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Best Places to Invest when you've just started Working

By Shrestha Saha

15th Dec 2022

3 mins read

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What if I tell you that with a salary of Rs. 20,000, you can start your investment journey by 20 and enjoy your retirement like a millionaire? I am not kidding; read till the end of the blog to know about it.

You don’t need to be a master of finance to start your journey of smart investing but stay abreast with the basic concepts:

Stay away from bad loans

Now, what are bad loans?

In India, people usually borrow loans for weddings and luxurious traveling abroad. But, you don’t realize its burden until you see its interest eating your wealth. So, instead of taking such bad loans for entertainment, make them your goals and start investing.

Another wealth destroyer is your health emergency. Hospital and medicine bills can drain your bank balance if you don’t have health insurance for your family.

All significant decisions require planning.

If you are considering studying abroad, buying a house, or preparing your retirement corpus, you should treat them as separate goals and start investing in them early.

How can different investments help you achieve your goals?

Asset Classes

The asset classes that most people are familiar with are as follows:

  • Equities/Stocks
  • Fixed Income investments/Bonds
  • Cash or cash equivalents, such as money market funds

There are several other asset classes you may wish to explore investing in at some point, which include the following:

Commodities and futures, such as oil or gold

Alternative investments, which include real estate, foreign exchange (forex), and collectibles

Sustainable, Responsible, and Impactful investments (SRI) with a primary focus on beneficial social or environmental effects


A majority of you, while growing up, would remember pitching in money with your cricket buddies to buy a ball called “Rocky”. Rocky was the elite breed after the ₹15 “Jumper”. If you can relate to anything similar, you already understand what equity is. You and your friends invested money to buy that ball means that you all hold equity in that ball or are part-owners. Now, things are great until there are a handful of investors, but when thousands and thousands of people invest in a company, there should be something that gives them their own and acts as proof of it. That something is a stock (loosely). If you hold one store of a company, you own a part of it.

To put things into perspective, If you had one share of Infosys Ltd. on the 7th of February 2022, you theoretically own 0.0000000237 % of the company! This is because share certificates are issued against these stocks, which act as the final proof of ownership. These certificates used to be in paper format back in the day, but now they are stored in your Demat accounts in a dematerialized (digitized) form.

Fixed Income Investing

Fixed-income investing refers to investments in debt securities that offer investors fixed-rate interest payments over a specified time frame – the life of the debt security. Debt securities are commonly known as “bonds.”

When you purchase a bond, you provide financing for a company or a government, and in return, you receive a specified interest rate, known as the “coupon rate.” Bond interests are paid semi-annually or annually until you receive the bond’s principal amount back on the bond’s specified maturity date.

The coupon rate is the yield offered on the bond when issued. As interest rates fluctuate over a bond's life, the bond's value and its “yield to maturity” change. Coupon rates do not change over the life of a bond, but varying interest rates affect the bond’s value and yield.

For investors who hold bonds to maturity, fluctuating yield-to-maturity rates during the bond's life have no practical impact on their investment return. This is because the current yield-to-maturity rate only comes into play if you buy or sell a bond in the secondary market sometime before its maturity date.

Risk and Opportunity

One of the basic principles of investing for beginners is this – risk and opportunity go hand in hand. They increase or decrease in conjunction with each other. Investments that offer higher potential profit carry correspondingly more elevated levels of risk. Likewise, investments with a lower possible return on investment (ROI) provide greater security and less risk. Regularly investing toward your goal will help you achieve it without compromising on your living standards.

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Copyright 2021 Spenny Fintech Pvt. Ltd.
Made with ❤️ in India