Published: 04th Sep 2024
By: Value Research
Markets are inherently volatile. Thus, it’s best to invest your money through SIPs (systematic investment plans) for better cost averaging. However, you may make a lumpsum investment following a significant market correction, provided you have a high-risk appetite.
The more you save, the more you can invest. Simplify tracking your income and expenses by using percentages to allocate your income to each expense category. But always prioritise savings first when budgeting.
Ideally, your emergency fund should be six times your monthly expenses. This money should be invested across low-risk liquid instruments.
Your investment choices should align with your goals. For example, as a young professional aiming to build a retirement fund, prioritise growth by focusing on equities. A simple rule is to subtract your age from 100 or 120 to determine your equity allocation.
Our final rule is crucial for investing success. Discover it by reading the full story at the link below.