Vacations – here we come!

We all love taking vacations, don’t we? The travel, the sightseeing, trying out local delicacies, and the break from routine!

And we ensure planning for these vacations in advance – what to wear, where to stay or the places we would like to explore, the activities planned.

And while we spend time on planning these things, there is something we often overlook – the finances. Most people want to go on vacations at least once a year, but it may not always be easy on your pocket.

Especially when you need to withdraw or spend the entire amount in one go. It could dent your expenses for that month, or lead to you compromising on some other expenditure.

How can this be managed better?

By planning the finances for your vacations in advance.

For instance, if you know that you want to take a vacation in September or October of 2023, start off with an estimate of the budget you would need for the vacation.

If you need ₹150,000 for a vacation, and you are nine months away from needing the money, you can start saving and investing accordingly.

You can start by saving ₹16,000 - ₹17,000 each month, and investing this in a mutual fund.

You can choose between the various options available within the mutual fund space – liquid funds, equity-oriented funds, hybrid funds or debt funds, and invest the money in whichever fund you think is best suited for your purpose.

When the time comes for you to withdraw these funds, you can easily redeem your investments.

Not just your vacations, plan the finances needed for it also in advance – with the help of mutual funds.

 

Disclaimers:

This article is for information purposes only. The information provided herein is derived from public sources, believed to be from reliable sources. However, no representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. Views expressed herein involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied herein. Kotak Mahindra Mutual Fund/ Kotak AMC is not indicating or guaranteeing returns on any investments. Past performance may or may not be sustained in future. Readers should seek professional advice before making any investment-related decisions and alone shall be responsible for any decision taken.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.