BFC Capital’s 259th Quality Circle Program: Inspiring Financial Growth

BFC Capital successfully conducted its 259th Quality Circle Program on May 31, 2024, at Hotel Tekarees Inn, Hazratganj, for the employees of the Regional Training Office, Bank of India, Lucknow Terminal. The event featured an engaging session by our VP, Vikas Singh, who shared deep insights into the art of investing. His captivating presentation provided attendees with essential financial strategies, investment techniques, and a roadmap to wealth creation. The program highlighted BFC Capital’s dedication to empowering professionals with the knowledge needed for informed financial decisions.

What percentage of my salary should I invest in mutual funds?

A general rule of thumb is to invest 20-30% of your salary in mutual funds, but this varies based on your financial goals, income, and expenses.

If you are in your 20s or 30s, consider investing 25-30%, with a primary focus on equity mutual funds to maximize long-term growth.
If you have existing loans or high monthly expenses, you can start with 10-15% and gradually increase your investment as your financial situation improves.
Before committing to higher investments, it is crucial to maintain an emergency fund covering 3-6 months’ worth of expenses to handle unexpected situations such as medical emergencies, job loss, or property-related expenses.
Additionally, having adequate health and life insurance is essential to protect your financial stability.

The key is to strike a balance between current financial commitments and long-term wealth creation while ensuring liquidity for unforeseen needs.

Are mutual fund investments linked to my employment at the bank?

No, investing in mutual funds has nothing to do with working for a bank or any other company. Even if you change occupations or employment, your investments are still yours.

Are international mutual funds a good option?

In order to diversify beyond Indian equities, international mutual funds enable you to participate in international markets such as the United States, Europe, and developing nations. They provide advantages such as access to long-term growth in developed markets, possible rewards from currency swings, and less reliance on the Indian economy.

They do, however, come with hazards, including fluctuations in currency values, geopolitical developments, and worldwide regulatory shifts. They thus work best for investors who have high risk appetite. In addition to increasing profits, investing 10–15% of your portfolio in foreign funds can help control overall risk..

Can I withdraw money anytime from a mutual fund?

The flexibility of withdrawals offered by mutual funds varies depending on the type of fund. You can withdraw money from open-ended funds at any moment, and the proceeds are credited according to the redemption cycle.

Should I invest in Direct Plans instead of Regular Plans since I understand financial products?

For comfortable investors handling their own portfolio, Direct Plans are the best option. By eliminating distributor commissions, they provide reduced expenditure ratios, which over time may result in better returns. To remain in line with market trends and individual objectives, they need in-depth study, frequent monitoring, and rebalancing.

On the other hand, regular plans come with the assistance of a financial advisor who assists with portfolio management, risk assessment, and fund selection. Even if their prices are a little more, they provide excellent advice, which is particularly beneficial when navigating the more than 1,000 mutual fund alternatives available.