Different investment styles are needed for different people. It is because needs, desires,

responsibilities and income vary. Let’s take a closer look at the financial life of two people to understand this:

CASE STUDY: SAURABH

Can invest in Since Benefits Equity Linked Savings Scheme (ELSS)

• Young age• Pays Taxes• Need for

building wealth

Can save Taxes while benefiting from the Equity market

Liquid Mutual Funds

• Breadwinner Can be financial support during emergencies

Hybrid Mutual Funds

• Moderate risk appetite

• Need for building wealth

Can earn moderate returns with moderate risk

CASE STUDY: GAURAV

Can invest in Since Benefits Equity Mutual Funds through a Systematic Investment Plan (SIP)

• Young age• Low

responsibilities • Regular

savings

Can get good returns in the long run

Debt Mutual Funds

• Money at disposal

Can safely earn returns on idle money

BE YOUR OWN INVESTMENT SUPERHERO

Steps to download and scan a QR code: 1) Download QR code app on your phone. 2) Run app and scan the QR code. 3) Your smartphone reads the code & navigates to the destination.

Scan this QR code to calculate the amount you need to invest to achieve all the milestones you have set for yourself.

RESULTIn the last edition, we asked you - Given that you have adequate time, would you prefer to invest for your child's wedding instead of taking a loan?

EXPERT OPINIONA loan may be a quick way to finance the wedding. But it can be very costly because the interest rate on personal loans for marriages can be anywhere between 11 to 24 per cent. You may end up paying the loan for many years after your child's wedding. Instead, when you plan early and invest, you can steadily build up a corpus to finance the wedding with your own money.

YES 92%

Here's how you voted

NO8%

READER'S POLLDo you think saving with a specific goal in mind is more effective than saving without a goal?

Share your answer via SMS. Type Poll<SPACE>YES or Poll<SPACE>NO to 5676756. In the next edition, you can find out how many people agree with you.YES NO

For more details, follow us on Twitter @utimutualfund; Email queries or suggestions: utiswatantrateam@gmail.com Please mention ‘Swatantra in The Hindu’ in subject line.

For more such financial advice, head to our website: http://www.utiswatantra.com SWATANTRA KUMAR EXPLAINS:

Want to be a millionaire? Start thinking like one!It is said that you must think

like a millionaire and hustle like you’re broke. Whoever said this knows the secret of being rich!

Decoding ‘rich’● The dictionary defines rich as ‘having

abundant possessions and especially material wealth’. Simply put, being rich means having enough money to meet all your financial needs. But people often mistake it for living a

lavish lifestyle.

● A high paying job, branded clothes, fancy phones, fine dining, air travels, etc. don’t necessarily mean you are rich. You can have an average paying job, live a modest lifestyle and yet be rich if you own enough wealth.

How to become rich ● Stop behaving like a millionaire and

start thinking of being one● Think of all that you want and quantify

your goals ● Start saving for your

goals as well as emergencies

● Have a diversified investment portfolio

● Keep adding to your investments

● Review your portfolio regularly

With these simple steps, your dream of being a millionaire can transform into a reality.

This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information

In the next edition: Setting goals is of prime importance in the process of wealth creation. In the upcoming edition, we will look at how you can set, categorise, and achieve your New Year goals.

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

Budgeting or controlling your money is important for being rich. Need some valuable tips? Tune in to UTI Swatantra Facebook Live on 19th December 2019 from 5 pm onwards and catch the show on ‘2020: Take charge of your life’.

Disclaimer: To know about the KYC documentary requirements and procedure for change of address, phone number, bank details, etc. please visit https://www.utimf.com/servicerequest/kyc. Please deal with only registered Mutual Funds, details of which can be verified on the SEBI website under “Intermediaries/Market Infrastructure Institutions”. All complaints regarding UTI Mutual

Fund can be directed towards service@uti.co.in and/or visit www.scores.gov.in (SEBI SCORES portal). This material is part of Investor Education and awareness initiative of UTI Mutual Fund.

I am 42 years old and I can invest for the next 15 years. My goals are: a) Child’s Higher Education in 6 years b) Retirement corpus in 15 years

Before any investment, you need to implement a financial strategy with a sound investment portfolio and stick to it. If you have a large sum of money sitting idle, it can easily be put to work according to your investment targets and prevailing market conditions. However, one of the best ways to save for your child’s education is to invest through a Systematic Investment Plan (SIP). A SIP works best for all kinds of professionals – salaried or business. Regularly investing small amounts over the long term leads to the accumulation of a large corpus which can be very useful at a later date. To create a corpus for your child’s education in 6 years, you can consider investing in hybrid funds. Investing consistently in equity funds over 15 years can help you achieve your target for retirement.

GURU SPEAKDebopam MisraFinancial Advisor

Amit RathiFinancial Expert, Kolkata, Siliguri

While selecting Mutual Funds we need to focus on our financial goals along with the time duration to achieve that financial

goals . We can have goals which can be long term or short term . For Short Term goals for duration 2-5 years we can go for Debt Mutual Funds and for more than 5 years we can have Equity Mutual Funds .We should also take into consideration our risk appetite before selecting any Mutual Funds. In Equity Mutual Funds there are categories like Large Cap, Mid Cap, Small Cap.

Large Cap is the category for Moderate Risk appetite people where as Mid cap and Small Cap are the category to be selected for High Risk Appetite people . Its always better to get a financial plan ready and then select mutual funds.

HERE’S WHAT THE EXPERT SAID

EXPERT SPEAKA reader asked us: I want to begin investing in mutual funds but how do I know which mutual fund is right for me?

Given their situation, how can Gaurav and Saurabh better their finances? By being

their own investment superhero! Let’s understand this case-wise.

Where to invest?Equity Mutual Funds are volatile in the short run. But don’t let those fluctuations be a cause of your worry. After all, Equity Mutual Funds have the potential to perform in the long run. As on 30th Sept 2019, the Compound Annual Growth Rate (CAGR) of Diversified Equity Mutual Funds for the past 33 years was 15.5%.

Let’s understand how you can leverage Equity Mutual Funds to become a crorepati:

Monthly Investment Amount `10,000 `10,000

Investment Tenure 25 years 5 years

Rate of return 12%* 12%*

Investment value after 25 years `1,70,22,067 `8,11,036*The above table is for illustration purpose only. In this calculation, annual return of 12% has been assumed based on return potential of Diversified Equity Mutual Funds in the long term.

Now you know ‘Kab banoge crorepati’? The wait is long but definitely worth it!

Apart from high returns, long-term investments in Equity Mutual Funds offer the following advantages:● An inherent advantage is that your money will be handled by

professional experts● Investment risk will be diversified since Equity Mutual Funds invest your

money across different sectors ● You can spread your investments across several years. Thus, you

won’t feel financially burdened ● Short-Term Gains attract 15% Tax; whereas, Long-Term gains up to

`1 lakh are exempt from Tax. Gains above that attract 10% Capital Gains Tax.

● You can generate returns to beat inflation

All good things take time to grow. For example, trees.

They need 10-20 years to grow but they come with an array of benefits – pollution control, fruits, shade, etc. Your money is no different; invest it, give it a few years, and see the magic!

This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information

CROREPATI?

This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information

ANALYSIS: SAURABH

Favourable Unfavourable

Age DebtHigh income No financial plan

Regular Savings No investmentsSaurabh is responsible for his ageing parents' well-being and will also start his family sooner or later. Even if he is in debt, he still sets aside a small amount in case of an emergency. He must have a financial plan in place to reduce his debt, start saving smartly, invest regularly and grow his money.

GAURAV SITUATION SAURABH

25 years Age 25 years

Parents, sister and wife Family Members Old parents

`20,000 per month After-Tax Income `50,000 per month

Nil Fixed Monthly Expense `40,000

Recently married Marital Status Unmarried

No Breadwinner Yes

`2,000 per month Saving `1,000 per month

No Financial Plan No

No Debt Yes

Nil Investments Nil

Thanks to Mutual Funds, Gaurav and Saurabh can now be investment

superheroes. So, what's your superpower?

WHAT NEXT: Patience is bitter, but its fruit is sweet, said Aristotle. Up next, we look at how being patient while investing can make one a crorepati.

SIP can help you lower your taxable income with ease.

It is never too late to plan your taxes; start today!

ANALYSIS: GAURAV

Favourable Unfavourable

Age Low income No Debt No financial plan Regular Savings No investments

Gaurav is not the sole breadwinner of his family as he shares the responsibility with his sister and his wife. But he will soon start his own family. By all means, he must start planning his finances and provide for his future.