Young Professionals

IIPM, GURGAON

Hi, I’am Hitesh Raj Bhagat. I am 28 years old and working for a media house. I have a specialised person to take care of my investment as I don’t get enough time to keep a track of my investments. I am currently earning between Rs.6-8 lakhs per annum.

Hitesh Raj Bhagat

“I’m not a heavy investor, because at this stage in my life, both my wife and I are focusing more on our interests like travelling, movies, eating out and having a nice car,” says Hitesh at the outset. However, like most young professionals, he does need to save enough for tax planning purposes. For this, he consults an investment planner, believing that they would be able to guide him better about correct investments options. “My primary reason for investments today is tax planning,” he points out. At the moment, Hitesh has invested in life insurance (which offers a tax rebate) as well as Principal Mutual Funds from PNB. He opines that mutual funds offer tax benefits and also really high returns. “They do have risks – but if you carefully study the returns that a particular policy has been giving over the last few years, you’ll be fine.” In a few years, Hitesh also plans to begin investing in pension plans.

‘Hey there Delilah, I know times are getting hard, but just believe me girl, someday I’ll pay the bills with this guitar…” Well, if you are young professional and not that good at playing guitar, then here’s some financial planning that might help you stash some more moolah in your back pocket. Let’s go by a simple classification – ‘wealth creation’ & ‘living with what you have’! So, for guys and gals who have an over arching goal of creating wealth, stocks are on offer, but with risks. “Stocks are a better proposition, as young professionals are in a position to take high risks. For conservative young professionals, there are traditional investment vehicles like FDs, post office savings, NSCs et al,” recommends Kartik Jhaveri, a Certified Financial Planner and the Director of Transcend Consulting (I) Pvt. Ltd. a private wealth management firm.

Real estate is also a good pick given that the investor has enough money at his disposal, after meeting his utility expenses.

There are other factors to consider too. Normally, people don’t want to get bogged down by decisions making, monitoring their investments and churning their portfolios every now and then, for them traditional investment vehicles also make a really good choice as they are safe, hassle-free and returns are guaranteed. But then Jhaveri avers, “Youth is the time to take risks!” So, just remember, it’s now or never!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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