A financial planner can guide you through market volatility

—Satnam Singh

You have moderate risk appetite and hence you need to ensure that the investment made can generate inflation-adjusted returns. A pure debt structure cannot deliver this. Also, since your investment horizon is longer, equity allocation, even if it is less, can be considered. You can consider a balanced advantage fund, which can vary the equity exposure based on the market valuation. Therefore, at times when market valuations become costly, they will reduce equity exposure, and vice versa.

And it’s always good to have a financial planner with you who can guide you through the up and down cycles of the markets and help you make rational decisions.

Only if you think these decisions can be taken by yourself, should you consider investing yourself.

I have recently closed my Public Provident Fund (PPF) account in which ₹60,000 with interest Now, I want to save this amount for my two daughters. Where can I invest this amount? Should I open a children’s account for them? I can also contribute some amount in their accounts on monthly basis. Also, will investing for children help me save tax?

—Wasim Syed

There are some investments that will save you tax. Initially, you can open a PPF account in the name of your daughters. The annual contribution towards PPF in the account of a minor is added in the hands of the Major in this case. capped at the annual limit ₹1.5 lakh for depositing PPF. You can also consider Sukanya Samriddhi Yojana, which is available for girls below the age of 10 years. The scheme is closed for 21 years, but investment is to be made for 15 years from the date of account opening. Contribution in this scheme is also limited ₹1.5 lakh per annum. You can also consider starting an Equity Linked Savings Scheme in your name with a lock-in of three years. But, you should consider holding the investment for a longer period as the equity asset class carries inherent risk.

Surya Bhatia is the Managing Partner of Asset Managers.