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Time of India
2 days ago
- Business
- Time of India
Rs 1 lakh salary, still broke? CA points out 7 financial blunders you might be making
You just got your salary. The message pops up — Salary credited. Feels good, right? But before you know it, half your paycheck's already gone: dinners, impulsive shopping, EMIs, subscriptions you forgot you had. And by the end of the month, you're wondering — Where did all my money go? If this sounds familiar, you're not alone. According to CA Nitin Kaushik , even people earning ₹50,000 to ₹1 lakh a month often feel broke — not because they don't earn enough, but because they fall into the same money traps again and again. He recently shared 7 classic financial blunders that most Indians make, along with smart ways to break the cycle. Explore courses from Top Institutes in Please select course: Select a Course Category 1. Spending before budgeting The biggest mistake? Spending first, budgeting later — or never. The CA gives an example where you earn Rs 50,000. You blow Rs 12,000 on weekend takeout and random online buys. By mid-month, you're scraping by. Instead, he says to flip the script and follow the 50-30-20 rule: - 50% on needs (like rent and bills) - 30% on wants (like Netflix or dinners) - 20% on savings and investments 2. No emergency funds Emergencies don't wait until you're 'ready.' According to Nitin Kaushik , a sudden Rs 15,000 hospital bill or job loss can throw your entire month into chaos. Start building an emergency fund now — even Rs 2,000/month can add up. Your goal: at least Rs 75,000 to Rs 1 lakh, parked safely in a liquid fund or fixed deposit. — Finance_Bareek (@Finance_Bareek) 3. Saving, but not investing Stashing Rs 20,000 in a savings account sounds responsible — until you realise it earns just 3% interest (that's Rs 600 a year). Instead, he suggests trying SIPs (Systematic Investment Plans). Investing Rs 5,000/month for 10 years with decent returns (12–14%) can grow to over Rs 11–13 lakhs. That's the power of compounding. 4. Lifestyle inflation Got a raise? Congrats — but the CA warns to not rushing to upgrade your phone, wardrobe, or car. This is where most people lose money. Your salary grows, but your expenses grow faster. He recommends trying this instead: keep your lifestyle steady for a year. Channel the 'extra' money into investments and let it grow. Live like you're still earning less — future-you will thank you. 5. Impulse shopping The CA further points out that ordering on apps like Zomato, Amazon, and Myntra means temptation is everywhere. Before you know it, you've spent Rs 5,000 on stuff you didn't need. Use the 24-hour rule: Add to cart. Wait 24 hours. Still want it? Buy it. If not, let it go. Your bank balance will look a lot healthier. 6. EMIs that trap you 'Rs 5,000 EMI? That's nothing!' But over a year, that's Rs 60,000+ of your salary gone. Kaushik suggests keeping EMIs under 15% of your net monthly income. And always ask yourself: 'Can I afford this if I lose my job tomorrow?' If the answer is no, rethink that purchase. 7. Not tracking your money The simplest fix? Know where every rupee goes. Most people don't track their spending, then wonder why their money disappears. Just 30 days of tracking (via a free app or even a Google Sheet) can completely change your money habits, he said. CA's final advice: Your salary is not just for spending. It's your launchpad. Your first investor. Your key to freedom. Whether you earn Rs 30,000 or Rs 1 lakh, the way you handle your money makes all the difference. Control it now — or spend years letting it control you.
Mint
2 days ago
- Business
- Mint
Should you invest in mutual funds to achieve financial independence? Experts speak
All of us who make investments are driven by our financial goals. These goals could range from buying a dream house and sending our son/daughter overseas for higher studies, or to retire early after achieving what is known as 'financial independence'. Financial Independence and Retire Early or FIRE is one of the oft-mentioned financial goals for GenZ, incentivising them to set aside a portion of their earnings and invest in long-term assets such as equity and gold for stable and consistent returns. But what about investing in mutual funds? Can you use mutual funds as part of your strategy to achieve financial independence? Afterall, you can get exposure to all asset classes via mutual funds. From debt to equity, and gold to benchmark indices – you could buy the 'right' fund and curate a well-rounded portfolio by investing in mutual funds across schemes and fund houses. To make the most of rupee cost averaging, you could invest via systematic investment plan (SIP). Not to mention that this is one of the most popular routes of investing among retail investors. In June 2025, the total amount of SIP contribution touched ₹ 27,269 crore across all mutual fund schemes in India, which was 28 percent higher than the corresponding data of June 2024. (See table below) We asked a few experts to find out more about the possibility of using mutual funds for achieving financial independence and retire early (FIRE). When you start early, one of the key factors that work in your favour is the magic of compounding. A small but consistent investment -- when done over a long period -- tends to give disproportionately high returns. Investors can first create a well-rounded portfolio including different asset classes such as gold, debt and stocks to achieve their financial goal of becoming financially independent in 15 years. 'A portfolio that is well-diversified helps distribute risk among different asset classes, such as gold, debt, and stocks. Alignment with evolving objectives and market conditions is ensured by periodically assessing and rebalancing your assets each year. As income grows, one should also increase investment amounts periodically to stay on track. Staying informed about economic trends and tax implications can further enhance returns,' says Swapnil Aggarwal, Director of VSRK Capital. 'Among the most effective strategies for long-term wealth building is investing through Systematic Investment Plans (SIPs) in mutual funds. SIPs not only instil financial discipline but also help average out market volatility. With patience, discipline, and the right strategy, building a sizeable corpus for early retirement or financial freedom becomes an achievable goal,' he adds. 'Asset allocation plays a vital role in the journey of wealth creation. Based on how much you save, your risk appetite, and your understanding of financial instruments, the right mix of asset classes can help you navigate market volatility with greater confidence,' says Sachin Jain, Managing Partner, Scripbox Another factor that matters a lot is financial discipline i.e. keeping expenses under control and saving consistently. The habit of disciplined saving is crucial for wealth accumulation, and it is the first step towards achieving early retirement. 'Wealth creation primarily stems from your core activity, be it a business, profession, or salaried job. Financial planning begins with this income. You use it to meet your expenses, and what remains becomes your savings. Therefore, a fundamental principle is to control your expenses and aim to save consistently. This habit of disciplined saving is crucial for wealth accumulation and is the first step toward achieving early retirement,' says Sachin Jain, Managing Partner, Scripbox. June SIP contribution ( ₹ crore) Annual increase 2025 27,269 28% 2024 21,262 44% 2023 14,734 20%* (Source: AMFI) *Over ₹ 12,276 crore in 2022 Well, it is important to realise that what looks perfect on paper may not be as easy in real life. Sometimes, you could lose your job, the expected promotion does not come through, your employer fails to give an annual bonus during a year or two. This completely botches up your investment plan and gives a setback to your financial discipline. 'Often, decision-making is tested during uncertain times. That's when poor choices are made, usually driven by fear or lack of clarity. Such missteps often stem from a lack of knowledge or confidence. That's why disciplined investing, prudent asset allocation, and securing yourself against contingencies during the accumulation phase are key pillars to plan for early retirement effectively,' adds Jain of Scripbox. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie. We advise investors to check with certified experts before taking any investment decisions. For all personal finance updates visit here
News18
4 days ago
- Business
- News18
Equity Vs Debt Vs Hybrid: Which Mutual Fund SIP You Should Choose
Investors should seek guidance from a financial advisor and evaluate fund performance before starting an SIP. Mutual fund SIPs (Systematic Investment Plans) are slowly gaining popularity among investors in India due to higher returns and flexibility. The SIPs allow investors to invest a fixed amount regularly, leading to long-term wealth accumulation through disciplined investing. However, not all mutual funds are the same. There are many categories of mutual funds. The categorisation is primarily based on the asset classes where the mutual fund houses invest the funds collected from investors. The most common categories are equity, debt and hybrid mutual funds. Understanding the features, key differences and potential returns they offer could help investors to choose the most appropriate mutual fund schemes. Equity Mutual Funds As per SEBI classification, these mutual funds primarily invest in equity and equity-related instruments. Equity funds invest in equity shares of companies across sectors. These mutual funds are mandated to invest at least 65% of their total assets in equities and related instruments. Equity funds are designed to deliver high growth by benefiting from the rise in stock prices. Since stock prices fluctuate, equity funds are considered high-risk-high-return investments. They are ideal for long-term goals like retirement, children's education, or wealth creation. Within equity funds, there are different types, such as large-cap, mid-cap, small-cap and sectoral funds. These funds could be suitable for investors looking forward to investment avenues without getting directly exposed to market volatility. Investors with a high risk appetite and a long-term horizon are most likely to find it suitable. Debt Mutual Funds Debt funds invest in fixed-income instruments like government securities, corporate bonds, treasury bills and commercial papers. These funds aim to provide stable and predictable returns with lower risk compared to equity funds. Debt funds are suitable for conservative investors looking for short- to medium-term goals like saving for a down payment, creating an emergency fund, or preserving capital. Popular types include liquid funds, short-term debt funds and gilt funds. While they come with lower risk compared to other categories, returns may not be higher than the equity funds. Debt funds could be a suitable choice for risk-averse investors with a short-term or medium-term horizon. Hybrid Mutual Funds Hybrid funds combine both equity and debt in varying proportions. This approach helps balance risk and return. An aggressive hybrid fund may invest a majority portion of its total corpus in equity and the rest in debt, whereas conservative hybrid funds generally come with higher debt exposure. These funds are ideal for investors who want moderate risk with balanced returns. Which One Is Better? There is no single 'best" fund; it depends on your financial goal and risk tolerance. Here are a few factors to take into account before choosing a suitable mutual fund SIP: · Choose equity funds if you are open to high-risk, high-reward instruments. · Investment tenure plays a key role in wealth creation. While debt funds could be suitable in the short-term, equity and hybrid funds could be helpful in long-term value appreciation. · Hybrid funds could be suitable if you want balanced exposure and are new to investing. There is no fixed rule for choosing the best mutual fund SIP. Investors should seek guidance from a financial advisor and evaluate fund performance before starting an SIP. Choosing the right mutual fund SIP should depend on your risk appetite and financial goals view comments Location : Delhi, India, India First Published: July 26, 2025, 15:59 IST News business Equity Vs Debt Vs Hybrid: Which Mutual Fund SIP You Should Choose Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
5 days ago
- Business
- Economic Times
Why Multi-asset funds are a smart choice in current market environment
In a volatile market environment, diversifying across asset classes using multi-asset funds can be an effective strategy, as they offer exposure to a mix of equities, debt, and gold/silver within a single investment, says Viraj Gandhi, CEO, SAMCO Mutual Fund. ADVERTISEMENT "This diversified approach helps cushion the portfolio during market downturns while still allowing participation in upside movements," he says in an interview. Edited excerpts from a chat: Nifty is trading at a premium to historical averages. Are valuations becoming a headwind or is strong earnings growth enough to justify current multiples? Nifty is currently trading at around 22.5x TTM which is a very minimal premium to historical averages. In fact, Nifty has faced a time and a price correction since the start of the year, which has significantly tamed down valuations and made some stocks relatively cheaper in the largecap space. That said, overall earnings growth hasn't fully picked up yet. We may still be a few quarters away from seeing strong, broad-based earnings. Until then, the market might stay selective, rewarding only those companies showing clear growth. The market has been caught in a consolidation range for the last 2 months amid lack of positive triggers. What can make or break the deal for bulls going ahead? For bulls to take charge again, a few key factors will be critical. An improvement in corporate earnings and supportive global cues such as a potential US rate cut or easing geopolitical tensions could provide the much-needed boost. On the flip side, any disappointment in earnings, high valuations without corresponding growth, or global headwinds like sticky inflation or geopolitical shocks could weigh on this sentiment. ADVERTISEMENT India has seen record SIP inflows and retail participation. Is this depth sustainable in the next correction? In June 2025, SIP inflows reached a record high of ₹27,269 crore, according to the Association of Mutual Funds in India (AMFI). This represents a 2.2% increase compared to the previous month's inflow of ₹26,688 crore. The number of contributing SIP accounts also rose, reaching 8.64 crore in June, up from 8.56 crore in May. This growing monthly SIP inflows number highlights the growing maturity of the retail investors as this steady inflow has provided a strong cushion for the markets, especially during phases of global volatility. Many first-time investors have entered the markets post Covid, largely driven by rising financial awareness, better digital access, and strong past returns. While this is encouraging, it also means a large segment of investors has yet to experience a sharp or prolonged market downturn. This could test their resolve, especially if corrections extend beyond a few weeks and start affecting portfolio returns more visibly. ADVERTISEMENT That said, the shift towards disciplined investing through Systematic Investment Plans (SIPs) and the growing popularity of mutual funds indicate that a core segment of investors is here for the long term. Even if we see some dip in the flows during corrections, it is likely to be temporary. The overall trend of rising domestic participation is expected to continue, driven by favorable demographics, under-penetration of financial products, and increasing trust in market-linked instruments. In essence, while some short-term impact is possible, the structural depth looks sustainable. ADVERTISEMENT Are there specific sectors or themes that you believe are positioned for strong growth or present heightened risks in the current environment? In the current environment, financial services, pharmaceutical and healthcare stand out as sectors positioned for strong growth. What are the biggest risks domestic investors should be aware of while navigating today's markets? In the current market environment, geopolitical risk stands out as one of the biggest concerns for domestic investors. With escalating tensions in the Middle East and the looming August deadline for the implementations of tariffs by President Donald Trump, any flare-up in these areas could create significant volatility, not just globally, but also in Indian markets. ADVERTISEMENT With heightened market volatility, what approaches or strategies do you recommend for investors trying to manage risk and capitalize on market opportunities? In a volatile market environment, it's important for investors to strike a balance between managing risk and capturing potential opportunities. One effective strategy is to diversify across asset classes rather than relying solely on equities. Multi-asset funds can be a smart choice in this regard, as they offer exposure to a mix of equities, debt, and gold/silver within a single investment. This diversified approach helps cushion the portfolio during market downturns while still allowing participation in upside movements. Given the correction in the last few weeks, do you see some opportunities in defence stocks? Defence stocks have seen a strong rally recently, especially after the Pahalgam attack, as investor interest in the sector picked up. The broader theme remains intact over the long term, driven by increasing indigenization efforts and a clear push to reduce reliance on foreign suppliers for defense equipment. Government initiatives, rising defense budgets, and strong order pipelines for key players add further support to the sector's outlook. While some profit booking has been observed in the last few days, which is natural after a sharp run-up, the long-term story still looks promising. In the short term, valuations may seem stretched, and some consolidation can't be ruled out. However, for investors with a longer horizon, defense remains a structural growth theme with potential for steady returns as India continues to build its domestic capabilities. Expectations from Q1 earnings are low. Which pockets of the market do you think can surprise you? Broadly, Q1 could be muted on expectations. Capital goods and infra could positively surprise if operating leverage might start to kick-in, banks may do better due to lower credit costs and autos might surprise due to softening raw material prices.
Time of India
5 days ago
- Business
- Time of India
‘Save, but also spend': Edelweiss MF CEO Radhika Gupta's advice to aggressive SIP investors
Edelweiss Mutual Fund MD and CEO Radhika Gupta has a word of advice for aggressive investors who channel every rupee into Systematic Investment Plans (SIPs) while preparing for the future — don't forget to enjoy the present. Taking to social media platform X (formerly Twitter), Gupta urged investors to strike a balance between saving and spending. Explore courses from Top Institutes in Please select course: Select a Course Category Public Policy Project Management Design Thinking healthcare Degree Cybersecurity Healthcare MBA Operations Management Leadership Product Management Finance Artificial Intelligence Technology Data Science Others Management Data Science Digital Marketing CXO PGDM Skills you'll gain: Economics for Public Policy Making Quantitative Techniques Public & Project Finance Law, Health & Urban Development Policy Duration: 12 Months IIM Kozhikode Professional Certificate Programme in Public Policy Management Starts on Mar 3, 2024 Get Details Skills you'll gain: Duration: 12 Months IIM Calcutta Executive Programme in Public Policy and Management Starts on undefined Get Details 'My job is to sell SIPs, but I always tell everyone — young and old — to take time to enjoy the fruits of your hard work. Save, but also spend on things that bring you joy, because that's what makes the journey worthwhile. Life isn't a race to have the highest NAV or the most money, but to live joyfully. The middle path exists — and it's a good one,' she wrote. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo — iRadhikaGupta (@iRadhikaGupta) Her advice comes at a time when mutual fund SIP inflows have hit a record high. SIP contributions rose to ₹27,269 crore in June, up 2% from ₹26,688 crore in May — marking the first time monthly inflows have crossed the ₹27,000-crore mark. Live Events The number of new SIPs registered in June climbed to 61.91 lakh, compared to 59.14 lakh in May and 46.01 lakh in April. Meanwhile, the number of contributing SIP accounts reached 8.64 crore in June, up from 8.56 crore in May and 8.38 crore in April. Gupta's post sparked mixed reactions online. One user commented, 'Spending is like sugar — addictive and tempting. Savings and investment are the opposite. In trying to find balance, we often overspend and miss the middle path due to rising costs, education expenses, etc. Ideally, one should spend less than they save and invest the rest.' Another user quipped, 'What about retirement funds? After 60, people might not even have teeth to enjoy the fruits of their investments.' To a query if there are any international funds, Radhika said Edelweiss' international funds which invest 100% overseas are now open. She said that Edel Tech also invests 30 per cent in US while the balance in India cos.
