You are a Millennial if you have reached young adulthood in the early 21st Century. Your Millennial Quotient influences your

financial behaviour. It is high if diversity appeals to you. You like to have transparency in processes and are open to

new ideas and conversations. It is time to make this work and start investing for a financially secure future.

Vijay

VIJAYI don’t have money for

emergencies. I have a hand-to-mouth living. Thanks to you!

VIJAY 10 YEARS AGOI just started earning. Should I not enjoy my life?

VIJAYI don’t have money for

emergencies. I have a hand-

Should I not enjoy my life?

LESSON 1: When you don’t invest, you spend the money set aside for emergencies. These habits become a part of your spending behaviour.

To witness the bright sun, you arrive at the beach well before time. Then why delay

investing if you want to witness a bright fi nancial future? Start investing in Equity-linked Savings Scheme (ELSS) right from a young age to become a crorepati in your 40s and 50s.

WHY ELSS?Equity-linked Savings Scheme (ELSS) is an

Equity-based Mutual Fund scheme.

It is designed to help you save Tax and get capital appreciation over the long-term.

Equity markets are fraught with short-term volatility. However, with youth on your side, you got a chance stay invested for a long term.

Long-term investment in Equities over 15-20 years is proved to provide a superior return over any other fi nancial instrument.

You may benefi t by staying invested in ELSS if you wish to create wealth for yourself and save Tax.

DID I READ SAVE TAX?Yes! With ELSS, you can not only become a crorepati, but also save Tax on investments up to `1.5 lakh annually. Mutual Funds also allow you to spread your investments throughout the year. This can be done through Systematic Investment Plans (SIPs). Hence, instead of making a lumpsum investment of `1.5 lakh in ELSS, you can invest `12,500 every month through SIPs.

The crorepati formula!Ace investor Warren Buffett started investing at the age of 11 and he thought that was late. Starting early is key to being wealthy. Consider this:

Age (yrs)

Monthly SIP amount (`)

Investment Tenure

Expected amount at the age of 45*

20 12,500 25 4.1 crore

30 18,000 15 1.2 crore

40 1,15,000 5 1 crore*Amount not adjusted for infl ation and Tax. *Assumed rate of return: 15%

The later you invest, the higher would be the SIP amount to catch up! Make the most of your youth and invest today to become a crorepati with ease.

To witness the bright sun, you arrive at the beach well before time. Then why delay investing if you want to witness a bright fi nancial future? Start investing in Equity-

WHY ELSS?Equity-linked Savings Scheme (ELSS) is an

Equity-based Mutual Fund scheme.

It is designed to help you save Tax and

HOW

TO BECOME A

WIT H E

LS

SCROREPATI

ELSS

SWATANTRA KUMAR EXPLAINS:

The Ostrich effect is based on an old belief about ostriches burying their heads in the

sand to avoid danger. For an

investor, it is an attempt to ignore negative and risky fi nancial information and situations. For example, if the markets are highly volatile, you tend to avoid tracking their Stocks. You do this to avoid looking at any potential fall in the prices of their Stocks. This could have a negative impact on your investment portfolio.

Don’t let the ostrich effect influence your investment decisions. Ignorance might give you temporary bliss. But, informed investment decisions will pave the way for long-term bliss of financial security.

Here are a few tips that can help you overcome the ostrich effect:

During volatile situations, keep a close eye on the markets

Stay calm and do not indulge in ‘Panic Selling’

Invest in diversifi ed assets, like Stocks

and fi xed income securities etc.

through Mutual Funds

Seek fi nancial advice from

time to time

Track your investments from time to time

Invest in assets according to your risk profi le

For more details, follow us on Twitter @utimutualfund; Email queries or suggestions: info@beswatantra.com Please mention ‘Swatantra in TT’ in subject line.

For more such fi nancial advice, head to our website: http://www.utiswatantra.com

In the next edition: As we gear to celebrate our 70th Republic Day, let’s build a pathway towards fi nancial independence. In the next edition, let’s assess if we are on the right fi nancial track.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Want help in achieving fi nancial independence? Don't miss our show on 'This Republic Day, assess your fi nancial independence'. Only on UTI Swatantra Facebook Live on 25th January 2019 from 5 pm onwards.

*This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information

*This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information

It is never too late to befriend

someone; start today!

*This content was created exclusively for UTI Swatantra. Visit http://www.utiswatantra.com for more information

Steps to download and scan a QR code: 1) Download QR code app on your phone. 2) Run app and scan the QR code. 3) Your smartphone reads the code & navigates to the destination.

Scan this QR code for a quick guide to saving and investing for youngsters.

Have questions on Mutual Funds? Scan this QR code to send them to us.

Scan this QR code to register for an event happening in your city.

SIP Can be your FFF –

Financial Friend Forever!

WHAT NEXT?

Dreaming about becoming a crorepati?

Let’s look at how Mutual Funds can make this

possible.

You might have learned to build a successful career. But, have you learned the art of building a financially secure future? Here is the story of Vijay. He started earning when he was 25 years old. Vijay is 35 now. He is reflecting upon the money mistakes that he had made, and its impact on his finances.

COMMON MONEY MISTAKES THAT YOUTH MAKE

Vijay

LESSON 2: It is always

benefi cial to seek goal-based fi nancial advice. Don’t base your

investment decision on

stories of exceptional

returns by friends, relatives.

VIJAYWhat about not getting

the expected returns on my investments? I fi gure that my investments are not goal-based.

VIJAY 10 YEARS AGOI saw Krishna do well with his investments. So, I followed. How would I know it would not work for me?

VIJAYWhat about not getting

the expected returns on

Vijay

LESSON 3: Equity-based investments witness volatility in the short-run. However, in the long-run, the markets march forward. During volatility, stay calm.

VIJAY Look at my brother! He

had invested in the same Equity-based Mutual Fund that I withdrew 10 years ago. He is now on track to retire young. What do you say on that?

VIJAY 10 YEARS AGOMarkets were volatile. I immediately withdrew my investments.

VIJAY Look at my brother! He

had invested in the same

Vijay

LESSON 5: You can invest in Liquid Funds for your emergencies. Liquid Funds don’t have a lock-in period and can offer better returns and Tax benefi ts than Bank Deposits.

VIJAYMy present job is not

secure. Many young and talented people are ready to work for half of my salary. I won’t be able to manage my fi nances if I lose this job. My savings are not enough to support my expenses.

VIJAY 10 YEARS AGOI had enough savings in banks for emergencies. What was the need to invest?

VIJAYMy present job is not

secure. Many young and

I had enough savings in

VijayLESSON 4: Instead of

stopping your SIP, you

can have a separate portfolio for every goal.

You can even name your portfolio as

‘My New Car Fund’.

VIJAY 10 YEARS AGOWhy do you say that? I wanted to buy a new car, so I stopped my Systematic Investment Plan (SIP).

VIJAYIt is diffi cult for me to fulfi l

my goals and invest at the same time.

VIJAYIt is diffi cult for me to fulfi l

my goals and invest at the

THE OSTRICH EFFECT