Investing for Retirement and Financial Goals

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What is one of the benefits of investing your earnings during your working years?

To invest only in domestic stocks

To enable your funds to sustain you after retirement (correct)

To achieve short-term financial goals only

To reduce the risk of investment

Which investment options are ideal for short-term targets like funding home improvements or creating an emergency fund?

International Stocks

Real Estate Funds

Instruments with short lock-in periods and high liquidity (correct)

Sector Funds

What is the main objective of diversification in investments?

To minimize risk by allocating investments among various financial instruments (correct)

To invest in domestic stocks only

To guarantee against loss

To maximize return through investments in a single industry

What is a benefit of diversifying your investments?

Reaching long-range financial goals with lower risks Signup and view all the answers

What is the result of not diversifying your investments?

Putting all of your eggs in one basket Signup and view all the answers

Which of the following is NOT a component of diversification?

Mutual Funds Signup and view all the answers

What is one way to mitigate the risk of not having a regular income during a crisis?

Having a second line of income from investments Signup and view all the answers

What can help you take care of your monthly expenses after retirement?

Passive income from investments Signup and view all the answers

Why is investing regularly important for retirement?

To achieve financial independence Signup and view all the answers

What can help you pursue your passion after retiring early?

Investing and accumulating wealth Signup and view all the answers

What is a benefit of investing in real estate and other assets?

Having a second line of income Signup and view all the answers

Why is it important to have a retirement corpus?

To achieve financial independence Signup and view all the answers

What is the primary purpose of saving up for retirement?

To have a fund to fall back on in your golden years Signup and view all the answers

Why is it necessary to have a retirement fund?

Because you may not be able to continue working forever Signup and view all the answers

What is the benefit of investing in options like ULIPs, PPF, and ELSS?

To reduce your taxable income Signup and view all the answers

What can income-generating investments help you with?

Paying for your everyday expenses after retirement Signup and view all the answers

What is an example of an investment that can provide a steady stream of income?

Fixed deposits Signup and view all the answers

What can supplementary income from investments be used for?

Paying for college expenses Signup and view all the answers