Investments
We elevate personal finance from a genericservice into a thoughtful, personalised financial management experience.
We elevate personal finance from a genericservice into a thoughtful, personalised financial management experience.
Investment is both a science based on data and logic, and an art guided by judgment and investor behaviour. At Wealth Vaidya Financial Services, we follow an approach similar to a doctor–patient relationship, where time is first spent understanding the individual before suggesting any solution. Each investor’s financial situation, goals, time horizon, and risk tolerance are carefully assessed using structured inhouse tools. Even for the same financial goal, the solution can differ from one investor to another based on income, responsibilities, existing investments, and comfort with risk. Just as a medical prescription varies from patient to patient, investment strategies are personalised to suit individual needs and circumstances. For example, a child’s education cost of ₹15 lakh today may grow to nearly ₹30 lakh after 10 years when the impact of inflation is considered, and this forms the foundation of planning. The focus remains on creating an appropriate asset allocation and strategy suited to the individual, rather than promoting any specific product. In this approach, mutual fund schemes are considered only when they align with the identified requirement, making investment recommendations a natural outcome of the diagnosis, not the starting point.
Investment refers to the allocation of money into financial instruments or assets with the objective of meeting future financial needs. Investments are generally made with a long-term perspective and are influenced by factors such as financial goals, time horizon, and risk tolerance. Different investment options carry different levels of risk, and outcomes depend on market conditions and the nature of the underlying assets.
Mutual funds are among the commonly used investment avenues in India and are regulated by the Securities and Exchange Board of India (SEBI).
A mutual fund pools money from multiple investors and invests it in a diversified portfolio of securities such as equity, debt, or money market instruments, as per the scheme’s stated investment objective. Investors are allotted units in proportion to the amount invested, and the value of these units is reflected through the Net Asset Value (NAV), which fluctuates based on market movements.
A Systematic Investment Plan, commonly known as SIP, is a method of investing in mutual funds where an investor invests a fixed amount at regular intervals, such as monthly or quarterly, in a chosen mutual fund scheme. SIP allows investors to invest gradually over time rather than making a lump-sum investment.
SIP encourages disciplined investing by enabling investors to invest regularly without timing the market. It helps spread investments over different market cycles and may reduce the impact of market volatility over the long term. SIPs are flexible, allowing investors to start with relatively small amounts and adjust contributions based on financial circumstances.
SIP encourages disciplined investing by enabling investors to invest regularly without timing the market. It helps spread investments over different market cycles and may reduce the impact of market volatility over the long term. SIPs are flexible, allowing investors to start with relatively small amounts and adjust contributions based on financial circumstances.
SIP and lump sum are two different modes of investment. The suitability of either mode depends on an investor’s financial situation, investment horizon, and risk tolerance.
Reviewing mutual fund investments periodically may help investors ensure alignment with their financial goals, risk tolerance, and investment horizon. Reviews should not be based solely on short-term market movements.
Know Your Customer (KYC) is a regulatory requirement mandated by SEBI to verify the identity and address of investors. Completion of KYC is mandatory before investing in mutual funds.