Swati Kulkarni, EVP Fund Manager, UTIMF, Mumbai
Everyone works towards building a financially secure future, but inflation can become a big hurdle. With the cost of education, health-care, real estate and travel increasing constantly, there is always a risk of insufficient finances unless the return on your savings is higher than the increase in cost.
Why equity products?
Depending on one's financial needs-the quan-tum and time frame-and the risk appetite, one needs to allocate savings to different assets such as fixed deposits, liquid, debt and bond funds or mutual funds, and equity mutual funds, so that a portion of risk-low returns savings are ear-marked for the immediate financial needs and the rest are allowed to grow in equity products over the years.
