Unlocking financial freedom: How Savings+ can help you reach your goals sooner

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Achieving financial freedom has never been more important than it is today. However, the rising cost of living and unpredictable economic conditions can make it challenging for people to focus on long-term goals. Bajaj Finserv AMC’s Savings+ facility offers a solution that can potentially help out in such situations.

Savings+ is a scheme that can help individuals to potentially achieve their financial goals sooner compared to if they leave their money idle in traditional bank savings accounts. This facility combines the liquidity of banks savings accounts with the slightly higher return potential of market-linked debt securities.

While bank accounts remain the safest place for one’s funds, Saving+ invests in relatively low-risk debt instruments, like overnight funds and liquid funds. Thus, while not as safe as in a bank savings accounts, your money is still relatively stable with the Savings+ facility, especially when compared to investments in equity or longer duration debt investments.

In this article, we will explore more about Savings+ and how to reach financial goals with Savings+.

  • Table of contents
  1. What is Savings+?
  2. Why Savings+?
  3. Benefits of Savings+
  4. How to get started with Savings+
  5. FAQs

What is Savings+?

Savings+, introduced by the Bajaj Asset Management Limited, is an innovative investment solution designed to enhance the value of idle funds. Traditional savings or current accounts offer relatively lower interest rates. However, Savings+ channels these surplus funds into either the Bajaj Finserv Liquid Fund or the Bajaj Finserv Overnight Fund. Both schemes offer a relatively higher return potential compared to savings accounts with slightly higher relative risk. Therefore, investors seeking to optimize the return potential of their idle financial resources can consider Savings+. However, the returns from Savings+ are not guaranteed.

Why Savings+?

Savings+ offers convenience and efficiency. It allows investors to quickly determine the idle funds in their savings accounts and promptly invest it in relatively low-risk financial instruments. Since the underlying assets invested in are highly liquid, investors do not have to compromise on this aspect when they switch to Savings+ from a savings account.

Benefits of Savings+

Let us look at some of the potential benefits and how to achieve financial goal with Savings Plus:

  • Relatively higher return potential: Traditional savings accounts offer low-interest rates, making it challenging to grow your wealth. Savings+ offers the potential for relatively higher returns helping you reach your financial goals sooner.
  • Liquidity: Savings+ allows you to maintain liquidity. You can withdraw 90% or up to Rs. 50,000 (whichever is lower) instantly. The balance amount, if redeemed, will take one business day to be credited to your bank account.
  • Diversification: Investing in relatively low-risk investments such as liquid funds and overnight funds or bonds can diversify your portfolio and potentially mitigate risk.
  • Automated savings: With Savings+, you can automate your savings, making it easier to stick to a disciplined investment approach.

How to get started with Savings+

Getting started with Savings+ is easy. Here are the steps to follow:

  1. Visit the Savings+ page on www.bajajamc.com
  2. Link your bank account to the Savings+ facility
  3. You will receive information on your current account balance
  4. Check the amount of idle money you have (minus expenses, debt repayments, obligations etc.)
  5. Decide how much to invest

Once you have linked your bank account to Savings+, you will receive regular reminders about the idle money in your account.

Conclusion
Saving money is essential to achieving financial freedom, but traditional savings accounts offer low-interest rates, making it challenging to grow your wealth. Savings+ is an investment strategy that combines traditional savings with investments to help you earn a higher return potential and can help you reach your financial goals sooner. In this article, we discussed tips on how to benefit from Savings+ to reach financial goal. However, investors must always seek guidance from a financial advisor before making any investment decisions.

FAQs:

What is Savings+?
Savings+ is a savings strategy that involves investing the idle cash in your bank savings account in relatively low-risk investments such as the Bajaj Finserv Liquid Fund and Bajaj Finserv Overnight Fund.

Does Savings+ give higher returns compared to bank accounts?
Savings+ offers the potential for relatively higher returns compared to bank accounts. However, the returns are market linked and influenced by several factors. Therefore, there is no guarantee for returns.

Is Savings+ a relatively stable option to invest money?

A. Savings+ involves investing in relatively low-risk investments such as overnight funds or liquid funds. While these low-duration debt instruments are generally stable, their performance and return potential can be significantly affected by the economic climate, interest rates, creditworthiness of issuers etc.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.