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Travel tales

Smart ways to finance your travel around the world

Smart ways to finance your travel around the world

Everybody loves travelling. But, a lot of preparation goes in before you actually board the flight to your preferred destination. And the most important factor to consider is Funds, sufficient funds. It’s really more crucial and real as it relates to traveling. There are a lot of options to finance one’s trip, and these days Mutual Fund is one of the most popular investment options.

A Mutual Fund is an investment medium wherein an asset management company (AMC) or fund house pools investments from several individuals and institutional investors with common investment objectives as per the scheme related documents. Mutual funds can help in fulfilling any type of our dreams – paying out loans, education of children, or retirement planning. A systematically planned investment through mutual funds helps us fulfill our dreams of travelling as well.

Investing in Mutual Funds is an excellent way of diversifying your investment portfolio. Mutual Funds in India are broadly classified into equity funds, debt funds, and balanced mutual funds, depending on their asset allocation and equity exposure.

Investing in Mutual Funds provides several advantages for investors. They are the ideal investment option because of their flexibility, diversification, and expert management of money. Also, investing in mutual funds schemes comes at a low cost, and thereby making it suitable for small investors.

Mutual Fund schemes come with a high degree of liquidity; they have no lock-in period (except tax saving mutual funds), so withdrawing funds from your Mutual Fund investments at times of financial crisis is simple. There are open-ended Mutual fund schemes, and they come with varying exit loads on redemption. People, especially millennials prefer mutual funds over any other investment vehicle because of this.

Another important fact about mutual funds is that they are under the purview of the Securities and Exchange Board of India (SEBI). Apart from that, the Association of Mutual Funds in India (AMFI), a self-regulatory body formed by all fund houses in the country, also regulates mutual funds. Therefore, there is no need to worry for investors about the safety of their mutual fund investments, as the objective of SEBI is to protect the investors interests.

More information on Mutual Funds at Mutual Fund Dictionary

Around the World with Mutual Funds

Funding a vacation is just like investing to achieve any other financial goals. A vacation is normally a short-to-medium time goal, and a mutual fund scheme should be chosen well in advance depending on the basis of the time in hand. For an instance, if your vacations are less than three months away, then liquid funds are advisable. For plans which have more time, you should invest in ultra-short-term funds. These funds give you better exiting options too. 

3 P’s of smart investing

3 P’s of smart Investing

SIP (Systematic Investment Plan)

The most significant advantage of investing in a Mutual Fund is that you can invest a small amount regularly via a SIP (systematic investment plan). The SIP can be scheduled on a monthly, quarterly, or bi-annual basis.  You can initiate or terminate a SIP as and when you need. Investing via SIPs can relieve the pressure of arranging for a lump sum to get started with mutual fund investment. You can plan your investments in equal parts over time with a SIP, and this gives you the benefit of rupee cost averaging in the long run. You can go through the following link and calculate funds requirements for your next vacation: How Far Will Your Next Vacation Take You?

Disclaimer: This information is for general information only and does not have regard to the particular needs of any specific person who may receive this information. L&T Investment Management Limited, the asset management company of L&T Mutual Fund or any of its associates; does not guarantee/indicate any returns/and shall not be held liable for any loss, expenses, charges incurred by the recipient. The recipient should consult their legal, tax, and financial advisors before investing. The recipient of this information should understand that statements made herein regarding future prospects may not be realized or achieved.Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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