Where to start investing?

Deal Newbie
Desidime User

I'm a medical intern. Recently I've started earning a small amount as stipend, so I'm planning to save/invest that amount to not waste it

I'm planning to start out with Rs. 3000/month.

Among RDs, MFs and others, where should I put it according in a general context where I don't have any immediate need for that money.

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Hunk Hunk
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Since You don't need money immediately you should start with one index mutual fund and one small cap mutual fund. You can invest Rs. 1500/- in each of them.

Deal Newbie Deal Newbie
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U r a medical intern. Eventually u will reach very high income and will probably be in the highest tax bracket of 30%. Tax free returns will matter to you. So your first preference in investing should be PPF where you keep away money for way ahead in the future. Taking into account the tax free returns, PPF income is equivalent to 10-10.5% returns in long term mf/equity/fd. And compounding makes the yield better and hence starting as early as possible is advisable.

Once you have started Saving 1.5L Rs in PPF (the max limit) in a year, then start thinking of other investment options like mutual funds, real estate and more.

Call me less aggressive but without making some solid riskless savings base, don't jump into the market. Imho...

Deal Subedar Deal Subedar
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it all depends on time you have available in your hand to "research DAILY"

based on that 3 options i can suggest

1) more than 2 hours to spend on news infos daily FOR YOUR OWN RESEARCH dont copycat need to learn -> blindly go for direct stocks investing (to become investor NOT TRADER)

2) daily only have 10 mins to spend on researching for investment -> then go for Mutual funds

3) dont have any time to look at researching and busy in studies -> blindly go for FD

Deal Subedar Deal Subedar
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Just put it in a mutual fund, if you are sure you won't need it soon.

But seeing as you are an intern, you will most likely want to pursue higher education.

If you have some way of paying for higher education(like bankrolling parents or education loan) then continue with mutual funds.

If not or if you want to pay atleast a small part of your tuition(to make yourself feel good about that),

Put that money in an fd every month, with term reducing by 1 month, so that you can have all the money at a specific date.
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