Financial Planning For Freshers

8 03 2007

It almost feels simple if I think about the topic, yet it is nevertheless important when you apply it in one’s life. I thought of giving my two pence as I have seen the confusion among the new recruits regarding where to park their money. I confess that am no financial expert and probably I may be even marked as a semi conservative investor, (esp when I mention the fact that most of my funds are parked in Mutual Funds)! Yet, financial planning goes beyond just trading in shares or meeting your tax rebate requirement. These days, one really need to get equipped with basic knowledge as the investment opportunities are getting multiplied.

For starters, esp for those who get cold feet when they think of savings and investments, look at your pay check and park 33% of your funds blindly for investment. Sentimentally, I would recommend blowing up the whole of first month pay check on your loved ones. Buy that jacket you longingly window shopped, check out a Titan watch for papa, gift your mamma that new sari or treat your family for a luxurious star hotel. Plan your savings after you have a safe net of liquid cash of say two months of your salary in your account. Why I really insist on this is because, one can never dream of emergencies. We can only be prepared for them. One good scheme that I found is the short term fixed deposits offered by HDFC Bank. For a 15 days lock in FD they are offering 5.5% interest rate, which is pretty decent if you compare it against the meager 3.5 to 4 % interest offered by you regular bank account. After ensuring that there is sufficient liquid cash, it would be better if you can write down your cash requirements and investment goals, so that you can channelize money on long term and short term investments. Once you got them in place, it’s pretty easy to divide how much money you are going to route to shares, mutual funds, insurance or NSC.

To add some personal tidbits, do think twice before you opt for insurance in endowment or whole life plans. Check the options available in term life plans. Insurance is not to be treated as an investment. Do have a one stop view for your portfolio. There are a lot of websites like valueresearchonline.com, moneycontrol.com which offer these services for free. Investment market is pretty exciting with so many options flooding the market. Plan for the contingencies, invest wisely, secure your future and enjoy!


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