How to invest INR 20,000 per month.

The 20s

Young, daring, energetic and in your 20s with loads of dreams for the future, travels to undertake and not many responsibilities…great! This is the right age to start investing. While starting with INR 20,000 may be difficult at the start of your career, you must make sure to invest 25% of your salary in good plans.

Here’s what we suggest – Time is on your side. Go for a Systematic Investment Plan and invest in some equity based funds. While the risk profile of such mutual funds is more, considering you are going to stay invested for over 10 years, you do stand to only gain from the market.

However, do not make the folly of locking up all your savings. Invest 20% through SIP and the remaining 5% must be used to first build an emergency fund equal to 3 months salary and then towards your life and health insurance.

The 30s

As you hit the 30s, your income definitely increases but so do your responsibilities. It means you need to change your investment strategy from the younger years as your life goals have also changed. Here’s how to invest INR 20,000 in your 30s:

  • A – INR 5000 a month through SIP for your kids’ higher education (10 year horizon)
  • B – INR 3000 a month in equity for your retirement corpus (over 25 years horizon)
  • C – INR 3000 a month in a debt fund for buying a new car (3 year horizon)
  • D – INR 3000 a month in PPF for safe and assured returns.
  • E – INR 3000 a month to be kept liquid as emergency fund.
  • F – INR 3000 a month for life, health and accidental cover for yourself and your family.

The 40s

Now that your children have grown and you are probably at the peak of your career, it is time to reap the benefits of your past investments. However, that does not mean you stop investing. This is your last chance at building that retirement corpus to take care of your golden days.

Change your approach from the 30s slightly by moving towards funds that are less invested in equity and more in debt funds. Instead of your child’s education, you may have to start investing for their marriage now. But do not compromise on building your retirement corpus, a larger chunk of your savings must go in that sector now.

The 50s

This is the time to turn conservative as most of your responsibilities have been met and you are nearing retirement to enjoy your beautiful days with your spouse. Start moving your investment progressively towards debt funds as 50s is the age when your risk appetite generally goes down. However, if you are the daring types, there is no harm in investing a small portion in equity and letting your money grow even when you have stopped earning.

Financial planning is crucial to meet your life goals successfully. Dr. Celso at NaveMarg can guide you on your financial journey. Book an appointment now to get started early!



The 30s

While the 20s were a carefree ride, 30s bring about a sense of responsibility. Instead of shrugging it off, this is the time to start planning and make wise investments for your long-term goals.

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Emergency Fund

Going by the average Indian norm, being in the early 30s means you are most probably married (or are planning to get married), and are going to start a family. With ageing parents, new-born children and piling expenses, it is necessary that you build an emergency fund. Make sure to have at least 6 months of salary saved and handy, if an emergency ever arises.


30s is the time when you must get yourself insured, if you still haven’t. Go for a life insurance as well medical and accidental insurance to cover yourself and your family in times of death or redundancy. It is a good idea to insure your debts as well, because that will leave your family secure in case you are not with them in the future.


Probably you began investing in the 20s and are already reaping handsome returns. Now you need to revisit your investments and see if they are aligned with your life goals, which takes us to the other important point of setting life goals.

If you haven’t set your goals till now, do so. Pick up your tab or a piece of paper, and write down what you want to achieve by when. Once you have completed this exercise, start planning how you would invest to achieve each of your targets.

Diversifying your portfolio is another important aspect of saving successfully. It will not help putting all your money in fixed deposits or real estate or equity. Be smart and plan ahead by spreading your risk across instruments and fulfilling your life goals in time.

 30s are an exciting time of your life. It is the decade that gives you direction and purpose. Further, it is the time when you are at a comfortable position in your career as well and can afford to invest briskly. Seize the moment and make the best of your 30s. Invest now to not worry later.

Setting effective financial goals

Whether you want to lose weight, buy a car, buy a home or simply become wealthier, the key to realizing your dreams lies in setting effective financial goals.

Until and unless you do not set in stone what you want to achieve and carve a plan that you stick to in order to achieve your dreams, they will always remain dreams.

Setting financial goals

Everyone always advises us to save. But save for what? When you don’t know what you are saving for, it is likely that you would have a casual approach and you wouldn’t think twice before using up your savings.

Be it retirement, the marriage of your children, their education or simply buying a car, home or taking a foreign trip, you must set your long term and short term goals to make sure you can turn them into reality, on time. Key features of effective goals:

  • Specific
  • Quantified
  • Achievable
  • Bound to a time frame

Steps to achieve your financial goals:

  • Review your financial condition – Do a thorough health check up of your finances to know what you have and what you need.
  • Create a budget after carefully investigating your expenditure and income.
  • Cut down the frills – Eat out on a Saturday, instead of every Friday and Saturday. Spend some time having a cozy dinner with your family and friends at home on Fridays and save money as well.
  • Invest to achieve your financial goals – Thanks to the ghost of inflation, we all very well know that simply saving is not enough to meet our requirements on time. Once you decide on your short term, medium term and long term goals, look for financial instruments that give you the best returns over each time horizon. It is a good idea to invest in debt instruments such as deposits for short-term requirements. However, for long-term goals, consider the option of investing into mutual funds, equity and ELSSs. These market-linked products have returned the best interests over a long term horizon of 5 years and beyond.

Have you decided on your financial goals? It is time to start investing. Start an SIP with as low as 1000 rupees a month and gradually increase your investment to meet your goals. Dr. Celso at NaveMarg can give you insightful advice to help you meet your financial goals effectively.

A difficult year. Here’s why not to press the panic button

Barely three months into the year, 2016 has seen heavy swinging in the market. As the sensex came down crashing heavily on the heads of the investors, many were tempted to press the panic button and bail out before things got worse.

It is quite natural that the swinging markets swing your heart along. In fact, the joy that you gain from the markets going up is much lesser than the pain you suffer when markets go down. So, is it really worth the heart burn to stay invested when markets are doing the crash n’ burn, possibly leaving you high and dry?


Before you make a hasty decision, let us review the situation calmly.

The fall down in the recent months is not attributable to any internal factors, but a result of various external events across the world including the situation in China, uncertainty in the Fed rate and the condition in Europe. As predicted by economists, this situation is not going to turn into another 2008 (as the world learnt its lesson well) nor is it going to affect the Indian economy really very harshly. The Finance Minister has repeatedly assured the investors to stay calm.

But leaving everything aside, what does this lowdown mean for the investors? Let’s see:

  • For day to day traders and short term investors, it is not a great phase because markets are expected to dip lower.
  • For medium term investors (3-5) years, there is good possibility to make decent recoveries as volatility is an integral part of the market and what goes up must come down to go up again.
  • For long term investors (over 5 years), the horizon should be bright. As stressed upon in the previous blogs, equities and mutual funds are known to give best returns over long term horizons as risks and returns are averaged out over time.

Prudently speaking, if you can, you must stay invested and wait for the tide to turn. However, if you think you don’t have the appetite for surf-boarding the market, it is certainly hard to reap benefits in that case.

Remember, timing is everything. Stay invested longer for maximum returns on your investments.