Home Business & Management Ultimate Guide For Investing As Per Your Age-2020

Ultimate Guide For Investing As Per Your Age-2020

But before that let us understand what is meant by investing. Investing is basically allotting a specific amount in expectation of some increase in its value.


  1. Do You Need To Invest?
  2. Major Factors Affecting Investment
  3. Types Of Asset
  4. Investing As Per Your Age
  5. Importance Of Retirement Plan
  6. Some Beginner Tips
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Do You Need To Invest?

Answer for this can only be known by you, yeah but is sure it is not meant for everyone but I wish it would have.

But generally there are two types of people, one are those who were die to born they don’t have any interest in earning money and want to die as they were born but second are those who were meant to improve their financial position and want to improve it.

The first one actually want to earn money as well but they want to earn them in traditional way they cannot step apart from the crowd so follows rat race. Actually they fear to invest as this concept is new and modern so they fear of losing money. But this is because lack of financial education in them.

But second they have willpower to do something then he will first to go and invest his spare money somewhere.

As it’s a little load to understand the investing but that pain is nothing when you see your money multiplying when you are on a vacation.

When someone spare money left with they are usually 2 things done at that point of time. One is to spend it immediately on products which are only for just show off but the second is investing it somewhere so that you can spend with its double triple amount.

Major Factors Affecting Investment

major factors affecting investment

There might be a lot of factors but today I want to tell you the most basic factors which are most important and are mostly ignored:-

1. Inflation rate

Inflation rate refers to increasing price a good every year. For example if you will buy a packet of biscuit this year at 1bucks then next year its price will rise. Increase in price is due to many factors. Inflation rate vary year to year.

Inflation rate is very most important factor to be considered while investing. Let’s assume that average inflation rate going on is 5%. And you are investing where interest rate provided to you is 5%. Then it’s not investing it’s just saving your money from getting depreciated.

So invest where you get high return rate then the inflation rate going on.

2. Retirement planning

Retirement planning is very important because when you have cash coming in then life continues. But it’s the issue then you are not earning.

Your earning capacity is not anymore. Then what? In that scenario you need to have a retirement plan.

So do start for saving for your retirement plans when you get to know your retirement age so that in old age you don’t have to depend on anyone.

3. Aim

Then you must think about what are your requirement or wants form your current age to your retirement year. And then breakdown them in small needs and start investing according to your needs.

Decide carefully because once you are investing somewhere within a specific plan then you may not be able to change it until and unless your luck is in with you

Types Of Asset

asset allocation

Basically investment means to develop an asset. An asset meant to be an item to which owner can anytime sell it and earn money through it. So from a personal well being point of view he can invest in 4 types of assets.

1. Cash

Like cash-in-hand, cash in savings account, cash in current account.

Risk: Low

Return: Very less (2%-6%)

Liquidity: Very high

2. Debt investment

Like Fixed Deposits.

Risk: Negligible

Return: Less (6%-9%)

Liquidity: Difficult

3. Real estate

Selling or buying any property with intent to earn from by renting it or by selling it when price of that property gets increase.

Risk: unpredictable

Return: location specific

Liquidity: low

4. Equity

There are 3 types of equity:-

  • Index funds

In every country there’s an index fund showing growth of that economy. In India there are two. One is NIFTY50 another is SENSEX. NIFTY50 represent the growth of top 50 companies in India whereas SENSEX represent top 30 company of India.

These are best option if you don’t want to see daily response of market as they will definitely increase as growth can never stops, it can slow but will not slow neither it will go in negative.

  • Smallcase

There are many industries which take you money and diverse in many companies so that money will always can balance. One can overcome others loss.

In these you keep a bit eye on market.

  • Stock market It includes direct investing in a company. Stock market is a place where each and single activity by listed company in stock market performs. It’s a place where selling and buying of shares take place.

For this you must be well aware of business news internally. And you must have a strong sense of estimation.

Risk: Medium to High

Return: Average 15%-18%

Liquidity: High but amount gets depreciated

Investing As Per Your Age

investing for beginners

And now there are best investment as per your age:-

For this we will assume your age be ‘Y’

1. For people in 20’s

They must be investing in

  • Cash: At least 3 months of your expenses must be in your hand
  • Equity: let’s say your age is 20. In that case you can invest 100%-20%=80% of your income in any type of equity.
  • Debt: investing Y%. This will help you accomplishing short term goals. Any type of debt investment.

Remember age is the most beneficial point for you as in investment amount, return rate doesn’t matter in comparison to time because if invest in time it will help you making you small amount in big number.

Remember to diversify your portfolio, means try to do investing in many companies either of putting your all money one company, remembering your goals like house purchase, higher education etc.

2. For people in 30’s

In 30’s don’t but liabilities in starting of your marriage life. Instead invest them in children education, some premium vacation to enjoy your married life.

  • Equity: Invest 100%-Y%
  • Debt: Y%

3. For people of 40’s

Invest your all the saving as toppings in SIP’s. You must have your 3 to 7 month expenses in your hand in case of emergency.

  • Equity: 100-Y%. Talk to a financial advisor.
  • Debt: Y% Life insurance police: This is a pro tip as you have a whole family relying on you so you must get a life and health insurance.

4. For people of 50’s+

  • Equity: 100-Y%                                                                                                     In low-risk and large-cap investments
  • Debt: Y%                                                                                                     Your 6-12 month salary should be kept for an emergency  fund

Importance Of Retirement Plan

retirement planning

You know that after your maturity, income capability also starts falling down as at end your income becomes zero. So for this case you must be already prepared form starting because your income stops but you still have to pay all expenses in end.

To pay your expenses where does the income will be coming from, it will come from the investment you have made there are many types on investment you invest in but your children are the costliest one and no one knows they are going to pay you for that or not but others will definitely pay you an interest amount and will return your amount with appreciation but no one knows that your son will return invested amount or not.

So invest carefully for your retirements plans.

Some Beginner Tips

1. Long term goals

Always go to invest for long term not for short term. As “the more sugar will be putted in the more it will get sweeten.” So here time is that sugar. The more time you will invest the more return it will give you.

2. Risk tolerance

You must invest by keeping in mind that how much risk you can afford so that loses in capital amount may not affect you.

3. Get knowledge

Try to learn maximum you can learn about investing. Because if you will value it then it must be the best thing has ever happened to you.

4. Diversify

Try to not put your all fruits in a basket because one fish messes up entire pond.

5. Avoid leverage

Just stay hell out of it. Don’t try to invest on borrowed money. Save your money on your own and invest that savings.

6. Control emotions

One wrong step in investment can make you fall very hard so think 100s of time before you invest. As with a wrong step only god can save you.

7. Be aware of commission

That’s also a main point to consider whole investing which is neglected. And it can have a huge impact. Every broker through you are trading charge some fee and those percentage are seems to be low but when they are calculated it finishes your half of profits.

8. Different investment for different goals

Diversify your investment for different goals. Don’t invest for all types of goals through one type.

9. Tax

Be aware of taxes as in India, government charge a huge amount from your profits. There are very tax free scheme try to invest in those. Try getting tax rebate on your investments.


It’s may be enough you to get a start. Don’t just plan in dug out. Get yourself in play ground and then you will understand better.

“It’s never too late”

“Don’t wait to buy,

Buy and then wait.”

“An important key to investing is to remember,

That stock isn’t lottery ticket.”









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