How to get rich this year?

Everyone wants to be rich. Becoming rich should also be on your priority list. Nobody wants to live life in poverty. But you cannot become rich without doing anything. For this, you have to make financial goals and save and invest to meet them. Your financial goals may include buying a home, planning for retirees or providing quality education to children. If you want to get rich in the year 2020, you have to save and invest. So through this article we are going to tell you how you can become rich in the new year.

How to become rich?

In the year 2019, many people have started investing in mutual funds through SIP (systematic investment plan – SIP) and they have not stopped investing in mutual funds even after the weak performance of the stock market. At the same time, FD is also offering interest at a lower rate due to cut in repo rate by RBI. In such a situation, investors are looking towards mutual funds to meet their financial goals. You can become rich by adopting the following suggestions.

Increase savings when expected returns are not received

Just saving or investing alone can never make you rich. If you earn more, you will also have to invest more with more savings. You can never achieve your goal if you save as much after your salary increases, as you were doing before. For example, suppose you want to collect Rs 40 lakh in 10 years to buy an apartment. You invest Rs 14,500 every month in a mutual fund through a SIP. From this you were expecting a return of 15%, but sadly you are getting only 12%. So to reach the financial goal, you have to raise the amount of Rs 14,500 invested to Rs 17,000 thousand. So if you are not getting the expected return on your investment, then you should increase the investment along with increasing savings.

Get portfolio tracker

There are many portfolio trackers in the market, but to achieve your financial goals you will need the best portfolio tracker. Take a portfolio tracker that shows the current value and daily changes of your portfolio. In addition, you can also get information about total returns and inflation-adjusted returns. Information on the total returns from the portfolio and the returns per year. You also know how much% of your holding in each stock in the portfolio. Modern portfolio trackers also reflect the tax efficiency of investments. It also gives you information about the capital gains you get in each financial year. This will help you estimate the profit or loss from your portfolio.

Check debt fund portfolio

The year 2019 was not good for debt fund investors. Debt funds are viewed with suspicion following the IL&FS fiasco and DHFL defaults. Debt fund schemes have fallen in value due to ratings downgrades and defaults. Because many schemes have exposure to low-quality instruments and many mutual fund houses were not expecting AAA-rated top companies such as IL&FS and DHFL to be defaults, there is disappointment in the market. Beware of debt funds that have high exposure to low redempt bonds. Mutual funds invest in such redempt bonds to increase returns, but this is a risky step. The default increases the risk of the fund. Always emphasize a high level of security when investing in debt funds.

10 of the portfolio% Invest in gold

Gold has been the choice of people since long ago. This protects investors from inflation. Gold has given good returns in the year 2019 due to the US-China trade war. Gold may not offer very high returns in 2020, but maintain a 10% portfolio in gold. To protect the investment, it would be better to invest in electronic form of gold such as gold ETFs.

Avoid investing in real estate

Real estate is a good market in India, but when people have money and buy it. As the Indian economy is going through a recession, investors should stay away from real estate. People invest in real estate only when the prices of land or apartments are expected to rise or they are likely to get higher rent. But as of now, it is a bit difficult, so you should consider investing in other investment options such as equity or small savings schemes depending on your risk appetite. The real estate sector in India has been falling badly for 4-5 years.