You can attain higher financial freedom in your 40s by strategizing your investments carefully. Mutual funds market risks are known to everyone these days but you should also factor in overall mutual fund performance over a long-term horizon for building more wealth. Mutual funds have become one of the most popular investment avenues in recent years for Indian investors who find it convenient and practical to deploy these investments. Mutual funds are collections of bonds or stocks managed by professional fund managers courtesy of the AMC or mutual fund firm.
You can successfully bypass major mutual funds risks and also enjoy higher mutual fund liquidity for meeting emergency needs throughout your investment journey. Here’s how you can attain financial freedom in your 40s itself and the benefits that you stand to get.
Investing in mutual funds will help you achieve financial objectives minus any hassles. There are various kinds of funds suitable for diverse types of investors in the market. You can opt for monthly mutual fund investments in debt mutual funds for accomplishing goals in the short or medium term. You can also opt for equity mutual funds for achieving long-term financial objectives and wealth accumulation that will help you enjoy greater financial freedom in the 40s. Mutual funds offer ample flexibility for fulfillment of financial objectives and help you achieve the financial freedom that you were looking for.
Investments of this nature will ensure that you keep ample liquidity in hand at all times. Investing in open-ended schemes is recommended so that you have freedom for buying/selling units or exiting the scheme likewise.
Professional fund managers will always be on the lookout for diverse assets for investing your corpus. This will enable better diversification which spreads out risks better and lowers overall impact of economic fluctuations on investments likewise.
You can start investing for a better financial future in your 40s from the day you start earning itself. Start a long-term investment in equity mutual funds. Stay invested despite market fluctuations. You can also switch to systematic withdrawal plans later on in your 50s and earn fixed amounts every month. This can be reinvested in other avenues as well for building even more wealth till you retire. When you are young and without major responsibilities, these first few years will see you investing more amounts of your monthly income into comparatively riskier options like equity mutual funds. You can allocate a higher portion of your income towards making these investments. The power of compounding will help you build substantial wealth by the time you are in your 40s.
Investing in mutual funds will also help you gain from tax benefits. You can invest in Equity Linked Saving Scheme or ELSS for building wealth and saving taxes simultaneously. Under Section 80C, ELSS comes with tax deductions up to Rs. 1,50,000.
Mutual fund investments will help you build a sizable corpus till the time you are in your 40s, enabling greater financial freedom and also helping you amass sufficient wealth for meeting future goals such as buying a home, car, taking vacations and saving enough for retirement. The earlier you start, the better it will be for you in this regard.