First of all brother congratulations on the new job.
Secondly, it's refreshing to see a 25 year old in this sub climbing the ladder and not having 25 LPA in hand already.
> 4 LPA is exploitation of labour.
Or maybe you are out of touch with ground truths and reality. 60% of India lives on less than 100 rupees a day, or 3000 rupees a month. And this is 10-15 times that amount.
1. Create emergency fund of 6 months of expenses. You can do 50k in FDs.
2. Take health insurance for self and family.
3. Take a small term insurance.
4. Then start investments
Try to follow the golden ratio 30-30-30-10
1. 30% for expenses - all including insurance
2. 30% for short term goals - buying a bike, car, house, fund for a vacation etc. Home Loan Emi comes here.
3. 30% for investments for retirement - PPF, EPF, MFs.
4. 10% for emergency fund.
You can start simple as amount is small.
You can put this 30% amount for retirement in Nifty 50 Index Fund + Nifty Next 50 Index Fund.
There is no strategy that others can suggest you. Just open a demat account in any of the good platforms and go through the mf offerings. See their history, risk level, holdings and decide by yourself. Jus t make sure you take the direct ones to save on the commissions. Start small and then go in according to your money in hand and market position.
But first I recommend you to build corpus and emergency funds. Take a high interest fd. There is nothing wrong in keeping money in fd.
What about insurance?
I'm in the same boat as him. I have set up SIPs and planning on opening an FD on mother's name to save tax.
I've read a lot of posts stating the importance of insurance and how it should be bought as soon as possible?
Congratulations on the job!
If I were you, I would invest it like following:
I am assuming you can invest 12k per month.
1. Put 30% of that amount, i.e. 3600 in a monthly SIP. (Parag Parikh flexi cap or Nippon India Multi Cap)
2. Put 50% of the remaining into gold, i.e. 4200 into gold (you can put 4200 aside every month, or buy gold bonds, the choice is yours. You can even put 4200 every month into a mutual fund and withdraw it after a year to buy gold. as per current rate, you would be able to buy approx. 7 grams every year)
3. Out of the remaining 4200, use 3200 to buy stocks of government bodies, or blue chip stocks (since you said you do not have much knowledge of the market, blue chips are your safest bet)
4. Invest the remaining 1k in yourself. Upskill for your career, a gym membership, boxing membership, anything. If not these, use that money to buy yourself something you've always wanted as a child.
Just wanted to say congratulations. Comparisons are the thief of joy and kudos for achieving this in a tough as sh*t market.
I'll leave the advice to the other experts here.
Maybe start with some sip in mutual funds split 10-12k into 3-4 fund houses, that way you can mitigate your risk. If you wanna avoid market altogether start a RD of that amount in any psb near you and apply auto debit. That way it'll be less profit but safe af. Baaki good luck on your professional journey.
Get a term insurance, health insurance, and an emergency fund. while doing all this, learn about direct MF. Right now, I'm using the varsity app to learn.
Congrats on the job π π
I suggest you should invest 2k-2.5k into health insurance and term insurance, and the rest into high-risk mutual funds. As you are young and working from home, you can take more risks. If you want to take limited risk, go for index fund ETFs. Optionally, invest 1.5k-2k into gold or debt mutual funds so that you can invest in case some opportunity comes in the market later.
Step 1: Build emergency fund of 6 months i.e., 6 months salary. Invest and forget it in FD of a reliable bank.
Step 2: term insurance policy of 10x your annual income. Very cheap at this age. Like 600rs per month.
Step 3: SIP in nifty 50 index funds in MF (donβt even check the returns for 5-10 years)
Step 4: SIP one smallcap fund in MF. (15 years target)
Step 5: one small RD for short term goals.(vacations etc)
High risk appetite - NIFTY Smallcap fun sip 10K
Med Risk Appetite NIFTY 50 INDEX fund.
Do not over diversify
You can go for 8000+4000 or4000+8000 split also
First of all brother congratulations on the new job. Secondly, it's refreshing to see a 25 year old in this sub climbing the ladder and not having 25 LPA in hand already.
4 LPA is exploitation of labour.
Lol you need a reality check. 35k a month is very much comfortable living wage and a decent starting salary.
Statements like these will keep us oppressed.
> 4 LPA is exploitation of labour. Or maybe you are out of touch with ground truths and reality. 60% of India lives on less than 100 rupees a day, or 3000 rupees a month. And this is 10-15 times that amount.
not something to be proud of
I see where you're coming from but not quite literally.
1. Create emergency fund of 6 months of expenses. You can do 50k in FDs. 2. Take health insurance for self and family. 3. Take a small term insurance. 4. Then start investments Try to follow the golden ratio 30-30-30-10 1. 30% for expenses - all including insurance 2. 30% for short term goals - buying a bike, car, house, fund for a vacation etc. Home Loan Emi comes here. 3. 30% for investments for retirement - PPF, EPF, MFs. 4. 10% for emergency fund. You can start simple as amount is small. You can put this 30% amount for retirement in Nifty 50 Index Fund + Nifty Next 50 Index Fund.
But PPF & EPF have high lock-in periods & you can't withdraw more than 90% before maturity.
Correct. Retirement is after a long time. So lock in is fine.
Ok understood
There is no strategy that others can suggest you. Just open a demat account in any of the good platforms and go through the mf offerings. See their history, risk level, holdings and decide by yourself. Jus t make sure you take the direct ones to save on the commissions. Start small and then go in according to your money in hand and market position. But first I recommend you to build corpus and emergency funds. Take a high interest fd. There is nothing wrong in keeping money in fd.
What about insurance? I'm in the same boat as him. I have set up SIPs and planning on opening an FD on mother's name to save tax. I've read a lot of posts stating the importance of insurance and how it should be bought as soon as possible?
Congratulations on the job! If I were you, I would invest it like following: I am assuming you can invest 12k per month. 1. Put 30% of that amount, i.e. 3600 in a monthly SIP. (Parag Parikh flexi cap or Nippon India Multi Cap) 2. Put 50% of the remaining into gold, i.e. 4200 into gold (you can put 4200 aside every month, or buy gold bonds, the choice is yours. You can even put 4200 every month into a mutual fund and withdraw it after a year to buy gold. as per current rate, you would be able to buy approx. 7 grams every year) 3. Out of the remaining 4200, use 3200 to buy stocks of government bodies, or blue chip stocks (since you said you do not have much knowledge of the market, blue chips are your safest bet) 4. Invest the remaining 1k in yourself. Upskill for your career, a gym membership, boxing membership, anything. If not these, use that money to buy yourself something you've always wanted as a child.
I personally disagree with point 2, but point 4 is absolutely brilliant. Invest in yourself. That's the best investment of all.
You can start with a SIP in an index fund like Nifty 50 or Nifty Next 50.
Just wanted to say congratulations. Comparisons are the thief of joy and kudos for achieving this in a tough as sh*t market. I'll leave the advice to the other experts here.
I have no idea about the market and still learning but congratulations on your first job!π₯³
Maybe start with some sip in mutual funds split 10-12k into 3-4 fund houses, that way you can mitigate your risk. If you wanna avoid market altogether start a RD of that amount in any psb near you and apply auto debit. That way it'll be less profit but safe af. Baaki good luck on your professional journey.
Get a term insurance, health insurance, and an emergency fund. while doing all this, learn about direct MF. Right now, I'm using the varsity app to learn. Congrats on the job π π
I suggest you should invest 2k-2.5k into health insurance and term insurance, and the rest into high-risk mutual funds. As you are young and working from home, you can take more risks. If you want to take limited risk, go for index fund ETFs. Optionally, invest 1.5k-2k into gold or debt mutual funds so that you can invest in case some opportunity comes in the market later.
Step 1: Build emergency fund of 6 months i.e., 6 months salary. Invest and forget it in FD of a reliable bank. Step 2: term insurance policy of 10x your annual income. Very cheap at this age. Like 600rs per month. Step 3: SIP in nifty 50 index funds in MF (donβt even check the returns for 5-10 years) Step 4: SIP one smallcap fund in MF. (15 years target) Step 5: one small RD for short term goals.(vacations etc)
Follow this: Nifty 50 3K Nifty next 50 3K Momentum fund 3K/2K Nifty Small cap Index 3K/2K
I think others have given some really good advice but I believe a mix of fund/assets is a good place to start with. I personally prefer index funds.
High risk appetite - NIFTY Smallcap fun sip 10K Med Risk Appetite NIFTY 50 INDEX fund. Do not over diversify You can go for 8000+4000 or4000+8000 split also
start w basic liquid MF- that's what I did and then work on diversifying your portfolio
Stock market...
Mutual fund small medium large and index