Financial Freedom on a LOW SALARY ! Is It Really Possible to Invest in Mutual Funds with Low Salary? #Finance

meet Priya fresh out of college she landed her first job with a monthly salary of 30,000 rupees like many young professionals Priya dreamed of Financial Security and growth but with rent bills and all daily expenses she wondered if investing was even possible for her hello and welcome to

our Channel 5 minute Finance by ET money where we talk about the basics of investing and personal text-decoration: none;">Finance in this CashNews.co we’ll discuss a five-step process to help Priya and many like her to start their investing Journey with a modest salary of 30,000 rupees so let’s begin first things first here priia needed to understand where her money was

going for her job Priya had to relocate from her hometown to guro and the first wise decision she made was to live in a co- living facility in this way she saved money on rent and other utilities she created a simple budget that she was spending rupees 10,000 on rent 2,000 on utilities 3,000 on

groceries 2,000 on transportation and 3,000 on miscellaneous things like eating out and entertainment so her total expenses were 20,000 rupees this left priia with a surplus of 10,000 which she can use to invest but before investing she knew she needed to save money for emergencies also this should

be your priority building an emergency fund just in case something unexpected happens like a medical emergency or job loss so to begin with priia decided to save 3 months of expenses as an emergency fund she allocated 5,000 per month towards this goal it would take her 12 months to reach her Target

of 60,000 Rupees the amount should be kept aside in a Savings account in The Next Step we’ll see how she will start investing so with 5,000 left each month priia was ready to start investing she learned that starting small is better than not starting at all so she allocated

her Savings to two different investment options while balancing out risks and return metrics so priia explored various investment options that were suitable for beginners she considered everything from recuring deposit and mutual funds to ppf and even gold but since prii is in the

lower Income tax bracket and falls in the zero tax lab she skipped ppf also since she’s too young and has no near-term goal to fulfill she was ready to take some risk in expectation of higher returns in the long term so she decided to go for Equity mutual

funds she decided to invest every month through systematic investment plan that is sip she decided to invest 5,000 and split equally to two types of funds the first 2500 went into a balanced Advantage fund but why a balanced Advantage fund well this fund invests both in equities and

Debt Securities and adjust its Portfolio based on market conditions we’ll not get into details here so this category of fund is perfect for helping her handle Market volatility while aiming for steady long-term returns for the second 2500 she

pick the flexi capap fund this one spreads the investment across large mid and small cap stops aiming to offer a balanced mix of risk and reward through diversification if you’re not sure which mutual fund is right for you well don’t worry you can try the ET money app set your profile

and take the investor personality assessment a quick questionnaire that evaluates your risk appetite BAS B on your answers it suggests the best investment options tailored to your risk profile and goals best part it only takes a few minutes now the most important question how much will priia rake

in from her Investments in these two types of mutual funds so balanced Advantage Funds on an average have given 24% returns in the last 1 year 14% in The Last 5 Years and 10.5% in the last 10 years Plexi cap funds have given average returns of 37% in the last 1 year 20% in Last 5

Years and 15% in the last 10 years well but remember the past performance of the funds is not guaranteed so don’t completely rely on the historical returns also you must know that these categories have been used just as an example don’t treat them as our recommendations as said earlier

always invest as per your risk profile so let’s assume an average return of 12% on priya’s Investments and by investing 5,000 rupees every month so at the end end of year 1 she will have little more than 64,000 rupees after 5 years of investment her

Investments could grow to about 4.12 lakh while her investment is 3 lakh rupees only after 10 years it will be 11.6 lakh on investment of 6 lakh rupees that’s almost double and after 30 years well hold on to your hats it will become a massive 1.76 crores on an investment of

just 18 lakh rupees and well this is and we have assumed that Priya continued with the same investment amount throughout but practically her Investments should increase with time as she begins to earn higher now a key part of successful investing is staying consistent no matter how

small your Investments may seem you need to continue your Investments setting up sips help you stick to your investment goals without even having to think about it because investing is not about how much you want it’s about making your money money work for

you if priia can do it with a 30,000 salary so can you and don’t forget as your salary grows so should your Investments and it’s a wrap if you found this CashNews.co helpful don’t forget to like it and share with your friends and we’ll see you with another

insightful CashNews.co soon mutual fund Investments are subject to Market risks read all scheme related documents carefully