Imagine you’ve a seed in your hand and a fertile land sprawled in front of you. You’d plant the seed, water it, and wait for it to grow, right? Think of your investment corpus of 50 lakhs as that seed. With time on your side, it can grow into a towering tree, given the right conditions.
You’ve already started on the journey by investing in monthly regular dividend-based mutual funds. It’s akin to planting your seed in one corner of the land. But remember, the land is vast and fertile. Why not make the best use of it?
Here’s how:
Harness the Power of Compounding:
The magic of compounding is that it makes your money work for you. As Albert Einstein rightly said, “Compound interest is the eighth wonder of the world. He who understands it earns it…he who doesn’t…pays it.” Starting at 32, you have an advantage many wish for – time. Your first crore might seem like a steep climb, but once you reach that summit, the journey to the next one is a swift downhill ride.
Diversify Beyond Dividends:
While monthly dividends seem attractive, they aren’t the most tax-efficient in India. It’s like enjoying a mango in summer – sweet, but only seasonal. Instead, look at the big picture – capital appreciation. There are numerous companies that may not distribute lucrative dividends but provide excellent returns through increased stock prices. Think of these as perennial trees that may not bear fruit often but grow steadily, enhancing the landscape.
Invest in Good Stocks and PMS:
Broaden your investment avenues. Consider investing in individual stocks of fundamentally strong companies and Portfolio Management Services (PMS). It’s akin to diversifying your garden – planting a mix of fruit trees, flowering plants, and evergreens to ensure year-round beauty and utility. As your investment corpus grows, a well-diversified portfolio will stand you in good stead.
Plan for Child and Family Goals:
Reinvesting dividends for your child’s future is a great move. But also consider investing specifically for long-term goals such as your child’s education, your retirement, or even a dream family vacation. It’s like setting milestones on your journey, each one a marker of your progress and success.
If you need a trusted advisor on this journey, consider Jama Wealth. In the end, remember that it’s not always about the route you take but the journey itself. Investments are similar. There’s no one-size-fits-all strategy.
