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First let me congratulate you for deciding at an early stage to invest for your future. This will keep you in good financial condition all your life. Most people at your age have disregard for savings and investment only to regret it later.You can start a SIP in equity mutual funds. Equity mutual funds invest their money in equities and hence the potential of returns is higher in longer term. On an average,equity funds have given 12 per cent to 18 per cent returns over long term say 5 to 15 years. Since you are going to start early,you will have a good corpus. Please do realise that equity funds fluctuate widely in short term because of economic condition and general market sentiments. However,sit tight and keep investing through SIP and you will be rewarded handsomely over long term. I will not suggest fixed income as of now. What I would suggest is that you build an emergency fund of Rs 2-3 lakh and keep it separate for any eventuality. Rest can be put in mutual funds.

Expert advice by Adhil Shetty,CEO,BankBazaar.com

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