The Need For Financial Investments

I noticeably heard about the stock market in 2019 when I was 23 years old. Before that I had no much interest in business or investments nor did I know either of them. Fortunately I got interested in the mechanics of how a business works and how as an individual I can financially benefit from business without really participating in the day to day operations of a business. 

As a layman in the financial world one can start investing in index mutual funds(index funds). You can learn more about index funds from the internet. Index funds are highly likely to give much better returns in a 10 year time horizon than bank FDs or any other fixed income instruments like corporate bonds,government bonds and others. It's always ideal to invest in the form of SIP’s (This too you can learn from the internet) if you have monthly cash flows(income) coming in.

Apart from investing in the equity markets through mutual funds(index funds,active funds,direct stock investing) I would also suggest you to invest in fixed income assets which come with more guaranteed returns and thus can act as a safety net.

Asset allocation would vary from person to person depending on their financial goals,risk appetite and all. If I had 1 crore in hand, I would put 35% in equity,60% in fixed income assets and the rest 5% in gold. My asset allocation can change depending on changes in my financial goals and risk appetite.

I would encourage everyone to save some money(at least 10% of your earnings) and invest it. India is a country where financial security is less compared to other developed nations and hence we need to save and invest. You will not regret it at a later point in your life.