The 3 pillars of long-term wealth creation

Avoid the ‘get-rich-quick’ trap

A key principle for wealth building is to avoid the false lure of schemes that promise high returns within a short period. Let’s find out what you can do instead.

#1 The more you save, the more you earn

The formula to retire rich doesn’t solely rely on high investment returns; it also depends on how much you invest. The more you save, the more you can invest.

#2 Tailoring your investments to your needs

Rather than falling for the lure of IPOs, derivatives and short-term trading, it is better to invest in assets that fit your risk appetite and investment horizon.

#3 Invest in mutual funds

Investing in mutual funds is one of the best ways to build wealth. Based on your needs, you can spread your money across various mutual fund categories.

For short-term goals (less than three years)

Choose liquid and short-duration debt funds

For goals between three- to seven-year years away

Invest in hybrid funds (Aggressive hybrid funds are a good option)

For long-term goals (more than seven years away)

Pick equity funds (Flexi-cap funds and multi-cap funds are two such options)

To learn more about how to create wealth in the long run,

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