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Financial Planning chennai India, Private wealth management chennai India, Investment Advisory India, Systematic Investment Plan, Mutual Fund SIP, Mutual Fund ELSS, Tax Saving scheme

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how to invest in mutual funds without losing a single rupee

How to invest in Mutual funds without losing a single rupee?

by Holistic Leave a Comment | Filed Under: Investments, Mutual Funds

Listen to this article


“A mutual fund can do for you what you would do for yourself if you had sufficient time, training, and money to diversify, plus the temperament to stand back from your money and make rational decisions.” ~ Venita VanCaspel

Are you an investor who is looking to kick off with mutual fund investments but is worried about losing your money? 

This article will help to accommodate mutual fund investments in your investment portfolio without the risk of losing your capital. 

Mutual Fund investments could be intimidating to navigate as a new investor especially when it has risk associated with it.

Let us look at a more progressive approach to smooth out your fear of Mutual fund investments and dive into the article.

Risk averse investor:

Some investors tend to avoid risk or have a low-risk tolerance. Risk-averse investors prioritize the safety of the principal over the possibility of a higher return on their investments. 

Are you a risk-averse investor or have a low-risk appetite? 

Then your common objectives could be;

  • Capital preservation 
  • Steady income generation 

This might help you leave some high-risk investments out of the picture. 

If you are a risk-averse investor, then you are missing out on an opportunity to get additional returns in an alternate investment.

How to balance out the opportunity cost & Capital preservation?

Due to market volatility, one may avoid equity instruments & prefer Governments Bonds or Bank Fixed deposits. 

Let us take a practical scenario where a risk-averse investor would invest his surplus in a fixed deposit. 

  • As per the Deposit Insurance credit guarantee corporation DICGC guidelines, each depositor in a bank is insured up to a maximum of Rs 5 lakh. 
  • If you want to invest more than Rs. 5 lakhs, you can spread it across banks or spread it among your family members. Since Fixed deposits provide capital protection, half the battle is won. 
  • Now lets us move on to the next step. Choose the non-cumulative option in bank FD. So that each month you get a cash flow that can be routed to a Mutual fund Systematic investment plan. 
  • In other words, the source for your SIP investment is your Fixed deposit monthly interest.

The following calculations will give you a better picture. 

Bank FDBank FD TenureSIPSIP TenureFund ValueFinal Corpus
Scenario 110,00,0005yrs63005yrs5,19,66410,00,000+5,19,664
Scenario 210,00,0005yrs63005yrs SIP + 5yrs (without SIP)9,15,826(10,00,000) +9,15,826
Scenario 310,00,00010yrs630010yrs14,63,73610,00,000+14,63,736

Now, let us look at what each scenario translates into briefly below:

Scenario 1:

If a person invests Rs. 10 lakhs in a bank offering 7.6% p.a. interest for 5 years, the fixed deposit will fetch a monthly interest that would be around Rs. 6333. This amount can be invested in a Mutual Fund SIP. 

Let us assume that this amount is invested in Equity large-cap funds where the average 5-year return would be around 12%. If this continues for the next 5 years, then the final fund value would be Rs 5,19,664.

At the end of 5 years, the amount invested in the bank along with your Mutual fund investments would amount to Rs. 15,19,664. 

Scenario 2& 3 are the continuation of scenario 1 i.e., the first 5 years is the same under all scenarios.

Scenario 2:

In this case, let us assume you consume a capital of Rs. 10 lakhs at the end of 5 years. So, probably there won’t be any SIP after the end of 5 years. 

But the existing fund value through the first 5-year SIP grows at the same interest rate of 12% in the next 5 years. Then the fund value at the end of the 10 years would be Rs. 9,15,826.

Scenario 3:

Under Scenario 3 If you continue to do the SIP in the next 5 years as well, i.e., a total of 10 years SIP, then at the end of 10 years, the fund value would be around 14,63,736. At the end of 10 years, your corpus value along with the capital is Rs 24,63,736.

When you invest using this strategy, a longer time horizon will yield better returns & also reduce the risk involved.

Conclusion:

Investors who are new to investing are inclined towards traditional savings instruments. But a balanced portfolio is required to achieve your financial goals. 

“If you have the stomach for stocks, but neither the time nor the inclination to do the homework, invest in equity mutual funds.” – Peter Lynch.

Diversifying your investment across Equity & Debt instrument yields better returns than Pure Fixed Income Securities. Though Equity instruments have the potential to yield reasonable returns, not all investors have the time to research, analyze & pick stocks. 

Mutual funds fill this gap as;

  • It offers a better risk-adjusted return in the long run. 
  • It also provides an inflation-beating return which is missing in Fixed Income instruments.

Watch our video on “How to invest in Mutual Funds without losing a single rupee” to better understand this in detail. 


Select an appropriate fund based on your financial goals & time horizon to achieve the said goals & start on your investment journey. 

This progressive approach will give you better insights into the practicalities of mutual funds & help transform you as a savvy investor down the lane in the long run.

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Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Google Reviews

Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

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