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5 Money Mantras for 2021

2020 might possibly be the most dynamic teacher we have had in our lives. The year really pushed us to take a step back and take a long, hard look at how our lives are built, the foundation of everyday lives and the framework of how we go about doing it. While the importance of health and a clean lifestyle was brought to the fore, so was the discussion around financial health. 2020 was a year filled with challenges; while the market took a hit, we also saw one of the best equity rallies in a long time! Job security, savings, health insurance and more were the talk of the town, and with good reason. Job security, savings, health insurance and more were the talk of the town, and with good reason. 

This is precisely why we’ve come up with 5 simple yet incredibly effective Money Mantras for 2021, to ensure smooth sailing and a strong back-up plan. Read on to know more. 

BUILD A BUDGET

One of the easiest yet effective things you could do for your money right now is starting to build a budget. It’s the ultimate tool to help you control your expenses and channel your finances towards achieving any goals you might have set. Budgets, at their core, exist on a balance—if you want to spend more on something, you’ll have to forfeit or spend less on something else. This simple practice gradually teaches you how to prioritise your earnings and spend them wisely on things that actually matter. Usually a budget is a combination of your household, transport, personal and miscellaneous purchases. Nowadays, there are many budget-calculating apps that you can download to help you track your expenses—or better yet, talk to your financial advisor for a more detailed approach. 

INVEST IN A GOOD HEALTH INSURANCE

As mentioned earlier, health insurance is the topmost priority in today’s time, and should be treated as such. A good health insurance should cover the basics—this includes hospital charges, pre & post hospitalization included. It should also cover not just you, but your family as well, ensuring that should you ever require the help of your insurance, paying the bill will be the last thing going through your mind. One of the biggest blunders we as a customer make, is to simply assume that we will not require health insurance until we are much older. However, on the contrary, being well-prepared when it comes to your health from an early stage in life will only pay off in the long run.  

BUILD AN EMERGENCY FUND 

Out of all the financial years so far, if 2020 has not convinced you to build yourself an emergency fund, we doubt what else will! If you’ve been thinking about starting your emergency fund, there’s no better time to do so than now. This will help you face potential job cuts/salary cuts, household damage repair and any medical emergencies with the reassurance that you have your emergency fund to help you out. 

DIVERSIFY YOUR INVESTMENT PORTFOLIO

It’s never a good idea to put all your eggs in one basket. The same goes for your investments—diversifying your portfolio will help you stay afloat in the event of an unexpected market crash. And the best part is: it’s not that hard to implement. Diversification operates on a simple idea, that an investment portfolio consisting of different investment types will essentially lead to optimizing the risk. A well-diversified portfolio might include- cash, bonds, stocks, mutual funds, exchange-traded funds. To know more you can contact us and find just the right diversification model for you. 

CURB IMPULSE PURCHASES

Our last point ties back to where we started: setting a budget! When you know you have a budget that allows you a certain amount of expenditure, it automatically helps you steer clear of purchases that you really do not need. One of the best ways to figure out whether what you want to buy is something you really need is to give yourself a waiting period: give it 24 hours or sleep on it. If you still feel the need to purchase it, then compare prices online to pick the best one. If not, you’ll realize that what you almost spent your money on was simply a phase. 

Although these Money Mantras look simple, their impact is anything but. Stay consistent with your budgeting, investing & savings, and trust us—you’ll see your bank account flourishing in due time. For more information, get in touch with us at cagrfunds@gmail.com

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Track Your Mutual Fund Investments Real Time

Till some time ago, every family had a relationship manager who would periodically come and meet our parents and discuss his mutual fund investments with him. And that was the only time our parents could get to know how their funds were doing. This is similar to those times when the only way to send money to someone was to visit a bank branch and deposit some cash/cheque.

With the onslaught of technology, everyone is seeking more convenience in everything that they do. So we don’t want to visit bank branches anymore and neither do we want to depend on our advisor to tell us how our money is doing. At CAGRfunds, we realized this urge for independence and therefore provided our clients with the convenience of tracking their investments on their own personal CAGR dashboard.

Once you register and start investing through the CAGR platform, you are assigned your own login details with which you get access to your own dashboard. Not only can you invest in mutual funds online but also track how your funds are performing.

But you do get a bunch of statements on your email, right? So what is there to track? Well, three reasons why our dashboard helps:

Comprehensive Data:

Some reports give you the value of how much your money has grown while others show you the list of transactions you have made. We give you everything relevant at one place. We show you how much you have invested, the current invested value, the absolute return and the annual return.Not only that, we show you the individual funds that you are invested in and what is the return you are making both at the fund and portfolio level. We also show you how your investments are split between asset classes and if it is in sync with your decided asset-allocation.

Simple Enough For Anyone To Get It:

The fine print and numbers overload on the statements you get on email makes it all the more complicated. Either you sift through all the information yourself or stay uninformed. We obviously don’t want that and hence our dashboard and reports are quite simple. Our clients told this to us! Don’t believe? Read here.

Any Time Visibility:

Reports generally come to you at the end of the month or when you transact. But with us, the next time you are discussing investments with your friend, just log in, check your current portfolio value and returns and have a more informed discussion!

We, therefore, ensure that you stay in complete control of your portfolio. So the next time you call us, it is only to discuss your portfolio, not to get data – because your dashboard gives you all the data you need!

If you have been facing trouble tracking your investments and want to switch to a truly delightful investing experience, do not hesitate to call / Whatsapp us on +91 97693 56440. You can also comment on this post or email us on contact@cagrfunds.com.

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How CAGRfunds Makes Investing Simple For You

How CAGRfunds decodes the complexity of financial planning for you?

When we first started this business, we went out to talk to our friends about what they thought about investing and financial planning. May we say, we were surprised with the kind of responses we got?

While some of them knew bits and pieces of what financial planning means, most of them were upfront about why they never thought about it. Or rather, thought about it but kept on delaying any action. It was just too complex. That is when we decided to keep investing simple. Whether it was the concepts, the terminology, the planning or the transactions, we were absolutely sure that everything about financial planning needs to be simple.

So we started spending time with every such person we met. Our conversation never started from “How much do you want to invest?” We almost always just asked, “What do you do with your salary or earnings?” As we got answers to what people did with their earnings, we asked more questions, and then more answers. We think we are very good listeners. So that helps us to understand how best we can simplify your finances for you. And thus started the journey of decoding or let us say de-jargonizing the process of financial planning.

Likewise, we never get into terms like CAGR, ROI, risk profile, net worth etc. At CAGRfunds, we believe that there is always a simple layman-way of explaining things. So we generally pick up situations from your life to explain every relevant term to you. For example, if you are an entrepreneur and are wondering how risky will equity mutual funds be, we will perhaps take instances of how you set up your company to give you a sense of what risk in equity means.

Being able to de-jargonize and break down financial planning into simple concepts has helped us a lot in connecting with people who have limited understanding of finance and numbers or who are unable to take the right decisions about managing their money. And hence, we love to interact with people.

If you are one of them who wants to grow their wealth but is confused about how to go about it, maybe you should befriend us. We don’t charge you for a conversation, so no harm giving it a try!!

Whatsapp / Call us on +91 97693 56440 or email us on contact@cagrfunds.com.

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As they hit the final IPL shot, let us take home a few key learnings!

India loves nothing more than its cricket. And cricket is best epitomized in the all exciting and our very own Indian Premier League. However, if we spare a thought, IPL is not just a game. The learnings that we can derive from IPL are applicable in multiple facets of life.

Let us see how you can takeaway 5 things that will help us manage your money better.

1. Balance your portfolio

T20 as a sport demonstrates how a team cannot harness dependency on a single player. A winning team is a combination of the right mix of bowlers, batsmen and all-rounders.

Likewise, a portfolio which is diversified across various asset classes is always preferable over one which focuses on a single asset class. Imagine you invest all your savings in that house you had always dreamt of. While you now own the place you stay in, you don’t know how to fund the medical emergency that has suddenly cropped up in the family. Hence, it is essential that you map your investments to various goals and create a balanced portfolio.

2. Start planning early

IPL teams start wracking their brains right from the day they have to pick their players: which players should be retained, what would be the best combination in the given budget, is the value of a player worth his cost?

Similarly, an early planning for investing is always worthwhile. Not only does it give us better control over our finances but also gives us substantial time to plan for our goals. It is therefore important to understand every step in financial planning before you actually start investing.

3. What’s hyped isn’t always the best

IPL-1 is a great reflection of the famous catchphrase ‘all that glitters is not gold’. With their multi-million dollar wallets, pundits betted on teams like Mumbai Indians and Delhi Daredevils. The season, however, ended with the shoestring-budgeted Rajasthan Royals taking the trophy home. People thought that a bigger budget meant winning the trophy. But if only it was that simple!

Hype can often be misleading. We often tend to fall prey to herd mentality. However, it is of utmost criticality that you decipher facts yourself and look at all the important statistics with the help of an expert.

4. Keep your calm: Don’t quit on a winning strategy

IPL-2015 – a case in point. Mumbai Indians lost the first four matches of the season and were at the bottom of the table. But they knew they had a winning mix. They chose to stick to their guns and treaded with caution and patience. Result – They brought the trophy back home.

So, if you know that you have a winning portfolio or a winning strategy, don’t quit! Don’t be bogged down by short term fluctuations and focus on the long term.

5. Some advice along the way always pays off

We have often seen the cricketing maestros contributing their bit in mentoring and guiding the players off the field.

Financial planning which is a highly knowledge driven domain, is better done when planned along with a financial advisor. While your current knowledge may seem to be sufficient and adequate, you might not be as aware of the latest developments or specific implications of different instruments and investment avenues. It therefore always pays off to consult an advisor before you take that big leap with your hard earned money.