How do you invest your salary?
It's been close to a year since I am earning a salary and this is what I do:
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Invest a little less than 30% straight into MFs. I have three ongoing SIPs- small cap, flexicap and a Large + Midcap fund. (Planning to increase the amount further into these and not start a new sip)
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Max out 80C by putting the entire limit in PPF, this is on top of what is by default deposited into EPF.
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A little (inconsistently) into direct stocks as and when I find or get to know about a decent trade opportunity.
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An LIC ULIP plan that my father made me subscribe to 🙂 (hopefully will end in a couple more years)
Tips from experienced folks will be much appreciated.😄
Yaar LIC ka batana. I'm being hoarded by someone I know for it. Reddit says it's a dog shit deal. But I'm still undecided.
Following the 50-30-20 rule for 5 years now.
Started with a salary of 6LPA fixed. Now at 25LPA.
Investing 30% for retirement. 20% for big purchases and using 50% for daily expenses, whatever is remaining from the 50% gets reinvested in the 20% segment.
30% goes to a mutual fund SIP.
20% goes to a RD. RD duration 9 to 24 months. Depending on my wants.
Rebalancing both segments every time I get a raise in my salary.
This simple approach has been really helpful in creating a 12 months emergency fund and 20+ lacs in my retirement fund.
Thanks for sharing!😄
I have term insurance of 3cr and health insurance of 5lacs. An insurance for my parents 20lacs. All this expense comes around to 14k per month, after which I do 50-30-20 split.
I do the same. Invest 50% in MF(Flexi cap and Index funds) and remaining in 80C instruments here and there. Tip - Make sure you have a 6Month Emergency Fund, Health and Term Insurance before starting your investment journey.
Real estate/Nifty bees Real estate/Nifty bees Real estate/Nifty bees Real estate/Nifty bees Real estate/Nifty bees Real estate/Nifty bees
I repeat
Real estate/Nifty bees Real estate/Nifty bees Real estate/Nifty bees Real estate/Nifty bees Real estate/Nifty bees Real estate/Nifty bees Real estate/Nifty bees
Logic : Most funds don't beat Index, India is emerging economy with highest growth rate on such a large base, Industrialisation leads to appreciation of property(land land land land....I repeat land land land) price
Do you mean land land or real estate(flat/apartment etc) is also included
Try small and mid cap funds. Never buy large cap via MFs. You can easily figure out top 30 companies to invest in out of 100. Invest directly into those via SIPs.
Why would you pay MF houses 1% to invest in HDFC Bank, LT, Bajaj Finance, etc?
Small cap, large cap, mid cap, flexi cap (combination of small, mid, large). You have entire stock universe caps covered. Before increasing SIP, may be step back and think your strategy and is there a reason why such asset allocation.
SSY is good if you have a girl child. It can be used for retirement. NPS is good too. You get 50k extra benefit under 80ccd 1b. Life and health insurance if you don't have. Better pay money and follow a good advisory model to invest in stocks directly instead of thinking you have the ability to pick right stocks on your own. All the best. My personal experience - 8 digit investments in MF and stocks.
Also an NISM certified and AMFI registered MF distributor, IRDAI licensed Insurance advisor. NPS advisor in ICICI PRU.
All the best.
Hey @Sreekanth, So I started with just a small cap (Robeco) and a flexi cap (ppfas because it had some exposure to us equity and overall has a good history) After almost an year of only putting money in these and increasing the sip amounts I still had some more money that I wanted to add on to these funds only but based on some youtube research and a little bit of reading I decided to start an sip in a safer less volatile fund basically bluechips. That is why I subscribed to a large+midcap through a single fund (icici pru)
It would be great if you could give some specific points in what you feel I am doing wrong. To me only having small caps felt a bit risky.
Everything goes into Direct stocks aside from ₹150k in PPF by 4th April. Also enrolled for corporate NPS and ₹50k in NPS lumpsum whenever the market has crashed heavily. Has worked out well.
@wanderingindian How long have you been doing this?
Also how do you pick direct stocks? Do you get enough time to research the market, and how active are you in terms of trading/investing.
Thanks!
Since the past six years after I started working. My weekends and spare time are spent researching on the stocks. I take 80% exposure to small and midcaps since age is on my side currently. Will bring it down slowly steadily and divert more to Large caps post marriage and kids.
Stash cash into a separate bank account, meant for savings.
20% of my salary into an Index fund, PPFAS Flexi Cap and a Liquid Fund.
any suggestions for a separate bank account for savings? does it even matter or anything works? thanks!
@TechnicallyBehind I just had an SBI account in which salary used to get credited.
Took an HDFC bank account too for savings, and use the SBI for spending.
So I have one which is used for spending and the other as a savings account.
Apart from my monthly expenses I keep the rest in the other account. I invest some into mutual funds, but don’t put all the cash in MF/FDs.. and always have some liquid cash, since you don’t know when an emergency expense will pop up.
The reason why I did this is cause I spend too much on food, especially desserts. So when I started to keep separate accounts, I don’t have this thought that I have enough left, even if I splurge. It creates a false perception that I only have enough for this month.
And one more thing SBI bank servers are down frequently and sometimes becomes a problem for using UPI, HDFC is better.
Monthly SIP into Nifty, Midcap, Small cap and Gold ETFs Some money into PPF to lock in some money. A bit into GSecs as liquid money instead of FDs. EPF maxes out 80C