Invest after figuring out monetary state of affairs

I received a job final 12 months, and my annual earnings is about ₹4 lakh. Where can I begin investing in order that I get a very good return with much less danger? Please advise.

—Ranjay Shankar

Before you determine the place to take a position, and even begin investing, you want to work out your private monetary state of affairs. Determine how a lot you’ll be able to afford to save lots of and make investments on a month-to-month foundation. Also, guarantee that you’ve adequate safety within the type of insurance coverage insurance policies (time period life and well being) and an emergency fund (price 4-6 months of your wage) in place.

Once you will have secured these, if you’re saving for the very long run, you can begin investing in an fairness index fund and a small and mid-cap fund and preserve it going (with periodic will increase). If you might be investing for a shorter period (3-5 years), you’ll should be extra cautious and go along with a small allocation to an fairness index fund and the remainder to a debt fund or a recurring deposit.

Srikanth Meenakshi is co-founder, Primeinvestor.

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