I am 22 years old with a monthly income of Rs 21,000. I want to invest Rs 2,000 per month for long-term (20 to 30 years). Kindly suggest me a plan which will give me only good return.
Since you are just 22 years old,I would suggest you go for pure equity fund. Equity funds are risky because they invest their major part in equity. The benefit is that,in the long run,equity mutual funds beat any other investment. However,the value of equity mutual funds fluctuates widely in short term. Typically equity mutual funds provide a return of 12 per cent to 18 per cent CAGR over longer time. There are many good equity funds in the market. Do some study on these funds,look at their long-term returns and then decide. You can start SIP by simply contacting any mutual fund company or mutual fund adviser or distributor. I would also suggest that you increase the investment amount. If you cannot do now,you can plan to increase it gradually as your income goes up. Keep reviewing your investment every 1-2 years so that you understand what returns they are providing.
I am 25-year-old architect drawing a salary of Rs 2.5 lakh per annum. I am looking for an investment plan with minimum lock-in period and which gives me total tax exemption. Also,what types of investments are totally exempted from income tax.
It is good that you are so conscious about savings and financial planning at this age. You will be able to build great wealth over time if you continue with the same attitude. Good going. Now coming to your question,your salary is Rs 2.5 lakh so there will be very minor tax if you do not do any tax saving. All tax saving investment comes with lock-in period. The least lock-in period is three years for ELSS mutual fund. Go for this as mutual funds beat all tax saving instruments in the long run. EPF and PPF are certainly the best investment as far as safety is concerned. There is absolutely no risk of default as they are guaranteed by the government of India. There is no tax on the interest earned too. ELSS is best instrument for long-term investment. The risk is higher in ELSS as the returns are linked to the market and the underlying companies. However, three years lock is a fairly long period and you can expect to earn a handsome return from your investment in ELSS. You should take a few ELSS funds and look at their returns for the last 5 years or since inception to find the right one for your investment.
Expert advice by Adhil Shetty,CEO,Bankbazaar
For your personal finance queries please email at firstname.lastname@example.org