Financial investment advice

POSTED BY jay p ON February 22, 2013 11:20 am COMMENTS (15)

I am 25 yrs old, unmarried & I think this is the right time to invest my savings instead of just accumulating it in bank account. I am having 1.5 lac as savings(excluding emergency funds) till now.

I am confused whether to keep the savings in FD??? or half in FD & other half in MF???. 

If FD then for how many years???

After subtracting my expenses I want to invest 2k-3k per month into investments.

I am confused whether to invest in equity or debt or both, which SIP plans to look for???

Kindly advise me.

15 replies on this article “Financial investment advice”

  1. Dear Jay P, what’s the EMI that your father is paying as on date & you w’d have to pay after 5Y? From your reply, I assume your father ‘ll retire by that time, confirm it.

    Thanks

    Ashal

  2. Bhavesh Furia says:

    Dear Jay P,

    According to what I read in “Jago Investor” Book, investing in FD which is a debt product, for long term is not advisable since it does not beat inflation.

    Since you are young like me (I noticed that our both profile is almost safe in terms of family and knowledge of finance). I also didn’t knew F of Finance few days back but after visiting and reading this forum’s articles, I have gained a lot.

    Coming to your point, since you are young, I assume your Risk taking capacity is also high.

    You can start by investing 80%-90% of your investment surplus in shares through mutual funds (SIP is preferable) and keep rest 5%-10% in Tax Saving FD for 3 years.

    As you grow old you will have to shift your portion of investments from shares to debts since in old age your risk taking capacity will decrease.

  3. Dear Jay P, I’m sorry for catching the side tracked train. 😉

    Here goes my reply to you. Investment is a continuous process. If you are asking for a one time money investment, the answer ‘ll be different from the one asking for investing on regular basis. Sample this –

    You win Jackpot in KBC & asking to invest the received amount of 3.5 Cr. Rs. (roughly after adjusting for Tax calculation), the advice ‘ll be different then the case you are a salaried person & want to invest 10-12K on mly basis.

    Yes in each case, I w’d like to know your goals, your current situation, assets & investments, financial liabilities, family size. So in terms of Destination of your train (My original query to you), you should know your end point i.e. Goal, Target, Aim. Hope I’m clear to you now.

    Now read this reply & post your query again, what do you want to know. I’ll be more than happy to help you. 🙂 🙂

    Thanks

    Ashal

    1. jay p says:

      Dear Ashal,

      My Report Card is as follows –
      25 yrs, will remain unmarried for good 5 more years, family size- 2, they would be entirely financially dependent on me after 5 years.
      Staying in recently purchased House by my father, the house EMI would be my responsibility after 5 yrs & planning to stay with them after marriage also(No buying property goals)
      Short goal – Purchase a Car(lower range).
      Long Term Goals – Able to help my parents(healthcare expenses funds), my future family( wife & child funds), in short Financially.
      Assets – Salaried person, Income – 15K per month, owning no land/property.
      Liabilities – No Loan EMI
      Investments – Have saved 1.5 lac(excluding emergency funds) till now & I know simply saving money does not makes it grow. Out of my income excluding expenses & personal savings(goes into emergency fund) I will be able to invest 2k-3k per month.

      Based on many advises I received by people, the general points are –
      1. Invest the existing 1.5 lac into FD for 10 yrs & get a lump-sum huge amount after 10 yrs.
      2. Invest half in FD & other half in Shares.
      3. Invest in 3 parts FD, Shares & MF.

      I not only want to choose the wise option from above but also start investing 2k-3k per month taken from my monthly salary.

      But the problem is I don’t know the F of Finance & neither do the people who advised!!!

      So by seeing my report card kindly suggest investment plans so that mine as well as my family’s future is secured!!!

  4. jay p says:

    Great Guys,

    With your misunderstood comments for each other, now I am feeling Guilty to why I asked this question!!!!

    I asked it because I don’t understand the F in the Finance that means I don’t know & don’t understand the terminologies used.

    I know the meaning of the name FD, MF, SIP but am a novice about how it works!!!!
    Eg : FD – Fixed Deposit, invest 1 time a lump-sum for a long period but for me God knows what is recurring, compounding, long run depreciation of rupee value!!!
    Eg : MF & SIP- Mutual Funds, invest fixed amount per month but there are terms like NAV, Debt Funds, Equity Funds, large cap, small cap & the list is really long upon that there are hell lot of plans out there!!!!

    I hardly get time to get through the knowledgeable forums in depth but today when I clicked the MUTUAL FUND Tag I am finding more new terminologies or questions asked by members who know more than the F in Finance.

    If any of you are the moderator then I suggest to start tags/threads preferably sticky ones for Dummies like me!!!

    Eg – Dummies guide for FD, MF, Insurance etc, etc
    so that whenever a new member who does not know anything about Finance but wants to secure his future can easily get help, get his queries solved in the simplest language!!!

    Just Chill Guys, everyones views & method of explaining is different!!!!

    Dear Ashal,
    You are knowledgeable & useful to this forum, I did not had a problem about your question asking replies. 🙂
    On that note I have a question for you – You know your destination & the train choice to reach there but won’t you consider asking about other train which might have few stoppages, good pantry, which you might not know??? 😉
    That’s why I asked – ‘Which ever is better, one time or continuous??’ investment.

    —-
    Jay P

  5. Dear Sachin, thanks for sharing your views. I’m ready to amend my ways. You mean to say, I should judge on my own that a query needs my answering or not.

    Just FYI – most of the time, new queries can be answered from the past discussions. So instead of searching old ones, people are posting new & new queries. Now who to blame fro this?

    Regarding sharing personal mail ids, I never share my ID directly. I obey the forum policy. Even where personal ID is required to protect the privacy of the person, I ask to contact dear Manish first & then only to contact me.

    I request you to post the question as I asked dear Arkrangarao, to know my faults. I’ll be happy to correct my mistakes. Please start this new discussion now. I also want to know the outcome of this discussion for the satisfaction of one & all.

    Thanks

    Ashal

  6. Sachin says:

    hey Ashal, dont take this wrong, I also feel the same, you ask so many question that sometimes you have to give your personal id for details..dont you think this is too much, I havent seen anybody else giving personal Id even Manish. Also I am very frequent reader of this forum, and noticed one thing, you see your reply for last 10 topic, you have replied the same points which FFC has replied. it looks like you just want to reply even if the valid answer is provided. I feel most of the time your answer and FFC answers for almost same :).
    This Forum needs your knowledge, but it doesn’t mean only you should provide answer for all the question.
    Manish please don’t block me for this answer 🙁

    1. Ramesh says:

      Did anyone block any of your previous answers?

      This is an open forum, and everybody is allowed to express their opinions, whether right or wrong.

      Only, if any answer is self-advertising or rude beyond normal discourse of matters, then it will be removed, otherwise no.

  7. Dear Arkrangarao, am I wrong in my approach if instead of direct spoonfeeding to you or any body, I’m trying that you walk on your own legs, eat from your own hands? I’m trying with your brain to think & act in your own interest. Is it wrong that I’m using your brain for your own good?

    Regarding hiring a personal financial planner, I ask only to the people who are either short on time to learn or want to do things by some one else.

    I’m not sure, what cause you irritation? My too much answering? I’m ready to stop here itself. If majority of public feels like, you, I’ll ask dear Manish to do a survey for this & based upon the results of survey, I’m ready to withdraw completely from the forum.

    Just a small request to you. Please ask a question in the forum –

    Are you happy with the constant cross questioning method of answering adopted by Ashal?

    Please start a new topic with this question. I also want to know my faults & ready to correct it.

    thanks

    Ashal

  8. arkrangarao says:

    Mr Ashal,

    You are being asked / requested to give suggestions or your experiences. You always tend to put a question on question.. 🙂 . What I effectively understand from you is: either completely learn on ur own/experience on ur own OR hire a financial planner.

  9. Dear Jay p, if you are at a railway station, ‘ll you catch the train of your choice & your destination or some else’s destination?

    thanks

    Ashal

  10. Dear Jay p, are you asking for one time olsution for this 1.5L Rs. or for consitnuous investments?

    Please clarify.

    thanks

    Ashal

    1. jay p says:

      Ashal Jauhari ,

      Which ever is better, one time or continuous??

  11. Ramesh says:

    Go through this forum’s various threads.
    Get your basics right or approx. right.
    Then read some more, prepare some notes.
    Read some basic books.
    Then ask if you need.

    It is your money, and you will have to understand how savings and investments and markets (debt and equity) work over different periods of time.

    Investing is not a one-time thing, which is do and forget.

  12. sunil says:

    With the minimal knowledge that i have gainde through reading…. You need to ask for goal based investing not not investing based goals…..

    Set a Goal, identify in how many years you will require that goal to be fulfilled, identify your income flow and then trasnfer money into so called investments which can help to fulfill your goals….

    This is what i follow… It might take some homework, but remember it pays.

    Thanks,
    Sunil.

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