Best Investment Plan 2024 | Best Investment Plan For Monthly Income

Summary

The video offers practical advice on personal finance and investments, emphasizing the importance of saving, budgeting, and avoiding depreciating assets like expensive cars. It advocates for a diversified investment strategy, splitting savings across safer options like Fixed Deposits and PPF, while also investing in high-return instruments like Mutual Funds. The narrator cautions against investing in physical gold and promotes sovereign gold bonds instead. Real estate is briefly discussed as a potentially lucrative investment, but with warnings about the risks of black money. Overall, the video encourages a disciplined and balanced approach to wealth building.

Takeaways

• 😀 Focus on managing your expenses and saving a portion of your income every month to invest for the future.
• 😀 Prioritize essential expenses such as rent, bills, and insurance. Consider health insurance even if your company provides it.
• 😀 Avoid spending money on depreciating assets like cars, which lose value over time and are a financial burden.
• 😀 A car purchased for ₹9.06 lakh could cost you ₹16 lakh in five years, but its value will drop to ₹4-₹5 lakh. Choose investments instead.
• 😀 Invest in a diversified portfolio that includes low-risk options like PPF and FD, alongside high-return investments like SIPs in mutual funds.
• 😀 By investing ₹12,000 monthly in fixed deposits, you could accumulate ₹38 lakh in 15 years, but investing in mutual funds could yield around ₹1.10 crore.
• 😀 While mutual funds offer higher returns, they come with risks. It’s essential to balance risk and reward with a diversified strategy.
• 😀 Real estate can be a great investment for the long term, especially in high-demand areas or new developments.
• 😀 Do not mix insurance with investment. Avoid products like ULIPs, which combine both and often yield poor returns.
• 😀 Investing in physical gold is not ideal due to high premiums and taxes. Sovereign gold bonds are a better option for gold investment.
• 😀 The key to successful investing is diversification: balance low-risk investments (PPF, FD) with high-growth options (SIP, real estate).

Q & A

What is the best way for a salaried individual with a ₹30,000 monthly salary to manage their expenses?

The best approach is to budget wisely, ensuring that essential expenses like rent, utilities, and insurance are covered. After that, prioritize saving as much as possible from the remaining amount. In this example, ₹12,000 can be saved monthly, which can then be allocated to various investment avenues.

Why should individuals avoid buying cars as a status symbol?

Cars are depreciating assets, meaning they lose value over time. Purchasing a car to show off can lead to significant financial loss. For instance, a car worth ₹9.06 lakh will cost around ₹16 lakh over 5 years due to maintenance and insurance costs, while its resale value will be just ₹4-5 lakh.

How do fixed deposits (FDs) compare to mutual funds in terms of returns?

Fixed deposits are a low-risk, low-return investment option. In contrast, mutual funds carry higher risk but offer the potential for higher returns. For example, investing ₹12,000 per month in an FD for 15 years yields ₹38 lakh, whereas the same amount invested in mutual funds could grow to ₹1.10 crore with an 18% return.

What are the risks involved with mutual funds?

Mutual funds can provide high returns, but they are subject to market volatility. For example, a ₹50 lakh mutual fund investment could experience losses during market downturns, as seen in the example where an investment dropped significantly due to market conditions.

What is a balanced investment strategy for someone with a ₹30,000 salary?

A balanced investment strategy should involve a mix of safe and growth-oriented assets. For example, investing ₹3,000 in PPF (a low-risk, long-term option), ₹2,000 in FD (safe but with lower returns), and ₹7,000 in SIPs (mutual funds with higher risk but greater potential returns) helps create a diversified portfolio.

How does a Public Provident Fund (PPF) contribute to wealth building?

A PPF is a government-backed, long-term savings scheme that offers tax benefits and secure returns. While it is a lower-risk option compared to equities, its compound interest grows steadily over time. Investing ₹3,000 per month in PPF for 15 years can yield around ₹9.76 lakh.

What role does gold play in a diversified investment strategy?

Gold is often viewed as a hedge against inflation and can be a good option for wealth preservation. Instead of physical gold, it’s better to invest in Sovereign Gold Bonds, which offer better returns and avoid the risk of theft or storage issues associated with physical gold.

Why is real estate considered a good investment option for large amounts of money?

Real estate, especially in prime locations, can offer high returns due to appreciation over time. However, it requires significant capital investment and is less liquid than other investments like mutual funds or stocks. For those with a large sum accumulated via SIPs, real estate can be an attractive option for long-term growth.

What are the advantages of combining different investment types like PPF, FD, and SIP?

Combining different types of investments ensures a diversified portfolio. While PPF and FD provide safety and guaranteed returns, SIPs offer the potential for higher growth. A mix of these can help balance risk and reward, leading to a more stable long-term wealth accumulation strategy.

How much can a ₹12,000 per month investment grow over 15 years with a combination of PPF, FD, and SIP?

If you invest ₹3,000/month in PPF, ₹2,000/month in FD, and ₹7,000/month in SIPs, after 15 years, the returns would be approximately ₹9.76 lakh from PPF, ₹6.33 lakh from FD, and ₹64 lakh from SIPs, for a total of ₹80 lakh.