 "Map for new investors; Southern food charm: Top personal finance stories")
A record 1.2 million new investors entered mutual funds in July, the highest since December 2021. They must invest in such a manner that they do not get scarred right at the beginning of their wealth-creation journey. Which funds should they start with, and how should they allocate their investments among various asset classes? Read the lead article by Sanjay Kumar Singh & Karthik Jerome to understand how new investors should begin their investment journey.
The second article by Namrata Kohli explores the diverse cuisines of South India, extending beyond just idli-dosa. It delves into the five distinct culinary styles from Tamil Nadu, Kerala, Telangana, Karnataka, and Andhra Pradesh. Discover the unique characteristics that define each of these South Indian food traditions.
Midcap funds are a good choice for those with an investment horizon of 10 years or more. These funds invest at least 65 per cent of their total assets in midcap stocks. One fund you may consider is SBI Magnum Midcap Fund, which has been reviewed by Morningstar this week.
If you are seeking a personal loan, check Paisabazaar.com’s table for a comparison of interest rates, processing fees and other details.
NUMBER OF THE WEEK
47% of fixed deposits are held by senior citizens
More From This Section
According to an SBI report, 47 per cent of fixed deposits are held by senior citizens, implying that younger people are increasingly moving away from traditional instruments like bank deposits.
Seniors favour the security and stable returns of bank deposits. Younger people are turning to direct equities and equity mutual funds, which are riskier but have the potential to deliver higher returns over the long term.
Financial planners suggest that after retirement, a senior citizen’s portfolio should be split into two parts. One part should generate the necessary cash to meet their household expenditures. This portion of the portfolio should be invested in instruments like fixed deposits, annuities, and the senior citizens savings scheme – instruments that have the ability to generate stable cash flows at predetermined intervals.
The other part of the corpus should continue to remain in equities. With lifespans increasing, retirees will need a bigger corpus to meet their post-retirement expenses. This will only be possible if a part of their retirement portfolio is in equities and continues to generate high returns.