Emerging Patterns In Investing

“INVESTING CREATES WEALTH”, catchy opening phrase, you might think. But more than catchy it has a real substance! Being a Banker by profession, I have witnessed the immense potential that simple investing has in its folds! 

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Investment seems to be a gigantic word. People generally associate it with upper class thing. It is always linked with individuals who have excess money and not for common man. Whereas the fact remains it can be done by anyone irrespective of class or age. 

Let me throw some light on Investments basics, investment tools and investment patterns for all age groups from my experience.

Anything that gives you a return is known as investment. No matter whatever may be the amount of income invested or return earned. In simple words it is keeping aside a part of your income regularly and allowing it to multiply. Trust me friends you will realise the value only when you see the corpus accumulation over the years! It not only gives you return but also saves your tax depending on the investment you choose.

Important thing - diversify your investments.

There are multiple places to stay invested e.g. a bank account, a Trading account to invest in mutual fund and equities, Bank Fixed & recurring deposits, Postal saving schemes etc. These deposits are often referred to as safe investments wherein the risk factor is low. But that also translates to the returns being offered on such investments will be low. 

Always remember a thumb rule, higher the risk taken the greater would be the return.

Other investment options are real estate, Bonds ,Gold, Business ,Insurance and so on.

INVESTMENT FOR DIFFERENT AGE GROUPS :

Every one has different priorities at different ages. One's priority changes according to one's growing age and similarly the investment patters varies. However, there are certain emerging patterns in investments by different age groups. 

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You can also approach financial advisors for investments. They diversify your portfolio into difference sectors depending on your age and your risk taking capacity.

Age group (25-34 years ) : This is the age when we start earning. The younger you are the higher the risk taking capacity you should go for. In simple words your investment pattern has to be aggressive. For such age groups equities is the best option along with real estate. Life & health insurance at this age is a must without fail!.

Age group (35-44 years ): Here the priorities change as we have a family to be taken care of. This age groups should invest in child education considering the rising inflation. This is the right age to go for some sort of retirements plans.  Tough the investment term may look longer, typically say 15-20 years of duration,  you can decide on the amount according to your earnings. In other words your investment pattern has to be moderate to agressive

Age group (45-55) :One should go for PPF (Public provident fund schemes). Also stay invested in equity-debit investments with 75:25 ratio.  The investment pattern here shifts the gear to moderation!

Above 55 : Stay invested in Fixed deposits and NSC National savings certificates. Obviously the investment pattern here is nothing but "stay invested" and no risk.

The best strategy is to start early so that you can enjoy the returns over the periods.

A Chnese poverb says :The best time to plant a tree was 20 years ago. The second best time is now”

However remember.... It’s never too late to do something!

------By MocktailMommy Smitha

I am taking part in The Write Tribe Problogger October 2017 Blogging Challenge 

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