Dreaming of visiting a new country, spending a moment of peace on the banks of a beach or spending a holiday with the family for years. Today, it is not just luxury or expensive hobby for many passengers and people who are fond of visiting. Walking has become one of the necessary things for them. However, the price of this dream of going on holidays can sometimes be quite high.
There is a good news: You have to make a little plan and you can fulfill the dream of going on holidays through a systematic investment plan (SIP) in mutual funds. For this, you will neither have to withdraw money from your savings nor take loan from anywhere.
This is completely “Nivesh Ka Sahi Kadam” and by doing so you will become like a glowing star of “Mutual Funds Sahi Hai”.
How to fulfill the dream of going on holidays by investing in SIP?
Most people suddenly plan holidays and then pay with credit cards or take personal loans for the trip. Some people withdraw money from their savings and go on holidays. Follow any of these methods, but it affects your economic security. If you plan holidays in advance and invest in SIP continuously for this, then there are many benefits:
● Will be able to build a separate fund bank for your journey
● Borrow from someone at the last moment and stay away from financial stress
● You will be able to enjoy your holidays full, because you know that your economic goals and savings are in the right direction
Follow these steps to plan a trip with SIP
1. Decide where to spend the holidays and how much will it cost
→ Also decide where you want to go (in the country or abroad), how long these holidays will be and what kind of experience (luxury/budget).
→ Estimate how much the cost of this trip will be. It should also add flights, food, food, expenses of movement, shopping and potential inflation (usually 10–15%) in the coming days.
2. Set the time for the holidays (3 or 6 months like this)
● How much time do you have to deposit money for a trip? You should choose your mutual funds only on the basis of this time period.
→ Less than 1 year: Liquid or ultra-short date can take funds, they do not even have high risk.
→ 1 to 3 years: You can take short term or corporate bond funds and there is a risk of up to medium levels.
→ For 3+ years: You can think about balanced or hybrid funds. There is every possibility of getting high returns.
3. Add your SIP amount
→ Use SIP calculator: Insert an estimated budget amount to go on the holidays, insert potential returns and time period, so that it can be ascertained how much money you should invest every month.
→ Example: Your goal is to save ₹ 4 lakh for a foreign trip in the next two years. If you are expecting 7% return annually (so much return can be expected from a correct date fund) Calculate on Goal SIP calculator, you will see that you have to invest about ₹ 15,600 every month for this.
4. Start your SIP and stay regular
→ SIP is cut on the fixed date, apply this facility. This will never miss your SIP.
→ Understand this investment like rent or electricity bill, which cannot be ignored.
5. Keep monitoring how much you have moved towards your set target.
→ Review SIP in the event of any change in your trip plan (time, place, etc.).
→ If you get additional income from somewhere or get a bonus, then invest it in SIP. This will keep you more funds for travel.
SIP is the right step for your trip plan
● Disciplined method of savings: A regular, disciplined savings of investment through SIPS are possible. With this, you can fulfill your dream of going on holidays without being financially disturbed.
● Benefits of compound interest: If you start with even a small amount, then in a few days it turns into a good amount due to getting the compound interest rate.
● Flexibility: You can start your SIP anytime, change it and close it.
● No compromise with other economic goals: When you make your fund separately to go on holidays, there is no injury to your long economic goals for a long time. Due to the finished fund, you do not have to withdraw money from the funds kept for your savings or emergency expenses.
Watch this video of Subbu, in this he has explained in detail how one of his income can be kept for holidays or trips through SIPS. You can fulfill the dream of visiting the world. For this, no compromise will be made with your economic goals. A little discipline and plan is needed and your dream vacation is only at a distance of a few sips.
For more information, see here:
Disclaimer: Mutual fund investment is subject to market risk. Read all the documents related to the scheme carefully before taking the investment decision. Performance of a fund in the past is not a guarantee of performance in future.