It is important to start one’s financial planning as early as possible. The sooner you start planning your finances, the better. Youngsters, today, have a lot more time to work towards better financial planning than they did a few years ago. They also have access to the Internet which can help them with the proper knowledge required to plan finances. There are a lot of investment options available today, and you can either start investing in them yourself or hire the best financial planners. Here are some of the most popular investment options for young professionals:
PPF is short for Public Provident Fund. A Public Provident Fund is the means of earning gains of the investment after a locking period. The Public Provident Fund is one of the most secure and long-term investment options in India. The lock-in period of investment is 15 years which requires the young professionals to keep investing and get the benefits of such an investment in the form of a compounded interest from PPF. Contact a reputed CFP in Mumbai for more information.
Like we all know and understand that the real estate is going to grow and be on the rise for approximately at least a decade, investing in real estate is a great choice. Even if you do purchase a house, you do not necessarily have to live there. In fact, you can put it out on rent to make some additional income throughout the year. All of the financial planning services will tell you to invest in real estate. If you cannot afford the prices of one city, you can buy the house or any other real estate outside of metropolitan cities like Mumbai. The prices there are a lot cheaper and can at least give you some extra income.
For those who don’t want to dabble in equity markets but are still interested in getting good returns, mutual funds are for you. When you contact the best CFP, he will also suggest that you start investing small amounts of your savings in mutual funds so as to earn higher returns without any associated risks. Mutual funds spread your savings across different verticals, helping you in reducing the risks and increasing the returns.
Insurance has become the need of the hour because life is completely unpredictable. This is the best way to safeguard your family against any unforeseen situations. Youngsters have a better chance at insurance because they are starting out earlier than everybody else. This way, in case something goes wrong, your family will have enough to get by.
Fixed deposit has known to be the safest investment option and is preferred by those youngsters who wish to not take any risk when it comes to investments. A fixed rate of interest will be provided on a certain sum of money for a certain period of time.
Investments are necessary as they help you with better financial planning.