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Look at the flexible options that also give decent returns. SONAM JAIN

Warren Buffet started investing when he was 11, and his biggest regret is that he did not start earlier. On the contrary, college students typically put off the topic of saving for a rainy day for the future when money matters more. However, the *funda’ should be to save early and invest early.

Though Buffet’s options were limited, there’s a lot more now that offers great flexibility while still giving a decent return. Fixed deposits and post office savings are not very attractive options for youngsters, as the returns are lower and do not cover the growing inflation!

David Pinto, who works for a leading Asset Management Company, says, “With age being on their side, the risk appetite is much higher. So equity (stock market and mutual funds) is a good investing option, as in the long run, you would earn good returns on it.”

Stock Markets are a hot option. With the markets rising rapidly, there is a lot of profit to be made. However, the risk is very high. Only serious investors with in-depth knowledge of the market should venture into it.

If you are apprehensive about the stock markets, but want to avail the benefits of the rapidly rising markets, mutual funds are the best option. This does not require an in-depth knowledge of the market. Moreover, no personal monitoring is required.

Investing in mutual funds through SIPs is a favoured investment option for youngsters. In this case, instead of bulk payment, a small amount is paid every month; useful for those who find it difficult to shell out a large amount at one go. Anyone can enrol by starting an account with minimum investment amount; usually Rs. 500 a month for one year.

For those who don’t want to take any risk and are prepared for lesser returns, there are other options like recurring deposits where you deposit a fixed amount every month. However, your money gets locked for a fixed period of time.

Liquid Schemes in a mutual fund work like an SB account. It is a debt scheme where you can withdraw your money with a day’s notice.

If you really want to start investing, begin small. No matter how you decide to invest, it will give you an aggressive edge when many more serious monetary concerns come into the picture.

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