9 SMART INVESTMENT MOVES TO BE DONE BEFORE YOU TURN 25!
Start investing at an early age
Starting investments at an early age can give heavy and satisfying returns after a certain period. Various options are available for investments like mutual funds, term insurance policies, fixed deposits for interest gaining purposes, property investments, savings/share bonds, share markets etc. A basic misconception of investment is that one needs to have a respectable amount to invest, but the fact is, any available amount would be enough.
Tip: Right from your first sail, you ask your parents to start a mutual fund in your name. SIP format. The 3 best funds in the market currently are, SBI blue chip fund, Franklin India opportunities, Canara Robeco Emerging Equities.
Stock Market is always the best option for alternative income resource but one must think about liquid cash requirements. Investments in stock markets don’t ensure guaranteed returns. The idea is to invest in A-Listing companies with an aim of staying invested for the long run
Tip: A-listers like Infosys, Mindtree, and others are always a safe bet because they have extremely strong fundamentals. So even if you buy and hold them for a long time, eventually you would end up making profits.
Ultimate investment Option – Real Estate
Real estate as the name suggests is a “Real Asset” which has value in and of itself. It can be used for shelter purposes as well as for business or housing solution, manufacturing plant, offices etc.
It can produce income on a rental basis as well as by capital appreciation. Also, it can give guaranteed returns if this estate is held for more than a year or so.So one can always expect maximum returns as said
Tip: Always look for location factor when investing in land. If you can foresee the tentative development in an area, a few years down the line, it can give you multifold returns.
Being silent partner in Business
Small scale business owners can’t always rely on banks for their financial purpose. Not only financial help but small-scale business ventures also require manual help.
If you can provide some financial help, like a startup fund to assist a budding venture, you might end up making a lot of money. The only downfall of this is it can go both ways if the market is in sync with the concept, the company might pick up pace really quickly or it may phase out. Best of all your equity stakes can anytime provide you with handsome returns.
Tip: You can search for small start-ups online who are looking for funds. If their concept is in line with your investment risk capacity, you can go ahead a take the plunge.
Yourself- most precious investment
The maritime industry is always in a constant state of change, improving and innovating to betterment. In times like these, it’s always a good option to invest in yourself. Nurture your skills to fine tune them, thereby allowing you to accept and carry out higher roles in your organization.
Being simple an engineer is never enough nowadays, an MBA or an MS is always a good option.
Tip: You can do a course from ICS (Institute Of Chartered Shipbrokers) if you ae willing to shift to a shore job later. They provide in-depth knowledge of the working of the entire maritime industry.
Banking- The safest investment solution
You should know how to let your money grow and not stagnate in your salary account. Parking your funds in an NRO FD, of buying stocks is always better than just letting it erode in your salary account.
You could also invest your money in a Debt oriented mutual fund, to ensure its growth. They usually offer better returns as compared to an FD.
Investing in precious metals
Investing by buying precious metals such as gold, silver, platinum is also an alternative option for investment in banks. In emergencies, such metals can easily be sold and encashed at any given time. It is also an assured investment type and one can think of investing in such way with no fear of losses.
Tip: If you are buying purely for investment purpose, then go for biscuits or coins. They do not have any labour charge on them so you save on that.
INDIRECT INVESTMENT PLANS
Thinking about your retirement and planning accordingly is probably the best thing you could do. I cannot stress this point enough. In the early years of our working life, we tend to be too casual about everything. Paying a little attention to retirement planning will pay off in the future.
If you start a mutual fund for this, then the equity exposure would help your money grow a lot faster.
You have to give time for your money to grow, you take care of it now and it will take care of you later.
Go for retirement plans that would pay out a regular income to you once you retire, and that age shouldn’t necessarily be 60 and above. IF you feel that you are going to relax in our armchair by 45, then be it. Plan accordingly and please KEEP THE INFLATION IN MIND.
Tip: Starting equity-based mutual funds, specifically retirement plans is an excellent option at this stage. Make sure it’s not a ULIP. Depending on your risk capacity you will have to re-adjust your portfolio every year.
Let me be clear here, I never advocate mixing investment with insurance. What I mean to say here is, you should have a good heath insurance policy at an age when it is easy for you to get one. Without any health condition, is easy for you to avail a good policy at a low premium.
You can check the benefits of a term plan aswell.
In the event of any medical emergency, you would not have to shell out a lot of your own cash. At that time, the policy would assist you in getting through the situation. Since the medical expenses are rising exponentially every year, it’s always advised to avail a good family floater policy for you and your family.
Tip: Choose a policy which will double your limit if no claim is made, that way your cover would increase to double your initial amount in a matter of few years.