From saving to investing: Transitioning your funds with Savings+

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Saving money in a traditional bank account might be amongst the safest places for your funds. However, the inadequate return rate offered by savings accounts may not allow one’s investment to keep pace with inflation, especially in the current economic environment. Investors who seek to balance the benefits of bank accounts (like stability and liquidity) with a relatively higher inflation-beating return potential can consider the Savings+ plan offered by the Bajaj Finserv Asset Management Limited.

Savings+ is a revolutionary approach to wealth generation that combines smart savings strategies with appropriate investment options. In this article, we will look at how Savings+ has evolved over time and how it can help individuals transition their funds from saving to investing.

  • Table of contents
  1. How Savings+ works
  2. Potential benefits of transitioning your funds with Savings+
  3. How to transition your funds with Savings+
  4. FAQs

How Savings+ works?

Savings+ investment works on a simple principle - it allows individuals to invest their surplus funds in relatively low-risk debt instruments including the Bajaj Finserv Overnight Fund and Bajaj Finserv Liquid Fund. Both schemes offer a conservative approach to investing, with the low duration and high quality of the underlying securities prioritising less impact on capital invested along with a modest return potential.

The Savings+ investment process can be completed through the company website. Individuals can select the investment option that best suits their needs and investment horizon. The investment amount can be as low as Rs. 1,000, making it accessible to a wide range of individuals. However, it is recommended that one sets up a consistent investment plan to route extra funds into Savings+ periodically to potentially reap the full benefits of the scheme.

Potential benefits of transitioning your funds with Savings+

Transitioning your funds from savings to investments with Savings+ offers several benefits:

  • Higher return potential: Investors can divert their extra funds into Savings+ to potentially earn higher returns relative to those offered by traditional bank accounts. However, unlike traditional savings accounts, the returns are not guaranteed in case of Savings+.
  • Convenience: Investments can be made online via the company website, eliminating the need to visit a bank or financial institution. This convenience can be especially beneficial for individuals who live in remote areas or have busy schedules.
  • Diversification: Allocating a portion of your funds to debt instruments such as the Bajaj Finserv Liquid Fund and Bajaj Finserv Overnight Fund can help investors balance the risk/return profile of their portfolio.
  • Flexibility: Savings+ investment offers flexibility in terms of investment amount and tenure. Individuals can invest with a low amount, making it accessible to a wide range of individuals. The investment tenure can also be customised to suit individual needs, ranging from short-term to long-term investments.

How to transition your funds with Savings+

Transitioning your funds with Savings+ is simple and convenient:

  1. Open a Savings+ account by visiting the company portal
  2. Link your existing bank account to Savings+
  3. You will be prompted about the extra funds you have in your account
  4. Transfer surplus funds into the Savings+ account
  5. Decide which scheme to invest it

Additionally, the Savings+ facility alerts investors regularly about the excess funds remaining in their bank account. Based on this, investors can make decisions on how much and how frequently to invest in Savings+.

Conclusion
Transitioning your funds from savings to investments with Savings+ offers several benefits, including the potential for higher returns, liquidity, diversification, along with a user-friendly platform. However, it is always prudent to consult a financial advisor before making any investment decisions.

FAQs:

What is Savings+, and how is it different from a regular savings account?
Savings+ is a savings cum investment facility offered by the Bajaj Finserv AMC that allows investors to automatically route extra funds in their savings accounts into debt mutual funds.

What types of investment options does Savings+ offer?
Savings+ invests primarily in the Bajaj Finserv Liquid Fund and Bajaj Finserv Overnight Fund. Both funds invest in low-duration, high-quality debt instruments.

What strategies should I consider when transitioning from saving to investing with Savings+?
When transitioning from saving to investing with Savings+, it is important to set clear financial goals, build an emergency fund as a safety net, assess your risk tolerance, and allocate your funds wisely.

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.