I had never invested in anything before as I was content with my job as a Technical Support Executive for Lexmark International Process in Sitel. I used to think saving money in a bank is always better than investing. But my mind changed about investments by the end of 2008 when I came to know that my wife is pregnant. I was very apprehensive as I want to give the best education and future for my child and I knew the future is expensive but my salary and the bank balance does not seem to increase. That’s when my friend Shridhar Joshi who is also a business coordinator advised me to invest in different sectors like insurance, PPF, NSE, share market etc and also gave me a book called ‘Wealth Creation’ which was supplement given by Outlook magazine. This book is all about creating wealth with safe investments and explains well in layman terms. The book advices the readers to invest at least Rs5000 a month that is Rs60,000 a year on insurance, PPF, bonds, NSE which is no-risk investment and also in stock trading which is high risk investment and many more. This book also gives the reasons as to why one should invest in these sectors. If we take inflation rate at 8% the value of Rs1,00,000 in next 30years would be Rs40,000. That is if a person is spending Rs10000 per month now at the rate 8% inflation the same person would be spending Rs21,500 per month after 10years from now and spending Rs 46,000 per month after 20years from now. In simple terms the value of money decreases with the price rise due to inflation but our salary and bank balance does not increase with the inflation rate. By investing in private insurance company our investment grows with the inflation for example Bajaj Allianz had given 40% returns to the policy holders in 2008 where the inflation rate was all time high. Even in this recession time Bajaj Allianz is currently giving 23% returns which is definitely better than keeping the money in the bank.
