Start investing in Mutual Funds with your first salary job

1
Start investing in Mutual Funds with your first
salary job
2

• As a mutual fund advisory in Mumbai, we have
  noticed an upward trend in young professionals
  who are keen to start their investment journeys.
  Mutual funds, while they seem daunting when one
  starts off, it becomes easier with a mutual fund
  advisor by ones side. Lets dive into the
  challenges and the details of how to go about
  investing, starting from the first salary itself!
• The income that we earn is typically used in
  three areas
• Day-to-day expenditure
• Keeping money aside for an emergency fund
• Invest for long term goals like, owning a house,
  buying a car
• Fairly, this is just an extended bifurcation of
  what one knows as savings and expenditure, in
  basic economics. But this helps us understand
  what percentage of our salary should be spent, on
  average. Typically, about 20-30 of ones monthly
  income goes towards their savings. A simple
  formula to check how much money you should be
  putting to investments is by determining what are
  the costs you must absolutely bear. Lets look at
  something that mutual funds advisors like to call
  FOIR.

3
FOIR

• FOIR or Fixed Obligations to Income Ratio helps
  us determine what part of ones salary goes into
  meeting their basic needs for sustaining their
  life. Lets understand this better with an
  example. Lets assume Karan earns RS. 60,000 per
  month. His monthly expenses look something like
  this,
• Rent Rs.12,000
• Food Rs. 5,000
• Conveyance Rs. 3,000
• Electricity Bill Rs. 2,000
• Leisure Rs. 4,000
• Other Bills and Misc. expenses Rs. 4,000

4

• The total of this, i.e., Rs. 30,000 is the FOIR
  for Karan. When we take out his FOIR from his
  income, we are left with an amount that he can
  use to invest in mutual funds. In this case, that
  would come down to,
• Total income - FOIR Portion of salary for
  investment
• Rs. 60,000 - Rs. 30,000 Rs. 30,000
• Karan, with this amount, would seek for
  investment advisory services to understand how to
  go about it in a better way. The first thing
  would be to ensure that he doesnt spend the
  entire Rs. 30,000 and in fact, keeps some portion
  of it aside for emergencies as a precautionary
  step.

5
Why Mutual Funds?

• While mutual funds seem a little confusing and
  daunting at first, a good mutual fund advisory
  comes to benefit to handle the details of the
  process. But before we get into that, here is why
  a first-time investor can go for mutual funds
  over other kinds of investments,
• Mutual funds can be initiated into a diverse
  portfolio by even a low initial investment. It
  can be done by investing as little as Rs. 500 or
  Rs. 1,000 a month in the beginning. The other
  great part about it is that one can invest it as
  a lump sum or as a Systematic Investment Plan or
  SIP, as it is known commonly. With SIPs, when
  done with the right guidance, can yield great
  results while it also reduces the overall cost of
  investment.
• Mutual fund investment is a pretty simple process
  and it is paperless too! One can simply have a
  look at the market, and make their investments as
  per their requirements after it. The best way is
  to get in touch with a mutual fund advisory
  service. Since you would be just starting off
  with your investment portfolio, a mutual funds
  advisor would be able to give you a better
  insight into the market and where to invest as
  per your personal goal and budget.
• You can actually save tax when you invest in
  mutual funds! Section 80C of the Indian
  constitution provides tax deductions on certain
  financial instruments and mutual funds come under
  it!
• When you get mutual funds advisory service, an
  advisor will be appointed to you, who will look
  after your portfolio. They are backed by a team
  of researchers. With your goal being clearly
  understood by them, they execute a detailed
  investment strategy to grow your assets manifold.
  They also understand the market, where it is
  potent to invest in, and what should be avoided,
  given your budget and goals.

6
Thank You
Visit https//www.ajmeraxchange.co.in/blogs/start
-investing-in-mutual-funds-with-your-first-salary-
job