In an economic environment where inflation and risk-free rates, such as T-bills and bank savings accounts, hover around **10.5%**, many investors struggle to generate real wealth growth. My **80:20 investment strategy** is designed to **outperform inflation** and secure superior returns while maintaining a balanced risk profile. By following this structured approach for a minimum of **three years**, investors can achieve consistent growth and financial security. Breakdown of the 80:20 Investment Strategy -80% Allocation: Invested in Cash Funds and Income Funds, targeting an annual return of 10.5%. -20% Allocation: Invested in Stock Funds, aiming for a minimum annual return of 20%. This combination allows investors to benefit from steady fixed-income growth while leveraging the stock market’s potential for higher returns. Investment Growth Projection (Annual Compounding) Let’s assume an investor starts with Rs. 100 under this strategy: 80% Allocation – Cash & Income Funds Inve...
When it comes to parking your cash and earning some profits, two popular options to consider are money market funds and savings accounts. Both offer a safe place for your money while potentially generating some return. However, they have differences that can significantly impact your financial goals. In this blog, we'll explore the comparison between money market funds and savings accounts to help you decide which one suits your needs better. Money Market Funds: A Step Beyond Savings What are Money Market Funds? Money market funds are mutual funds that primarily invest in short-term, low-risk securities like government and corporate debt. They aim to provide investors with a slightly higher yield compared to traditional savings accounts while maintaining a strong focus on capital preservation. The Strengths of Money Market Funds: Higher Yields : Money market funds typically offer slightly higher interest rates compared to regular savings accounts, making them more appealing for sh...