A wise man had once said, “The world is a book, and those who do not travel read only a page”. Travelling is a great way to experience new cultures, meet different people and even discover new aspects about one’s own personality. However, like many of the good things in life, travel does not come free. In fact, it requires a lot of financial backing.

The right investment choices can not only help you execute your travel plans but also elevate the whole experience. In this article, we will share with you some tips which can help you to tick-off destinations from your travel bucket-list.

• Choose basis your risk appetite

  Before choosing any investment opportunity, it is important to understand one’s risk appetite. If you have the capacity to absorb higher risk and volatility, you can opt for equity funds (small and medium cap) or directly invest in stocks. But beware not to put all your eggs in one basket and invest for long term in equities.

  Tip: If one wants to play safe, options like Fixed Deposits and Recurring Deposits can also help in generating return at the end of a particular period.

• Strike the balance between short term and long term fund requirement

  Every wise traveler should bifurcate his or her investment into these two categories depending on the travel plans. It will not only ensure that one has sufficient liquidity to fund the short term plans but also allow one to grow their portfolio and generate return for the long-term (or more expensive) travel plans.

  Tip: Travelers can choose a SIP between Equity (medium to high risk), Debt (medium to low risk) or balanced funds (medium risk) to fund their long term travel itineraries. Short term debt funds and liquid funds may be a good avenue for investment for the upcoming travels.

• Make a monthly contribution to your travel fund

  Investment towards the travel fund should not be an annual activity. Rather, one should try that a certain part of the monthly income is reserved for this purpose.

  Tip: One important tip is to not let the money for the travel fund remain in your account. Put it elsewhere so that it does not get used for daily ad-hoc activities and may also help you earn more.

• Invest in the right card (or cards)

  Plastic money is not only more convenient and safer, but can also help you to avail certain benefits.

  Tip: Many financial institutions in India offer credit cards which could be beneficial for travel fanatics. These cards offer a gamut of benefits such as complimentary access to airport lounges (free food!), discounts on train, flight or hotel bookings, reduced foreign exchange mark-up, dining concessions, etc. Above all, the reward or loyalty points can be exchanged for air miles with many aviation companies.

• Choose the right assets

  Investment is not only restricted to the stock market or mutual funds, but also extends to our daily life choices. If travel is on your mind and you want to build a robust fund for that, choose assets which may have the potential to appreciate over time. Buying a luxurious car may not be the best decision because its value is going to depreciate over time.

With these wise investment choices, everyone can turn their travel dreams into reality.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully