In this episode, SBI Fund Guru Vikas Batra, who is a partner at Chandigarh-based Stock Mart and also a Certified Financial Planner, to know more about his transition from engineering to the financial sector, and the importance of savings in a youngster's life.
Batra started off as a sales manager in Bajaj Allianz and then moved on to start his firm that deals primarily with mutual funds.
He says that parents must inculcate the habit of saving early in life to be better prepared to deal with one's financial goals in life. "The return that FDs yield is not enough; it matches the rate of inflation, and so there should be some thought in choosing a smart instrument like mutual funds for investing one's money wisely. If parents involve them and start the process early in life, it would be good for both," he says.
One must guide youngsters and allocate their funds smartly to deal with any emergency situation, then move on to term insurance, medical insurance, and equity, gold, and debt mutual funds; one must start early, sooner the better, to increase the return from their funds.
Often youngsters, who have just started their job at 24-25, talk about buying phone, car and after they are 30, think of a house. "The thought of saving money for life post-retirement seldom crosses one's mind. But it is important to start saving early," he says.
He explained the age rule. "An investor must deduct one's age from 100 and invest that percentage in equity funds," he says. There are different types of equity funds which have varying degrees of risk and yield different returns. "One can also move from equity to debt funds," he says.

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Vishal Gupta,
Radio Dwarka,
India’s First Online Community Radio,
Friday, February 3rd, 2017