What are Mutual Funds?

A pool of money from many investors managed by professionals, invested in stocks, bonds, or other assets. Types include:

• Equity Funds (higher risk, higher return)
• Debt Funds (safer, lower return)
• Hybrid Funds (mix of equity and debt)

What is SIP?

Systematic Investment Plan lets you invest fixed amounts regularly, ensuring disciplined wealth building.

SIP Hacks for Better Wealth Creation

• Start early → small amounts grow big with compounding.
• Use Step-up SIP → increase investment yearly as income rises.
• Diversify across equity & debt funds.
• Avoid stopping SIP during market falls → volatility is your friend.
• Stay invested long term (7+ years).
• Reinvest dividends to maximize compounding.

What is SWP?

Systematic Withdrawal Plan lets you withdraw a fixed amount regularly. Great for retirement income or passive cash flows.

When to use Lumpsum?

Best used when you have a large amount (like bonus, inheritance) and want to invest for long-term goals. Riskier in volatile markets.

Other Investment Options

• Gold → Hedge against inflation, safe-haven asset.
• Real Estate → Tangible asset, provides rental + appreciation.
• Bonds → Fixed income, lower risk.
• Insurance → Protects family, not a pure investment.