Kalyani is 23 years old. She earns Rs 23,000 every month. Of this, she wants to invest 10,000 rupees. For this, he is looking for the best investment options. Their investment outlook is five years. what should they do?
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Prabalin Bajpai, managing partner and founder of Finfix Research and Analytics, says that at the age of Kalyani, about three quarters of savings should be invested in equity funds.
However, the decision of this matter also depends on many other things. These include financial goals, risks ..
However, the decision of this matter also depends on many other things. These include financial goals, risk appetite and investment outlook. Since Kalyani has given a period of five years for investment. So in his case equity investment is a little tricky. Also read: When should you invest in NFOs of mutual funds? Not only this, no specific goals and risk-taking ability have also been mentioned. According to the information given, Kalyani can work on two broad aspects.
Not only this, no specific goals and risk-taking ability have also been mentioned. According to the information given, Kalyani can work on two broad aspects. First, if they have a fixed timeline and wish to grow with low-risk products, they should invest Rs 10,000 every month in a low duration debt fund or a recurring deposit. There is no exit load in Low Duration Fund.
Their returns are similar to regular fixed income options. If Kalyani can take some risk and maintain some part of the investment for about seven to 10 years, then she should divide the amount into two parts. One should invest in equity and the other in debt. Put half of the corpus in the multicap fund and the rest in the debt fund. In this way a part of their savings will be safe and the other part will work to increase the total portfolio. According to Kalyani, she can decide on the breakup between equity and debt. Let us now take the question of sommendra.
Sommendra is 26 years old. He is a software engineer. Apart from EPF and PPF, they have no other investment. What investment options can he consider? He has read about mutual funds. Vidya Bala, co-founder of Redwood Research, says that Sommendra has started investing with good fixed income options. However, to increase the money, they need to invest some equity through mutual funds. He may consider introducing equal SIPs in Mirae Asset Largecap and Parag Parekh Long Term Equity. He can invest around 10-20 per cent in Kotak Emerging Equity.
If they need a tax saving fund, they can add Axis Long Term Equity. Somendra should invest keeping in mind a period of at least seven years. SIP should not be stopped when the market goes down. As the salary increases, they should increase the SIP amount. They should continue debt investment through EPF and PPF.