After completing studies, you shouldn’t take your financial future for granted. In fact, you should look for the right financial step even when you are still in college. When it comes to income, with the improving prospects and growing economy, there is no lack of opportunities for the youth. Indian youth is earning and spending a lot. It is surely a great time for them. But you should start thinking about your financial future as a college student, along with your studies. Financial future shouldn’t be short term. Be sure to start your life on the right step after studies by taking your financial goals seriously when you are still studying.
When it comes to age, young investors have a lot of benefits over others. Simply speaking, a young investor has enough time rather than an investor who is about to retire or a middle-aged one. The young investors have the capability to take a higher risk as compared to a middle-aged investor. Hence, young investors can enjoy more flexibility when making decisions for their investment.
The population of youth in India is more than older ones. Indian economy has witnessed a great economic growth over the past few years and people can have more surplus money. To meet their financial goals in future, youth can use the route of financial planning. They have whole lives ahead and a lot of time to plan for every step of their life, including retirement. The problem is when most young people overlook their finances. Some people who have a good amount of surplus and salary invest without proper planning and asset allocation in different categories like debt, equity, gold, real estate etc.
Young investors can access different avenues to invest in future and several facets, such as equity, small saving schemes, ELSS, Mutual Funds, etc. Youth should look for the best financial advisor for them. An advisor can be an individual who can figure out whether the youth is achieving his financial goals or not.
Financial markets are known to be very complex and there are different products offered. It is up to these factors to choose the product –
– Time limit of investments
– Age of client
– Need for investor
– The risk-taking capability of investor
As a general rule, an individual may want to invest a specific percentage of his portfolio according to his age in debt and rest in equity after giving the proper amount in cash/liquid assets for the emergency.
An individual may also plan to buy a home. A young person has an urge to take high risk and they also have a long time to invest. So, he needs to invest more in equity instruments and equity and only a few amounts of debt. In the beginning, the income level of a person is also low and surplus is very less for investments after paying off his monthly expenses. Every young person wants to be rich faster.
If done properly, a small amount of monthly savings will systematically bring higher wealth accumulation over a longer time period. If a young 23-year-old person saves Rs. 2000 per month till the age of retirement, i.e. 60, he will be able to save up to Rs. 3,96,06,204, in case ROI is 15% per annum. We haven’t included salary hike and increase in investment amount.
