the telegraph 510 x 330 mm · a systematic investment plan. step 3: start a sip you can start a sip...

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How to achieve your New Year goals To achieve your goals, first, break them down into these ordinary steps: Step 1: List out all your goals in a smart, practical and achievable way Goal: Vacation to Bali Duration: 5 days & 6 nights Budget: `1 lakh Do this exercise for all your goals and convert them from ‘dreams’ to concrete goals. This brings us to figuring out ways to save up for these goals. And one of the most effective methods would be - Weekend Investment Plan (WIP). Step 3: Invest for these regularly The following table explains how you can invest to achieve goals spanning different time horizons. Investment Term Years Where to Invest Benefits Short-term 3 or less Debt Mutual Funds • Stability • Liquidity • Low Risk Medium- term 3 - 5 Hybrid Mutual Funds or ELSS • Moderate Risk • Steady Returns • Tax Benefits Long-term 5 or more Equity Mutual Funds • Higher returns • Tax Benefits • Risk Managed in the long term Home Improvements Trip to Bali New Car Honeymoon Trip to Disneyland Wedding Retirement World Tour One Crore Step 2: Set priorities for each goal and club them into Goal Buckets to manage them easily A visit to Bali in 6 months, would be a short-term goal, a trip to Disneyland in the next 3 years would be a medium-term goal and World tour in 8 years will be a long-term goal. M ediu m - t e r m Lo n g - t e r m S h o rt- t e r m The path to your future wealth is pinned on your resolve to do better. If you do not follow your resolutions each year, you knock off a chunk of your future wealth. WHAT NEXT: In the next story, let's find out why it is important to plan your taxes ahead in time. This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information SUCCESS 2020: ORDINARY STEPS, EXTRAORDINARY RESULTS Step 1: Set a realistic goal Say, you want to renovate your house and it would cost you ` 3 lakh. A realistic goal would be to achieve this in 3 years and not the next year. Step 2: Implement WIP Now as per the WIP, skip 1 out of 4 weekend plans. You can then invest that money in Mutual Funds through a Systematic Investment Plan. Step 3: Start a SIP You can start a SIP online in just a few steps. With SIPs, your money will automatically get deducted from your Bank account at a predetermined date, every month, and get invested in the Funds of your choice. Step 4: Watch your money grow Mutual Funds are handled by professionals. So, you can just sit back and watch the power of compounding and rupee cost averaging multiply your money. Thus, with the WIP, you will not only have money for your goal but also have extra money for entertainment and leisure. WIP or Weekend Investment Plan is an investment strategy where you renounce a regular expense and direct that amount towards investments. There are lots of every day scenarios where you can apply this strategy to increase your investments. For example, if you eat at good restaurants every weekend with your friends or family, you can consider skipping it once a month. Do you watch a movie every Friday? Skip a week and use the amount to invest for your future. Here’s how you can do it: For more details, follow us on Twitter @utimutualfund; Email queries or suggestions: [email protected] Please mention Swatantra in TTin subject line. For more such financial advice, head to our website: http://www.utiswatantra.com In the next edition: This New Year, wish yourself a prosperous life. After all, in the upcoming edition, we are going to look at 10 mantras to achieve financial freedom. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. For more useful money management tips, tune in to UTI Swatantra Facebook Live on 2 nd January 2020 from 5 pm onwards and catch the show on ‘Dear Millennials, let’s talk money’. Disclaimer: To know about the KYC documentary requirements and procedure for change of address, phone number, bank details, etc. please visit https://www.utimf.com/servicerequest/kyc. Please deal with only registered Mutual Funds, details of which can be verified on the SEBI website under “Intermediaries/Market Infrastructure Institutions”. All complaints regarding UTI Mutual Fund can be directed towards [email protected] and/or visit www.scores.gov.in (SEBI SCORES portal). This material is part of Investor Education and awareness initiative of UTI Mutual Fund. RESULT In the last edition, we asked you - Do you think saving with a specific goal in mind is more effective than saving without a goal? EXPERT OPINION When you save towards specific goals, you devise savings and investment strategies to achieve the goal in the most efficient manner. On the other hand, if you save without a specific goal in mind, you can tend to withdraw money from the corpus for each and every financial requirement. This can deplete your bank balance in the long run. YES 54% Here's how you voted NO 46% READER ' S POLL Do you think one should begin investing for their financial goals right from their first paycheck? Share your answer via SMS. Type Poll<SPACE>YES or Poll<SPACE>NO to 5676756. In the next edition, you can find out how many people agree with you. YES NO I have started investing via mutual fund for the past few months, but I find it difficult to keep a track of the performance. How can I track it? Your financial portfolio helps you reach your financial goals , and as an investor it is imperative to review and rebalance it periodically. Like every other dictum, this too is more than often ignored which can be a major setback in achieving your financial goals. The purpose of a review and rebalance is carried out to keep your investments from drifting away from the financial target you initially set. Additionally, changes in market lead to a dip or rise in the value of your assets thereby making your portfolio too risky or conservative. Not staying updated in a scenario like this puts you in a disadvantage. Or in another scenario, you might have chosen to change your financial goals. Be it all three of the above, it is necessary to reassess your asset allocation, keep it in sync with your risk profile. GURUSPEAK Bhaskar Sinha Financial Advisor Rohit Jain Founder and CEO, Rubicon Finservices I appreciate your decision of investing in Mutual funds at a young age of 25. There are various mutual funds available like debt funds and equity funds. Equity funds can be further classified into Large Cap Funds, Multi Cap Funds, Mid Cap Funds, Small Cap Funds based on market capitalization. According to SEBI Large cap funds should invest at least 80% of their total assets in Large Cap Stocks , Midcap funds- at least 65% assets in Mid cap stocks, and Small Cap funds- at least 65% of assets in small cap stocks. Multicap funds invest across Large,Mid and Small cap stocks.ELSS funds are also equity funds which have lock in of 3 years and provide tax exemption under section 80C.For you I would suggest you divide your investment equally between a Multicap fund and an ELSS fund for best tax adjusted return in the long term. HERE’S WHAT THE EXPERT SAID EXPERTSPEAK A reader asked us: I am 25 years old and I want to start investing from the beginning of the New Year. I can invest `8,000 per month. My risk appetite is moderate. Please advise what type of mutual funds I can select for my portfolio. Scan this QR code to calculate the amount you need to invest to achieve all the milestones you have set for yourself SIP can make your New Year happy and secure. It is never too late to work towards your goals; start today! What is Weekend Investment Plan Follow these simple steps and you will be on the right track to achieve all your goals. When you look back at the end of the year, you will be amazed at the extraordinary financial journey you have taken. Vacation Home HONEYMOON WORLD TOUR Scuba Diving LEARN TENNIS TRIP TO DISNEYLAND WEDDING `1crore Retirement Mountaineering NEW CAR IVY LEAGUE EDUCATION HOME IMPROVEMENT Trip to Bali Art Collection Own House START-UP MILLIONAIRE Financial Independence EMERGENCY FUND You may dream of embracing retirement much before 60, but do your finances support your wish? Retirement not only means loss of income but also means additional expenses such as medical expense. Thus, you must have enough funds to enjoy the second innings of your life without any financial worries. And for this, you need F.I.R.E! What’s F.I.R.E? F.I.R.E stands for Financial Independence Retire Early. This concept revolves around the idea of making lifestyle changes so that one can be financially independent and retire early. Naturally, this calls for saving and investing regularly. How can Mutual Funds help in achieving F.I.R.E? ● To be financially free, you must be a disciplined saver and investor. ● Mutual Fund Systematic Investment Plans (SIPs) not only help you save regularly but also help you build wealth. Here’s how: Age 25 years Retirement Age 45 years Investment Tenure 20 years Required Retirement Corpus `2 crore Assumed Return Rate 12% SIP Amount `21,743 Total Investment `52,18,200 Wealth Gain `1,47,81,800 *The above table is for illustration purpose only. In this calculation, the annual return of 12% has been assumed based on the return potential of Diversified Equity Mutual Funds in the long-term. Imagine, if you don’t invest in Mutual Funds and save the same amount at home, you would be able to accumulate ` 2 crore in around 76 years 8 months! Thus, for early retirement, it is only wise to invest your savings in a systematic manner. So, will F.I.R.E be on your resolution list this year? “The question isn’t at what age I retire, it’s at what income.” – George Foreman This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information Swatantra Kumar Explains: Why work till 60 when you can retire at 45? Reasons why New Year goals don’t work out Setting unrealistic resolutions While you can become a crorepati in the long run by investing your money, expecting to achieve this just in about a year or two is unrealistic. Having no plan Being ambitious about your goals does little or no good if you don’t have a sound plan in place. Having no guidance Despite having clear goals, the plan and time, you may not be very confident about your moves. In the absence of proper guidance, you tend to go off the track. Having no time You may have realistic goals and plans, but may not necessarily have the time to execute the plan. The lack of time for investing may stop you from achieving your goals. In the New Year, do away with last-minute Tax-planning Trying to save Tax at the eleventh hour can cost you: You may not be able to make the most of your deductions You could end up making hasty decisions without researching, You could run out of funds to invest Luckily, you still have three months to plan and invest before the financial year gets over. Since you can save Tax on investments up to `1.5 lakh under Section 80C of the Income Tax Act, here’s what you can do: Open a Mutual Fund account Identify an appropriate ELSS Fund Divide `1.5 lakh with the number of months left until March 2020 Invest the same through Monthly SIPs In the short-term, this helps you save Tax. However, you should consider staying invested for the long-term. This way, you can build a good corpus of wealth and when the next year starts, your Tax planning would be sorted. This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information TAX CORNER

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Page 1: The Telegraph 510 x 330 mm · a Systematic Investment Plan. Step 3: Start a SIP You can start a SIP online in just a few steps. With SIPs, your money will automatically get deducted

How to achieve your New Year goals

To achieve your goals, fi rst, break them down into these ordinary steps:

Step 1: List out all your goals in a smart, practical and achievable wayGoal: Vacation to BaliDuration: 5 days & 6 nightsBudget: `1 lakhDo this exercise for all your goals and convert them from ‘dreams’ to concrete goals.

This brings us to fi guring out ways to save up for these goals. And one of the most effective methods would be - Weekend Investment Plan (WIP).

Step 3: Invest for these regularlyThe following table explains how you can invest to achieve goals spanning different time horizons.

Investment Term

Years Where to Invest

Benefi ts

Short-term 3 or less

Debt Mutual Funds

• Stability• Liquidity• Low Risk

Medium-term

3 - 5 Hybrid Mutual Funds or ELSS

• Moderate Risk• Steady Returns• Tax Benefi ts

Long-term 5 or more

Equity Mutual Funds

• Higher returns• Tax Benefi ts• Risk Managed in the long term

Home Improvements

Trip to Bali

New Car

Honeymoon

Trip to Disneyland

Wedding

Retirement

WorldTour

One Crore

Step 2: Set priorities for each goal and club them into Goal Buckets to manage them easilyA visit to Bali in 6 months, would be a short-term goal, a trip to Disneyland in the next 3 years would be a medium-term goal and World tour in 8 years will be a long-term goal.

Medium-term Long-termShort-term

The path to your future wealth is pinned on your resolve to do better. If you do not follow your resolutions each year, you knock off a chunk of your future wealth.

WHAT NEXT: In the next story, let's fi nd out why it is important to plan your taxes ahead in time.This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information

SUCCESS 2020: ORDINARY STEPS, EXTRAORDINARY RESULTS

Step 1: Set a realistic goalSay, you want to renovate your house and it would cost you ` 3 lakh. A realistic goal would be to achieve this in 3 years and not the next year.

Step 2: Implement WIPNow as per the WIP, skip 1 out of 4 weekend plans. You can then invest that money in Mutual Funds through a Systematic Investment Plan.

Step 3: Start a SIPYou can start a SIP online in just a few steps. With SIPs, your money will automatically get deducted from your Bank account at a predetermined date, every month, and get invested in the Funds of your choice.

Step 4: Watch your money growMutual Funds are handled by professionals. So, you can just sit back and watch the power of compounding and rupee cost averaging multiply your money.

Thus, with the WIP, you will not only have money for your goal but also have extra money for entertainment and leisure.

WIP or Weekend Investment Plan is an investment strategy where you renounce a regular expense and direct that amount towards investments. There are lots of every day scenarios where you can apply this strategy to increase your investments. For example, if you eat at good restaurants every weekend with your friends or family, you can consider skipping it once a month. Do you watch a movie every Friday? Skip a week and use the amount to invest for your future. Here’s how you can do it:

For more details, follow us on Twitter @utimutualfund; Email queries or suggestions: [email protected]

Please mention ‘Swatantra in TT’ in subject line. For more such fi nancial advice, head to our website: http://www.utiswatantra.com

In the next edition: This New Year, wish yourself a prosperous life. After all, in the upcoming edition, we are going to look at 10 mantras to achieve financial freedom.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

For more useful money management tips, tune in to UTI Swatantra Facebook Live on 2nd January 2020 from 5 pm onwards and catch the show on ‘Dear Millennials, let’s talk money’.

Disclaimer: To know about the KYC documentary requirements and procedure for change of address, phone number, bank details, etc. please visit https://www.utimf.com/servicerequest/kyc. Please deal with only registered Mutual Funds, details of which can be veri� ed on the SEBI website under “Intermediaries/Market Infrastructure Institutions”. All complaints regarding UTI Mutual

Fund can be directed towards [email protected] and/or visit www.scores.gov.in (SEBI SCORES portal). This material is part of Investor Education and awareness initiative of UTI Mutual Fund.

RESULTIn the last edition, we asked you - Do you think saving with a specifi c goal in mind is more effective than saving without a goal?

EXPERT OPINIONWhen you save towards specifi c goals, you devise savings and investment strategies to achieve the goal in the most effi cient manner. On the other hand, if you save without a specifi c goal in mind, you can tend to withdraw money from the corpus for each and every fi nancial requirement. This can deplete your bank balance in the long run.

YES 54%

Here's how you voted

NO46%

READER'S POLLDo you think one should begin investing for their fi nancial goals right from their fi rst paycheck?

Share your answer via SMS. Type Poll<SPACE>YES or Poll<SPACE>NO to 5676756. In the next edition, you can fi nd out how many people agree with you.YES NO

I have started investing via mutual fund for the past few months, but I fi nd it diffi cult to keep a track of the performance. How can I track it?

Your fi nancial portfolio helps you reach your fi nancial goals , and as an investor it is imperative to review and rebalance it periodically. Like every other dictum, this too is more than often ignored which can be a major setback in achieving your fi nancial goals. The purpose of a review and rebalance is carried out to keep your investments from drifting away from the fi nancial target you initially set. Additionally, changes in market lead to a dip or rise in the value of your assets thereby making your portfolio too risky or conservative. Not staying updated in a scenario like this puts you in a disadvantage. Or in another scenario, you might have chosen to change your fi nancial goals. Be it all three of the above, it is necessary to reassess your asset allocation, keep it in sync with your risk profi le.

GURU SPEAKBhaskar Sinha Financial Advisor

Rohit JainFounder and CEO, Rubicon Finservices

I appreciate your decision of investing in Mutual funds at a young age of 25. There are

various mutual funds available like debt funds and equity funds. Equity funds can be further classifi ed into Large Cap Funds, Multi Cap Funds, Mid Cap Funds, Small Cap Funds based on market capitalization. According to SEBI Large cap funds should invest at least 80% of their total assets in Large Cap Stocks , Midcap funds- at least 65% assets in Mid cap stocks, and Small Cap funds- at least 65% of assets in small cap stocks. Multicap funds invest across Large,Mid and Small cap stocks.ELSS funds are also equity funds which have lock in of 3 years and provide tax exemption under section 80C.For you I would suggest you divide your investment equally between a Multicap fund and an ELSS fund for best tax adjusted return in the long term.

HERE’S WHAT THE EXPERT SAID

EXPERT SPEAKA reader asked us: I am 25 years old and I want to start investing from the beginning of the New Year. I can invest `8,000 per month. My risk appetite is moderate. Please advise what type of mutual funds I can select for my portfolio.

Scan this QR code to calculate the amount you need to invest to achieve all the milestones you have set for yourself

SIP can make your New Year happy and secure. It is never too late to work

towards your goals; start today!

What is Weekend Investment Plan

Follow these simple steps and you will be on the right track to achieve all your goals. When you look back at the end of the year, you will be amazed at the extraordinary fi nancial journey you have taken.

Vacation Home

HONEYMOON

WORLD TOUR

Scuba Diving

LEAR

N TEN

NIS

TRIP TO DISNEYLANDWEDDING

`1crore Retirement

Moun

tain

eerin

gNEW CAR

IVY LEAGUE EDUCATION

HOME

IM

PROV

EMEN

TTr

ip to

Bali Art

Collection

Own House START-UP

MILLIONAIRE

Financial Independence

EMERGENCY FUND

You may dream of embracing retirement much before 60, but do your fi nances support your wish? Retirement not only means loss of income but also means additional expenses such as medical expense. Thus, you must have enough funds to enjoy the second innings of your life without any fi nancial worries. And for this, you need F.I.R.E!

What’s F.I.R.E?F.I.R.E stands for Financial Independence Retire Early. This concept revolves around the idea of making lifestyle changes so that one can be fi nancially independent and retire early. Naturally, this calls for saving and investing regularly.

How can Mutual Funds help in achieving F.I.R.E?● To be fi nancially free, you must be a disciplined saver and

investor.● Mutual Fund Systematic Investment Plans (SIPs) not only help

you save regularly but also help you build wealth. Here’s how:

Age 25 years

Retirement Age 45 years

Investment Tenure 20 years

Required Retirement Corpus `2 crore

Assumed Return Rate 12%

SIP Amount `21,743

Total Investment `52,18,200

Wealth Gain `1,47,81,800*The above table is for illustration purpose only. In this calculation, the annual return of 12% has been assumed based on the return potential of Diversifi ed Equity Mutual Funds in the long-term.

Imagine, if you don’t invest in Mutual Funds and save the same amount at home, you would be able to accumulate ` 2 crore in around 76 years 8 months! Thus, for early retirement, it is only wise to invest your savings in a systematic manner. So, will F.I.R.E be on your resolution list this year?

“The question isn’t at what age I retire, it’s at what income.” – George Foreman

This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information

Swatantra Kumar Explains:

Why work till 60 when you can retire at 45?

additional expenses such as medical expense. Thus, you must have enough funds to enjoy the second innings of your life without any fi nancial

F.I.R.E stands for Financial Independence Retire

“The question isn’t at what age

Reasons why New Year goals don’t work out

Setting unrealistic resolutions

While you can become a crorepati in the long run by investing your money, expecting to achieve this just in about a year or two is unrealistic.

Having no plan

Being ambitious about your goals does little or no good if you don’t have a sound plan in place.

Having no guidance

Despite having clear goals, the plan and time, you may not be very confi dent about your moves. In the absence of proper guidance, you tend to go off the track.

Having no time

You may have realistic goals and plans, but may not necessarily have the time to execute the plan. The lack of time for investing may stop you from achieving your goals.

In the New Year, do away with last-minute

Tax-planningTrying to save Tax at the eleventh hour can cost you:● You may

not be able to make the most of your deductions

● You could end up making hasty decisions without researching,

● You could run out of funds to invest

Luckily, you still have three months to plan and invest before the fi nancial yeargets over. Since you can save Tax on investmentsup to `1.5 lakh under Section 80C of the Income Tax Act, here’s what you can do:● Open a Mutual Fund

account● Identify an appropriate

ELSS Fund● Divide `1.5 lakh with the

number of months left until March 2020

● Invest the same through Monthly SIPs

In the short-term, this helps you save Tax. However, you should consider staying invested for the long-term. This way, you can build a good corpus of wealth and when the next year starts, your Tax planning would be sorted.

This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com

for more information

TAX CORNER