Remember: Risk-taking capability is highest at the start of one’s career.
Here’s my Idea of Equity Investments for the young crowd. A 20-something-year-old who has just started earning and is planning for a future life has retirement as the last thing on his/her mind. This is the best time for these youngsters to start investing. Their risk-taking capability is at a high as they can see at least a 30-year career ahead. Taking small risks will definitely pay off. True, there WILL be ups and downs in one’s career but being prepared for such situations should be a priority.
These youngsters who have started afresh have the best chance to churn and earn money, considering the current market scenario. Believe me, this is the perfect time to put in a good amount of money in the equity markets to earn a sizable return in the time to come.
Hire a good investment manager and put in 50% of your earnings in the equity market as long-term investments. Reduce your percentage of investments as the years go by and you start aging. Once you reach an age wherein you need to take on additional responsibilities, I am sure, you will have enough money to feel comfortable. Make errors while you are still young. Learn from your mistakes while you are still young. Don’t give in to wrong decisions and regret them later.
Start reading about Equity Investments and start a second source of income by the time you become 30-somethings.
FD, PF and PPF are passé. The time for equity investing has come.
Check-out the momentum in the markets, invest in the right place at the right time and beat the crowd.
Remember, you will be earning for at least 25-30 more years. Putting in a major percentage of your salaries in equity markets will definitely pay off for you to enjoy a great life at retirement.