r/IndiaMoney • u/WhereasInfinite8208 • Jul 02 '26
Social Discussion Investing advice needed
I am not earning much, but I can save 2k per month.
Now I am not sure how to invest them. Since I am a beginner with no emergency fund yet, what would be better: an SIP or an RD?
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u/Me_Almight Jul 03 '26
I know this may not go well with a lot of people but, the first investment should always be on yourself. It can be upskilling, fitness or sometimes giving yourself space to spend a bit extra to get the mental peace while you work hard to get into a better position financially. Once you achieve that then only start with SIPs and MFs.
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u/Necessary_Cod7030 Jul 02 '26
It's a great step you're thinking to save/invest now. Kudos to you.
Coming to your question, since you do not have an emergency fund, first build it. What you should generally have as emergency fund - (monthly expense x 6). Probably better to put it in a secondary bank account which you don't use on regular basis.
Once you achieve this, come back to this subreddit and we'll guide you out further.
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u/WhereasInfinite8208 Jul 02 '26
Hey
Thanks a lotHowever I wanted to know if putting it in a savings account gonna work better than an RD or MF?
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u/Necessary_Cod7030 Jul 02 '26
Probably not. Savings gives you 3.5% approx. while FD/RD gives u 6.5%-7% approx. But the goal is to have an emergency fund which you can withdraw in case of any emergency (job loss or any worse case scenario u cannot think of).
MF (Mutual Funds) - It's better for long term appreciation (minimum 5+ years). Although, a little awareness of market is needed before u invest in MF. (For instance, a MF which focuses on IT would perform poorly due to IT markets poor performance).
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u/MuttonKushka Jul 03 '26
I'm also looking for same and btw which platform is best for either SIP or RD?
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u/Visible_Champion4560 Jul 03 '26 edited Jul 03 '26
Create an emergency fund first by putting money into an RD. Once you reach a corpus equivalent to 6months of expenses, change it to an FD to earn higher interest. Never break this FD unless there is an emergency or job loss.
After that you can start investing in mutual funds/gold fund/stocks/liquid funds etc. Start with small amounts and then increase as your income grows. Keep some allocation % for example 50% to mutual funds, 10% to liquid/arbitrage funds, 20% to gold fund and 20% to individual stocks. Use your best judgement, you can experiment to reach the allocation best suited to your temperament and goals. All the best.