Youngsters, it's your time to invest

Each individual has his unique goals and goes through unique life experiences. Even at a young age, each person is at a different life stage i.e. a person might have just finished his/her studies or another person at the same age may have started a new business without opting for further studies etc. This is the age where there are lots of changes in a person’s life like change in job/career, marriage, purchase of a house etc. Every individual experiences a different life transition. Hence, at this point in life every person’s requirement is different. A person’s first investment should be with the objective to meet this particular requirement.

While deciding on the first investment, you should first choose your primary goal and then see which investment helps you fulfill that particular goal with less risk. Such a clarity before your first investment should help you in the long run. The first investment should be in alignment with your goals. At this point in life the short-term goals may be as follows:

Further studies
1. Seeking a suitable job
2. Purchase of house
3. New relationships
4. Planning for better lifestyle
5. Traveling or buying a car
6. Starting own business

One of the important questions that needs to be asked before your investment would be, what are the most important things in my life at present and in future?

If there is no clarity, then list your goals and compare between them to prioritize them.

After asking these questions, it is very important to convert it in terms of number (if possible) and also to set a proper deadline.

These are the right questions that a person should ask before deciding on his first investment. Some of the points an individual should keep in mind while investing are as follows:

1. Early learning about equity investments can increase the risk appetite of a person in the long run and also increases the wealth potential. So, we advice people at young age to get exposed to equity sooner than later keeping in mind their long time horizon and ability to learn.
2. It is always advisable to start investing or saving early because you can take the benefit of compounding. For example, if you start saving Rs 1000 per month for a period of 20 years. Assuming a rate of growth of 12%, the amount that gets accumulated at the end of 20 years adds up to Rs 9,99,147. Let your first investment route be mutual funds since they are easy to manage and comparatively easy to understand. It is a great source of learning.
3. Insurance is also important at this juncture. If you have dependants it becomes very important to have a life insurance. But if you do not have dependants then you can opt not to take an insurance policy, but with the element of risk with it. It should be kept in mind that a person at a younger age pays lesser premium and gets higher coverage. Insurance itself should never be bought at investments at this early age. But in case of any liability or dependents, it should not be ignored at any cost it will provide a source of security or income when any unfortunate event takes place in the family.
4. At a younger age a person should not carry higher burden with him like a home loan beyond a point. It is always advisable to take a loan only if it is very necessary. The home loan taken should be a necessity and not a luxury. The loan payment should not be done at the sacrifice of your basic needs and wants. Most importantly it should not come in a way of maximizing your potential to earn more or learn more. Your total payment towards liability including EMI (Equated Monthly Installment) should not exceed 25% of your take away salary or income.
5. Taking advice from a financial planner in setting the goals and making a rough roadmap can help clear many obstacles that a person at this young age can face. It helps a ing bad investment choices and helps the person to stay focused on what they want to achieve in life. And if realized at this young age, it can save lot of time going wasted.
6. Reading about finances is a good habit to make better financial decisions. If a person at this age is not from finance field, should, even if not desired, take interest in his finances.

To conclude we can say that a person should keep in mind that his investments should primarily him learn more and help a person in increasing his/her earning potential.

Private Fund Management – Safest Investments is an international investment company specializing in asset management services. During its long history, it has achieved and occupied a stable position in the financial market and won the confidence of numerous investors from all over the world.
Asset management
Asset management comprises the management of the client’s funds conducted on the basis of the contract signed by the investor and the management company. An investor transfers his or her powers to the management company, which chooses a professional and effective investment strategy based on the client’s aims and financial capability.
The traders react to any fluctuations on the financial market by immediately correcting the investment strategy in order to achieve and maintain high profit levels for an investor.
Asset management for our clients
• The reliability of cooperation with a professional investment company.
• No restrictions concerning the sum of the initial investment.
• Guaranteed profit rate acquired at specified periods of time.
• All decisions concerning the management of the acquired profits are made by the investor himself.
• The management company works hard to increase the investor’s income since the size of the brokerage received by it depends on the profit acquired by the client.