Hi, thanks for the reply. I’m still learning so please feel free to let me know if anything I said isn’t correct or there’s a better way. I’ll try to make an explanation to everything on why I’m doing it.
P.S. I have made some investments just for ‘learning’ purposes in the last week. 5.3k of stocks in total to be precise. Mostly the bullish/popular ones like IREDA, IRFC, HDFC. I just invested as by doing so I was actively thinking about it instead of just say learning which in turn motivated me to actually become worried and actually learn more on weekends or stay up to date with the news. That’s the only ‘real’ experience I have at the time of writing this.
The percentage allocation is not something fixed. I will probably make some changes to that when I start investing monthly like I mentioned in the post (probably in a month or so will learn till then). It’s just what I personally came up with.
a. The reason for safe investments, as of now, is to minimise risk. Again, from what I have found out so far the high risk mutual funds I mentioned (like nippon) seems safe in long term (5+ years and I’m aiming 10+) with amazing returns but initially I would like to put my money where there is least fluctuation and returns are consistent. Maybe for the first year of my investment journey. I think it’s mostly because I’m a beginner and will probably change the approach soon as I learn more about how market works.
b. By safe I again mean with the least variation. For ex I mentioned Invesco india arbitrage fund direct growth as an example as you can see the growth for this one is almost linear since 2013 so I consider it a ‘safe’ investment.
For 3k I just added it for reference purpose. Yes, I don’t think it will add any value to say my PF. Again, might be out of context question but by PF you mean something that ‘I’ am investing. Right? I do have an EPF account but my current company doesn’t support and PF scheme. I am assuming you’re referencing the long term (say retirement) investments ‘I am’ making as PF.
For allocation strategy I think I’m a mix of both. I do have a number in mind. Say rough 1-2cr in investment before turning 30 (8-9 years for me) and push it to 5+cr before 35. Again, these numbers I’m estimating with only some sip calculation I did in the last 2 weeks. It seems pretty much doable as I will increase the SIPs a lot in future as I don’t like spending a lot of money. Probably 60-70% will stay in my savings account anyways so will be better to invest it. But the investment should do at least 12% CAGR for 10 or so years as I’ll keep on increasing the SIP as I increase my source of income.
Some are suggesting me to start small. Say, invest 10k pm in total in mutual funds (divide in 4 types of fund 2 small cap, 1 index, 1 mid/large cap) and say 2k (separate from the 10k) in stocks for learning the market.
The main thing that is motivating me for investing in general is compounding. The early I start the better it is. Hence why even the 10k that I mentioned in the last paragraph will be a great investment in long term. Even a year will make a lot of difference in long term because of compounding. Hence, my main focus is to start as early as possible with the highest returns as possible.
Again, I’m still pretty new so some of this might be incorrect so feel free to point that out.
Thanks!
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