Financial Resolutions for the new year

As we are in a new year, it is only natural to have new goals to improve your life.

This could be anything from eating healthy, reading more to even self- care.

It does not harm to consider your financial health too while you are at it.

After all there is no better time to review your financial health than at the beginning of a new year.

best mutual funds to invest

Emergency Funds

The thumb rule is that one should keep an emergency fund equivalent to 6 months of fixed expenses.

Post covid it is better to stretch that to a minimum of 12 months of fixed expenses, it is always better to have it and not need it than to need it and not have it.

This could be in a combination of liquid mutual funds and fixed deposits.

With rising inflation annually, your emergency fund will need to reflect that with the means of an increased contribution towards your emergency fund.

If prices are on the rise then so are your fixed expenses, therefore your emergency fund should also see an increased contribution.


Additional reading: Click Here to read about what the Chinese Bamboo can teach you about equity investing

Start your ELSS investments   

Ideally one should not wait till the end of the financial year for tax saving investments.

The shortage of time usually leads to panic among investors resulting in uninformed choices.

When one does an SIP, he/she does not need to time the market (not as if that is possible). 


Using SIP, one can avail of rupee cost averaging that comes along with it.


If one uses the Lump Sum route at the last moment then there is a high chance of panicking due to lack of time which may lead to ill-suited choice of funds.


SIP is all the more beneficial during a market downtime since you would be accumulating more units at a lower price. This is not possible when the markets are at a high and you make a lump sum investment.


When you divide your SIP’s over a period of 12 months, you open yourself to the possibility of availing benefits of rupee cost averaging without consideration for market conditions.



Are you investing in the right mutual funds?

Have a Retirement Fund

Another year passes by meaning you are one year closer to your retirement.


When you retire, you stop working but don’t stop living.


Your monthly expenses will continue as they were, in fact taking into account inflation, it will only grow further.


Further when you consider rising medical inflation & expenses & growing life expectancy, a retirement fund should be your primary goal when investing if not a goal you prioritize.


You are going to grow old, it is not a voluntary choice and your children are not your retirement fund.


If you do not have a retirement fund by now then today is a good day to plan towards it.



Are you investing in the right mutual funds?

Review your Portfolio

A mutual fund portfolio must be reviewed periodically, ideally once a year.


This review should be undertaken by a qualified professional or else it would be a futile exercise.


A periodic review helps to confirm if the goals and your mutual fund portfolio is still aligned and on track.


This is important because mutual funds could go through several changes like change in category of fund, restriction in amount, strategy, aum, etc.


It is not a given that you would need to alter your mutual fund portfolio due to reasons mentioned but you would need to review if any changes are warranted.


Increase your Investments

It is great if you are investing via sips.

With a rise in income do not forget to increase your sip amount though.

This is important keeping in mind inflation, with a rise in inflation your sip amount should also see a raise.

If you receive an annual bonus then a portion of that should diverted towards your investments.


Additional reading: Click Here to read about how Compounding works in mutual funds. 

Reduce debt

Debt inherently by its very nature is not always bad.

Good debt refers to any debt that enhances the quality of your life, instantly or over a period of time.

Bad debt is any debt that can have a negative impact on your earnings with little to no upside.

Irrespective of the type of debt, it is always a good idea to reduce the amount no matter the margin.

Not only does this help you financially but also helps you relax mentally.

For portfolio enquiriesemail us with your doubts at

Disclaimer : While due precaution has been undertaken in the preparation of this article, The Mutual Fund Guide or any of its authors will not be held liable for any investments based on the above article. The above article should not be considered financial advice and has been published only for your perusal. Due credit has been given in case wherever required, in case you feel any part violates any rights then do get in touch with us and we shall get it duly removed.  
Mutual Fund investments are subject to market risks. Please read the offer document carefully before investing

Copyright © 2023  The Mutual Fund Guide, All rights reserved

My Instagram