Prodguy06

Investments from Salary

How much percentage of the salary a person should give in investments?

18mo ago

HuskyBay59

Depends on one's profile, expenses, goals and risk appetite.
If you are in your 20s and living on rent, anything above 60% is a good number. Adjust as per your goals with investments.
(100-your age)% ideally should go towards equity, rest can be debt.

Note: But all this comes after you have an emergency fund set aside in savings/FDs/liquid equivalent to 8-12 times of your monthly expenses.

Prodguy06

Stealth18mo

Let’s just make it clear with an simple example. A person with 50k salary monthly living at own house not on rent. Then how much amount of 50k should be invested whether in stocks, SIP, PPF etc and how much should be kept as fund in bank?

HuskyBay59

Stealth18mo

Depends on your current status and capital. 50k a month income, I am assuming you are about 24-25 and just been into a regular income job for a couple of years. If you have 8-10x of your monthly expenses in your savings/FDs. You are all set with an emergency fund that you should not touch. I hope you understand that. Now comes the part where you want to invest in new income. There are two major classes - Equity and debt. Equity - you can invest by directly purchasing stocks or SIP into equity mutual funds Debt - can be done via FDs, bonds, PPFs etc.

For 50k, first calculate your monthly recurring expenses with some buffer and minus that from 50k. You are left with lets say 30K. Invest in
Equity (65-70%) - nifty Index fund/ etf Any good flexi cap Value discovery fund (if you are ok taking risk for higher returns in long term)

Debt(rest) - choose between FD
PPF (can utilize tax benefits if you are under old regime) Equity and debt mutual funds

Kaboomkaboom

Jupiter18mo

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