The Various Benefits of Online Calculators to Make Your Financial Decisions

The Various Benefits of Online Calculators to Make Your Financial Decisions

The majority of individuals have certain financial goals to be met in their lives. Personal finance plays a key role in anyone’s life, as you need capital to meet many life goals, whether you need to collect a corpus for retirement, or to fund a child’s education. 

If you are earning, you may think your salary is enough. Just a portion of your salary placed in a savings account may help you collect cash, but this will not help it to grow. Investment has to do with growing your wealth so you have the ability to finance your financial goals in the future. One avenue that many people turn to is the share market today. This can give you great returns over long periods. However, you can choose other means to build on your existing wealth too. 

Use an Online Calculator

If you wish to open a demat account, or participate in online trading, processes are easily facilitated by digital platforms. You can even conduct all your financial activities, like those related to banking and investment, online. You can do this via platforms of various asset management companies (AMCs) or good brokerages. Your bank may also facilitate certain investment schemes online. 

Besides the ease of undertaking an investment, there is first and foremost, the need to choose the right investment that matches a particular investor’s needs. This is actually challenging for many investors as there are several instruments on offer. You may invest in the share market today and conduct your trading activities online, but there are other investments like mutual funds, retirement plans, ULIPs and other modes of investment that may be suited to your specific needs. Online financial calculators can help you make the right choice. 

Online trading or retirement plan? Get an Online Calculator to Decide

There are as many “words of advice” as there are investment instruments to grow your wealth today. You can invest in an upcoming IPO, or go in for a mutual fund, or even a SIP. If you know the advantages of using an online calculator to decide on any particular investment instrument, you can use this online tool to effectively make informed decisions. Here are the pros of online calculators: 

  • Matching Investment to Goals - Every investor is unique with distinct financial goals. Some individuals would like to collect and grow wealth for short-term needs, while others have long-term investment perspectives. You can use a financial calculator to determine your returns on investment with your time horizon in mind. In this way, you can choose between various investments and make the right choice. 
  • Comparing Instruments and Returns - The share market today is a risky place to invest. However, if your goal is to invest in good stocks and hold them for a while, you will reap rich rewards. This means that stocks should essentially suffice for your long-term financial goals. Now, if you don’t want to place all your wealth in the stock market (and you should not), it's a good idea to allocate it to other means of investment, say mutual funds. In case you wish to lessen your risk, you can choose a blend of debt and equity funds to invest in. An online calculator can tell you how much of a lump sum to invest to gain the returns you want. Furthermore, if you feel you do not want to invest a lump sum at the start, you can choose a SIP to invest in, and find out what your returns will be, depending on how much you invest at regular intervals. 
  • Convenience - Like the convenience of online trading, the online use of calculators is menu-driven and you can plan your investments from anywhere, even on the move through your smartphone.  

The Pros of Technology

As you can open a demat account online, as well as gain access to choose any upcoming IPO online, an online calculator for investment is something you should make use of. This is a free facility on most online financial portals, it helps you to make educated and quick decisions, rather than put investment off. 

 

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account

 

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