Suggestions for investing savings

[kohinoor]

I (27) am currently in Govt service earning between 40-50K for now (will be higher after I complete probation and get full allowances), and manage to save ~30K since the office is near my hometown and no fixed expenses as such. My HDFC RM pitched some stuff to invest my savings like term insurance, ULIP, SIP etc.

That aside, even on personal level I was planning to invest my savings for better returns rather than keeping all of it in savings account. So kindly suggest what's the right way to invest my money for long term which will give me a good return like on retirement or earlier. The issue I found with term insurance was that it gives a return only on a tragedy and isn't an investment as such. What are the other avenues I have for good returns in medium/long term?

 

[kuchbhikuchbhi is verified member.]

I (27) am currently in Govt service earning between 40-50K for now (will be higher after I complete probation and get full allowances), and manage to save ~30K since the office is near my hometown and no fixed expenses as such. My HDFC RM pitched some stuff to invest my savings like term insurance, ULIP, SIP etc.

That aside, even on personal level I was planning to invest my savings for better returns rather than keeping all of it in savings account. So kindly suggest what's the right way to invest my money for long term which will give me a good return like on retirement or earlier. The issue I found with term insurance was that it gives a return only on a tragedy and isn't an investment as such. What are the other avenues I have for good returns in medium/long term?

Thought times going in market

Still a good time to start investigating tho
The key is patience

 

[hender]

Study more, Compare elsewhere than take informed decision.
For your financial journey , Present and future requirements, differs.

All the best 👍

 

[Mr. BeanMr. Bean is verified member.]

The issue I found with term insurance was that it gives a return only on a tragedy and isn't an investment as such

True.

My HDFC RM pitched some stuff to invest my savings like term insurance, ULIP, SIP etc.

Anything recommended by any bank's staff can be out-rightly ignored as such recommendations are meant only for the benefit of those who recommend it.

As already suggested by @hender please invest in some good books before start investing. The Psychology of Money by Morgan Housel will give a good understanding of the basics.

The basic idea is not to put everything in a single basket. Please spread your portfolio across multiple segments. FD, gold, stock market, land.

FD is for short-term. Giving good returns.

Gold is for medium and long term. But, if you buy as an investment, buy coins to reduce making charges. Avoid digital gold if possible.

Land is for really long term.

Stock market is for really long term too, but is tricky to understand why so. I follow the following two guidelines...

1. I put only the money that I can loose entirely. So, I never consider it as an investment. (As a self-employed, I get some extra money from time to time that I put into stock market; for employed, a minimal SIP would work)
2.a I never put money on a single company, particularly when I am starting out in stock market.
2.b I always buy index funds via ETFs so that if a company goes bankrupt it doesn't have a huge effect.

 

[Raavan]

1. Get a term life insurance worth atleast 2 crores with no rider, no if and buts.
2. Create FD of atleast 5L as emergency fund
3. Take up health insurances for self and family. The cover may depend on the city and state you are in.
4. Start investment journey with simple index mutual funds with minimum amount that you don't care about, as said by @Mr. Bean
5. Try NPS, with Choice for equity, debt, alternate investment, you can have diversified portfolio. Remember this is for atleast next 33 years.
6. Start goal based investing for medium term - watch YouTube videos for the concept, do not copy any ideas from YouTube.