I am working in CBI as Stenographer (Central Govt Job) since 1999. My take home salary for the month of October 2021 is ₹57,000 and my monthly expenditure is approx ₹35,000 Though I have completed 21 years of service, but could not collect good money in any way other than buying 2-3 small policies like SIP. ₹2000 Monthly, LIC Policy for the last 3-4 years ₹2 lakh etc. In addition to these ₹7-8 lakh in GPF. How should I invest my money?
Now I have to bear the education expenses of my only daughter who is going to graduate next year, so her marriage expenses will be for the coming 7-8 years. Apart from these, I also want to buy a house but I do not have much money for the above mentioned expenses. I have only 12 years of my service left. So you are requested to kindly guide/suggest me suitable schemes to earn money to meet the above mentioned expenses.
–Name withheld on request
We suggest continuing your investment in GPF to accumulate funds for your retirement needs. However, your ongoing investment in LIC policy will provide life cover till the policy term along with maturity corpus.
For more wealth creation to achieve your goals, we suggest you to invest in equity-oriented mutual fund schemes. Considering the SIP investment of ₹22000 (monthly savings) for the remaining service period and assuming 12% p.a. return from equity funds, you may be able to accumulate around ~70 lakhs in 12 years. You can consider a healthy mix of large and mid cap, flexi cap and value funds in your portfolio for investment. You can choose between Axis Growth Opportunity Fund and HDFC Large & Mid Cap Fund in Large & Mid Cap Category, UTI Flexi Cap Fund and Parag Parikh Flexi Cap Fund in Flexi Cap Category and IDFC Sterling Value Fund in Value Category.
I am 26 years old and my income is 30,000 per month. i am investing ₹1.5 lakh annually in PPF. Kindly suggest investing in any mutual fund to amass a huge corpus in 15 years.
-Name withheld on request
Investing is a wise decision ₹1.5 lakh per annum in PPF. It will not only provide you wealth creation but also provide tax benefits every year under Section 80C of the Income Tax Act. Considering your young age, we appreciate your decision to invest in Mutual Funds. You can build your portfolio through SIP investments in mid cap, small cap, value and flexi cap funds over a tenure of 15 years. You can think of splitting your monthly SIP equally among Mirae Asset Mid Cap Fund, Kotak Small Cap Fund, IDFC Sterling Value Fund and Parag Parikh Flexi Cap Fund.
Sanjeev Bajaj, Joint Chairman and MD, Bajaj Capital.
(Questions and thoughts at mintmoney@livemint.com)
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