I am 30. After repaying all my loans, I am saving Rs 80,000 per month. However, I don’t know where to invest this money. So far I have only invested in FDs, tax saver FDs and PPF. Please advise.
Rajiv Bajaj, Chairman & MD, Bajaj Capital says, “You have not mentioned whether this investment is attached to any financial goals, how much you would like to invest, how long you would remain invested for and how much risk you can bear. Considering your young age, we are assuming your risk profile will be aggressive and you can stay invested for at least 7-10 years. You may create a pure equity-oriented portfolio comprising domestic and US equity funds. You can equally divide your monthly investment amount between Mirae Asset Large Cap, Canara Robeco Emerging Equities, IIFL Focused Equity and UTI Value Opportunities. Franklin India Feeder – Franklin US Opportunities Fund can be considered in the US equity category. This way your portfolio will be diversified across category and geography. It is also advisable to review your portfolio at least once a year.”
I am a 76-year-old retired soldier. I want to invest a lump sum of Rs 5 lakh in mutual funds for three to five years. Where should I invest this money?
Vidya Bala, Co-Founder, PrimeInvestor.in says, “If you are looking for income from this lump sum and can lock in seven years, please consider the RBI floating rate bond instead of mutual funds. If your time frame is shorter, or you don’t need income, consider 30% in FDs for 12-18 months and renew them at a higher rate when rates go up. Add 50-60% in quality ultra short debt and banking & PSU debt funds if you are familiar with debt funds and about 10-20% in any Nifty index fund.”