ValuePickr Forum

Want Specific Advice regarding Investing for the first time

Hello everyone,

I am looking for specific advice or suggestion on investing in various financial instruments with respect to my present financial situation as described below.

I am from India and presently I am in my early 30s. Also, presently there is no primary source of income in the form of recurring income such as salary from a full-time job. What I have is my previous earnings in lumpsum in INR. I also don’t have any other secondary source of income presently.

Question 1: I want a steady side-income in the form of investing the money that I already have in the form of a lump sum. So, how should I go ahead with it?
What I mean is that in what form of investments should I go ahead initially? Should it be in shares/stocks or mutual funds or bonds or in forex trading?

Question 2: Secondly, If I go ahead, with investing in shares or stocks, should I invest in Nifty50 stocks? Is Forex Trading not recommended for first-time investors? Since I don’t have a primary income now, will I be better off in investing my lumpsum in Provident Fund or Fixed Deposit or in NPS?

Question 3: Thirdly, in whichever financial instrument category, I start investing, how should I go ahead with it? What I mean is what are the different steps to be completed in order to start trading in India? For example, in which bank I should open Demat accounts that are considered to be popular among investors? Then, should I seek suggestions from financial experts by paying applicable fees before I start trading or should I follow recommendations provided by the algorithmic trading platform?

Please provide relevant replies to the above questions and any other information, that may be relevant to this discussion.

Fixed deposit with monthly payout. Now you have steady side income.

Nifty 50 index fund or etf will do for starting. Invest from the monthly payout leftover after expenses. Make investing strategy suitable to you and change later.

No never forget it. Not recommended ever.

Fixed deposit. PPF and NPS are illiquid. You might need the money for emergency.

Open demat account with a discount broker like zerodha. Fill required forms and do online verification. Any bank account will do. Bank brokerage services are costly.

No
No
Check valuepickr basic posts to gain insights. Till the invest in FD and index funds.

Hi Samy,

While your questions are specific but your profile is vaguely presented. With having age of early 30s means probably between 30-35 years of age. Assuming you are not married and your savings will be less than 25 lakhs in lumpsum (if saved more than really you deserve pat on your back). So broad answers are like this:

  1. Keep your money safe in Bank FD and post office preferably distributing equally among 3/4 banks including pvt banks and public bank like SBI.
  2. IMO, if you put money in stock or mutual fund or forex trading without any serious study, hardwork and knowledge you are more likely to lose money most of the time. Therefore learn for at least 5/6 years about various nuances of investing before putting actual money.
  3. Any exposure to market linked product is very risky. Since you are not earning presently then it makes no sense to risk your money without knowledge.
  4. Even if you don’t want to follow anyone advice here and want to do as per your own mind and belief then also take this thread printout and revisit after 5 years with your actual result of investing journey. I believe you won’t be surprised :slight_smile:

All the best!

suggested links for reference:

https://forum.valuepickr.com/t/icyhots-portfolio-down-46-corona-impact/30323/7?u=vijay_kiran

https://forum.valuepickr.com/t/coffee-can-method/20822/354?u=vijay_kiran

Hi Samy,

Since you don’t have a steady income , I am fully in sync with the boarders above in saying that FD with monthly payout is the safest bet now. This is a time when even Debt funds are not seen as safe anymore.

First my advise will be to start “Financial Planning”, set up an emergency fund with about 6-10 months of expenses & a personal Health and Term Insurance policy , if you do not have one
Then move to a MF with an SIP. This will give you some time to learn navigating the markets.

Read some good books on the markets before you test the waters in self investment in secondary markets , there are some good threads in this forum like THIS one. Believe me this will be the best learning experience and I speak from my personal journey.

Disc : Not a fin planner, just a regular guy.

  1. If you want to earn steady money from lump sump investment, commercial property gives much more stable returns compared to equity markets. I don’t know how Corona will affect long term with regards to usage of commercial property, but I don’t think commercial rents are going down anytime soon.

  2. You can invest in index funds. You should also check option of Foreign equities. Nasdaq has beaten both Nifty and Sensex handily last decade and you can invest in such global indexes through FoF or ETF route(Motilal Oswal). You get return as well as you benefit from depreciation of Indian rupee if you invest in global equities or Index funds.

  3. I think you should go through this forum and read up more about equities before you start trading. F&O are better for trading while also being much riskier. I think learning about all such instruments in virtual stock market games(Moneybhai) would be better for you before you open demat account and start trading