What is the best way to invest INR 15k monthly for youngsters?
What is the best way to invest INR 15k monthly
Lets us look at the points that needs to be taken into account before investing,1) Time, time is the main criteria which decides the type of investment
2) Risk profile, risk depends on the way you understand on how your investment works and how you perceive it
3) Age, age definitely commands the type of investment you need to carry on for your future
4) Knowledge, you need to have a complete knowledge on the investment you are going to do
5) Corpus, you should plan the corpus needed and plan to invest accordingly rather than blindly investing and expecting a bigger amount
Some of the mistake’s you make while doing investment,
You cannot invest in real estate without money or for short duration,
You cannot invest in gold for investment with short term period,
You cannot invest in fixed deposit for a long time and expect your money to grow,
You cannot invest in ULIP and consider it as mutual fund return.
How to allocate my Investments?
Income – savings = Expense, during any point of time on your life, this should be your mantra for leading good financial life. Once you had achieved savings it is easy to find the correct way to invest for your life.
Save one-third of your income alone from the first month, there is no harm in spending all your income in the first few months as you need to celebrate for what you have achieved of being in job at this young age. Once this period is crossed start saving for the next few months. Usually you will be given a salary account with your office, open another savings account or savior account as you will be using this account for your savings and investment. Accumulate an emergency fund at first. Emergency fund depends on your monthly expense accumulate a minimum of 3 months of your monthly expense in your savings account.
Now comes the tricky part i.e. investment, allocate certain portion for equity mutual fund monthly , equities may be volatile for the short term, but in the long term say 3-5 years term equity mutual fund may give you return of around 15%. Some of the best performing funds have given returns in excess of 20% in the last 5 years. ELSS or tax saver mutual fund is regarded as the best investment option for retirement life.
Gold can be bought for hedging, buy Gold ETF as charges will be less, no need to worry about theft and you can sell when needed in online. Gold returns have been subdued in the past 4 years, but focus will be returned if there is a global turmoil in equities and in the economy. Golden period of gold was from 2007 to 2011 when there was a great recession and people stayed away from equities. So have a minimum of 10% of your portfolio with Gold.
Fixed deposits or liquid mutual funds can be used for emergency needs within a year. Liquid funds will yield a better return compared with fixed deposit.
Real estate can be given a thought if you are going to live in it. No second thoughts should be given if you are going to buy a second home also in EMI’s for saving taxes.
Think wise before doing anything with your money. Reach out to a financial advisor and get all your doubts clarified as they are your doctors of your wealth.
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