How we park Our savings every month can make a difference. Lets see this with an example.
You wish to Travel from New Delhi to Goa. We can take a direct flight from New Delhi for Goa or we can choose to travel by train or car.
Without taking into consideration the cost of these modes of transportation, most of us would prefer to take a direct Flight given the choice. This is because it will save us time and efforts.
Here we don't mind the risk of a crash whatsoever minute its probability be.
Similarly we will always be better off making 60-75% of investment of our savings every month in Index fund, multi-cap/bluechip, hybrid (mix of debt and equity), balanced funds by way of SIP and parking rest of the balance in Bank FDs, LIC, and other liquid schemes.
Since it will help us accumulate more wealth (i.e reach a particular target within given tenure) rather than if it was vice-a-versa.
# EQUITY FUNDS SIP # TREND INVESTING