I started investing when I turned 18. This is because I was inspired by my father who urged me to save up for my future studies, and towards my tax planning. Starting small, I began buying stocks regularly after I got my first job.
When I started working for an insurance company, my attitude towards investing and financial security changed. It gave me a wider perspective of looking into financial planning. Later, I took up a job at an investment firm. Being from the same sector, it was a part of my job profile to understand the market and trends. Working there helped me choose the correct investment options. I attended various seminars to keep myself abreast with daily business news and developments. During my days in high school, I read the book Rich Dad, Poor Dad by Robert Kiyosaki. Reading this book had a big impact on my outlook towards financial planning.
My first investment was in Life Insurance. Later, as my career picked up, I started investing in various stocks. I explored new avenues by investing in mutual funds and real estate. I now choose mutual funds which give me better growth in returns and also provide tax exemption. I also put some money in fixed deposits. When I was working for the investment firm, I learned the nuances of stock trading and expanded my investment portfolio by investing in government bonds.
For the last four years, I have been investing in different financial instruments and it has developed into a habit. I have been focusing on investing in mutual funds and the real estate sector. With the Indian economy being considered as one of the fastest growing economies across the world, investment in the real estate sector promises an excellent rate of return. The recent growth in the U.S. housing market looks very encouraging. As I get to work on my investments during my free time, it helps me focus on my financial planning and keep an eye on the market trends.
At the beginning, my approach was to be very cautious, and I opted for safe investments like gold and insurance. With time, I started investing in various other instruments such as mutual funds, shares, bonds and real estate. I started off as a risk-averse investor. My approach has always been to follow the market trends and keep churning the capital. With time, as I have become more confident about investing, I am now open to taking moderate risks. Looking at my investment portfolio today, I could say that I have transitioned to a moderate risk taker investor.
Setting specific goals and expectations is the key to proper investment planning and reaping the benefits. My first priority is to own my first home and settle down with my family. Saving and investing for my family’s future is important. My second priority is investing for my retirement. I have started investing in policies which will benefit me when I get closer to my retirement age. I have invested a lump sum amount in mutual funds for my family and for retirement. So, my investment goals are both short-term, as well as long-term.
Opinion by Ankur Sinha