Q: What are the most recommended investment options for those in their 20s and 30s?

You don’t need to have an enormous corpus of funds to start investing. What is important is a disciplined approach towards financial planning. Since you would very likely have just started your career, you still have good time to plan your financial journey.

[Debt management: I’m struggling with my credit card payments]

Start with a small investment but be committed to invest regularly. In your twenties, a good way to start is by saving towards an emergency fund equal to three to six months of your total expenses.

Plan your financial goals based on your earning. Consider selecting the 50/30/20 budget rule, which means 50 per cent of your monthly income you can use for expenses, 30 per cent for needs and 20 per cent for savings.

Have a savings or money multiplier bank account for ease of access to your money. This is important as you might face some emergency where you need instant funds, or you could need to meet the expense of a bigger financial requirement like buying a car or renting a bigger home space.

Plan a life insurance policy. Starting the policy at an early age saves on insurance premiums, which would be quite expensive later in life.

A regular contribution with SIP (Systematic Investment Plan) is recommended. SIP is an investment platform where with a monthly commitment to any selected Mutual Fund you can create a corpus for long-term investment growth. This can easily be monitored online and/or you could choose various global financial markets to invest in. If you are open to taking a little risk, target a few emerging stock markets. They may give higher returns in a short time.

But this option should be closely monitored as stock fluctuation would jeopardise your financial growth.

Also consider Exchange Traded Funds (ETFs) – mutual funds that are usually traded daily just as any other stock in the regulated market. This gives flexibility to your investment growth.

Having a financial planner could help you stay abreast of the financial market and give you the knowledge to help you in investment options. However, keep in mind that all investments carry risks. Choose wisely and after necessary deliberations.

Dhiren Gupta, managing director of 4C Mortgage Consultancy, is a financial expert. Got a problem? Our fantastic panel of renowned experts is available to answer all your questions related to fashion, well-being, nutrition, finance and hypnotherapy. Email your queries to friday@gulfnews.com.