5 Smart Money Moves To Improve Your Finance
5 Smart Money Moves . Though it had begun on a promising note, 2016 turned out to be a disappointing year for equity investors. But investors in debt and gold earned decent returns. Analysts believe the poor performance by equities might continue in 2017 due to the impact of demonetisation.
5 Smart Money Moves
1. RESTART SIPS AND CONTINUE REGULAR INVESTING
Financial advisers who tell investors to ignore market movements and continue investing are often derided as someone trying to sell mutual funds. But a study by ET Wealth shows that regular investing yields better results than trying to time the market. For instance, the Brexit vote came as a big shock to everyone and caused the Sensex to drop more than 600 points.
If you had redeemed your equity investments a day before the Brexit vote, you could have missed the crash on 24 June. But you would have also missed the 1,500-point rally that followed.
Banks have cut deposits rates sharply after huge inflows postdemonetisation. A five-year fixed deposit will now give about 7%. In the 30% bracket, the posttax yield will be less than 5%. But there are other more lucrative avenues for fixed income investors. The Employees’ Provident Fund (EPF) and the Public Provident Fund (PPF) still offer attractive rates.
3. TRAIN KIDS, WORKERS TO GO CASHLESS
As the government pushes ahead with digitisation of currency, you would do well to acquaint yourself with the emerging modes of cashless transactions in 2017. But the learning should not stop there. Teach your children and even those who work for you (housemaid, driver, watchman, milkman, gardener, newspaper vendor) on how to go cashless can find here.
4. LINK AADHAAR WITH BANK A/C, INVESTMENTS