If you’re earning a good income but are unsure where to put your money, you’re not alone.
One of the most common questions I get is:
“Should I start with a Money Market Fund, a Fixed Income Fund, or a Special Fund?”
The short answer?
It depends on your goal.
Inside the Wealth Engine of my 7-Step Wealth Masterplan, I teach that your ultimate target is to replace your active income with passive income, not just invest blindly.
Let’s break it down practically:
MMF Vs Fixed Income Vs Special Fund
1. The Dignity Portfolio – Secure Your Basics
This portfolio should cover your essentials: food, rent, utilities, and clothing.
Ask yourself:
If my income stopped today, which fund would give me peace of mind?
MMF: Great for this. Low risk, very liquid—ideal for emergencies.
Fixed Income Fund: Higher return, but slower access (can have a 6 6-month lock-up period), but works just like an MMF
Special Fund: High return, but long-term and volatile. Not ideal for your safety net, but perfect for growth.
Verdict:
Start here with MMFs. Add Fixed Income once you’ve built 3–6 months of cushion.
2. The Lifestyle Portfolio – Fund Your Dreams
These funds things like holidays, school fees, giving, or health care.
Ask yourself:
How far is the goal, and how much risk can I handle?
MMF: Good for short-term goals (under 1 year)- Emergency Fund
Fixed Income Fund: Ideal for 1–10 year goals. Steady returns, manageable risk. – Education Fund
Special Fund: Excellent for long-term goals—if you’re patient and can ride the ups and downs.- Retirement Fund, Home Fund
Verdict:
Blend Fixed Income and Special Funds here. Let time and purpose guide your mix.
3. Compound Interest – The Silent Wealth Builder
Here’s where the magic happens—letting your money make money over time.
Ask yourself:
Which fund allows my money to grow consistently over the years?
MMF: Low but stable growth. Great for safety, not speed.
Fixed Income Fund: Stronger compounding (12–14%), less volatility.
Special Fund: Potential for high growth (15%+), but you must stay the course.
Verdict:
The earlier you start, the more powerful this gets.
Your money needs time—and the right environment—to multiply.
So, Where Should You Begin? MMF, Fixed Income or Special Fund?
Start with MMFs for security.
Move into Fixed Income to grow safely.
Add Special Funds for aggressive long-term wealth building.
It’s not either-or. It’s when and why.
