Financial Planning for the Young Professional - Part 2

As I start to write Part 2 of this 2 part series - Financial Planning for the Young Professional, the equity markets around the world are bleeding red and in India, the market seems to going lower everyday. The rupee is at an all time low, growth seems to be faltering, inflation refuses to go down and with the fiscal condition worsening, the finance minister is even talking of 'austerity measures'! This is also the week when Facebook went public with a record 100 million shares being traded in the first 4 minutes of its opening. But even this highly hyped IPO lost its sheen and investors saw it losing over 11% in the week that followed the IPO. With the people around the world losing faith in equity, even Facebook seems unable to hold its ground. People seem to be talking of a 'new normal' of a world of high energy prices, low growth and stagnant wages. In spite of this doom and gloom scenario, the golden rules of investing have not changed.

Financial Planning for the Young Professional - Part 1

You have just completed college and have landed this new job that you have always wanted. And now you are all set to enjoy your new found financial independence. It is only natural that when you receive your first pay check, you want to buy all those cool gadgets and go on a shopping spree buying all that you have always wanted. It is only when the financial year is about to close and when you have to submit documents related to your tax planning & tax saving investments, that most young people seriously think about investing. And from what I have seen, young people google the top mutual funds or invest their money in to some ULIP (Unit Linked Insurance Plan) which their relative/friend or the salesman from their bank 'suggests' to them. This last minute investment rarely works out well since you don't have the time to research and the objective of your investment was to save some money as tax!

Fixed Deposits Which Give Over 14% Return

A couple of weeks back, I spoke to a relative who had invested his entire savings in a fixed deposit by an NBFC  (Non Banking Financial Company) which was giving an interest of 14.5% per annum on his deposit. He was a middle aged person who did not want to invest in equities and shopped around for a fixed income instruments which would give him the highest possible return and he came across this NBFC which gave him a pretty high return. This article is not about how he found a high interest paying 'Company Deposit' but rather what happened after he invested his savings.