Mutual funds are an investment product in which our invested money works for our future with comparatively fewer risks than equities. With a wide option of investment avenues and funds to choose from, one’s investments are to be made based on their goals and time frame. With hassle-free withdrawals, your invested amount is fairly liquid. But the most important factor of all is the fact that investing in mutual funds helps us stay financially strong.
Financial emergencies are something one cannot avoid. When considering a working professional who invests in an SIP regularly versus another professional who neglects the same citing reasons that aren’t avoidable emergencies, the possibility of regret for one during a financial emergency will always be strong with the latter.
In this case scenario, the invested professional has an option to withdraw his investments which have been compounding over the years and the un-invested professional has to go into debt to tackle the emergency. As always, debts are something that compounds negatively, and dig deep into your financials.
Mutual Funds have always been a tool to overcome such tricky situations. A true boon during financial distress.
That being said, Mutual fund investments are among the best ways to get started when it comes to investing. Let’s not regret our financial mismanagement later on - Start a SIP now!
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