rewrite this content and keep HTML tags
Rohit Chakraborty, a 30-year-old marketing professional from Bengaluru, recently found himself in a dilemma. Despite diligently setting aside money every month, she had no idea whether her savings were on track to meet her goals of buying a home and starting a family in the next five years. An informal conversation with a close friend and wealth advisor told him about the importance of regularly reviewing his wealth plan, choosing the right investment instruments and tracking their growth over time.
Rohit’s story is not unusual. This is what a survey of 2023 revealed 27% Indians feel confident about their financial futureMany young professionals like him take the first step of investing but ignore the equally important aspects of selecting the right plan and tracking the progress.
For salaried professionals in their late 20s and early 30s, it is important to take charge of finances to meet important life milestones – whether it is buying a home, planning children’s education, or achieving early retirement. yes.
Here’s a handy checklist to make sure you’re choosing the right investment option, investing an optimal amount, and keeping track of your plan to make sure it stays on track.
1. Choosing the right investment option
The foundation of successful financial planning lies in selecting the right investment vehicle. Market-linked instruments like ULIPs provide the dual benefit of insurance and investment, providing flexibility in allocating funds across equity, debt or a balanced portfolio.
Young professionals with long-term goals often lean towards equity funds for their higher growth potential, while balanced funds may be better suited for medium-term objectives that require less risk.
2. How much do you need to invest?
The amount you invest depends on the following factors:
-
Your financial goals: Define what you’re saving for, whether it’s a dream home, your child’s future, or financial freedom.
-
your timeline: How many years do you have to achieve this goal?
A general guideline is to allocate 20-30% of your monthly income Towards investment. For example, investing ₹10,000 monthly in a scheme with 8% annual returns can lead to significant wealth accumulation over time.
3. Match your investment plan to your goals
Each goal requires a tailored approach. For example:
-
Short-term goals (3-5 years): Focus on safe instruments like debt funds.
-
Medium Term Goals (5-10 Years): Balanced funds offer moderate returns with low risk.
-
Long Term Goals (10+ years): Equity funds offer the highest growth potential by leveraging the power of compounding.
Make sure that the investment plan you choose offers flexibility in fund allocation and allows you to align your portfolio with your evolving goals.
4. Keeping track of your investment goals
Keeping track of your investments is important to stay on course. To make sure you’re moving toward your financial objectives, regularly review how much you’ve invested and what the current value of your portfolio is.
Here is an example of the potential returns on a consistent monthly investment of ₹10,000 in a scheme with an 8% annual return:
