The news of job offers and young management graduates bagging hefty pay packets is back in the media again. One of the successful candidates made a comment that he would like to set aside a good chunk of his income for investments after buying a car for his mother. A noble thought but what should please money managers is the fact that young professionals are not thinking of blowing up all the money.

In fact, in the last few years, there has been a changing trend which has seen young professionals think about a good management of finances at an early stage. That has also enabled many to acquire property even before expanding the family and even think on the lines of retirement at 40. The basic requirement in both cases is the accumulation of sufficient wealth during earning years.

It is no secret that the task of building wealth becomes a lot easier when initiated early. While some young management graduates may not find the task of generating surplus tough, it is a challenge for many others. However, irrespective of the income, one should get into the habit of investing as that is the only option for achieving financial goals.

It is more important to invest than save as only investments allow the money to grow. There are plenty of products to choose from. It is not a bad idea to be aggressive in the early stages as the risk of not earning is limited.

Even if you are willing to take risks, let the instrument not bog you down if you were to end up losing the job. For instance, an investment in property is not a bad idea provided you have the capability to service the loan amount even if there is stoppage of income.

As pointed out earlier, early stage investors should go for aggressive products like stocks or equity funds as they can have a longer horizon for their money. With the IPO market getting back, an allocation can be made into some of the good quality IPOs. Though pricing has become expensive in recent times, good quality papers offer an opportunity to build the portfolio over a long term.

Another option for equity investors can be systematic investment plans (SIPs) in equity funds as they allow investments in smaller sums over a longer period of time. A monthly contribution of Rs 10,000 over a period of 10 years can help the investor build sizeable wealth. If a young investor signs up for a SIP at the age of 24, he can use his SIP funds for investing in property and it could even reduce his loan component considerably.

The investment habits of young professionals, who have a dependent family, cannot have the liberty of being aggressive but such professionals should opt for insurance or unit-linked plans to secure the future. Since the mortality charges are low for the young, the cost factor too will not be an issue. Such investors should go for 25-30-year plans, and the life cover should be as per the financial needs of the family.

It is not a bad idea to look at retirement corpus when you sign up for the first job though retirement is the last thing on your mind. Set aside a portion of your income for long-term needs and it could be through a combination of products.

Pension plans or SIPs in mutual funds can be some of the options. The long-term products like pension plans may require reassessment depending on lifestyle or changes in financial goals. However, getting started at an early stage allows the comfort of small allocations and so don't miss it.

Irrespective of the allocation of funds for investments , young professionals should make it a habit to be disciplined with their investments. The rich don't get wealthy because of their large contributions, but because of a smart and systematic approach.