How to save money? This is the most common question that has kept people curious over the years. As a matter of fact, the most difficult part about saving money is getting started. It gets hard for people to determine simple plans to invest money and how to start saving in those plans to meet their Financial goals. If you are in a similar situation, you must consider some money savings tips and then make your decision.
You do not need to have huge sums of money to start Investing. There are other simpler ways for you.
Generally, there are certain goals according to which people start investing. Some of the basic goals are mentioned below.
As you start earning, the first thing you want to know is how to save money from tax deductions. Though there are many Ways to Save Tax, SIP is one of the most convenient ones.
By investing through SIP the money gets deducted in regular intervals, so there is no burden of a lump sum investment.
Also, the SIP investments are liable for deductions under Section 80C of the income tax Act. So, all your questions about how to save money from Taxes have found a solution. By investing in a SIP, one can save somewhere between INR 15,000 to INR 45,000 in taxes per year.
Since the birth of your children, you should start planning for their future, that includes education, marriage etc. But how to save money for making investments is your question, right? The solution is simple and quite convenient.
invest in Mutual Funds through SIP. As you know, SIPs invest a small amount for regular intervals, it very convenient for people.
Additionally, SIPs work the best for long-term investments, that further makes it beneficial for you to save money for your child. So, don’t just linger on how to save money, just invest in a SIP and you are done.
There are various investing options that help you on how to save money. These plans include Provident Fund (PF), National Pension Scheme (NPS) etc.
But, one of the best money saving plans is a Systematic Investment Plan. It invests your money in growth assets and helps you create a powerful corpus for your retirement.
For example, let’s suppose you earn INR 30,000 per month at the age of 25 and invest INR 2500 per month in a SIP, increasing it by 10% every year, your savings would be the following-
Know Your Monthly SIP Amount
Therefore, when deciding how to save money for your retirement, make sure you invest in SIP.
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Some of the best and top performing SIP funds that will help you to earn good returns from your savings are:
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2021 (%) Principal Emerging Bluechip Fund Growth ₹183.316
₹3,124 100 2.9 13.6 38.9 21.9 19.2 SBI Small Cap Fund Growth ₹110.297
₹11,646 500 10.8 8 17.9 31.6 18.9 47.6 L&T Emerging Businesses Fund Growth ₹46.027
₹7,336 500 9.6 4 15.8 29.1 13.6 77.4 Sundaram Rural and Consumption Fund Growth ₹63.1621
₹1,075 100 17.4 11.7 15.7 18.2 9.2 19.3 Franklin Build India Fund Growth ₹67.3467
₹1,028 500 12 5.9 13.8 20.2 11.9 45.9 IDFC Tax Advantage (ELSS) Fund Growth ₹99.691
₹3,399 500 9.1 3.5 11.2 24.9 13.8 49.2 Tata India Tax Savings Fund Growth ₹29.0641
₹2,743 500 12 4.8 10.8 18.7 12.2 30.4 Tata Equity PE Fund Growth ₹205.328
₹4,677 150 10.5 6.6 10.2 17.2 9.8 28 Kotak Equity Opportunities Fund Growth ₹203.729
₹9,223 1,000 10.4 5.9 8.9 21.3 12.8 30.4 Mirae Asset India Equity Fund Growth ₹80.043
₹30,299 1,000 10.6 3.4 6.9 17.7 12.6 27.7 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Dec 21
By now you know how to save money through a SIP. So, if you are also planning to save money for the above-mentioned reasons or just want to save money anyway, make a SIP investment now. Save money, live better!