A Salaried Person Wants To Invest More But Still Confused, Invest In These Schemes

A Salaried Person Wants To Invest More But Still Confused, Invest In These Schemes

It has so many different approaches, investment for salaried person

First, determine that your job is stable and secure, such as a government job with regular and relatively predictable cash flow. Or it is very volatile and has the potential for job losses such as airlines or shipping companies or investment bankers, as it will depend on your investment strategy. .. 

Which belongs to the first category of employment characteristics like security and stability?

  • Initially, depending on the country, whichever is the case; cash a 3-month salary in an emergency account in savings account or a checking account.
  • Since you can bear more than the usual risk, your best bet would be equity, such as mutual funds, SIPs, from small-cap to medium cap funds, ETFs essentially allows you to extend your capital for years.
  • Invest in high-quality corporate bonds that offer higher returns than traditional bank FDs or government bonds.
  • You have a high-risk appetite for investing in real estate by taking loans where you can claim an interest in IT, just don’t borrow because you can get trapped.
  • I quit investing in FDs and your salary has the same characteristics as those asset classes, so I agree that your employer already deducts your PPF contribution and that Insurance is covered.

Secondly, investments for the salaried persons who have employment characteristics like the risky job, unstable and uncertain cash flow.

  • An emergency and security fund requires 8-12 months’ salary savings or checking account, or during bad times, all your investment plans will go into drains.
  • Invest in bank FDs or recurring deposits, government, or high-quality corporate bonds based on your risk appetite.
  • Invest in Large-cap and blue-chip Equity through Mutual Funds, ETFs, and SIPs (Part of Mutual Fund) 

An investor should invest in this type of scheme as this scheme is a good investment for salaried people

  1. Invest in a business with a market cap of over 5000Cr.
  2. Always Avoid Real Estate, Diamonds, Jewelry, Cruise Oil, Power Companies. 

The reasons for this are:

  • Always choose a company with a competitive Moat. The company must have a product that is different from the market. Crude oil, electricity companies have nothing extraordinary that will sell the product at a premium.
  • Real Estates and jewelry companies’ trade with black money and their accounts will never be transparent. At least in the current scenario of India.
  1. Choose a company that has been in operation for the last five years. 

Conclusion: Investment for salaried persons, the cash flow is relatively predictable- Salary can benefit from a variety of factors: employment, occupation, spending time, etc. Savings can then increase skills (increase your salary) and thus, your returns will improve.

Another way to increase salary is to spend more time in your job, although time is limited and beyond a point, you will not want to spend most of your time in the workplace, but with parents, friends, holidays, etc.