Savings Are Not Investments - Understand Saving vs Investment

Samriddhi Volume 06 Edition 09 by ABSLMF

In today’s changing financial landscape, understanding the difference between saving vs investment is essential. Many people ask, “Are savings an investment?” or look for the difference between savings and investment explained in simple terms. This edition of Samriddhi - Volume 6, Edition 9: The Path to Prosperity offers clarity on this often misunderstood topic.

This guide explains why savings are not investments and highlights how to shift from just storing money to building long-term wealth. While both saving and investing are important, they serve different purposes. Saving helps protect money for emergencies and short-term needs. Investment, on the other hand, helps grow your money and beat inflation over time.

Using simple strategies and familiar instruments like Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), debt funds, and balanced funds, this guide helps you understand how to build a strong financial foundation. You’ll also learn how to create a step-by-step plan based on your life goals and risk appetite. By focusing on financial literacy, goal-based planning, and disciplined investing, you can prepare for a more secure future.

Key Insights:
• Savings ≠ investments: Savings keep money safe but may lose value due to inflation.
• Hierarchy of financial needs: Start with an emergency fund, add term insurance, then begin investing.
• Match time horizon and risk appetite: Use debt funds for short-term goals and ELSS or equity mutual funds for long-term growth.
• Keep a balanced approach: A mix of equity and fixed-income funds can reduce risk.
• Use a Systematic Investment Plan (SIP) to invest regularly and avoid market timing.
• Focus on portfolio diversification and tax-efficient options like ELSS under Section 80C.

Takeaways:
• Relying only on savings won’t help you build wealth - you need to invest to stay ahead of inflation.
• Always build your emergency fund and buy term insurance before looking for high returns.
• Pick the right fund based on your goals and how much risk you’re comfortable with.
• Automate investments with SIP for consistent, hassle-free investing.
• Avoid overcomplicating: A few well-chosen funds like balanced, multi-cap, and debt funds can be enough.
• Stay disciplined and keep investing until you reach your goals or need to review performance.

Why Download This Edition eBook?
• Get a clear understanding of saving vs investment and why savings are not investments.
• Follow a practical roadmap: emergency fund → term insurance → short-term investing → long-term investing.
• Learn how to use common investment tools like debt funds, ELSS, balanced funds, and multi-cap funds.
• Understand the importance of inflation, SIP, tax planning, and portfolio diversification.
• Created specifically for Indian investors - includes insights on PPF, ELSS, Senior Citizens Savings Scheme (SCSS), and Section 80C benefits.
• Whether you're a beginner or an experienced investor, this edition offers a simple yet powerful path to long-term financial success.

Download Savings Are Not Investments - Understand Saving vs Investment | Samriddhi Volume 06 Edition 09 and take charge of your financial future!

Disclaimer:
The Tax calculation shown above is for illustration purpose and general information only. Amount(s) mentioned above may undergo a change if assumptions specified herein do not hold good. Investors are advised to read the scheme information document of the scheme carefully before investing and consult their Tax Consultant or Financial Advisor to determine tax benefits applicable to them.

An Investor education and Awareness initiative of Aditya Birla Sun Life Mutual Fund.
All investors have to go through a one-time KYC (Know Your Customer) process. Investors to invest only with SEBI registered Mutual Funds. For further information on KYC, list of SEBI registered Mutual Funds and redressal of complaints including details about SEBI SCORES portal, visit link : https://mutualfund.adityabirlacapital.com/Investor-Education/education/kyc-and-redressal for further details.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
म्यूचुअल फंड निवेश बाज़ार जोखिम के अधीन हैं, योजना संबंधी सभी दस्तावेज़ों को सावधानी से पढ़ें।