Frequently Asked Questions
How much SIP should I start from my first salary?
Start with 20-30% of your take-home salary. For a ₹30,000 salary, that's ₹6,000-9,000 SIP. Even ₹5,000/month starting at 22 becomes ₹1.16 crore by age 40 at 12% returns.
Is ₹5,000 SIP enough for first job?
Yes! ₹5,000 is a great starting point. It builds investing discipline and grows to ₹1.16 crore in 18 years (age 22 to 40). Use step-up SIP to increase it by 10% each year as salary grows.
What is the 50-30-20 rule for first salary?
50% for needs (rent, food, bills), 30% for wants (entertainment, shopping), 20% for savings/investments. For aggressive wealth building, modify to 50-20-30 (30% investing) or 40-20-40 if living with parents.
Should I invest before paying off education loan?
Do both! Education loan interest is tax-deductible (Section 80E). Pay EMI from salary and start even ₹3,000-5,000 SIP. The compound growth from early investing outweighs the benefit of prepaying low-interest education loans.
Which mutual fund for first SIP?
Start simple: One large-cap index fund (Nifty 50) or one flexi-cap fund. Avoid sector/thematic funds. As SIP grows above ₹10,000, diversify into mid-cap funds. Keep it simple initially.