The Panacea for Financial Needs

When you get sick, the doctor prescribes different medicine for different symptoms. Because one pill can’t cure all illnesses.

The same way you can’t achieve all your financial goals by keeping all your savings in one investment instrument.

For example, if you want to gather $100,000 for your house down payment that you plan to buy 3 years from now.

What are your priorities with this $100,000 sum:

– Low or no fluctuation in principal

– Cash available in 3 years

Where should you keep these funds?

–Savings account – keeps money safe and readily available but return on money is lower than inflation

–Fixed deposit – keeps money safe and readily available return on money better than savings account but still lower than inflation

–Equity mutual funds – High Principal fluctuation

–ETFs – High Principal fluctuation

–Short term liquid funds – keeps money safe and readily available return on money is closest to inflation

Above description tells us clearly that ‘Short-term Liquid Funds’ is the investment instrument that offers both stability and liquidity with an added advantage of growing the sum at a rate equal to inflation.

To be able to do this assessment you need to be Financially Literate. Start working towards it today!!