An educational illustration of how contribution amounts and time horizons relate to future expenses.
Education and marriage are examples of future expenses people ask about. The amount and timing differ for every household, and any investment product may rise or fall in value.
Step 1 — put a number on the goal
Start with today's cost. An expense may cost more in future, but inflation rates are uncertain. A calculator can illustrate different assumptions without predicting actual costs or investment returns.
Step 2 — match the time frame to the risk
Equity, debt and hybrid schemes have different risks. A longer horizon does not guarantee recovery from losses, and debt schemes do not guarantee capital. Read current scheme documents and the Risk-o-meter before choosing.
Step 3 — automate and review once a year
You can review your statements periodically to understand contributions and current value. Any change to an SIP amount or scheme should be your own decision after considering costs, risks and your circumstances.
Insurance products are offered by separate providers and are subject to their terms. Consult a qualified professional if you need individual insurance or financial planning advice.
This article is general information, not investment advice. Mutual fund investments are subject to market risks; read all scheme-related documents carefully before investing. Past performance does not indicate future returns.