Why does one need to invest?

I recently started mutual fund distribution after investing in different types of mutual funds in the last 12 years. Using my experience and passing the certificate course with distinction (National Institute of Securities Markets (NISM)) and getting the registration form AMFI (Association of Mutual Funds in India- ARN- 195194), I can help you to start your investment journey.

Most people save money in the bank and do not invest. Saving your money will not grow but it depreciates (decreasing purchasing power). In India the inflation is around 6%, meaning every year the price of goods increases by 6%. You may have heard that our grandfather bought monthly groceries for 20 rupees but now you can’t buy them. This is due to inflation.

Similarly in the future, the cost of education, housing, and goods will be higher. Therefore, to beat this inflation we need to grow our money by investing in a mutual fund. For example, the cost of an engineering course today is 25 lacs, and the cost of the same course after 10 years will be 45 lacs, almost double. So, to achieve this goal you can start the monthly SIP of Rs 18200 for 10 years in an equity mutual fund then after 10 years you will get the 45 lacs (expecting a 13% return per annum). Here we are investing Rs 21,84,000 in 10 years and estimated return will be Rs 23,18,256 with total value of Rs 45,14,256. Similarly, you can achieve your goal by investing in a mutual fund.

(Interesting fact: Monthly SIP of 10,000 for 20 years will make you Crorepati)