7 rules of investment:From funds required to risks involved – expert shares tips

Every investor dreams of seeing their hard-earned money double, triple, or even quadruple over time. However, in a rush to build wealth, many start investing without a concrete plan. This is often compounded by information overload—with conflicting advice advocating for Mutual Fund SIPs, direct equities, gold, or fixed deposits. To simplify this journey, Kushagra Mohan, Financial Expert and Co-founder of Nixepa Capital, shares seven fundamental “rules of thumb” that can help beginners navigate budgeting, risk management, and wealth creation. Expert- Kushagra Mohan, Financial Expert, Co-Founder, Nixepa Capital, Lucknow Question- Is there any rule of investment? What do experts say? Answer- According to Financial Expert Kushagra Mohan, there are 7 ‘Rules of Thumb’ to make investment easier. These help in understanding that- These rules are an easy guide for those starting their investment journey. Keep in mind, every investor’s income, age, financial goals and risk-taking capacity are different. Therefore, no single investment rule applies to everyone. Question- What are the 7 popular rules of investment? Answer- The 7 rules of investment are based on different aspects. Some rules help in estimating the potential growth of investments. While some focus on planning savings, budget, risk and emergency funds. See the 7 rules of investment in the graphic- Now understand these seven rules of investing in detail- Rule of 72 Understand it like this- Benefits Limitations of Rule of 72 Rule of 114 Understand it like this- Keep in mind- This is also just an estimate like the ‘Rule of 72’. Its benefits and limitations are also almost the same. Rule of 144 Example Keep in mind- This rule is also based on estimation. Actual returns depend on market and investment performance. 50-30-20 Rule This rule advises dividing earnings into three parts. Example If your monthly income is ₹50,000 then- ₹25,000 essential expenses ₹15,000 other expenses ₹10,000 savings and investment Benefits Note- This ratio can be modified according to income and needs. Minimum 10% Investment Rule Benefits Keep in mind- 10% minimum is just a suggestion. As income increases, the investment amount should also be increased. 100 Minus Age Rule For example- If your age is 30 years- 100-30= 70 That means approximately 70% of total investment should be kept in equity and 30% in safe options. Benefits Emergency Fund Rule For example If your monthly expense is ₹10,000, then try to keep ₹30,000 to ₹60,000 in the emergency fund. Question- Why is it important to build an emergency fund before starting investment? Answer- An emergency fund works like a safety shield during sudden financial difficulties. That’s why it is advised to prepare it before starting to invest. See in the graphic why this is important- Question- What mistakes do new investors make while adopting these rules? Answer- New investors often make some mistakes that can affect their financial plan. See in the graphic- Question- What is the right way to follow any investment rule? Answer- Investment rules provide direction, but every person’s financial condition is different. Therefore, before adopting any rule, assess your income, expenses, financial goals and risk-taking capacity. Also keep some things in mind-