How To Invest Your Money As A Fresher

By Krishnamurthy K.v

Investment Options For Freshers


First of all, determine how much you can save every month. This can be done by deducting your monthly expenses from the total salary that you earn.

Once you know this figure, it will be easy for you to invest in any saving scheme. The first and foremost investment scheme that you should think of is to open a savings bank account. It can be a salary account also. You can save your target amount for as long as you wish.

Then, open a fixed deposit account from the sum that you have saved. It will yield an interest of 7.25% per annum. Through this method, you can learn how to invest your money wisely, as a beginner.

At the same time, before jumping to invest your money immediately, you must learn other means of investing also. In fact, you can split your investment program into three phases. It can be based on long, medium and short-term ideas.

Before doing all these exercises, you can give a deep thought to the following points. They are:

• Consulting a good financial advisor and listening to their suggestions

• Investing your money in a systematic way

Furthermore, your long-term investment ideas must be based on opting for a health insurance plan. You need to take this at an early age. It will help you to meet health expenses later. This investment option will serve as a boon to financial cure any type of disease that you may face.

If you are single, then investing in a three-lakh policy is adequate. Thereafter, you can increase the value of the policy to five lakhs, after getting married. The benefit that you will derive is the possibility of availing tax exemption.

Next, you need to consider taking a life insurance policy. The amount of the policy is necessary to face any unfortunate happenings in your life. In fact, term life insurance may be cheaper while you're younger. Here, you can opt for a one-crore term insurance plan.

The monthly premium payable is just Rs 833.33. This amount can be deducted from your monthly salary. Further, you will get tax exemption under the income tax rules.

Now, it is the right time for you to start your actual diversified investment spree. This will help you to regularise returns over a longer term. It also averages all the risk factors that you may face while investing. Hence, the best idea is to identify and invest in assets that have low-risk issues.

Your effort in investing money as a fresher will not go in vain if you follow this procedure. At the same time, you will gain proper knowledge with regard to returns and investments. The following tips will enlighten you as to how you can proceed further with your investment efforts.

• You can start investing in Public Provident Fund schemes. These are unique types of tax saving plans.

• You can also invest in bonds offered by the government.

• The above two options will yield returns ranging from six to nine percent on an average.

• Period of investment is for more than fifteen years.

• Other options like debentures, fixed deposits and liquid funds are available for investment.

• On an average, the returns that you gain will be 6.5 percent after a period of three to five years.

• Direct investment in stock markets and mutual funds can give you good returns. You can gain a whopping interest rate of eighteen percent per annum.

• The interest that you get is annually compounded on an average, provided your investment holding period is greater than fifteen years.

After investing in various ways, if you still have sufficient funds, then try to purchase a house or property by taking a loan. Repay the loan through equated monthly instalments (EMI). Following these tips will assist you in investing your money appropriately as a fresher.

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