What are some best tips on how to start investing for an youth in India? What are the steps he must follow?
Hi Guflar, Here are certain tips to start investing: 1. Start early and start from your first salary itself 2. Understand the power of **compounding**. 3. If you are below 30 years, your risk capability would definately be high therefore start investing in stocks 4. If you are not a risk-taker, invest your idle salary(i.e., amount left after meeting your operating expenses) into a liquid fund as returns are around 8.5% p.a. compared to savings a/c which fetches you a measly 4% return p.a 5. Do not invest in immovable properties until you are 32 years 6. invest in debt funds and ULIP's as they give you tax benefits under section 80C of IT Act, 1961 7. PPF's do not have a fixed amount to be invested. Therefore, open a PPF A/c and start investing amounts for long term planning. These funds are form of Government Corpus and therefore the risk element is NIL.