Sunday, 5 December 2010

Investment Tips for Young People

Lean How to handle money
Young age is good for investment. Because they a have a long future to fulfill their financial goals. Most of the investors are investing for their retirement, Marriage of children, education of children, buying a residential accommodation etc. But for young people all these goals are only in a long future. I do remember that their own marriage. Even though, almost all financial goals are far away for them. If you can start investing at an early age, no doubt you can attain a good financial position when you reach to fulfill all these goals.

I remember that when I learn to ride a bicycle. It was very difficult for me. But my father instructed me to get handle balance first. So I started from the first step to get handle balance and within one or two days I could handle the cycle well. Just like that youngsters should learn to handle money. Yes before getting a good job, they had to approach their parents for their financial needs. Even if parents are so much rich they won’t allow their children to handle plenty of money as they wish. In such a situation when a young person started to work and earn they may have so many ambitions to be fulfilled. So usually they spend for necessary and unnecessary things. Here I say that they should be balanced in handling money. They can follow their parents or any matured person and can get advice to handle money.

Start investing early

If you start investing early you can make a lot of money when you are in position to spend money for their necessities. If you create a habit of investing regularly this money will grow and make you wonder. You must have heard that “little drops of water make a mighty ocean”. Make a budget and separate money for spending and saving. Start with an RD (Recurring deposit) in a bank or SIP (systematic investment plan) in mutual funds is good option for you.

Invest regularly

When you start work and earn your own bread and butter start a regular saving habit to make your future good. If you do regularly it will become your habit as a routine system. Then the regular saving will not be a difficult task.

Get advice from elders and professionals

You can approach your parents or any mature person or any financial professionals to get advice related with saving and financial matters. They may help you to create and investment plan for you and you can follow the steps and can reach your goals.

Simple investment programs

As a young investor you must not jump to stock trading and forex trading. Start with simple and easy to understand methods such as recurring deposits in banks or post offices or systematic investment plans in mutual funds. Bank deposits are safer and secure even if you get only a small return. But for beginners it is go to get a balanced investment habit.

Invest in bear market (when market is down)

It is a good time to invest in stocks or mutual funds when the market is down. I know some persons those who invest in shares at the time of recession earned a good harvest recently. They got around 10 times and 15 times. If you go for stock market invest only in bearish tendency and sell it off in bullish market. Even if you do not take much attention you won’t be a heavy loss.

Invest only in reputable companies

If you invest in shares go for reputed company only which has a good reputation and those products are acceptable in the market. This reputed companies never become a failure and your money will not loss. Even if you are investing blindly you won’t loss much.

History repeats itself

Learn from the past for a good future Evaluate the performance of any financial products before investing in them. Even if all financial institutions give a statutory warning that the past performance may not reflect in future you should evaluate the past performance.

Get properly insured

Join with a good term insurance with any reputed insurance company. I mean term insurance, because insurance policies are meant for risk cover and this term insurance are good for getting enough risk cover with a lower premium. Money back and other Ulip schemes are good but not getting much return out of it when compare with your investment in other financial products. Get insured your property also.

Give proper Tax to Government

This is also your responsibility as a good citizen. So file proper return in time.

Finally start your investment habit early to become a good investor as well as a good and stable person for your family and for your nation

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