Be Waren Buffet

The fact that you are reading this post shows that you are interested in financially securing your future. Learning and reading are the gateways to new horizons. Since you are near 18, I’ll try to keep it as simple as possible for you! Assume, you need to make a football team (Portfolio). Would you buy 11 strikers (Smallcap stocks) and no defenders (Debt funds, PF , etc)? In a rare case you could win that game but a well organised team (Inflation, market risk) will definitely beat you! For making a well balanced team, we will need: Goal Keeper (Insurance) – Defending our family Defenders (Fixed Income) – Protecting during bad times Midfielders (SIP in Mutual Funds) – Creating opportunities Equities (Direct stocks) – Generating superior returns You need a term cover that is around 15x to 20x your annual income. Suppose your annual income is Rs 12 Lakhs a year. Then you need a life cover of atleast Rs 1.8 Crores to Rs 2.4 Crores. In case any mishap, your family...