Starting your financial planning carefully is crucial as you set out on this exciting road, especially when it comes to investing. Opting for low-risk investment options while you learn about other investment avenues can be a prudent approach. Here's how to get started:
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Emergency Fund First
Before venturing into investments, prioritize building an emergency fund. Put three to six months' worth of expenditures for living aside in an easily accessible account.
Explore Fixed Deposits (FDs)
FDs are low-risk investments offered by banks. They provide a fixed return over a predetermined period, ensuring the safety of your capital.
Public Provident Fund (PPF)
PPF is a government-backed investment with a lock-in period of 15 years. It offers tax benefits and a reasonable interest rate, making it an attractive low-risk option.
Systematic Investment Plan (SIP) in Debt Funds
Consider SIPs in debt mutual funds for steady returns and low risk. Debt funds invest in fixed-income instruments, providing stability to your investment portfolio.
Recurring Deposits (RDs)
RDs are suitable for building a corpus gradually. They allow you to deposit a fixed amount regularly, earning interest at FD rates.
Short-Term Debt Funds
These funds invest in securities with shorter maturities, reducing interest rate risks. They provide stability while offering better returns than traditional savings accounts.
Government Savings Schemes
Consider investments in government-backed savings schemes like Post Office Savings Schemes or Senior Citizens Savings Scheme (SCSS) for low-risk options.
Learn and Seek Advice
While investing in low-risk options, take the time to learn about other investment avenues. Read financial books, attend seminars, and seek advice from financial experts to expand your knowledge.
Investing in low-risk options during your first job in India is a smart step towards financial learning and stability.Remember, financial education is a continuous journey, so take the time to learn about other investment options to grow your wealth over time.To build the foundation for a bright financial future, practise patience, be knowledgeable, and give priority to financial discipline.
