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Sunday, June 29, 2025

EMI vs SIP — The Mindset Shift That Can Change Your Financial Life


In today’s world, EMIs have become as normal as paying your electricity bill. Almost every person you meet is paying some EMI — a home loan, a car loan, a phone EMI, or even a personal loan for a gadget or holiday. Most people don’t think twice before committing ₹10,000, ₹15,000, or ₹20,000 every month as EMIs.

Why? Because EMIs give you something instantly. You pay today and get to enjoy a house, drive a car, or hold a new phone right away. There’s an emotional satisfaction attached to it. The asset — or sometimes the liability — is immediately visible.

But talk to that same person about investing a small amount through a SIP (Systematic Investment Plan), and suddenly the excitement fades. Excuses like “I have too many EMIs”, “I’ll start later”, or “Let’s wait for the bonus” start coming up.

The issue isn’t money.
The issue is mindset.

At RerassWealth, we believe the way people think about money shapes their financial destiny. That’s why we follow a simple rule we recommend to every client:

“Whenever you take an EMI, make it a rule to invest at least 10% of that EMI amount into a SIP for yourself.”

Not for tax-saving.
Not for quick returns.
Not because someone else asked you to.
But because it will quietly and steadily impact your financial life far more than any EMI ever can.


📌 Why EMIs Feel Compulsory and SIPs Feel Optional

EMIs feel compulsory because there’s a financial consequence if you skip them. Miss an EMI and you’ll get reminder calls, late payment fees, and maybe even a dent in your credit score. That’s why most people pay EMIs on time, every time.

SIPs, on the other hand, are treated as optional. Nobody will call you if you skip a SIP. No penalty, no reminder, no visible short-term consequence. And this is exactly where people go wrong.

An EMI is paying for your present comfort. A SIP is building your future freedom.
One gives you something tangible today. The other gives you quiet, growing wealth for tomorrow.
Most people prioritise the first and ignore the second — and later wonder why they feel financially stuck even after years of working hard.


📌 The Real Wealth Habit Isn’t Earning More — It’s Discipline

There’s a common myth that you need a very high income to build wealth. In reality, it’s discipline that makes you rich. It’s about how consistently and wisely you use your money, not just how much you make.

If you’re already paying ₹10,000, ₹15,000, or ₹20,000 every month as EMIs, you’ve proven you have financial discipline. You’ve shown you can adjust your lifestyle around a fixed, non-negotiable monthly outgoing.

You never skip your EMI, because you know there’s a penalty.
This is the same discipline required to build long-term wealth.

But while EMIs are forced commitments made to banks, SIPs are voluntary promises you make to your future self. One benefits the lender. The other benefits you.

If you can pay ₹20,000 to a bank every month without fail, surely you can pay yourself ₹2,000 as a SIP alongside it. Not because it’s a huge amount, but because it’s a meaningful start.

It’s not about financial ability.
It’s about financial priority.


📌 Why You Shouldn’t Let EMIs Consume Your Entire Financial Potential

One of the biggest dangers with EMIs is that they slowly drain your financial potential without you realising it. Every EMI you pay is a deduction from your future wealth-creating ability. Whether it’s a car loan, a phone EMI, or even a home loan, it’s money committed to assets that either depreciate or remain illiquid.

What about your other life goals?
Your child’s education?
Medical emergencies?
Your retirement plans?
Your dream to travel or start something of your own?

None of these goals will be achieved by your EMIs. They’ll be achieved by your investments.
And the sooner you start those, the better your future becomes.


📌 Why 10% Works: Small Enough to Start, Big Enough to Matter

Many people hesitate to start investing because they believe it requires a lot of money. But that’s not true.
The 10% rule makes it psychologically easy and financially effective.

If you’re paying ₹10,000 as EMI, investing ₹1,000 alongside it isn’t tough.
If you’re paying ₹20,000, keeping ₹2,000 aside won’t disturb your budget.

We all spend that much on casual weekend expenses — a meal at a restaurant, online shopping, or random subscriptions.
But when you channel that same small amount into a SIP, you’re planting the seed for wealth creation.

You won’t see immediate results.
But give it 10, 15, 20 years — and it will silently become your most valuable financial asset. The one that’s accessible, flexible, and quietly compounding even when you’re not watching.


📌 Comfort Isn’t Wealth — Freedom Is

There’s a common mistake many people make — they confuse lifestyle upgrades for wealth.
A bigger house, a new car, or the latest phone doesn’t make you rich. It makes you comfortable.

Real wealth is when you have the freedom to decide when to stop working, how to spend your time, and the ability to handle life’s surprises without fear.

EMIs create comfort today.
SIPs create freedom tomorrow.

And smart people don’t just chase comfort.
They chase freedom.


📌 Make This a Rule. No Exceptions.

From today onwards, make yourself one simple promise:

“Whenever I take an EMI, I’ll start a SIP worth at least 10% of that EMI amount.”

No excuses.
No postponements.
No debates.

This simple financial habit will do what no salary hike, no bonus, and no side hustle can do — it will quietly shift your financial life from reactive to proactive. From debt-driven to wealth-driven.

And remember — you don’t invest because you have extra money lying around.
You invest because your future deserves it.


📌 Final Thought from RerassWealth

At RerassWealth, we’ve seen it countless times. People proudly pay EMIs for years, only to realise later they didn’t build any parallel liquid wealth. And those who quietly ran a SIP alongside their EMIs? They ended up with both — lifestyle comforts and financial freedom.

Your future won’t remember the car you bought or the phone you used.
It will remember the wealth you built.

So, whenever you think EMI — make sure you think 10% SIP too.

One day, when the EMIs stop, your SIPs will still be working, still compounding, and still securing your dreams.

Let’s build that future together.
📞 Rajesh Roushan | RerassWealth
📱 7991147238 | 🌐 www.rerasswealth.in

Friday, June 27, 2025

📖 Why a Mutual Fund Advisor is Essential: Things Direct Plans Will Never Tell You!

 

📌 A Shocking Reality I Recently Came Across

Recently, I read an insightful article in Business Standard published on June 24, 2025, which revealed that in the first five months of 2025, the SIP (Systematic Investment Plan) closure rate in Direct Plans was 2.6 times higher than in Regular Plans

As someone who guides clients on wealth creation through mutual funds, this statistic immediately got my attention.
Why are investors in Direct Plans—considered ‘smarter’ and ‘cheaper’—stopping their SIPs faster than those working with advisors?

The answer lies in one key area: human behavior.
And that’s where a Mutual Fund Advisor delivers value beyond the numbers.


📌 Direct Plans: Lower Cost, Higher Emotional Risk

Yes, Direct Plans are cost-effective, saving you roughly 0.50% to 0.70% in annual fees. You can access them easily online via apps or websites.

On paper, it seems ideal—but investing isn’t only about costs or past returns.
It’s about managing emotions, discipline, and timing—none of which an app controls.

When markets dip:

  • Investors panic

  • **SIP contributions halt **

  • Holdings get redeemed or shifted to 'safer' options

Your app doesn’t:

  • Call you and say “Stay the course.”

  • Remind you of your long-term goals

  • Rebalance your portfolio

  • Steer you away from impulsive decisions


📌 Emotional Discipline: The Real Key to SIP Success

A successful investing journey isn’t about chasing the best return each year.
It’s about staying committed for 10, 20, or 30 years, through varying market cycles.

Emotional discipline ensures you don’t abandon your SIP during volatility.

For example:
👉 In March 2020, when the Nifty 50 plunged ~38%
👉 DIY investors panicked, stopped their SIPs, and exited at losses
👉 Investors with advisors stayed put—some even increased contributions

Those disciplined investors recovered swiftly and benefitted from the rebound in 2021–22.

The difference wasn’t the fund—it was the investor behavior, guided by advisors.


📌 Direct Plans Are Tools, Not Strategies

An app lets you:

  • Start a SIP

  • Monitor returns

  • Redeem or switch funds

But it doesn’t:

  • Understand your goals

  • Gauge your risk appetite

  • Balance your portfolio

  • Provide guidance during crises

  • Adjust your strategy as your life evolves

Investing without strategy is like driving without a steering wheel—you might move forward, but you’re steering blind.


📌 Importance of Proper Asset Allocation

A common Direct Plan mistake is chasing past returns—loading up equity in bull runs, and fleeing to debt in bearish phases.

Without proper allocation, your portfolio becomes unstable—either overly risky or too conservative.

A qualified advisor:

  • Assesses your risk profile

  • Aligns your investments with your life goals

  • Diversifies across Equity, Debt, Hybrid, Gold, and Liquid Funds

  • Reviews and rebalances your portfolio regularly

This ensures consistent growth without excessive risk as life and markets evolve.


📌 The True Cost of Avoiding an Advisor

Indeed, Regular Plans include a 0.50%–0.70% advisory fee. But the cost of DIY mistakes can be far greater:

  • Wrong fund choices may underperform for years

  • Stopping SIPs during downturns can diminish future wealth by 20–30%

  • Poor diversification leads to bigger losses

  • No reviews mean outdated investments misaligned with goals

Advisors do more than recommend—they protect your financial journey.


📌 Case in Point: Two Investors, Two Outcomes

Meet Ramesh and Suresh:

  • Ramesh started a Direct Plan SIP in Jan 2020.
    When COVID hit in March, he panicked, withdrew in April  and again invest after the market rebound, he missed the rebound.

  • Suresh, guided by his advisor, stayed invested and even increased his SIP.
     He stay invested and focused on his goal not on timing the market. He only listen to his advisor only.

Same funds. Same period. Different outcomes—thanks to emotional discipline under advisory guidance.


📌 Final Thought

Investing is easy. Staying invested and disciplined is hard.

Yes, an app shows historical performance—but an advisor ensures you actually achieve those returns through:

  • Managing investor behavior

  • Adopting proper asset allocation

  • Staying committed through volatility

  • Avoiding emotional blunders

A modest 0.50%–0.70% advisory fee is a small price to pay for disciplined wealth building.


📌 If you’re serious about long-term growth, don’t go it alone. Invest with guidance.

At RerassWealth, we don’t just manage funds—we manage emotions, goals, and financial journeys.

📞 +91 7991147238
🌐 www.rerasswealth.in
📧 rerasswealth@gmail.com

💼 Rajesh Roushan
AMFI Registered Mutual Fund Distributor – ARN-327367
Founder, RerassWealth


📖 Reference:
[“SIP closures in Direct Plans 2.6X higher than Regular”, Business Standard, June 24 2025]business-standard.com+1angelone.in+1angelone.inhindi.business-standard.com+1cafemutual.com+1business-standard.com

Wednesday, June 4, 2025

🏆 Invest Like a Champion: What Royal Challengers Bangalore’s Victory Can Teach SIP Investors.

In the world of investing, patience and consistency are the ultimate winning strategies. One of the smartest ways to build long-term wealth is through a Systematic Investment Plan (SIP). And to truly experience its magic, you need to stay in the game — just like Royal Challengers Bangalore (RCB) did for 18 long years before finally lifting their first IPL trophy in 2025.

🏏 The RCB Story: A Lesson in Patience

RCB’s journey in the IPL was filled with ups, downs, heartbreaks, and near misses. But they stayed committed, returned every season with belief, and never gave up. And after 18 years of discipline and resilience, they finally became champions.

This is exactly how SIP investing works. You won’t see instant results. The markets will rise and fall, but if you stay consistent and patient — your financial victory will eventually come.

📈 Why Stay Invested for the Long Term?

The secret behind SIP’s success is compounding — where your money earns returns, and those returns earn more returns over time. The longer you stay invested, the bigger your wealth can grow.

Example:

SIP Amount: ₹5,000/month

Investment Duration: 18 years

Expected Annual Return: 12%

👉 Total Investment: ₹10.8 lakhs

👉 Potential Value: ₹48+ lakhs

Disclaimer: Returns are market-dependent. Past performance does not guarantee future results.

🌟 What SIP Investors Can Learn from RCB

✅ Patience Pays Off: Just like RCB’s title came after 18 seasons, wealth creation takes time.

✅ Consistency is Key: Regular investing builds wealth steadily, regardless of market conditions.

✅ Focus on the Long Game: Stay invested to let compounding work its magic.

✅ Trust the Process: Every SIP takes you a step closer to your goal — just like every IPL season prepared RCB for their big win.

👑 The Leader’s Role: Virat Kohli & RerassWealth — Your Financial Captain

During RCB’s long journey, Virat Kohli emerged as a true leader. Even in tough times, when victories were rare, Virat stood strong.

✅ He motivated his players.

✅ Kept the team’s morale high during defeats.

✅ Took bold, strategic decisions when needed.

✅ Led by example with his passion and discipline.

✅ Never lost sight of the ultimate goal — to make RCB champions.

Now think of Mutual fund Advisor as the Virat Kohli of your financial journey.

At RerassWealth, we:

📊 Keep your financial morale high during market dips.

📈 Guide your SIP strategy patiently and review it when needed.

📅 Ensure you stay invested consistently, through every market season.

🎯 Help you focus on long-term wealth creation, not short-term distractions.

💪 Stand by you through every financial situation — good, bad, or uncertain.


Just like Virat Kohli didn’t let temporary defeats define RCB’s destiny, RerassWealth ensures market fluctuations don’t define your financial future.


RCB’s IPL triumph wasn’t achieved overnight — it was 18 seasons of belief, discipline, leadership, and resilience. Your financial journey through SIP is no different. Stay disciplined, trust RerassWealth, remain patient, and give your investments time to shine.


Because champions — whether on a cricket pitch or in the world of finance — aren’t made in a day. They’re built through consistency, smart guidance, and unshakable belief.

📞 Start Your Winning Financial Journey with RerassWealth!

Ready to start your SIP journey and build wealth the smart, steady way? RerassWealth is here to be your financial captain.

📲 Contact Us: 7991147238

📧 Email: rerasswealth@gmail.com

🌐 Visit: www.rerasswealth.in


👉 Book your free consultation today and plan your champion move. 

Monday, June 2, 2025

Loan Against Mutual Funds in 2025: What It Is, How It Works & Is It Worth It?

📌 Introduction

Imagine needing urgent money — but you don’t want to sell your mutual fund investments and miss out on future returns. Well, good news! You can now get a Loan Against Mutual Funds (LAMF), where your mutual fund units act as security, and you receive a quick loan without selling your holdings.

In this post, we’ll explain what it is, how it works in 2025, the pros and cons, whether it makes sense for you — and how RerassWealth can help you apply for it easily.

📌 What is a Loan Against Mutual Funds?

A Loan Against Mutual Funds is a type of secured loan where you pledge your mutual fund investments as collateral to borrow money from a bank, NBFC, or financial institution. Unlike selling your funds in a hurry, this option helps you raise money while your investments continue to grow.

  • ✅ No need to redeem your funds
  • ✅ Continue earning returns
  • ✅ Quick, lower-interest loans

At RerassWealth, we help clients easily access loan options against their mutual funds through trusted, secure, and fast online channels.

👉 Want to apply online quickly?
➡️ Apply Now

📌 How Does It Work?

  • You pledge your mutual fund units (equity or debt schemes) as security.
  • The lender marks a lien on those units.
  • Based on the market value of your funds, you get 60–80% of the value as a loan.
  • Quick Approval & Same-Day Disbursement: Most applications are approved within 24 hours, and the loan amount is credited to your account on the same day.
  • Interest is charged on the used amount.
  • Once repaid, the lien is removed, and your investments are free again.

👉 Apply through our verified partner Smallcase:
➡️ Apply Now

📌 Example: Loan Against Mutual Funds Calculation for ₹1,00,000

Let’s assume you have mutual fund units worth ₹1,00,000. Here’s a clear calculation of how much loan you can get and what you’d pay with a 10.50% annual interest rate calculated for 365 days.

ParticularsDetails
Market Value of Funds₹1,00,000
Loan-to-Value (LTV) Ratio75%
Loan Amount Sanctioned₹75,000
Interest Rate (example)10.50% per annum
Loan TenureUp to 3 years (renewable)

Interest Calculation (Simple Interest)

Interest = (Loan Amount × Rate × Number of Days) / (100 × 365)
= (75,000 × 10.50 × 365) / (100 × 365) = ₹7,875

Total Repayment After 365 Days: ₹75,000 (Principal) + ₹7,875 (Interest) = ₹82,875

Need instant approval?
➡️ Apply Now

📌 Pros of Loan Against Mutual Funds

  • ✅ Lower Interest Rates: 8%–12% p.a., cheaper than personal loans
  • ✅ No Fund Redemption: Your investments stay intact
  • ✅ Quick Processing & Same-Day Disbursement
  • ✅ Processing Fee as low as ₹499 + GST
  • ✅ Continue to Earn Returns: Dividends and NAV appreciation continue
  • ✅ Zero Prepayment Charges

📌 Cons & Risks

  • ❌ Market Risk: If NAV falls, your eligible loan limit drops
  • ❌ Lien on Funds: You can’t redeem or switch these investments till repayment
  • ❌ Default Risk: Non-payment may lead to fund sale by lender
  • ❌ Limited Loan Amount: Usually up to 80% of current value

📌 Loan Against Mutual Funds vs Other Loans — Quick Comparison

Feature Loan Against Mutual Funds Personal Loan Car Loan
Interest Rate (Approx.) 8% – 12% p.a. 10% – 18% p.a. 8% – 13% p.a.
Security/Collateral Mutual Fund units pledged Unsecured (no security) Car hypothecation
Loan Amount Eligibility Up to 80% of fund value Based on income profile Up to 90% of car value
Processing Time Within 24 hours 1–3 working days 1–2 working days
Processing Fee ₹499 + GST ₹999 – ₹5,000 + GST ₹2,500 – ₹6,500 + GST
Repayment Tenure Up to 3 years (renewable) 1 to 5 years 1 to 7 years
Prepayment Charges Zero 0% – 4% 0% – 5%
Effect on Investment Funds remain invested No investment involvement Car depreciates over time

📌 Is It Worth It in 2025?

✔️ Good for:

  • Short to medium-term cash needs
  • Avoiding high-interest personal loans
  • People who don’t want to disturb long-term investments

❌ Not Ideal for:

  • Long-term gaps without repayment plan
  • Unplanned or frequent borrowing
  • Times when markets are volatile

Verdict: A Loan Against Mutual Funds is a smart, low-cost financial tool for emergencies — but should be used carefully with a repayment plan.

👉 Check eligibility & apply now:
➡️ Apply Now

📞 Contact Me for Loan Against Mutual Funds

Rajesh Roushan
📱 Mobile: 7991147238
📧 Email: rerasswealth@gmail.com

EMI vs SIP — The Mindset Shift That Can Change Your Financial Life

In today’s world, EMIs have become as normal as paying your electricity bill. Almost every person you meet is paying some EMI — a home loan,...