Investing in the equity market is not easy. Putting your money directly in shares may seem rewarding, but it has its risks. It takes intense research and analysis to study individual companies and figure out their value. That is why the common retail investor opts to go for Top Mutual Funds. Let us list down the reasons why it is tough to invest directly in shares.

Knowing in and out of the company – It takes hours and hours of studying the industry of which the company is a part. You have to study market reports, press releases and annual reports carefully.
Understanding Macroeconomics – Apart from studying individual stocks, you have to be aware of the existing economic conditions as well. It includes the country’s monetary policies, currency rates among other factors. It takes a lot of work and study to understand the numbers.

Understanding debt value – A company’s debt position is also a leading indicator of how the stock is going to perform. It is important to understand the relationship between the two. Most amateur investors are simply not aware of these.

It is not a one-time thing- You have to monitor your investments carefully and re-allocate the funds in case circumstances change. To manage all of this with regular day jobs is a daunting task.

If you still want a slice of the growth in equity, you can for equity MFs. You will get trained and experienced managers who pick your stocks. Not only that, your investments will be spread over tens and thousands of stocks. You can even get help to compare Mutual Funds in India from professional advisors.

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Congratulations! You have heeded a very important financial advice, and created for yourself an emergency fund. Having a buffer of three to six months of expenses in liquid assets is a significant measure. It is in fact an integral part of financial planning.

But what comes next?

You need to have a plan for the amount that you were putting away for the fund till now. Appraisal or bonus money should be allocated wisely. Without proper planning, it is easy to turn into a lifestyle creep. Now that you have created a nest egg, here is what to plan for next –

Create Wealth

The best way to create wealth, especially for salaried individuals is to start investing. Instead of depositing all your savings in banks, work towards investing some of that amount. To start investing, you can opt for a Systematic Investment Plan (SIP). You can always get a financial assessment done to decide the best plans for yourself. Take the help of a financial advisor, and don’t be afraid to ask questions!

Plan for retirement 

If you haven’t made retirement planning a priority yet, do it now. It is never too early to start saving for retirement. You can opt from products such as National Pension Scheme (NPS), Employee Provident Fund (EPS) among others.

Improve credit score

A good credit score makes it easier to avail loans from financial institutions. Make sure to pay off any consumer debt, such as credit card loans if you receive a windfall. It is important to never miss out on an EMI (Equated Monthly Installment)

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