FAQs – Muskaan Invest Mart
1. Why advisor required?
Online insurance or investment lacks of personal relationship. It has no duty to
advice a policyholder or investor about coverage adequacy. For them you are
likely just another number. Meanwhile an advisor works with you to determine
your needs, reviews your coverage regularly to be sure you are adequately insured
and treats you and knows you as a person.
2. Is it possible for us to have a productive engagement without ever meeting face-to-face?
Yes.
Almost all certified Financial Planners in India conduct their work almost entirely
over audio / video calls and email i.e. it is an approach that has worked for
thousands of clients of these certified Financial Planners. (Note: To clarify, We do
Audio calls and Video calls, as well as we have personal meetings if required or possible)
3. What is investing?
Online insurance or investment lacks of personal relationship. It has no duty to
Investing is the act of putting your money into financial products, like stocks,
bonds, or real estate, with the goal of growing your wealth over time. Unlike
saving, which keeps your money in a safe place, investing takes on more risk but
also offers the potential for higher returns. It’s a way to help your money work for
you.likely just another number. Meanwhile an advisor works with you to determine
your needs, reviews your coverage regularly to be sure you are adequately insured and treats you and knows you as a person.
4. Why should I invest?
Investing is a smart way to build wealth for the future, whether that’s for
retirement, buying a home, or other long-term goals, even short term goals. Over
time, investments like stocks and bonds have the potential to grow in value,
helping you outpace inflation and build a stronger financial foundation
5. What is insurance? And why do I need it?
Insurance is essentially a safety net. It’s there to protect you financially in case
something unexpected happens, like an accident or illness. By paying a regular
premium, you’re ensuring that you won’t have to shoulder the full cost of these
events on your own. Think of it as peace of mind for you and your family.
6. What is financial planning?
Financial Planning is the process of evaluating your current situation, and then
preparing and executing a road map for a better financial future! A qualified
financial consultant can combine investment planning and financial planning to
ensure that you meet your important goals by investing systematically and
following correct investing behaviors.
7. What is a mutual fund?
A mutual fund is an investment vehicle that pools money from many investors to
purchase a diversified portfolio of stocks, bonds, or other securities. It’s managed
by professional fund managers who make the decisions on what to buy and sell
within the fund. This allows you to invest in a broad range of assets without
having to choose individual stocks or bonds yourself.
8. Why should I invest in mutual funds?
Mutual funds are great for investors who want a simple, hands-off approach to
investing. Here’s why they’re popular:
Diversification: By pooling money from multiple investors, mutual funds
spread your investment across a range of assets. This helps reduce risk
compared to investing in just one stock or bond.
Professional Management: Fund managers have expertise in selecting
investments, which can be helpful for those who don’t have the time or
knowledge to manage their portfolio.
Accessibility: You can invest in a mutual fund with a relatively low initial
investment, and you don’t need to worry about managing the individual
assets within the fund.
Liquidity: Mutual funds are easy to buy and sell. You can generally redeem
your shares at the NAV price at the end of the trading day.
9. How do I choose the right mutual fund?
Choosing a mutual fund actually requires a professionally qualified advisor, and
also it depends on your financial goals, risk tolerance, and time horizon. Consider
the following:
Investment Objective: What are you investing for—retirement, buying a
home, or something else? Your goals will guide the type of fund you select.
Risk Tolerance: How comfortable are you with potential ups and downs? If
you want more stability, bond or money market funds might be a good fit. If
you're okay with more volatility for higher potential returns, equity funds
might suit you.
Fees: Compare the expense ratios of different funds. Lower fees can help
your investments grow more over time.
Performance History: While past performance doesn’t guarantee future
results, it’s helpful to see how the fund has performed historically, especially
during market downturns.
10. What is a SWP?
A Systematic Withdrawal Plan or SWP is a feature where investors can withdraw
a fixed amount from a mutual fund scheme on a monthly/ Quarterly or bi-weekly
basis. Usually, this is an income generation feature where money withdrawn
automatically from a Mutual Fund is credited to an investor's bank account.