‘Invest to beat inflation’: Management consultant breaks down his strategy for young investors — Here's how

A management consultant, in his 30s, has shared his financial investment strategy on social media platform Instagram for young investors who “nobody really teaches you how to invest money” at their age.

In an Instagram reel, the finfluencer, identified as Kanishk Singh, senior manager at Bain, according to details on his account, broke down how he invests his money to grow at least 12% per annum.

Investment tips for young investors

According to Singh, everything goes into three simple buckets:

• Long-term money, for years away. This can take risks and grow.
• Medium-term money, for a car or a house in a few years. Keep this steady.
• Emergency money, for when life happens. Keep this safe and easy to reach.

Long-term investment: These are investments that will “not be touched for years”, he said, adding that these include high growth opportunities that are also high on risk and volatility, “which I am okay with because I am in it for the long term”.

Notably, this comprises the largest chunk of his investment — 60% of savings, which is further allocated as: 50% in Indian stocks and mutual funds, 20% in Gold ETFs and 30% in US stocks.

Medium term investment: These are investments made with respect to one- or two-year term goals, such as car or house down payment, according to Singh. He added that 25% of his total savings is invested here with 50% equal split between fixed deposits and arbitrager liquid funds that return 7-8% p.a.

Emergency fund: An emergency fund is the last bucket, which must not be touched unless as last resort. Here Singh invests 15% of his savings, with 60% of the funds put in high interest savings fund and 40% in debt funds.

WATCH: How I invest to beat inflation as a Bain Sr. Manager

A few things I wish I knew earlier

In his post, Singh also noted: “Nobody really teaches you how to invest money when you’re young. Most of us just figure it out too late.” He thus shared few things he knew earlier:

• Saving alone doesn’t work: Money lying in your bank account slowly loses value. Prices go up 7-8% every year, and your savings just sit there. So the point isn’t to save. It’s to make it grow.
• But don’t put it all in one place: Keep everything safe, and it barely grows. Bet it all on risky stuff, and you’re stuck when you suddenly need cash. So you split it.
• Everything goes in three simple buckets (mentioned above). “That’s it. When your safety net is sorted, you can let the rest grow without stressing,” he said.

• Start as early as possible: “The biggest thing you have right now is time. Not money, not knowledge. Time. Start early and the rest takes care of itself,” Singh added.

In the comment he said that he has some restrictions while investing in “certain companies directly”, adding that this can be done by investing “via ETFs or index funds where the asset allocation and selection is not under your control”.

On how much of his salary goes into savings, Singh said he allocates “about 50%”.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.