Frequently Asked Questions

---

Anytime is good if you wish to start. The sooner, the better.

In general, any person can follow this sequence and make it their own Financial Goals. Everything comes after you start earning, which is:

1. Secure your income against Medical bills (General Insurance)

2. Secure Life of all bread winners (Life Insurance)

3. Create an Emergency Fund

4. Start investing for Future Goals: Retirement Planning, World Tour, Your Dream Home, Your Favourite Car, Children Education, Donation Fund and anything that you wish for.

Basic Documents Include:

1. Identity Proof (PAN Card)

2. Address Proof (Driver's License, Voter ID, Adhar, Electricity Bill etc.)

3. Cheque (With your Name printed on it)

4. Recent Passport size Photograph (Only if doing physical KYC)

Mail us your documents on saarthiwealth@gmail.com or connect to us on +91 98795 58889.

We will generate your E-KYC link where you can upload and complete the process. Request you to keep soft copy of your documents ready with you. Once done with it, we can straight away move to transaction page. It's that simple. Time required to complete the whole process: Less than 10 minutes.

 Goal of first investment should be creating an emergency fund. An ideal Emergency fund should be enough to cover your monthly expenses for a period of at least 6 months. To get an estimate of amount, you can multiply your average monthly expenses (covering all aspects of your routine lifestyle) to number of months that is 6 or more. 

For e.g; Miss A spends about 30,000/- per month, so her Emergency fund should be at least about Rs.1,80,000/- INR.

#Emergencyfund

There is no specific age of retirement which is common to all. Retirement age depends on what sort of career you are into, or your personal decision, whichever is earlier. (Retirement does not mean not working at all. It means doing what we love, whenever we want)

For e.g; An air hostess may retire at the age of 30, but an IAS officer usually starts his career around the age of about 28 years.

#Retirementplanning

Retirement fund: No bank in world will provide us loan facility for retirement years. Usually we never think about this need in first place, but if we consider the fact that our lifestyle will need a hefty amount of money to support ourselves (and our partner) we must start investing for our retirement at the earliest. 

For e.g; Today’s living cost of 40,000/- p.m (4,80,000/- Annual expense) will become 71,634/- p.m (8,59,608/- Annual Expense) in 2033 i.e; 10 years only. Inflation rate is taken @6% for this case. 

#Inflation #retirement #investment

You can preserve wealth for generations easily if you have made allocations in different class of assets. We call it diversification. It is necessary to understand where to invest and how much to invest. Reason for doing this is very apparent, procedure for transfer of ownership varies in every asset class. In some assets, it is simple, while it is complicated in other assets.

For e.g; To transfer a real estate property, procedure is complicated. On the other hand, it is far more simple to transfer equity shares in demat form.

Nominee does not become the owner in case of Death of account holder. Nominee is a person who receives the assets on death of account holder and he/she is responsible for proper distribution of assets among legal heirs of account holder. In case of failure, if any of the legal heirs files a case against Nominee, he might face a jail time of at least 10 years on grounds of Breach of Trust of a Dead Person according to IPC, Indian Law. ( It is a non-bail able crime) 

#Nomination is must.

INSURANCE IS NOT INVESTMENT.

Endowment policy which is ordinarily linked with an Insurance scheme is type of scheme where policy holder is given guaranteed returns after a certain period time as per his/her policy terms. These guaranteed returns, if calculated, are only compounding in the range of 5.5 – 7% annually. 

Opting for such a policy is not wrong. But we must understand that the purpose of insurance policy (whatever type) is to provide us SECURITY. It is not designed to give maximum returns at all. 

If we are looking to have a handsome inflow of income in our retirement years, we must think of investments along with such insurance policies. Usually if given time, investments can compound at a rate of 12% or higher, which is almost double.  

It depends on your requirements and Financial planning.

Mainly there are three types of Mutual Funds:

1. Equity Mutual Funds: Primarily investing your money in Equity and related instruments. For e.g.: Equity Shares

2. Debt Mutual Funds: Primarily investing your money in Debt instruments. For e.g.: G-Sec Bonds, Commercial Papers, Corporate Bonds, Sovereign Bonds.

3. Hybrid Mutual Funds: Primarily investing in a combination of two or more asset classes.