Many times at this young age, we don’t understand the lessons of saving and investing, but if you understand the importance of investing, then you will not repeat this mistake. GenZ who dream of a luxurious life should first understand the ABCD of investing.
Investment Guide: When we start earning, we feel like fulfilling all our desires with that money. But elders ask you to save and invest with the first salary. Many times at the new age, we do not understand the words of elders and people ignore them. But if you understand the importance of investment, then you will not repeat this mistake. Investment is the only thing that can make your future better. Those GenZ who dream of a luxurious life in their future, it is very important for them to first understand the ABCD of investment.
Understand why investment is important?
Acharya Chanakya said that just like stagnant water starts rotting, in the same way money deposited at one place also becomes perishable and ends with time. Therefore, if you want to increase your capital for the future, then do not keep the money deposited somewhere, but invest it. The amount invested grows with time. Only by investing can you secure your future financially.
When to start investing
Financial expert Deepti Bhargava says that every person should start investing with his first income. Even if you start investing with a small amount, you should definitely start it. With time, when your income increases, you can increase your investment. The sooner you understand the importance of investment, the sooner you can make yourself financially strong.
How much to invest
Now another question comes to mind that how much money should be invested from the income? The financial rule says that every person should invest 30 percent of his income. Meaning, if your income is Rs 15,000, then you should invest Rs 45,000 in any case. With the remaining amount, you can fulfill your needs and hobbies etc.
Where to start investing
Nowadays there are many means of investment. Many schemes are run by the government, in which your money is also safe and you get guaranteed interest on it like PPF, FD, RD, Sovereign Gold Bond, NPS, Kisan Vikas Patra etc. Apart from this, investment can also be made in the market. But if you are a new investor, then you should not invest in the market in the beginning because a small mistake can cause you a big loss.
Deepti Bhargava says that every person should include many types of investments in his portfolio. For this, do not invest the money saved for investment in any one scheme, invest it in different places. New investors should start with government schemes. Include both short term and long term options in it. In such a situation, for a lump sum amount, you can invest in FD, NPS, Kisan Vikas Patra etc. On the other hand, if you want to invest some amount every month, then you can choose the option of RD. For long term, you can invest in PPF or Sovereign Gold Bond. It is better that you start investing by taking advice from a financial expert.
SIP can also be an option
Mutual fund is also a good option for investment. In this, you can invest a fixed amount every month through SIP. Despite being market linked, the risk in it is considered low. In the long term, you can get a return of up to 12 percent through SIP.
Keep this in mind
Keep in mind that do not invest money in stock by looking at someone. It is important to do homework before investing in the share market. In this, you should gather all the information from knowing the general terminology of the market to choosing the stock. It is not right to invest money in stock by running after the crowd. Everything is uncertain in the share market. Sometimes such a situation arises that even investors with years of experience are unable to tell the way forward. Therefore, first study the market thoroughly, understand the market and then decide to invest.
