S&P BSE Sensex*	Re/US $	Gold Rs/10g	Crude ($/barrel)	FD Rates (1-Yr) ($/barrel)
32,584.35 | 151.66 0.47%	65.03 | 0.06 0.09%	29,615 | -180.00 -0.60%	57.44 | 1.48 2.64%	5.0% - 7.0%

Like in August, investors continued to flock to equity mutual funds even in September. Equity and balanced schemes, in total, witnessed massive inflows of Rs 26,151 crores in the previous month. The mutual fund industry added 8.8 lakh new folios and inflows through SIP (Systematic Investment Plans) touched Rs 5,516 crore. In the Financial Year (FY) 2017-18 so far, equity mutual funds alone have seen the inflows of Rs 76,065 crores — which are nearly 3.8 times higher than those witnessed upto the same time period in the previous fiscal. Steady inflows through SIPs has been the real success of the mutual fund industry.

What makes the SIP route so attractive to Investors?

1. "Mutual funds sahi hai" campaign has created awareness among novice investors. The campaign has taught them how investing a small amount every month can make a big difference in the long run.
    
2. Since SIPs is the most convenient way of investing in equity markets through mutual funds, it has created a positive impression on the minds of many investors. The mouth publicity is playing a crucial role in making SIPs the most preferred route of retail investors.
    
3. As the interest rates are shifting lower, investors are turning to equity-oriented mutual funds in search of better returns. The growing acceptance to financial assets is also driving investors closer to capital markets. And SIPs is considered to be the safest way to avoid the risks associated with speculation.
    
4. As the awareness about financial planning is growing among masses, investors are realising the role equity mutual funds can play fulfilling their goals.

Mr Nilesh Shah, CEO of Kotak Mutual Fund said, "SIPs have become a success due to word-of-mouth publicity from investors. Those who have made money through the ups and downs of the market are now publicising this and they are the biggest ambassadors of SIPs."

Mr Swarup Mohanty, CEO, Mirae Asset Mutual Fund opined that, "People have taken well to the discipline of investing that comes with the process. Many investors are now running SIPs to meet their long-term goals such as child's education or their retirement."

Why opt for SIPs?

• SIPs help you create wealth over the long term, even with small yet regular investment of Rs 1,000 per month
• These free you from the job of timing the market
• Since you invest every month, SIPs make the market volatility work for you
• SIPs can help you achieve important financial goals in your life

Nonetheless, starting a SIP in the right mutual fund scheme is vital, and thus you need to be careful with the scheme you select. In case you can't find schemes suitable for you on your own, rely on unbiased mutual fund research services offered by PersonalFN.

With over decades of experience, PersonalFN has put together a research report on the potentially best mutual fund SIPs for your long-term portfolio — The Super Investment Portfolio – For SIP Investors. In this, we conduct a detailed analysis on how SIPs in the top shortlisted mutual fund schemes have performed, across multiple market conditions and timeframes. Only those funds that successfully pass this evaluation are chosen. At PersonalFN, we follow a rigorous research process to help you, investors, select the best mutual fund schemes for your investment portfolio.

Don't miss out on early bird discounts. Subscribe to the report here. Remember, investing systematically in mutual funds can make your dreams come true.

You May Swipe Your Credit Card This Diwali, But…

The start of the festive season has made many life enthusiasts excited – they love festivals and find joy in celebrations. Especially with the start of Diwali, there is festivity everywhere. Markets are crowded with shoppers making stack-high purchases.

Around the world, festivals give us more reasons to shop and exchange gifts with loved ones. During this time, we celebrate by inviting in the new and allowing change in our lives. Many consider these festivals auspicious days to buy electronics, gold, jewellery, vehicles, and so on. It is marked as a sign of bringing in good luck.

With offers and super-saver deals vying for attention, both online and offline, are you ready for the thrill of a shopping spree this festive season ?

Festive offers may entice you to shop more than your means and many swear by the instant gratification retail therapy gives you, but don't forget to take into account your priorities. For the short-term joy, best not sabotage long-term financial wellbeing. Swipe your card thoughtfully.

Before making impulsive purchases, evaluate whether your current financial circumstance permits such spending. Splurging with a credit card can eventually land you in a debt-trap, if you are unable to repay all your dues on time. Living within one's means, safeguard one's long-term financial wellbeing. Focus on the larger goals in life, such as buying a dream home, your children's future (their education and marriage), and your own retirement, apart from a host of other ones.

So, before you turn shopaholic or spend thrift, introspect prudently and assess whether you genuinely need the things you're about to purchase or could you possibly settle for other options befitting your budget. Festive offers and end of the season sales will come and go, but you will probably save less and invest lesser. Remember, such frivolous choices can damage your financial health in the long run. Instead, here's what you could do:

• Rationally assess what things you really need v/s things you want
• Have a budget in place (for each item, say apparels, home appliances & décor, gadgets, gifts, etc.), and follow it religiously when you venture out shopping this Diwali
• You could buy things you've vied for during sales/festive offers, but ensure that you get the best bargain and read the fine print. Avoid converting large purchases on your credit card to EMIs (because the prohibited interest rate on cards can lead you to a debt-trap and pull down your credit score )
• Redeem reward points accumulated on credit cards to buy things which can effectively help you preclude a cash outflow
• Pay your credit card dues in full and on time (Paying the minimum amount would only ensure that a penalty isn't levied but this won't save you from the burgeoning interest cost.)

Further Understand Basic Tips to Use Your Credit Card Prudently…

Know the limit on the card

All credit cards come with a ceiling limit. Choose a card with a low limit and moderately utilise the credit limit, say 30%-40% of your overall limit.

Pay up before the end of the credit settlement cycle

One of the benefits credit card companies provide is a free credit period, which means, if you make payments before the payment cycle ends, interest won't be charged. However, if you fail to honour payments within the due time, you are likely to pay interest. This is usually as high as 36% p.a., i.e. 3% on the outstanding amount due each month.

Avoid availing the grace period

Some creditors may offer a grace period to settle your dues. Ideally, you shouldn't wait this long to settle your credit card account, and it is best to pay within the free credit period. This may dampen your credit score, and in turn, weaken your eligibility for loan proposals in the future.

Don't get swayed by reward points and other benefits

Credit card providers will always want you to maximise the use of credit facility because that's a way they earn more revenue. And in case you don't make a payment in time, the interest you are charged turns out to be a bonanza. So, one marketing strategy is to launch attractive reward-point systems that encourage you to spend more on a credit card. Control impulsive purchases and keep the usage of plastic money under strict control.

Secure your card details:

While using your credit card to make online purchases, for security reasons do not store your card details online. It can be misused if the merchant site fails to protect the secrecy of your data. Always use two-step authentication and don't allow any 'fast-forward' transaction.

Unless you see "https://" on the payment page, don't enter any payment/personal/card details. By viewing the site information, you can also check if the communication between you and the website is private and protected. Be careful when using your card at a merchant outlet as well.

Avoid withdrawals on the credit card:

Please note this unwritten rule in your diary. If you use your credit card, even in an emergency, to withdraw money from an ATM, credit card companies charge an exorbitant fee. If you maintain a contingency reserve, there will be no need to use your credit card to borrow cash.

So, the next time you swipe your card, trigger-happy with the offers and discounts, think: Is it sensible to get enticed and buy impulsively? We all aspire to indulge in fancy gadgets, latest home appliance, branded clothing, etc.; but, have you thoughtfully considered all sides before making a buying decision? Obviously, we aren't suggesting you curtail all your wants and desires. But what we mean is, you must plan for wants and desires in a systematic way. Ideally, first save, achieve financial security, and then spend; unfortunately, consumerism/materialism and capitalism/competition have swept this approach far away.

Key points to remember while opting for a credit card

• As far as possible, use a debit card instead of a credit card — the first step to rationalise your expenditure pattern.
• Revisit your lifestyle options if settling your credit card account is taking a big toll on your monthly income. This is a sign that you are overspending.
• Never use another credit card to settle your old credit card dues—this is the beginning of a big debt trap that may haunt you a long time.
• If you are unable to keep your expenses under control, perhaps it is time to speak about prudent financial planning with a Certified Financial Guardian in your vicinity.

At the end of the day

PersonalFN is of the view that, as much as earning good returns on your investments is important to you, avoiding additional expenditure is important. Hence, use your credit card smartly.

Festive sales will continue year after year, but spending more means you will probably save less and invest lesser. Remember, frivolous choices can damage your financial health in the long run. It is imperative that you first save to achieve financial security, and then spend on lifestyle and leisure. We believe charting an appropriate financial plan and diligently following it will enable you to achieve your financial goals and enjoy a comfortable quality of life.

Also, the money that you save can be productively allocated towards the assets such as mutual funds, gold, ETFs, etc. To help you further we have built a readymade portfolio - 2025 only for you. It is an exclusive offer for long-term investors seeking to build their wealth at calculated risk

Happy Shopping and Festive Greetings ??

Bank FD vs PPF: Which Is Better?

What Is Value Investing And Why Invest In Value Funds

This Diwali - Gift Thoughtfully and Invest Wisely

Mutual Fund Regular Plan Or Direct Plan: Which to choose?

Credit Score: A credit score is a statistical number that evaluates a consumer's creditworthiness and is based on credit history. Lenders use credit scores to evaluate the probability that an individual will repay his or her debts. A person's credit score ranges from 300 to 850, and the higher the score, the more financially trustworthy a person is considered to be.

Quote: "Credit card interest payments are the dumbest money of all."- Hill Harper

Try our SIP Calculator to find future value of your SIP contributions.