John Inbaraj had been using liquid funds for parking in short-term surplus to manage his business. However, when it came to investments for personal goals, he chose the traditional path — bank deposits.
About a decade ago he met G Rajendiran from Akil Financial Services, who drew John’s attention to the fog that formed around his financial planning.
In the course of their discussions, it emerged that there was a void in John’s financial strategy, which required to be filled suitably. John’s plans lacked a clear roadmap for financial goals. While he had a habit of saving, wealth creation was nowhere in sight due to low returns from his traditional investments. Rajendiran also saw a conservative risk appetite from his business funds’ treasury management, wherein the funds were only finding their way into liquid funds.
After initial discussions, Rajendiran explained and gave a clear picture of the Systematic Investment Plan’s (SIP) features and benefits in the long term. John’s interest in money management made him eager to explore and understand various financial concepts. Once introduced to rupee cost averaging, he decided to turn the wheel and start his journey in wealth creation.
John’s children were three and five years old when he began strategizing his wealth plan. Keeping their educational requirement in mind, where he would require the corpus at least 15 years later, John decided to save ₹75 lakh. He still has five years in hand to do this.
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