POSTED BY June 19, 2013 8:49 pm COMMENTS (5)ON
I am 23 year old & have a 3.5 lakh CTC. I want to invest for long term.
I would be comfortable setting aside 2k-3k every month. Please let me know where should i invest?
i am confused between diversified equity mutual funds or money back policies or guaranteed life insurance policies. Should i consider Term Insurance? Pleasehelp me out with the solution.
Please suggest. I am looking for long term planning.
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5 replies on this article “What to choose for Long Term Investment Planning?”
I appreciate you sincerely as at the age of 23, You are planning to save and invest. As is not the case with the majority of your age. Including me. i started to think only at the thirties. As Ashal had asked you invest your time in reading. I will also suggest you the same. As all the great investors had suggested this to my understanding. “Do not buy things which you not understand”. Not to discourage you.
Why dont you read the second book from Manish. How to be Your Own Financial Planner in 10 Steps: Master Your Financial Life 2.
Wish you a wealthy and happy future.
Dear Bhanu, if you are really interested for your future, first of all invest your time in reading past discussions here in the forum. You ‘ll learn a lot. Once the basic concepts are clear to you, you ‘ll get the answers on your own, what to do with your money.
you may use sweep in FD /automatic FD in-out facility with your saving bank account , if available with your bank. HDFC BANK and SBI are having the same. it will improve the return a little bit without sacrifice of liquidity, safety and ease.
a sweep-in account is a complicated product wrt to taxation and penalties. Best to use a SB acc and liquid fund combo. Why grapple with FIFO logic wrt emergency fund?
First keep aside a sum equal to 6 months of your expenses. Half of it in a SB account and the other half in a debt mutual fund like quantum liquid fund (if you dont know what this is now, read on this and keep the entire amt in SB acc for now)
This will serve as your emergency fund.
While you accumulate this buy a pure term life insurance from an online insurer for a sum equal to about 15 times your annual income
Buy a individual mediclaim policy (in addition to company health cover). Buy a floater to include your family (parents)
Then and only then think about investing. Of course you should complete steps 2 and 3 asap and step 1 over 3-4 months.
Then choose invest what you in a large cap mutual fund like Franklin India Blue Chip.
While you do all this learn more about personal finance.
Stay away from all endowment and ulip policies.