Salary Increment and Investment: Investment in equity funds has increased for the 13th consecutive month in March 2022. If you are also planning to invest salary increment money, then understand from experts that when and where you should invest money.
Salary Increment: Salaried class employees are eagerly waiting for the month of April. Companies usually do salary increments of their employees in this month. That is, your salary is going to increase this month. Most of the people use the increased salary to spend on the things they need. At the same time, many employees plan to invest money in increments. Mutual funds are a fast emerging investment option in today’s time. Investment in equity funds increased for the 13th consecutive month in March. If you are also planning to invest salary increment money, then understand from experts that when and where you should invest money.
Taresh Bhatia, a certified financial planner (Prof.), says that the increment amount should be planned for investment at the very beginning. There is a lot of volatility in the market right now. In such a situation, you can invest in Hybrid Mutual Funds, a category of mutual funds. The specialty of hybrid schemes is that they carry less risk and get better returns as compared to pure equity funds. In these schemes, investors’ money goes into both equity and debt assets. According to the up-down in the market, the fund manager decides how much to go for equity and how much in debt.
Bhatia says, there are many types of funds in the hybrid category such as Balanced Advantage Fund. At present, you can invest money in it for the next 1-2 years. When you understand that the investment should be according to the goal, now you should align your investment accordingly. When your investment goal is 5 years, 8 years or more or retirement goal. Also, you can take high risk, so after 1 year you can move your fund from balanced category to high risk equity fund.
What is Hybrid Mutual Fund?
Hybrid funds are in a way a classification of mutual funds or ETFs. Those who invest in different types of assets or asset classes, so that the portfolio can be diversified. This means that Hybrid Mutual Funds invest in more than one asset class. These include equity and debt assets.
Sometimes these schemes also invest money in gold. That is, there is an opportunity to invest money in equity, debt and gold in the same product. In this way, their investment is greatly diversified. The advantage of this is that if the returns in equity deteriorate, then the return of debt or gold can balance the overall return. Similarly, if the returns in debt or gold are weak, then the return of equity balances it.
(Disclaimer: Investment advice here is given by experts. These are not the views of Zee Business. Investing in Mutual Funds is subject to market risks. Hence, consult your advisor before investing.)
