Question: I am 27 and working in Government sector. My annual income is 4.5 lakh. I want to invest in MFs and want a return of 6 lakh in 4-5 years. What fund is suitable for me and how much money to invest? Also, is that safe to invest in ULIP?
Answer: With a time horizon of 5 years or more, you should invest in diversified equity Mutual Funds through Systematic Investment Planning (SIP). To accumulate Rs. 6 lakh over next 5 years, you should invest about Rs. 6,000 per month for which you may start three SIPs of Rs. 2,000 each, in funds which have been performing well consistently.
Firstly, ensure you have a life cover of at least 10 times of your annual income. This is best met through a term plan. Both Mutual Funds and ULIPs are market-linked investments, hence returns would be subject to volatility. Therefore, invest through ULIPs for your long-term needs and short-medium term goals.
Regarding tax savings, do not invest merely to save tax. Choosing the right tax saving investments depends on which goal you are looking to meet through tax saver. Investments in ELSS Mutual Funds and ULIPs and, even, term plan give you tax benefits.
Ideally, spread your investments across medium term and long term plans. Choose to invest in equity-oriented investments like equity-oriented investments like equity MF and ULIPs for long-term investments.
For more queries, write to us at grow@bajajcapital.com
Answer: With a time horizon of 5 years or more, you should invest in diversified equity Mutual Funds through Systematic Investment Planning (SIP). To accumulate Rs. 6 lakh over next 5 years, you should invest about Rs. 6,000 per month for which you may start three SIPs of Rs. 2,000 each, in funds which have been performing well consistently.
Firstly, ensure you have a life cover of at least 10 times of your annual income. This is best met through a term plan. Both Mutual Funds and ULIPs are market-linked investments, hence returns would be subject to volatility. Therefore, invest through ULIPs for your long-term needs and short-medium term goals.
Regarding tax savings, do not invest merely to save tax. Choosing the right tax saving investments depends on which goal you are looking to meet through tax saver. Investments in ELSS Mutual Funds and ULIPs and, even, term plan give you tax benefits.
Ideally, spread your investments across medium term and long term plans. Choose to invest in equity-oriented investments like equity-oriented investments like equity MF and ULIPs for long-term investments.
For more queries, write to us at grow@bajajcapital.com
0 comments: