Buy Car

Buy Your Dream Car

We've all had to sit down and give buying a car a thought. It's a major purchase decision involving various constraints such as time and money and requires careful consideration and planning.

There are various ways you can finance your dream car. You could go the traditional way; take out a loan and pay EMIs, or you can invest smartly in a SIP to realize your goal faster and more economically.

Taking out an auto loan is not preferable because cars depreciate rather quickly and don't create an asset of value. Creating a monthly SIP to build a fund for your new car is the way to go.

There are various benefits of starting a Systematic Investment Plan (SIP):

  • You can start with a small amount of money
  • Helps to invest without involving emotions
  • It will help you attain your goals quicker
  • Allows you to invest with discipline
  • Reduces the risk of market volatility by investing small amounts regularly
  • Flexible intervals between investments

Buy a Car with Mutual Funds Investment

Mutual funds investment is great way to invest your money. There are various kinds of mutual funds you can invest in to help you buy a car:

Equity Funds Equity funds invest primarily in stocks. They involve more risk than money market and fixed-income funds, but also offer better returns. This is a good option to consider if you're looking to buy a car within the next 5 years and have a moderately high to high tolerance for risk. Many options specialize in combinations of large-cap, mid-cap, small-cap, and growth stocks.

Balanced Funds Balanced funds invest in equities and fixed-income securities. The goal of these funds is to diversify their investments to yield better results while averting risk. These funds use a formula to allocate money to different kinds of investments effectively. They involve more risk than fixed income funds, but lesser than equity funds. More aggressive funds invest in more equities than bonds, and the conservative ones rely more on bonds than on equity.

Fixed Income Funds These funds invest in instruments that that yield a fixed rate of return like investment-grade corporate bonds and government bonds. This sort of fund intends to ensure a constant inflow of money to the fund through the interest that the fund earns. Funds that hold high-yield corporate bonds involve more risk than those that hold government bonds.

Let SRE Help You Achieve Your Goals

If you're planning on buying a car, do it the smart way! Investing in a SIP is a more efficient way to buy a car than by taking out a loan and paying EMIs. Investing in the right fund is crucial to the efficiency of your corpus accumulation. SRE can help you find the fund best suited to your goals and your specific profile, so you can achieve your goals faster!