I wish to spend money on mutual funds to safe the way forward for my two-year-old son (planning – MBA) and four-year-old daughter (physician). I’m a lecturer by occupation and earn Rs. 1.2 lakh monthly. I wish to spend money on Sukanya Samridhi Yojana for my daughter and mutual funds for higher returns for each my kids. Please counsel appropriate funding choices for his or her increased schooling and the fitting method to the funding quantity. I’m planning the schooling inside India solely.
-Name withheld on request
You should plan your investments by quantifying your monetary objectives and assessing the danger you’ll be able to bear. Also, calculate the time you’ll be able to stay invested. Keep inflation on the high whereas quantifying your monetary objectives. It will aid you get the practical lump sum corpus it’s possible you’ll require to realize your objectives higher and allow you to perceive the required month-to-month funding quantity.
Apart from the mutual fund & Sukanya Samridhi Yojana funding, you might also wish to create a small emergency fund which can be 5-10% of your month-to-month revenue, which could be utilized in exigency.
Considering your long-term funding horizon and objectives, we assume your threat profile can be aggressive. You can take a look at investing in equity-oriented mutual fund schemes by way of a scientific funding plan (SIPs) as fairness has the potential to ship superior returns in an extended time-frame. Hence, it’s possible you’ll divide your complete month-to-month investable quantity equally amongst funds like ICICI Pru Large & Mid Cap Fund, HDFC Large & Mid Cap Fund, Parag Parikh Flexi Cap Fund, Kotak Emerging Equity Fund, Canara Robeco Small Cap Fund & SBI Contra Fund. This means, your portfolio can be diversified throughout the class, geography, and AMCs. It can also be advisable to assessment your portfolio at the least annually.
Query answered by Sanjiv Bajaj, joint chairman and MD, Bajaj Capital.
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