (Wealth Creation and Source of Passive Income)?
In current COVID-19 lockdown period, many of the people may be regretting that in past they have not invested enough to have passive income in this troublesome period.
Let's achieve Financial freedom with this article by understanding two pillars of it i.e. i) Wealth Creation & ii) Source of Passive Income.
1. WEALTH
CREATION
Mutual Fund is now familiar to most of the investors. People are interested in
knowing the concept in detail. They are now eager to take a
well-informed financial decision to grow their wealth.
Mutual Funds are suitable to all types of investors having ultra-short,
short and long term horizon. An investor can invest in mutual fund in two ways.
First one is Lump sum payment and another one is through SIP.
Systematic Investment Plan is a great tool to invest in a staggered manner
allowing an investor to invest small amounts periodically i.e.
weekly, monthly or quarterly. The Investor can start investing in a mutual fund
through SIP by a minimum of Rs. 500 only.
SIP provides the benefit of Rupee Cost Averaging. Rupee cost
averaging is an approach in which you invest a fixed amount of money at regular
intervals. This, in turn, ensures that you buy more units of a particular
mutual fund when prices are low and less when they are high. Thus, in the
long-term, you are benefited by a bull as well as a bear run of
the stock market.
SIP keeps you worry-free about the timing of the market. No
one can time the market, it is next to impossible. So just sitting on the cash
and waiting for the right time to invest in nothing but wasting your time. SIP
helps the investor to be disciplined in investing irrespective
of mood of the market. With all these benefits SIP is now the favourite among
investors.
Equity Mutual fund returns are market-linked and carry risk. However, in
the long run, through SIP investment pattern, the risk becomes calculated and almost manageable. SIP made
in a good quality Large, Multi-cap funds and a smaller portion in Mid
and Small caps can generate returns ranging from 12 to 14% p.a. in the
long run.
SIP is the best vehicle to create LONG TERM
WEALTH.
2. PASSIVE INCOME
A Systematic Withdrawal Plan (SWP) is a
facility that allows an investor to withdraw money from an existing mutual fund
at predetermined intervals.
SWP
helps investors to create a regular flow
of income from their investments. Investors looking for income at
periodical intervals usually use SWP to fund expenses during Retirement or any other specific Goals.
Systematic
Withdrawal Plans is of advantage to investors who require liquidity as it allows investors to access their money exactly when
they need it. This makes it easier for the investors to carry out their
financial plans and meet their goals.
Benefits of SWP:
Make Regular Flows of
Income - Through SWP,
an investor can make a regular withdrawal from his/her existing investment. It
helps you to redeem your investment into actual cash flow.
Good Option For Retirement Plan - SWP is possibly a good facility for
your retirement as it helps you to redeem regular cash flow from your existing
investment.
On-Going Investment - While SWP withdraws fixed amount
regularly from your existing investment, your remaining amount remains invested
and gives you a chance to seek a better return.
By
taking the mutual fund route for regular cash flows through SWP, you get
the benefit of Timely Cash Flows along
with possible Capital Appreciation on the residual investment.
Illustration:-
Wealth
Creation Mode
SIP Amount – Rs. 10,000/- (Monthly)
SIP Period – August 1998 to August 2008
Total Investment – Rs. 12,00,000/-
Scheme
– ICICI Prudential Large & Midcap Fund
Passive
Income Mode
SWP Amount – Rs. 15,000/- (Monthly)
SWP Period – August 2009 to December 2019
Total Withdrawal – Rs. 20,55,000/-
Scheme
– ICICI Prudential Balanced Advantage Fund
Market
Value of Remaining Corpus after SWP – Rs. 1,20,46,902/-.
(Please note that all the figures
mentioned in the above illustration is based on actual market data).
Isn’t this interesting !!!
So let’s start the journey of
Financial Freedom with us.
Kindly
WhatsApp us on https://bit.ly/2Z6GkAD or email us on investments.mota@gmail.com
for your Financial Freedom Plan.
Regards,
Mota Investments
+91-7021741077
Turn Your Investments Into Wealth 💰💰
