Do you believe in the saying that the journey is more important than the destination? Well don’t you think that the journey to your destination may be made better when you travel in your own car? But you must be wondering how to finance the purchase price of your dream car. It is not impossible to buy your own car especially if you plan your finances in a proper manner. Free Financial and Investment Assistance Portal, Moneymindz.com is guiding you with the best options of purchasing your dream car.
Available buying options for car
One of the easiest ways to buy your own car is by availing a vehicle loan. But assuming debt to fund your dreams may not be financially prudent.
The next option is to use your savings to buy your dream car. But you might also want to use your savings for emergencies. You may liquidate your investments to buy the car. Therefore, that leaves meeting your future financial goals in jeopardy.
Don’t worry! There is no need to despair. You will still be able to buy your dream car through mutual fund investments.
Mutual fund investments to buy your car
Using a car loan if you choose to buy the car, you need to ensure you make timely payments of the monthly instalments. Also, the interest paid on the loan significantly increases the total price of your car. If you are using your savings or liquidate your investments, you need to restart financial planning to achieve your other goals.
There are various benefits of mutual funds which are discussed below:
You can choose among different options while investing in such funds. There are several schemes such as debt, equity, balanced, and several other types offered by the fund houses. All such schemes have unique investment philosophies and based on your risk profile, investment horizon, and financial situation, you may choose one or more of these schemes.
Power of compounding
Returns on your initial capital are reinvested to earn a higher income. This will allow you to accumulate a higher corpus through the power of compounding especially if you remain invested for the long-term.
Systematic Investment Plans (SIPs)
You can invest as less as INR 500 per month through SIPs in your chosen funds. As a result, you are able to inculcate financial discipline, which is crucial to achieving your financial goals. Therefore, you will be able to enjoy regular savings without feeling any liquidity crisis through a SIP amount that suits your financial situation.
Investing in stock market can be very risky even for seasoned investors. If you do not have the experience and the expertise to directly invest in the stock market, opting for equity-based funds is a prudent option. Such schemes are managed by trained and experienced professionals who make accurate investment decisions based on market movements.
In order to achieve your dream car at the earliest, it is recommended you start investing early. If you invest early, your investment has more time to grow to help you build the corpus needed to fund the purchase of your car. It can also be recommended that you opt for direct plans provided by the fund houses to enjoy higher returns, Net Asset Value (NAV), and lower expense ratio. If you are opting for indirect funds, you need to pay the intermediary fees that reduce your effective returns on investments.
For more information visit www.moneymindz.com or give a missed call to 022-62116588
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