Parents and elder relatives constantly pester Millennials to save more. However, taking out money for investments is not easy when societal criticism and peer pressure trap you to spend more than you save for tomorrow. But, this is the ideal age to start planning for finances and, therefore, investing more diligently. When talking about investments, mutual funds are definitely the best option even for beginners. Mutual funds offer an opportunity for a diversified portfolio, liquidity and low costs.
Whether one wants to save for a short-term or a long-term goal, mutual funds can accomplish both. With the comfort of investment one can start with a tiny amount also. However, how to get the best returns is a big question for millennials. Millennial investors can follow the following strategies to make the most of their investment.
1. Why choose Mutual Funds?
The time is right for accumulating more to your investment portfolio. Some investment selections are safe and have a potential to give good returns in the future. Mutual fund invests in firms with better track records with the objective to provide capital appreciation in long run. The high return vs. high risk strategy could be suitable for millennial/young investors.
2. Keep Investing when the Market Appears Hard
Keep your Systematic Investment Plans (SIPs) running and do not worry about the functioning part of mutual funds. Mutual funds are one of the finest investment choices one can make regardless of market conditions. Redeeming your investments due to huge market volatility is not a good decision as continuing SIPs will help you balance your average cost of investments and will reap you benefits of averaging over a long term duration. So, keep investing even if the market corrects and top up your investment in SIPs.
3. Stay Safe from Redemption Burden
There have been several market falls in the past but there is always a recovery post the fall. So, it is of significant importance to keep emotions aside and stay calm and not redeem your investments in fear and anxiety. It is also essential not to go overboard with investing. Ups and downs of the market are part of the investment journey and as an investor, you must refrain from panic actions.
4. Review Periodically
Ensure that you take the periodic review of your portfolio and your financial goals to alter your portfolio according to changes in the market, risk appetite, your age and goals. When the market is volatile, you may need to alter your investments based on your risk appetite and market conditions. This keeps your funds active as per the current market circumstances which adds to a decent return to your overall portfolio throughout the entire investment tenure.
5. Diversify Your Investment
A diversified portfolio holding multiple asset classes is the best way to make optimum risk-adjusted returns from various asset classes. Although it is true that asset allocation and funds selection depends entirely on investment horizon, financial goals, and risk appetite; it is also essential to avoid investing in several funds as it might not be possible to track their performances.
The best investment advice for millennials is to start investing in mutual funds and enjoy the benefits of long term investing and compounding.
Views are personal: The author Pankaj Ladha is a mutual fund distributor from Kota.
Disclaimer: The views expressed are of the author and are personal. TAMPL may or may not subscribe to the same. The views expressed in this article are in no way trying to predict the markets or to time them. The views expressed are for information purpose only and do not construe to be any investment, legal or taxation advice. Any action taken by you on the basis of the information contained herein is your responsibility alone and Tata Asset Management Pvt. Ltd. will not be liable in any manner for the consequences of such action taken by you.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
