Pritam Deuskar - Investing for goals using mutual funds

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INVESTING FOR GOALS USING MUTUAL FUNDS
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Pritam Deuskar - In recent years, mutual funds
have emerged as one of the most popular
investment options. It has aided investors who
want to build significant wealth in the long run.
Most financial planners rely heavily on mutual
funds to assist their clients in meeting their
long-term and medium-term financial
objectives. Mutual funds are an investment
vehicle that allows you to invest in a variety of
assets. One of its most notable characteristics
is its adaptability. Mutual funds pool money from
a group of investors and invest it in a variety
of securities. Four types of mutual
funds Mutual funds are classified into four
types money market funds, bond funds, stock
funds, and target date funds, each with its own
set of characteristics, risks, and rewards, said
Pritam Deuskar. 1) Money market funds Money
market funds are low-risk investments that pay
little interest once a month. Money market funds
including those that invest primarily in
government securities, tax-exempt municipal
securities, and corporate and bank debt
securities. Money market funds are well
diversified, and because some of them invest in
securities whose interest payments are not
subject to federal taxes, they can provide a
tax-efficient source of income.
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2) Bond funds According to Pritam Deuskar Bond
funds carry more risk than money market funds
because they seek higher returns. The risks and
rewards of a bond fund can vary dramatically
because of the many different types of bonds.
Bond funds allow you to buy and sell fund shares
on a daily basis. In addition, bond funds allow
you to reinvest income dividends and make
additional investments at any time. 3) Stock
funds A stock fund is a type of mutual fund
that invests in stocks, also known as equity
securities. It is distinct from bond funds and
money funds. A stock fund's investment
objectives, policies, and strategies will
determine the types of stocks in which it will
invest. 4) Target date funds by Pritam
Deuskar Target date funds are an effective
investment strategy that helps investors achieve
their financial planning objectives. Target-date
funds provide investors with the convenience of
automatically allocating assets in the fund on
the first day. However, these funds can help
investors improve their returns. The stress of
financial planning is reduced by target date
funds. Typically, investors select a target-date
fund and then let their investments run on
autopilot.
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Mutual funds for goal planning The first step is
to identify the goal for which you want to
invest, as well as the cost and time required to
achieve it. Mutual funds are one type of
investment tool that can help you achieve your
financial goals. They should be chosen with your
specific situation in mind, such as risk
tolerance, time horizon, and so on. This is where
mutual fund investments can be advantageous.
Whatever your objectives are, mutual funds can
help you achieve them. Mutual funds also provide
asset allocation funds that can be tailored to
your life stage, gradually reducing your exposure
to volatile assets and shifting to more stable
options as you age. These funds are a good choice
if you want to delegate asset allocation
rebalancing to the fund manager. Visit wealthyvia
if you want to plan your financial goals with
Mutual Funds.
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About Pritam Deuskar Pritam Deuskar is a SEBI
registered research analyst. Pritam has worked in
stock market research and business analysis for
the last many years. He had earlier worked with
reputed portfolio management companies and PMS
houses. His views, interviews and articles have
been published in all leading financial
newspapers and TV channels like CNN, CNN Bazar,
Moneycontrol, Economic Times, Business Standard,
and so on. Pritam Deuskar is known for small and
mid-cap multibagger companies and finding them at
a very early stage has been his forte. He has
worked with both private and institutional
clients. If you need more information, you can
check out the wealthyvia.