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4 Cool Investing Tricks to share with Your Dad This Father’s Day!

All over the years, our fathers have accumulated wealth to secure our Future. Even if we do not ask for it, they will continue doing so. This article discusses 4 Investing tricks that you can share with your fathers, which will help them plan better investments.
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Our fathers have been toiling hard to secure our future right from the day we were born. From putting up with our hospital bills, to school & college fees, to even our dream wedding - Dads take care of it all. This superhero does everything possible to keep everyone in the family happy & secure. 

The unique thing about dads is that they will continue gathering wealth for us irrespective of what the circumstances are. Father's Day is around the corner, and it's time to show your love and respect for him by surprising him with a gift. But, rather than a watch or a shirt, how about sharing some cool Investment tricks with your super dads? This way, we will be successful in helping him put his money to better use. 

So, head on and share these 4 Investment Tricks and see the smile on your Super hero’s face!

  1. The Trick to Saving with Regular Expense
    • Every month, we spend money on food, everyday home items, medicines, etc. What if we could continue to spend money on these routine expenses while saving money? What if we could save between Rs. 2,500 and Rs. 10,000 per month from our everyday savings and invest it? Sounds interesting! Let's know-how!
      • Buy commodities under direct discount on MRP or are available for various other offers like Buy One Get One Free. Also, don’t forget to collect various freebies that might come along with different products. 
      • Don’t forget to avail Discount/cashback offers on credit cards/debit cards/wallets.
      • Many 3rd party websites like Cashkaro offer additional discounts that can be put to good use!
      • Your Credit Cards offer various attractive discounts on various products. In addition, one can use loyalty points to buy selected products directly. 
    • All these smart ways of saving money while you carry out your regular purchases will help enough to start another SIP.
  2. Shaking Hand with Index Funds
    • Index funds are mutual funds with a portfolio designed to track the market's index. Low portfolio turnover, broad market exposure, and low expense ratio characterise these funds. They are also known as passive funds because they duplicate the benchmark's portfolio. For long-term investors, these funds are best as they want to stay invested for 10 years or more. The pros and cons of investing in Index Funds can be summed up as follows, do check them out before you go ahead with them.
    • Advantages of Index Funds
      1. Index funds are less expensive to own since they are based on an index rather than actively managed. Instead of hiring a costly research team to uncover the best options, the fund industry simply repeats the index. As a result, index funds frequently have low expense ratios.
      2. Due to their lower turnover, index funds that are also mutual funds may lower investors' tax burden. However, in the case of index ETFs, this is immaterial.
      3. By combining various assets, index funds can benefit diversification, minimising your risk as an investor.
    • Disadvantages of Index Funds
      1. Not all index funds are created equal, and an index fund that tracks a bad index may provide investors with poor returns.
      2. An index fund distributes the assets' weighted average return. Since it must invest in all of the index's equities, it cannot avoid the not-so-good performing ones.
  3. Let Goals be the Investment Guide
    • Comprehensive financial planning is a journey that lasts a lifetime. Many financial goals must be met along the route to complete the voyage. A financial goal can be classified as short, medium, or long-term.
    • Investing according to your goals will allow you to swiftly build your money and reach your objectives without working for the rest of your life. However, unlike savings, where you put money aside for future use, investment, where you aim to increase your money, comes with its own set of risks.
  4. Axe the Tax with this ELSS Hack
    • The Equity Linked Savings Scheme (ELSS) provides the optimum blend of wealth creation and tax benefits blend. Investments in ELSS are eligible for a deduction from taxable income under Section 80C. The amount invested or Rs. 1,50,000, whichever is lesser, is the maximum deduction allowed in a financial year. However, please keep in mind that no maximum amount can be invested in an ELSS. The tax deduction under Section 80C, on the other hand, is restricted to Rs. 1,50,000 every financial year.
    • Within three years, with one easy ELSS hack, your ELSS investment requirements will start to take care of yourself. 
    • Set up a 10-year SIP in the ELSS scheme of your choice. Begin a Systematic Withdrawal Plan* in the 37th month (SWP). For the remainder of the ELSS SIP, which in this case is 7 years, the SWP should be in the same scheme for the same amount.
    • ELSS Investments have a three-year lock-in period. As a result, you can withdraw the number of units you bought 36 months ago.
    • With this technique, the first month's payment is withdrawn in the 37th month and used to pay for the 37th month's ELSS investment. As a result, your Tax Saving ELSS investments become self–sustaining, requiring no additional contributions from your income.

Our parents taught us to save money. But, it was probably our fathers who showed us how to invest. So, now we must help him put his hard-earned money to work so that he can fulfil all of his dreams and live happily ever after. So, let Glide Invest be your guide in your and your family’s investment journey so that together we can make your money grow. To get started, download the Glide Invest App now!

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