pri Smart Investment For Income Earners Through SIP Smart Investment For Income Earners Through SIP

My last article covered how investment through sip for people of different age group is more fruitful rather than investing in the old means of investment & earing better return from F.D./ Post office savings etc.



As salaried person enjoys a fixed amount of monthly pay-out it is not the same thing for professionals. Their earnings depends on the amount of time they have put-into their work, they have to divert their full time towards profession & so their earnings are enough to save & pay for expenses.

  • List of financial goals ( Short/ Medium / Long)
  • Amount estimate for each goal to be achieved   
  • Focusing on earing to achieve goals  
  • Finally allocating the required amount for investment  

SIP For Women and Men

The question is why invest through S.I.P..??

So S.I.P is better option than by investing a lump sum at different intervals because it is a disciplined process that automatically deducts amount from the account on a particular date, that need not be remembered each time, while purchasing on lumpsum basis we are not a disciplined investor, it will take longer time to achieve the goal amount as we purchase only on our convivence, we will not get benefit of sip i.e. rupee cost averaging.

For achieving long term goals – Equity funds are best as they invest in top 100 companies having large market capitalization, sound financial record, good corporate governance, and will be stable in the long term.

For medium term goals – debt/ hybrid funds are better as they invest in fixed income earning instruments which give less return than equity funds as they do not carry risk as much as equity does.

For short term goals – to invest in liquid or low duration funds is better option as goal is near by & one also need funds for emergency so to maintain liquidity plus earn a better return than saving bank account & can be easily withdrawn when required.


The formula here which is to be followed is to save before you spend, for this we have to keep a regular check on the expenses & cut down un necessary one. Investing in Mutual Funds through SIP (monthly basis ) can be better option for a salary earner. Happiness is credit of salary in the account, but this happiness does not last long as a huge list of expense is waiting to be paid out. For a salary earner it is convenient he earns a income & on other hand pays out, but in this phase or earning he/she fails to save & invest for future.


  • Clearly defining a Financial Goal
  • Allocating the percentage of income to be invested
  • Risk Profiling
  • Deciding for investment category (EQUITY/DEBT/LIQUID/HYBRID)
  • Fixing amount to be invested

For salaried person it is suggested that they should fix the SIP date nearing the date of salary crediting to his account, so that he can save before he/she spend money & left with nothing to save.

If the individual is in the tax slab then he/she should go for tax saving schemes (ELSS ) offered by mutual funds where maximum of 1,50,000 deduction can be claimed under sec 80C of income tax. For long term goals they can opt for large cap schemes which give higher return when invested for a longer period of time.


Nirmala Sita Raman first lady Finance Minister of India has set the best example that a women can also prudently handle finances. Women are no less until & unless they equip themselves in the world of finance. Women are financially independent they are smart enough to save their earnings, but yet most of them are not aware of various avenues of investment still they go for traditional modes as PPF, Bank F.D, post office saving. They need to be aware about the financial world & choose the correct avenue.

Women often complains about managing both job & families so they don’t have much time to study market & invest at the correct time. The best option for women is S.I.P. where a fixed amount is invested at regular interval of time, which does not need to be studied every time. Only once we have to decide which scheme to invest in according to financial goal & the required amount of corpus, according to the risk capacity.

SIP for all mutual fund


As there is no regular earning pattern for freelancers they need to more careful about the savings for emergency & to maintain adequate liquidity in case of uncertainty. A freelancer can start SIP with small investment amount (Rs 500) so that it might not disturb the budget also & when there sufficient flow of income this amount can be increased. As the income uncertainty exist for freelancer’s they can invest in low duration / liquid funds as they are suitable for short term & emergency, investment for longer tenure EQUITY FUNDS are better option. To get better return from SIP it only requires to be continue in a disciplined manner for long term & achieve financial freedom. Freelancer – A Person doing particular pieces of work for different organizations, rather than working all the time for a single organization. They enjoy the flexibility in their work. Goals of freelancer are same as are of full time employee but the difference is as that a full time employee gets fixed income per month but the freelancer’s income is fluctuating, it depends on the time diverted towards work.


Making list of financial goals & segregating each of them in terms of tenure (long/medium/short). Deciding the required corpus one need for each of goal to complete. If you are not able to understand the finance market can take help of a financial expert who guides you about investment & its taxation. This helps to encourage him to earn more & so save for his better future, as time pass comes the responsibilities which are required to be fulfilled so building up habit of investing early with discipline & regularity will help to achieve goals in systematic way with proper planningA young earner who just started earning have a longer tenure to reach his goals can take most advantage of compounding. An early start will give higher return even starting with a smaller amount, the compounding effect can only be seen in the long run. As a young earner does not have much of family responsibilities he have the capacity to take risk so he might start investing the equity funds, if he start saving for retirement right from this stage he will have a bigger corpus.


SIP are best suited in the long run as it can be started at a minimum amount of Rs 500, & as there is an increase in the income sip amount can also be increased gradually. Now it comes to the choice of the fund where to invest, if one is no financially prudent enough can take help of the financial expert who gives right advice according to the risk capacity & corpus required. for long term goal as higher education & marriage the best suited is the equity scheme as in the long run it provide capital protection, wealth creation & benefit of rupee cost averaging in the volatile market.Losing of a partner brings many responsibilities along, one has to handle self (personally & professionally) along with taking care of the family & children. A single parent has to handle both jobs of a mother & father, where there is reduction in the income of parent they have plan better for new earning sources along with investing the savings so that they might earn better return from the market to aid in studies of the children & future expenses.

Hope my article have helped you to make a correct decision for self & family weather a person is professional, a salary earner, parents investing for children, businessman, a middle aged person or a retiree. The world is changing & so does we have to switch from traditional mode of saving & investing in to new modes giving better returns from our investments.            

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Qualification: Graduate
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Location: AGRA, Uttar Pradesh, IN
Member Since: 24 Jul 2020 | Total Posts: 18
I have Cleared CA (intermediate) also cleared various series conducted by N.I.S.M (National Institute of Securities Market), Investment Advisory, Research Analyst, Merchant Banking & Retirement planning. Recently cleared exam of Independent Director conducted by IICA ( Indian Institute Of Corpo View Full Profile

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July 2021