Your Salary is not worth if you don’t.

Getting salary or earning money is not worth if you do not invest or save the money.   Invested money is real money earned. Investment provides real value for your salary.  There is no reason to delay the investment.  Investment can be started with 500 rupees monthly in mutual fund SIP.  Do not look for best time to start your investment.  You can start investment now, no second thought to it.

You should invest at least 20% of your monthly earning in investment. Investment is real estate, stock market, mutual funds, gold and many other.  Most of the investment requires lump sum and skill set to manage the investment.   In this, mutual funds looks better option for investment as it can be started with 100 rupees monthly in investment.

Insurance and fixed deposit are saving, not an investment.

Mutual funds invest in equity market/stock market.  So it is highlighted as risk involved instrument.  But Mutual funds are managed by professional fund managers and as an investor, you benefit from their research and expertise . It would lowers the risk and provides best returns. Mutual Funds invest in a basket of securities. Diversification helps in minimizing the risk from a specific security’s under-performance. Align your each financial goal with mutual funds investment based on time horizon.

Start your monthly investment with SIP.   Do not look at market up’s and down’s. Start with 1-2 mutual funds for each of your financial goals.  Maximum 5-6 mutual funds for your investment.

Mutual funds vs Fixed Deposits:

Mutual funds invests the money.   Money grows in mutual funds and not locked, and the money always stays yours.  It is simply being managed by a professional fund manager.   But fixed deposit money is locked for fixed returns. It is not invested in market to grow the money.

Investing is SIMPLE but not rocket science

Do not delay your investment. The early you start, you would earn more by compounding effect.  Compound interest is interest earned on top of interest already earned. As you earn interest, it gets added to your principal amount, which together earns you more interest over time. If you start early, your investments will be able to compound over a longer time period. The earliest returns are reinvested for the longest time and therefore generate greater returns.

Steps for financial rich life are,

1). Start your investment now.
2). At Least 20% of your income in investment such as mutual funds.
3). At Least 10% in saving instrument for emergency. Keep the money in fixed deposit or Post office saving schemes.
4). Do not look at market, just start investing in mutual funds.
5). Life insurance monthly premium with no beyond 10% of monthly your monthly income.

The sad part of the stories is that only 2% of indian population invest in investment instrument. Remaining 98% think that saving instruments and insurance as investment and continue to put all the money in insurance.  The worst ever financial mistake of indian is taking inadequate or wrong Life Insurance. Your insurance should not exceed 10% of your monthly income. Maximum 10% of your income for term insurance and life insurance. Keep the remaining money in investment portfolio and let it grow. The sum assured for your insurance could be your 5 years annual income. The scale for your insurance is maximum 10% of your income and sum assured in 5 years of your annual income.

Do not overlook or confuse about investment. Start with small, start early in mutual funds.

Investment does not require intellectual super human brain.

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