How to manage money in high interest rate times? Finfluencer Anupam Gupta of ‘Paisa Vaisa’ shares tips

How to manage your money? Where to invest in high interest rate times? All these questions often come to our money when we plan to invest our money. Your investments in equity and debt mutual funds should depend on your goals and your timeframe. Mint spoke to Anupam Gupta regarding how to manage money. He is the host of the popular podcast ‘Paisa Vaisa’ which is about Education/Finance.

Choosing the Right Mutual Fund Scheme with Prime Investor

First, ensure that you have your tax savings options in place, for example, invest in Public Provident Fund to claim tax benefits, if applicable to you. Second, your investments in equity and debt mutual funds should depend on your goals and your timeframe. Hence, do not invest in small/midcap mutual funds for short term goals. Third, start with products like index funds and choose well with factors such as low tracking error.

HNI Products and Indian Market Outlook with TrustPlutus

HNI products are customized based on individual client needs and this is usually a process that involves asset allocation followed by security selection. When choosing a PMS or AIF or even a mutual fund scheme, the framework and philosophy of the fund manager is more important than his/her personality. Beyond that, investors should conduct their own reference checks and consultations with advisors before deciding on their investment. The outlook for equity markets is still cautious and there is a time correction underway; the weak spots are beyond the Nifty 50 index and evident in small/midcap stocks. In comparison, fixed income appears more attractive given that interest rates are high.

Whether you're looking to save for a down payment on a house, pay off debt, or simply improve your financial health

Home loans are usually large and servicing them can weigh on your day to day finances. Two things to keep in mind: first, ensure that you plan in advance for the down payment and do not take hasty decisions on selling investments to fund the down payment and second, pay off all other debt before taking a home loan so that you can focus solely on servicing your home loan. As a thumb rule, interest payments on all loans should not exceed 30-40% of your total income. Finally, maximise the tax benefits on your home loan and use one-off windfalls like bonuses, etc. to prepay your loan. (inputs from various guests in the past).

Paisa Vaisa is India's leading podcast on personal finance. Since 2017, Paisa Vaisa has interviewed experts across the spectrum of personal finance covering diverse topics such as mutual funds, stocks, housing, loans, education, crypto, and much more.

Disclaimer: Anupam Gupta is not an advisor or analyst, as certified by SEBI.