Abhishek, Lucknow: I am a 25-year-old male and have recently started working. My monthly salary is 40K, of which I am able to save some but don’t have any investment or insurance. What should I begin with?
At your age, you have a long way to go, which is why it is good that you are conscious of your financial portfolio. First and foremost, it’s essential to have a term plan, which will be the base of your financial portfolio. Once this is done, you can calculate your investment goals. At your age, you should start ahead, and if you already have SIPs in mutual funds, it’s a great start. This will form the foundation of a robust financial plan. Since the power of compounding brings benefit in a long term solution, ULIPs can be an excellent option to go for. As a young investor, you may not have huge liabilities and long term investment horizon, hence have a higher appetite for investment risk. Along with a life cover, ULIPs help you stay on top of the market changes through good returns on investment. However, before deciding to buy ULIPs, please go through risk profiles to assess your risk-taking ability.
The query is responded by Aalok Bhan, Director & Chief Marketing Officer, Max Life Insurance