4 Things That Couples Should Keep in Mind While
Investing In Mutual Funds
If you are married, you may spend a lot of time
with your better half, helping them solve their problems, planning vacations or
just relaxing at home.
However, couples also need to discuss investments
as well. And, mutual funds are a popular investment option.
This article will look at the four main aspects
that couples need to take care of while investing in mutual funds.
Do you want to maintain a joint account or an
You can use a joint account or a regular account to
invest in mutual funds.
Many mutual fund platforms provide mutual fund
joint holding accounts. You and your spouse must both be KYC compliant to
invest under a joint account.
However, keep in mind that if there are any ELSS
funds in the portfolio, only the primary account holder would be eligible for
How do you want to take care of goals?
The second factor to examine is your objectives.
Goals help you to understand why you`re investing in the first place. And,
because you`re investing as a couple, you`ll have two types of goals: your
joint goals as a couple and your different individual goals.
Examples of joint goals
- Purchasing your first home
- Saving money for your children`s college
- Putting money aside for retirement
Examples of Personal goals
- Creating your home gym
- Investing in a high-end camera to pursue your
- To increase your professional possibilities by
taking a course or going back to college
There are two ways to tackle joint goals: Investing
together and separately.
The first technique allows you to pool your
resources and invest in a common objective. For example, if both of you are
saving for retirement, you and your spouse together would buy three
high-performing equity funds. If you own funds `A` and `B,` your spouse might
invest in `C` to supplement your portfolio. If the funds overlap, then you or
your spouse can trim some of the holdings.
You and your partner can pursue separate goals in
the second strategy. You can, for example, invest in your child`s schooling
while your spouse invests for retirement. Because you and your spouse are
investing for distinct purposes with this technique, it isn`t a big problem if
your portfolios coincide.
If you are investing for the same goals, keep an
eye for portfolio overlap with your spouse
If you and your spouse are investing for the same
goal, the funds must complement each other. It`s because too many similar
funds, after a certain point, don`t add much to diversification.
Assume you have three large cap equity funds A, B,
and C in your portfolio, and your spouse has three additional large cap funds,
say schemes D, E, and F. If this is the case, diversification will not affect
Reach a mutual consensus for financial goals
It is natural for two people to have opposing view
points on specific issues. Similarly, your partner may have different plans for
specific significant financial goals in your life, such as retirement or a
child`s schooling. Assume your partner desires a luxury retirement, however you
want a conventional or frugal one. These factors influence the amount of money
needed for both of your retirement goals.
As a result, it is critical for you and your
partner to communicate the visions for various financial goals in your lives to
reach a mutual consensus and effectively plan investments to achieve common
Investing together as a couple can be tricky. So,
it is essential to find a middle ground that can help fulfil the common
financial goals. This post discussed the top four aspects that you need to
consider as a couple when investing in mutual funds.
This blog is purely for educational purpose and not
to be treated as an personal advice. Mutual fund investments are subject to
market risks, Read all scheme related documents carefully.
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