1.Being "cautious" is all right, but being "over-cautious" is not, for wealth creation.
2. Always keeping up to 6 months expenses in a liquid fund should suffice for emergencies.
3. Thereafter, any surplus should be "systematically invested" after fixing specific well-defined goals, with amounts and time frames of 1-3, 3-5, 5-10, and 10+ years.
4. Each duration will require a unique appropriate mutual fund, to avoid human tendency of "mixing, tampering and juggling", to build your wealth.
5. For caution, you should restrict your choices to a short-term debt fund, balanced fund, multi-cap fund, and a mid-cap fund respectively.
6. Review and re-balance annually if really needed.
7. Start shifting the corpus to the liquid fund a few months before you will actually need them to avoid volatility and hiccups at the last moment.
8. A prerequisite for wealth creation is having an adequate pure term life insurance and health insurance plan in place.
2. Always keeping up to 6 months expenses in a liquid fund should suffice for emergencies.
3. Thereafter, any surplus should be "systematically invested" after fixing specific well-defined goals, with amounts and time frames of 1-3, 3-5, 5-10, and 10+ years.
4. Each duration will require a unique appropriate mutual fund, to avoid human tendency of "mixing, tampering and juggling", to build your wealth.
5. For caution, you should restrict your choices to a short-term debt fund, balanced fund, multi-cap fund, and a mid-cap fund respectively.
6. Review and re-balance annually if really needed.
7. Start shifting the corpus to the liquid fund a few months before you will actually need them to avoid volatility and hiccups at the last moment.
8. A prerequisite for wealth creation is having an adequate pure term life insurance and health insurance plan in place.