Expert Zone

Straight from the Specialists

Five things to do before you turn 30 — financially

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

1) Start investing in Mutual Funds
There is a reason why I mention this as the first point in the article. Mutual funds are by far the best starting tool for any investor. And this holds true for any type of investor — extremely aggressive ones and those who do not know much about investments.

The tough part of managing the portfolio is best left to the experienced funds managers who have adequate resources and the knowledge to best maintain the returns on their funds portfolio and manage the associate risks. They are far better informed than an individual can expect to be in most cases.

HOW TO DO IT?

Always go the SIP way, at least initially. Well, as the name (Systematic Investment Plan) suggests, you systematically invest a certain amount every month, irrespective of the market conditions. Choose one or two large-cap funds with a proven track record and then just stick to it. You can base your choice of funds on recommendations from websites like mutualfundsindia.com or taking help from your financial planners.

The amount invested every month can be as low as 500 rupees or maybe even 5 percent of your monthly salary to start with. You can start with small amounts and then gradually increase it when you get comfortable. You should have a minimum five-year horizon, the longer the better.

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