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How to start investment when you are teen's

Hello every one, today we are going to discuss the investment strategy for teen. In this i am not going to discus about only earning teenagers, this type of strategy can be used by any one.

     When we think of investment only few option come in mind like FD or saving in bank in Saving account or will go for some LIC policies or health insurance policy. I agree that this type of saving is good and alos required but will not be best for future planning, as you know infaltion is growing day by day so as expenses, if you want to meet this expenses and want to enjoy good lifestyle, then you will have to let your money work harder for you.

     You all will ask how this will happen; the simple answer is DIVERSIFICATION. Now this word seems small but has a huge impact when it comes to financial planning.

     What do you mean by diversification. It means investing money in more then 1 investment options if we talk if financial sense. Now question comes what all investment options is available. Some of the investment option are mentioned below,

1. Saving account
2. Fixed deposits account
3. Public provident fund
4. National pension system
5. Government bonds
6. Gold
7. Senior citizens saving scheme
8. Debt mutual fund
9. Equity mutual fund
10.Direct equity etc.


     These are some of the option which one can easily access and make their investment for the future. Now its comes which is best for making money grow fast to meat growing lifestyle expense. Now as per my opinion investment in maximum option will be the best strategy. From above few option named saving interest , fd interest, public provident fund are safe investment option in which you get the fixed return over a period. Where as in debt mutual fund or in equity mutual fund the return depends on many factor like market growth , selection of share or mutual fund, entry and exist time etc.

     So if we take more risk and invest in market then we may end up losing money if we invest in traditional option then the return will be minimum, so its advisable to invest in fixed return option so as to lower the risk of losing money and make the money by investing in market which can give more return if we are able to take up more risk.

     Now another question what are the advantages investment in market directly or indirectly. Apart from above reason, its shown that over the period of time if we invest in the market for the long time and take the calculated risk then we can earn good amount of return. As the age of investors is less he can take up the risk and hold the investment for long time to get most out of it. Its also seen that over the period of say 5 years very few options are available in market in which we can invest and beet the hit of inflation. Being a small age one can take the riks and make the money in such a way that one can get retired in 40's or 50's.

     So its advisable to invest in all the possible option so as to get the maximum benefit with securing the possibility of loss. 

     Now this doesn't mean we should invest in all the option available in market. We can choose the 2 or 3 fixed return investment option and 2 or 3 option which invest in market my be directly or indirectly. 

     Normally as per my opinion the investment proportion should be 40% in fixed income option and balance in market. If you are ready to take more risk and get more reward you can reduced the 40% proportion of fixed income plan. In short we should always diversify the money and make the best out of it.


     For further question leave your comments below.

Happy investing.

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