Your financial questions answered by the experts!
Q: I would like to start planning my finances with the start of the new financial year. I am 30 years old, single and earn about Rs 60,000 per month. My net amount for investing is around Rs 30,000 per month. In addition I would like to to travel abroad in the next two years. My risk profile is aggressive. What should I do?
Tejal says: “To meet the travel goal, you can put aside Rs 10,000 every month via a Systematic Investment Plan (SIP) in an equity mutual fund since your time period is two years. It would give you a corpus of about 2.5 lacs which can be used to travel abroad. You should start planning today whether you wish to travel to the USA, Asia or Europe, keeping in mind the dollar rates and the costs of travel.
“Out of the remaining monthly balance of Rs 20,000 you can put invest Rs 10,000 in an aggressive equity fund with a 5+ year view to link with the future, should you choose to get married or have a career break.
“Then you could put aside Rs 5,000 each month until you retire at aged 60. You would need to have acquired a large fund before retiring and you need to start at an early age. This is because the magic of compounding works for you since you have age on your side.
“Finally the last Rs 5,000 /- can be invested in Tax Savings instruments like ELSS or PPF so that you can get Section 80C benefit and you don’t have to wait till the last minute in February or March.”
Q: I have inherited Rs 1,000,000 from the sale of my father’s shares and he has given it to me for investment purposes. My age is 35 and I am happily married. I don’t need the funds at the moment and would like to invest for a long period so that I can use it whenever I should need the money. I am a risk averse person. What advice would you give?
Tejal says: “It would be better to divide the Rs 10 lacs into two parts.
“60% i.e Rs 6 lacs can be invested in Fixed Income schemes like Fixed Deposits, Tax saving bonds which can be bought from the market
“The balance of 40% can go into a mix of Balanced and Diversified equity funds.”
Have any financial questions? Need some advice to kick-start your savings planning? Email Tejal Gandhi from Money Matters at [email protected]