Invest according to your age

Just as one size does not fit all, investment advisable at the age of 20 will be different from investment at the age of 30’s or 40’s. Your investment gets impacted according to your age and life stage at which you are. It’s like any other aspect of your life that is determined by your age.

Here is a quick guide on how to make your investment decisions at the different stage of your life.

If you are in 20’s

· Start investing with your first salary even if it is paltry. Once you start earning you should allocate part of your salary towards investment. You can start with as little as Rs. 500 every month.

· Among various options available invest in ‘growth’ option of funds instead of ‘dividend’ options. As it will help your investment grow higher as time is in your side.

· In terms of asset allocation, equity is best suited for you as you can take the risk and they offer the best return in the long run.

If you are in 30’s

· In your 30’s your expenses increase as you have new responsibilities now, such as a house, marriage, new four-wheeler etc.

· Take stock of your income, expenses and current financial status and increase your investment amount accordingly.

· Equity should still remain your preferred choice of investment; however, a little portion should also be invested in debt fund depending upon your financial goal and risk appetite.

If you are in 40’s

· It is the right time to review your goals whether it is your child's education or retirement planning.

· Understand if there is any shortfall in funds to achieve your financial goal and what is the additional amount needed to meet that shortfall.

· You should systematically reduce your exposure to riskier assets and move them to safer assets.

If you are in 50’s

· You are approaching towards your retirement, now you should be more serious towards your post-retirement needs and assess your investments accordingly.

· Assess how you’re investing and savings that will help you maintain the lifestyle you need.

· Invest sufficiently towards healthcare expenses in order to safeguard your investment from being impacted by any medical emergency.

· Your asset allocation should be tilted toward safer investments and less exposure to riskier assets. Hence, debt should be a major part of your overall asset allocation.