How to Invest? - Save Invest Repeat

If you study all the financially rich people, you will see a common trend among them. Everyone

Figured out ways to earn more
Diversify that income from different sources
Save a major part of their income
Investing a huge chunk of savings
Have patience & repeating the process regularly

So, last time on “How to Save” I told you about point 3 and this time I will tell you about the investing part, thus covering point 4 & one of the most important points. After studying a lot of financially successful people, I have come up with a 3 part answer to this very big & detailed question “How to Invest“?

Now, as I said investing is actually very unique and different for different people. The more you learn about investing, the more you will know different parts about it. But for someone who is working full time or may not have interest in investing but still want to increase their money just like others, this is definitely for them. It actually doesn’t matter if you are a 20-year-old college student, a full-time employee or a 75-year old retiree; it also doesn’t matter if you have interest in investing or you don’t, the following 3 parts will definitely help you.

As stated, to make things simple and understandable I have divided the answer into 3 parts, basically 3 themes which goes something like this:
Theme 1 – Low Risk Low Reward
Theme 2 – Medium Risk Medium Reward
Theme 3 – High Risk High Reward

Theme 1 (Low Risk Low Reward)

This theme is for people who are very new to investing and need time to build up confidence in the market. The following portfolio will ensure the least amount of risk:

Index Fund – 55%
Debt Fund – 40%
Cash – 5%

So, how this works? Imagine if you have ₹100 to invest; then divide that amount and invest
₹55 in any index fund
₹40 in any debt fund
₹5 hold it as cash
For investing in any index and debt fund you will just need an account in Paytm Money, Kuvera, etc.

Theme 2 (Medium Risk Medium Reward)

This particular theme is for people who are into investing for some time or maybe want to take a little more risk to get a bit more reward. The following portfolio will ensure medium amount of risk:

Index Fund – 50%
Debt Fund – 35%
Bitcoin – 5%
Gold – 5%
Cash – 5%

So, this also works exactly the same way as Theme 1. If you have ₹100 to invest; then divide that amount and invest
₹50 in any index fund
₹35 in any debt fund
₹5 in bitcoin
₹5 in gold
₹5 hold it as cash
I already told that to invest in any index and debt fund you will need an account in Paytm Money or Kuvera etc. And for buying bitcoin you will need an account in a cryptocurrency exchange like WazirX, Zebpay, Binance, etc. For buying gold there are many options, but one of the easiest is to buy digital gold from Paytm, PhonePe or Google Pay.

Theme 3 (High Risk High Reward)

This theme is for people who have passion and interest to read about the market; like going through the balance sheets of companies, reading investment articles, letters from legendary investors like Warren Buffett or memos from Howard Marks. The following portfolio has maximum risk but maximum return too:

Index Fund – 35%
Debt Fund – 30%
Stock – 20%
Bitcoin – 5%
Gold – 5%
Cash – 5%

So, this also works like the above two themes. If you have ₹100 to invest; then divide that amount and invest
₹35 in any index fund
₹30 in any debt fund
₹20 in stocks
₹5 in bitcoin
₹5 in gold
₹5 hold it as cash
In the above themes, I already told you how to invest in index & debt funds, bitcoin, and gold. But for investing in stocks you need another account with any brokerage houses like Zerodha, Upstoxx, etc. I personally use Zerodha to directly buy shares of companies like Reliance, HDFC Bank, etc. but you definitely need to go through the fundamentals of any company before buying it.

So this was the simplest answer to the complex question – How to invest? You obviously can and should modify the themes according to your personal investment goals and margin of safety. But do not try to take more risk just because you want to make more money.

And as I have always said please don’t take this as an investment advice; I am in no way a certified investment advisor. This is just a bro to bro talk about helping and motivating you to start your investment journey as fast and with as little money as possible.

Never forget, Save Invest Repeat is the life mantra. Cheers guys.