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Should You Invest in SIPs when the Market Is Rising?

As a new investor if you wish to invest in mutual funds or make new investments to achieve your financial goals, then you would have wondered if this was the right time to invest in SIPs…

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As a new investor if you wish to invest in mutual funds or make new investments to achieve your financial goals, then you would have wondered if this was the right time to invest in SIPs.

Investors generally believe that if they invest in rising markets, they will earn lower returns because further growth may be limited.

The meaning of SIP in mutual fund is that you invest a certain amount at regular intervals on a weekly, monthly, quarterly or bi-annual basis.

Any time is a good time to start investing through an SIP in mutual fund meaning as long as you invest regularly despite the market conditions. Timing the market can be a meaningless activity as it is challenging to predict market behaviour.

Investing via SIP in mutual fund means timing the market becomes futile and you can focus on ‘time in the market’. When you invest in SIP meaning investment, you acquire more mutual fund units when prices are low so when the market rises, it results in higher returns. When prices are high you acquire fewer mutual units when prices are high. This lowers your average investment cost over a period. However, one should note that investing in SIP are subject to market risk and do not assure a profit or returns or protection against a loss in a downturn market.

It is important to consider the following factors to get the best out of your investment:

1) Select worthy schemes

Different mutual fund schemes have different investment strategies, objectives, risk profile, etc. Select schemes that meet your financial goals, risk profile, and investment objective. Also consider qualitative parameters like the efficiency of the mutual fund house’ systems and processes, the fund management team, and portfolio characteristics. Once you have determined your requirements, select the mutual fund scheme by examining risk-reward parameters. Do not be fixated on the fund’s past performers because past performance is no indicator of future returns.

2) Invest the right amount

Though the mutual fund scheme is good, you could fall short of reaching your goal, if you do not invest a sufficient amount. The amount to be invested regularly will depend on your desired corpus as well as the investment goal. Use an SIP calculator to calculate returns to be earned on the investment amount meant to receive from SIPs. You should adjust the investment amount for inflation.

3) Ignore the market noise

Erratic market conditions can make investors nervous about investing further. You may decide to stop or redeem your SIP investment whenever the market turns volatile. However, you can partake of the benefits of SIP investment meaningfully only if you invest regularly despite the market conditions.

If you stop SIP or miss instalments, you might forgo the advantage of compounding and thus miss your investment target. Therefore, it is important to continue investing till you meet your goal.

To conclude

Keep in mind that equity investments take time to grow. In case of SIP, give each instalment sufficient time to grow and generate long term risk adjusted returns. As you start approaching your goal, gradually reduce your equity exposure to invest in a more stable and less risky investment avenue, such as debt mutual funds and bank deposits.

Disclaimer: The views expressed here in this Article / Video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The Article / Video has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of the Article / Video should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. None of the Quantum Advisors, Quantum AMC, Quantum Trustee or Quantum Mutual Fund, their Affiliates or Representative shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary losses or damages including lost profits arising in any way on account of any action taken basis the data / information / views provided in the Article / video.

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

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Navigating the Mortgage Maze: The Benefits of Choosing a Broker Over a Bank

When embarking on the journey to homeownership, navigating the complex world of mortgages can be daunting. A mortgage broker can be your ally, offering personalized service and access to a wide array of loan options to secure the best possible rate for your dream home. This article delves into the reasons why opting for a mortgage broker could be a smarter choice than going directly to a bank.

Table of Contents
The Role of Mortgage Brokers in Home Financing
Comparing Mortgage Brokers and Banks
The Comprehensive Services Offered by Mortgage Brokers
Understanding How Mortgage Brokers Facilitate Your Loan Process
Conclusion: Streamlining Your Path to Homeownership
The Role of Mortgage Brokers in Home Financing
When it’s time to secure financing for a new home, many prospective buyers default to their local bank or credit union. These traditional financial institutions have long been associated with lending, but they may not always offer the most competitive or suitable mortgage products for every individual. In contrast, mortgage brokers operate as intermediaries who can scour the market to find the best mortgage rates and terms tailored to your unique financial situation.

According to a 2019 report by the Intermediary Mortgage Lenders Association (IMLA), mortgage brokers in the UK were responsible for 74% of all mortgage transactions. This significant market share underscores the value that brokers bring to the mortgage process.

Comparing Mortgage Brokers and Banks
While banks provide a direct route to mortgage applications and offer a selection of their own mortgage products, they may not cater to the diverse needs of all borrowers. Mortgage brokers, on the other hand, have access to a vast network of lenders, including those that may not be directly accessible to the general public. This extensive selection means brokers can often secure more favorable deals than banks.

Moreover, mortgage brokers are typically compensated by the lenders, not the borrowers, which aligns their interests with finding you the lowest possible rates. Personalized service is another hallmark of mortgage brokers; they offer consistent, dedicated assistance throughout the entire process, unlike the potential for fragmented service at larger banking institutions.

The Comprehensive Services Offered by Mortgage Brokers
Mortgage brokers are not just for those with pristine credit histories. They can also assist individuals who have faced financial challenges, such as bankruptcies or foreclosures, in securing a loan. Their expertise extends to refinancing options, helping clients to renegotiate their existing mortgages for better rates.

For first-time buyers, the mortgage landscape can be particularly perplexing. A broker’s knowledge of the market and the various mortgage products available can be invaluable. They can advise on different mortgage terms and how they impact the overall cost of the loan, potentially saving clients substantial amounts over the loan’s lifetime.

Understanding How Mortgage Brokers Facilitate Your Loan Process
Banks may not specialize in mortgages, which can lead to longer processing times. Mortgage brokers, however, are focused solely on home loans and have established relationships with lenders, streamlining the approval process. They understand lender requirements and can provide guidance to help clients prepare their applications, increasing the likelihood of a swift and successful approval.

Conclusion: Streamlining Your Path to Homeownership
Choosing a mortgage broker over a bank can simplify the home-buying process, providing clarity and confidence as you make one of the most significant financial decisions of your life. If you’re in the UK and seeking expert mortgage advice, consider reaching out to a reputable broker like Mortgage Broker Huddersfield for personalized assistance tailored to your needs.

In conclusion, the expertise and personalized service offered by mortgage brokers can make them a preferable choice for many homebuyers. With their ability to navigate the complex mortgage landscape and secure competitive rates, brokers can be instrumental in helping you achieve your homeownership goals.

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Why is Dentist’s Financial Plan Significant for their Future?

To conclude, we can say that a dentist’s financial plan will help you in many ways. You can earn, save, invest money and get a secure life without getting depressed about financial situations. So, do not waste any more time, develop a plan to fulfill your goals and live a happy and peaceful life.

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Like other professionals, dentists also retire after a specific time. Therefore, it is crucial to make a financial plan to secure post-retirement life. But if you are a dentist, you must develop a plan from the very beginning of your career which will help you in several ways. You can grow your career, expand your practice to multiple locations, purchase quality and modern equipment, and more. With a perfect plan, you can get these advantages, which will assist you throughout various life stages. Besides, the below reasons can help you to determine the significance of financial planning in your life. So, let us begin now.

1. Offers enhanced saving options

One of the significant reasons why dental doctors opt for financial planning is this. The plan will help them to increase their current savings rate significantly. As a dentist, you can enhance the rate in many ways. You might be wondering how? Well, here we have penned down a checklist below about this.

· Prepare a budget depending on your earning

· Reduce unnecessary expenses and manage cash flow

· Develop an accessible emergency fund

· Put money in various investment schemes before retirement

· Create short-term saving investments

You will get more benefits than you can ever imagine if you consider the above things when developing a dentist’s financial plan.

2. Can decrease the financial troubles

According to a report of some renowned psychologists, people from all over the world affect their health negatively by thinking about financial problems. After all, money is nothing but a notable source of stress and depression. Therefore, it is crucial to develop the best financial planning. As a dentist, you must have clear goals in your mind. It will help you in reducing your financial stress and can also give the best treatment to your patients. Thus, you can improve your health with the best plan, eventually reducing all your financial issues.

3. Generates returns and equity

Another significant reason for developing a financial plan is it can generate income through returns on equity investments. Equity means purchasing shares of a firm. It will enable you to make returns in multiple ways like, you will get dividends upon your share. Therefore, you can earn a little more with a comprehensive financial plan.

4. Promotes a better retirement life

A proper financial plan for dentists can offer a secure and peaceful post-retirement life to dental specialists. Like others, dentists also like to spend time with family and travel. In such cases, a financial plan can help them to fulfill their wishes and goals. They can also retire at their preferred age without bothering about money.

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