Ask Experts » Finance and Investments » Investments »

Smart investment plan to get better rerurns


Date: 13 Sep 2016    Group: Finance and Investments    Category: Investments   

What is the best way to invest Rs 1000 per month? Now I am 23 year old and my monthly income is Rs 14500 excluding taxes. My average expenses are Rs 6000 per month which includes my EMI's,insurance policies and other house expenses.
Experts: do assist.


Searching for a good investment plan with high returns? Check out responses from experts on this page.


Author: Kailash Kumar    15 Sep 2016      Member Level: Platinum     Points : 2  (Rs 2)    Voting Score: 0

The author may open a recurring deposit in a bank which attracts much better interest rates compared to the savings bank deposits. Few banks offer schemes like iWish accounts of ICICI Bank which is basically an interlinked savings bank account and recurring deposit account. The recurring deposits in a bank can be said to be the safest investment option without any risk.

The other options which are likely to offer better yield are the Systematic Investment Plan (SIP). Such schemes are basically mutual funds in which the investors are given an option of investing smaller amounts periodically instead of investing a lump sums amount in one go. In such cases, a fixed amount of money is debited by the investors in bank accounts periodically and invested in a specified mutual fund. Some of the mutual funds allow tax benefits also under equity-linked savings schemes.


Author: Venkiteswaran.    15 Sep 2016      Member Level: Diamond     Points : 3  (Rs 3)    Voting Score: 2

It is welcome that you have a savings mentality. Return from savings/investment is also an earning source.
You are now young and as such the expenses are also less. However in a few years your expenses may se increase than the rate of incremental income. Hence it is suggested not to commit more amount on long term SIP investment.
If not already done, you may open a Recurring Deposit in a bank for a period of 3 to 5 years. Select the quantum of amount you can steadily invest even if expenses increase.

The surplus can be started to invest in a Mutual Fund with SIP facility for a period not less than 5 years. for this please do a small homework by reading about various MF, their return for last few years. Select one which has more or less steady growth year to year. General finance magazines or financial newspapers can be of help in this. Do not panic even if there is some downside in between. the effect will be only on long term.


Author: Partha Kansabanik    15 Sep 2016      Member Level: Diamond     Points : 2  (Rs 2)    Voting Score: 0

It is really good that you have started to plan about your investment from such an early age. Please maintain the spirit throughout your working life, you will see the wonders because of the concept of 'compounding effect of investing'.

Let us come to the main part of the question. From the question, I am not clear whether you have any PPF Account, or not. If you have a PPF Account, you can put Rs. 1000/- every month before 5th in that account for risk-free, secure return with long-term perspective.. At the same time, I would also request you to start investing in an equity-oriented hybrid fund through SIP route with gradual increase of your income and saving. The best funds in this categories can be easily obtained from various mutual fund websites like www.valueresearchonline.com or www.morningstar.in.


Author: Sheo Shankar Jha    15 Sep 2016      Member Level: Gold     Points : 3  (Rs 3)    Voting Score: 0

It seems to be a fine idea to park off Rs 1000/ - pm, so that it ultimately turns out to be a lump some amount in due course. There are a few options and you can examine these points for your ultimate investment.
1) Public Provident Fund- This fund will take care of your money earning an attractive rate of interest presently hovering around 8.5 percent per annum and since the period of contribution is to the extent of 15 years and the rate of interest being added on a compounded basis, the ultimate benifit is attractive definitely.
2) To open an account in HDFC in a balanced fund - Balanced fund comprises the mixed fund of both equity and debt fund in such an amalgamated way that the corpus grows offering you an handsome return at the end of the specified period.
3) You can open a recurring - deposit account in a bank linked to your saving bank account so that an amount as suggested by you is diverted to your recurring bank account every month so that at the end of the period, you get a substantial amount. You may approach Kotak - Mahindra or Axis - bank for their better rate of interest.


Author: Mahesh    16 Sep 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

Considering your income is under 20K then the best approach for you is to take the investment into tax saving instruments. You have some of the option such as -

1. ELSS
2. Tax saving equity funds from AXIS and ICICI bank.
3. PPF
4. NPS

These four are good option for you to invest 1K per month into it. And it can accumulate into big sum if you start doing this in your 20s. And most of the time such investment becomes really good sum if you are doing this for 30 or so years.

Another option is to invest into recurring deposit. As the amount is just 1K so it can be a good sum if you invest for like 5 years. This will build your emergency fund. And then you can take the risk once your salary is increased.

If you have not invested into health insurance then now is the time to do so. Because after 40s the amount to invest into the health insurance will increase the premium will be very expensive. So you have to put some amount into it on regular basis, be it monthly or annually. That should take care of you from the health perspective.




Is this a good answer ?    



Post Answer



You must Sign In to post a response.


Post Answer        





Related Questions
  • Return to Question Index
  • Ask Question to Experts


  • Awards & Gifts
    Top Contributors
    TodayLast 7 Daysmore...

     
    ISC Technologies, Kochi - India. © All Rights Reserved.