Debt mutual fund schemes are suitable for investors who want steady returns. Debt mutual funds primarily invest in fixed-interest generating securities like corporate bonds, government securities, treasury bills, commercial paper and other money market instruments. However, these mutual funds are not risk free.

How much should I put in my investment account?

Most financial planners advise saving between 10% and 15% of your annual income. A savings goal of $500 amount a month amounts to 12% of your income, which is considered an appropriate amount for your income level.

What is a normal investment account?

1. Standard brokerage account. A standard brokerage account — sometimes called a taxable brokerage account or a non-retirement account — provides access to a broad range of investments, including stocks, mutual funds, bonds, exchange-traded funds and more.

Is it better to have a brokerage account or IRA?

An IRA is important for long-term retirement goals while a brokerage account is good for short-term growth and long-term wealth-building.

Is it easy to create an investment plan?

Creating your investment plan isn’t difficult, but as with all other aspects of investing, help is available if you want or need it. Imagine you want to visit a friend, but you don’t know where she lives. Would you get in your car and start driving, hoping you’ll eventually find her? No—you’d get her address and map your route there.

How to think of your investment plan as a map?

Imagine you want to visit a friend, but you don’t know where she lives. Would you get in your car and start driving, hoping you’ll eventually find her? No—you’d get her address and map your route there. Think of your investment plan as a map to get you to your financial goal.

Can a NerdWallet account be a short term investment?

NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or securities. What are short-term investments? A short-term investment is an investment that you can easily convert to cash — such as a high-yield savings account or a money market account.

What happens if you have no investment plan?

Lacking an investment plan often leads to buying a random collection of funds. But choosing funds based on nothing but recent performance has historically led to bad outcomes. Deciding how much money you want to have and when you need it is probably pretty easy.