Ask our experts

I am 24 years old and just got my first job. What factors should I consider while preparing a financial plan? – Anil Kumar

We appreciate the fact that you are thinking about preparing a financial plan at the beginning of your career itself. When you are preparing a detailed financial plan, you have to keep in mind many points. However, you can start by keeping the following simple points in mind:

a) Create an emergency fund for meeting the unexpected expenses. b) Create a disciplined investment behavior. In the initial years, you may be able to save more from your salary. Ideally, you should save a minimum of 30% to 40%. c) Invest in equity-oriented mutual funds with a long-term wealth creation objective and never dig into this investment for minor expenses. d) Another important point is don’t create unnecessary liability by using credit cards or any other loan facility. Pay off your loans as soon as possible. e) Maintain a lean portfolio with few investments. Don’t invest in numerous schemes.

Wish you a financially stress-free life. All the best.

What is the future for the gold price? Is it good to invest in gold in now? – Sudheer Mishra

Gold is considered as a “safe haven” investment and can be used to diversify a portfolio during the period of financial instability. Due to the Russia – Ukraine war, London spot gold jumped to near its all-time high and hit $2070 an ounce in the first week of March. Benchmark London spot gold gained about 7.5% this year. In domestic market, prices rallied more than 9.5 percent so far this year.

When considering gold investments, it is important to consider the change in the geopolitical and macroeconomic outlook. Depending on your risk appetite, portfolio composition, investing goals and how much you intend to invest you can determine whether it is a good fit for your investment portfolio.

Should I invest in a single ELSS or multiple ELSS for 10 to 20 years? What is the CAGR that one can expect? – Mita Keswani
The decision on the number of funds to invest in at any given time period is based on the investment amount and portfolio diversification required. You may invest in multiple ELSS funds if you want more portfolio diversification. The important point is what type of investment you are planning to do rather than number schemes. Return potential decreases with more schemes. We can’t predict the future return however last five-year ELSS category gives a return of 12%.

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