Investments For Young Professionals

By | October 1, 2016

Investments For Young Professionals

It’s a giddy feeling to finally have the financial independence you’ve always been dreaming of. Sure, you’d rather stock up on the latest gadgets and apparel than invest your money. However, if it’s financial stability that you’re looking for, getting a job, is only the first step. You need to make your money work for you and the only way you can do that is through various investments. The earlier you start with your investments, better the returns you can expect from them. Starting early also helps you get into the habit of saving and building wealth for the future.

There are many options available in the market when it comes to investing. We bring you a few which we think would be the most helpful.

Additional Reading: Invest Young, Retire Early

Retirement Planning

We know retirement isn’t really at the top of your mind when you’ve just started earning but don’t fall into the trap of deferring saving for retirement until it’s too late. The earlier you start, the larger the amount you will be able to amass over time. With ever increasing inflation, spare a thought to how much you will need to live comfortably when you will not have the luxury of a regular income. A scary thought, isn’t it? Now, the good part. When you start saving early for your retirement, the investment burden is going to be much lighter. Moreover, thanks to compounding, your money, even if a minimal amount, will see more growth. For this, you must limit withdrawals from retirement savings schemes, such as the Employee Provident Fund (EPF), which you are already investing in.


A Systematic Investment Plan or SIP is one of the smartest and easiest ways by which you can invest in Mutual Funds. You can decide what amount you want to invest at regular intervals, which could be daily, weekly, monthly, quarterly, and so on. You can start off with as little as Rs. 500 to get into the habit of regular investments. It’s certainly addictive watching your money grow and very soon you will be putting away more than just the minimum amount.


Public Provident Fund or PPF is one of the best small saving schemes in the country and is an ideal start for you as a young professional as it also gives you complete tax exemption on your investment. You can open a PPF account through the post office or a nationalised bank. The maximum amount you can invest is Rs. 1.5 lakh and it’s mandatory to invest at least Rs. 500 on a yearly basis to keep your account active. You can also get a loan based on your investment in the scheme and start making partial withdrawals after the 7th year.

Fixed Deposits

The market, as you already know, is flooded with investment opportunities. Yet, Fixed Deposits continue to be a strong favourite in the investment zone and for good reason. FDs are considered to be one of the safest investment options and are a good way to enter the investment arena when you’re just starting out. You can secure an FD for as little as seven days and a maximum of 10 years. Once you deposit your money in the bank, it starts earning an interest that is based on the tenure. Depending on the bank and the scheme you’ve opted for, you can earn interest as high as 8% per annum currently. Once the tenure is complete, the bank returns the money to you along with the interest. You can also opt to get the interest paid out to you every month, quarter, or year. To get a tax exemption on the FD, opt for a tax-saver FD.

Invest in yourself

Remember that while investing your money wisely is important, investing in yourself is equally important. If there’s anyone you can always count on without fail, it’s you. Investing time and money to improve yourself will always pay off, whether in the long run in the form of increased income or the momentary joy of learning something new and pushing yourself out of your comfort zone. Assess your weaknesses and the areas you’d like to improve and work on them. It’s much easier to inculcate these habits while you’re still young.

Now that you’ve got your investments covered, how about checking out some loans?

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