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I am 23 and have just started my career. Where should I start investing?

<p>One must be aware about its risk taking ability. Gold funds offered by mutual fund companies prove to be simple and best option to choose their investment plan during the startup of their professional career.</p>

Leo Puri, Managing Director, UTI MF suggests that first of all you do an assessment of your risk-taking ability. Assuming that you have a median risk-taking ability and given your age, you need to set up a broader investment plan to reap optimum benefits when needed. Your investment plan should comprise of equity and fixed income with a slice of commodity, like gold. Since you have a higher number of earning years and you can save a higher proportion of your income, the bulk of your investment should be in equity assets (may be 70-75 per cent) to start with. You can create an equity mutual fund portfolio with schemes that are large-, mid- and small-cap oriented and have a decent performance track record. The fixed income portion can be invested for liquidity and stability factors. Schemes like the Floating Rate Fund and Duration Funds can also form a part of it. The residual portion can be invested into gold for portfolio diversification and hedging purposes. Many mutual funds offer gold funds.

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The approach to investment could be disciplined with ‘constancy to purpose’ by investing in a systematic investment plan (SIP). SIP is lighter on wallet and will perforce you to invest without worrying about market swings. In short, investment success can come from ‘buying things well over time’.

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