(Last Updated: July 12, 2020)
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Financial Planning for 30 year old

  • Hi, I will be turning 30 soon and I want to invest around 60-70K each month. I already have a house (EMI paid), a car and savings to last me 5 months for emergency purposes, employer health insurance.

    Apart from leisure travel, I have no short or long term financial goals or liabilities. Can you suggest what are my best investment options? What percentage of my investment should be equity MF? Does it make sense to invest in FD/PPF despite the low yields?

    What other options can I look at to have a balanced diversified moderately risky portfolio?

  • Hi Prerna,you already have the answer in your query itself.You should have a balanced portfolio,right.

    For this you need to invest in safe as well as slightly risky options.Safe investment options like FD/PPF.To diversify you can invest in mutual funds,these are subject to market risk.

    We don’t give specific investment advice.For this you can refer many Robo investment advisors that are available online these days to help you in setting a financial plan suiting your needs.

  • @prerna You are in a strong financial position right now where you can well manage your investments. One right financial step taken at this point shall make you happy years later. So, it's really great on your part to start thinking about your financial planning. You already have a house, a car and an emergency fund. That's really great! If you can take moderate risk as you have mentioned, you can try out investing in mutual funds. SIP in mutual funds is in fact a trending method for regular monthly investments in India. Here, also the equity mutual funds are a bit more riskier than debt funds.
    Investing in fixed income generating alternatives like FD/PPF is a good option for safe investors who are not willing to take any risk. For you, a combination of both safe and a bit risky profile can be a good idea. However, the risk portion should not be much initially being a new investor.

  • Yeah, financial planning should always be done at an early age. It’s always very important that you learn everything carefully or get professional help. I am also very concerned about my future savings and recently consulted an expert who helped me with personal financial planning and to get started with things.

  • @balogh03 Yes, the earlier one starts financial planning, the more amount we can accumulate. DIY approach is fine but getting professional help is also a good idea especially if you are a new investor. People are realising the importance of financial planning these days. It's great you consulted a financial expert. How was your experience and what guidance you got? A brief idea, if you can give.

  • @prerna first step to do investment is to identify your goals. As you have said that you have no goals, then why you are investing? After goring money, what you are going to do that? First identify a true goal then response to your thread back. A definite answer would be received.

  • For people who wish to diversify beyond stocks and mutual funds there are options in alternative asset which can provide high returns with less correlation to market such as international real estate, Invoice discounting, Crypto Interest account etc.

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