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POSTED BY ON June 3, 2012 10:17 pm COMMENTS (2)
Hi I am 24 year old guy earning around 60000/- per month. I have invested in 7 mutual funds sip of around 16000/month in different funds, catering to different sectors & risks appetite. I have also invested in basic endowment plain in LIC, normal mediclaim from sundaram , health insurance from tata aig, & soon i will purchase term insurance for more than 1 cr for myself.
But my question is that now i have approx 10000/month surplus to be reinvested in some sectors. Please advise me should i opt for PPF or RD.
Also note I have approx 8,00,000/- surplus , should i go for Post office MIS or HDFC cash management Treasury fund which is a liqid mutual fund.
Kindly advise me soon.
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Dear Vijay, 60K mly means you are in 20% tax slab. So parking money in RD is not a tax savvy move. Regarding PPF, I’m not clear about your liquidity needs for this mly 10K investments hence can’t comment on PPF part. Regarding 8L Rs. again POMIS is not tax savvy. Liquid funds should be used for liquidity needs. If you really want to park money for long term (which is the case as you are asking for POMIS), either invest in pure Eq. funds or hybrid Eq. funds.
Thanks
Ashal
Vijay,
Perfectly understand your dilemma. There are basically 4 types of investments – land, equity, debt and gold. All others are different mixtures of these investments.
If you have a surplus amount of 10K remaining after your existing investments, I would suggest you first to have a emergency fund which you can park in HDFC Cash Management Fund.
After that, you can invest the amount into your SIPs, by adding more SIPs into your existing ones. PPF is a good option – you should invest atleast 50K per year into PPF. Avoid RD as it is not tax efficient.
Regards
BanyanFA