AMFI and Kiang Nangbah Govt College webinar shares essential tips for financial security and wealth building

Syllad | The Rising MeghalayaNovember 8, 2024

A national webinar was held on November 7, jointly organized by the Association of Mutual Funds in India (AMFI) and Kiang Nangbah Govt College Jowai, focusing on the topic “Education – A Life Skill under NEP 2020.”

The event was inaugurated by H. Toi, Head of the Department of Commerce at Kiang Nangbah Govt College Jowai, who delivered the opening address and introduced the resource person.

Surya Kant Sharma, Senior Consultant at AMFI, was the keynote speaker. He highlighted the importance of financial security for individuals, emphasizing that investors should ensure adequate life insurance, reasonable medical insurance coverage, and an emergency fund before focusing on wealth creation. He advocated for regular savings and an annual increase in savings by at least 10%.

Sharma elaborated on the importance of wealth creation for prosperity, advising investors to be wealth creators rather than mere accumulators of money. He stressed the need to consider real returns, accounting for inflation and tax liabilities, and advised on managing investment risks through a simple formula: Think, Understand, and Invest. Sharma also underscored the significance of family financial planning and practicing compounding in investments for higher long-term returns.

He provided basic information on various investment avenues available in the market, including Government/RBI bonds, corporate bonds, government schemes (such as Post Office schemes, PPF, NPS, and Sukanya Samriddhi Scheme), real estate, gold, and the securities market. He advised investors to choose investment options based on their risk appetite and investment horizon.

Sharma cautioned general investors against entering the securities market directly due to inherent risks. Instead, he recommended mutual funds as a safer option, highlighting that investors can start with a minimum investment of Rs 500 through Systematic Investment Plans (SIP) to build a substantial corpus over time. He explained the spectrum of mutual fund schemes available, ranging from equity funds to debt funds and exchange-traded funds, which cater to different risk appetites and investment horizons.

In conclusion, Sharma warned participants against investing in unregulated fund mobilization schemes such as Ponzi schemes, chit funds, and committees, which promise high and quick returns but ultimately disappear with investors’ money. He emphasized the social responsibility of spreading awareness about such schemes and advised investors to avoid them.

The webinar also included a session on the National Pension Scheme (NPS), where the invited speaker shared its features. Following the sessions, there was a question-and-answer segment where participants’ queries on personal finance were satisfactorily addressed by the experts.

The program concluded with Vivek Lyngwa, the Co-Convener, delivering the vote of thanks.