Since doctors start their careers later than other professionals, the need to invest in financial instruments that provide capital appreciation over a longer period is greater.
For those looking to start their own medical practice, it is essential to take an early plunge into the world of investments to accumulate the desired corpus. Let’s see what are the best investment avenues for doctors to set up their own practice.
Park Money in Fixed Deposits (FDs)
Assured returns and latent to market volatility, FDs help doctors grow capital over a long period to build the desired corpus to set up their own practice. FDs are one of the simplest financial products to understand and invest. Ideally, doctors should start an FD the moment they enrol themselves in a medical college. By the time they graduate, FDs give them a decent capital to set up their own practice. It’s advisable to invest in multiple FDs with varying tenor from different financial institutions for capital appreciation.
Today, non-banking finance companies (NBFCs) also offer FDs. In fact, FDs from NBFCs offer returns higher than the market average.
Time-tested FDs are one of the prudent financial growth instruments that help doctors realise their ambitions. Today, financial institutions including NBFCs offer online facilities from where doctors can book an FD.
Invest in Mutual Funds through (SIPs)
Systematic Investment Plans or SIPs are an ideal way to kick-start investments in mutual funds. Not only do they inculcate a habit of disciplined savings, essential for long-term wealth creation, but also ensure wealth appreciation in the long run.
With the potential to create wealth by pumping energy, pace and strength to one’s money, doctors should ideally invest in a mix of equities and debt. While equities offer inflation-adjusted returns, debt protects a dip in corpus during market fluctuations. Doctors can either invest in mutual funds themselves or seek the help of an expert. They can increase the SIP amount with a rise in income.
Start investing early to benefit from the power of compounding
An early start in the above financial instruments gives doctors a chance to benefit from the power of compounding, a disciplined investor’s best friend. Money needs time to grow and an early start aids doctors in long-term wealth creation essential for establishing their own practice. Bajaj Finserv, one of India’s most diversified non-banks, offers pre-approved offers for doctors on various financial products. Simply share a few basic details and check out your pre-approved offer today.
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