Saturday, September 3, 2011

For all the newbies of corporate world let's look at what the fish is Investment

People like me who are new to corporate world are very excited when they get their first salary...
we buy gadgets, clothes, gifts for our siblings and parents...But as the time passes by and when 1st time income tax is cut from the salary we feel annoyed , agitated and puzzled  as in what to d....??
This is the time the word Investment is heard by most of us for the 1st time...either by our parents, seniors ,siblings or friends..We search many sites like Moneycontrol , Economic times but we don't get a proper overview of  what this investment is..??  and how ,where should we start investing..??

In today' era Investment in young age is very necessary for a bright future....Surplus money is required at every critical and imp step of your life..when you marry....have kids....etc..
Even when you are a bachelor and lives in a city like Mumbai, Delhi, Pune, Bangalore which are so expensive and  not to forget have the most happening nightlife of India...The petty salary of 25-30k bucks per month will do no good...
So Investing at young age is mandatory....

Today's let's have a glimpse of what all instruments are available in the market which form the backbone of any portfolio....

  • Stocks : (" The only thing constant here is change")

    The first and foremost requirement is to have a Demat account in any of the known brokerage house...
    Investing in stocks has a very high risk associated to it, but at young age it is the most recommended and desirable means of investment.

  • Mutual Funds : (" Smart way of investing" )

    Today we have mutual funds of many companies like HDFC, ICICI, SBI, RELIGARE ,AXIS, KOTAK etc...Investing through SIP (systematic investment plan) is the hottest trend today..Some mutual funds also fulfill dual purpose of investment as well as tax saving..

  • PPF : (" Provision for secured future" )

    PPF stands for public provident fund.
    A ppf account can be opened in government sector banks as central bank of india, SBI etc...
    Interest on ppf accounts are much more than a normal saving account..It helps in tax saving..

  • Commodities : (" Mint money by tapping on goods ")

    Investing in gold is the hottest trend in today's world..We can also invest in gold via GOLD ETF ( gold exchange traded funds) .

  • Insurance: ( "Insure your dear ones and procure wealth simultaneously" )


    Insuring our self is the need of the hour as our lives have become so unpredictable that we cant say whether we will be able to see the sunrise tomorrow morning..
    So we have to secure our family even after we are not in this world...
    The best way is to insure ourselves...There are many insurance products available today which gives you a 3 in 1 or 4 in 1 package( insurance, investment, tax saving all together). But what i prefer is a term insurance which is pure insurance and nothing else..

  • Saving Account : (" Simplest way to save money ")

    Last but not the least a saving account which everyone of us might be having...

    There are also some other instruments which are not recommended for the newbies of the corporate world..
  • Real State : (" Don't wait to buy real state, buy real state and wait" )

    A huge amount of capital is required to invest in real state, so for beginners like us its really not recommendable and also affordable.
  • Money Market Instruments : (" Market for short term gains " )

    Money market instruments are short term debt instruments.Most common are
    Certificate Of Deposit , Treasury Bills , Commercial Paper , Municipal Notes...

  • Bonds : (:Bond with the best ")

    A bond is  a formal contract to repay borrowed money with interest at fixed intervals. Bonds are issued by  public authorities , credit  institutions , companies  and super national institutions in the primary market.

    Some of the instruments which have become obsolete today are
  • Fixed Deposit : ( "Most trusted way of preserving wealth in the past ")
  • Post office accounts : ( " No risk with healthy returns " )

    In the coming posts I will be talking in depth about each of the Investment instruments I have mentioned..
    If you like my post and if it solves your investment problems to some extent also than please comment...:)

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