Investment advice
I have 20+ lakhs in bank account. My bank contact agent is telling me to invest these in a less risk mutual fund rather than in fds . What are your views on it? Is it the right path to go as that would help me save tax.
Never take financial instrument advice from the Bank. Often compromised due to back end rebates they get that leads to rampant misselling, especially on ULIPs / Endowment policies, etc.
Hire someone independent. Get an objective view and an elaborate goal oriented financial plan.
dragon
Stealth
9 months ago
Are ulips not good type of investment?
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Yes definitely. You should invest that amount. Keep small proportion in savings/liquid funds only. Invest remaining amount in mutual funds as sip. You can choose over index, debt, arbitrage, gold.
Keep your finance basics covered like health and term insurance.
P.s I am not a financial advisor.
dragon
Stealth
9 months ago
For now he is saying to invest the major part in icici prudential equity savings fund and then when the market is good, we can invest in other funds.
Don't wait for market to become good. It can go up or down.That's why you can do sip. Don't put whole amount in single fund ever. Divide the amount in multiple sectors.
admiN
Stealth
9 months ago
Invest in ELSS. You will get benefits in tax, double the returns within 5 to 10 years and the lock-in period is 3 years. Risk is high but if you invest for at least 5 years, profit will cover all the losses.
Technocratic
Stealth
9 months ago
If you can't decide quickly moving the funds to a sweep-in FD might make sense. It gives you enough liquidity and a decent return.
Sandy89
Stealth
8 months ago
I think you need to understand and make list of your goals for say next 5 years . Do you have any major life events like marriage , kids education fees to be paid , booking house etc . Then aasin the amount of monies that you need and keep it in either FD or Liquid fund . Then say rest of your money which you don’t need should be moved to mutual funds . If you want to save taxes start with ELSS funds , and an Index fund . Follow these thumb rules ..
1. Have emergency fund of 12 month of expenses, if you don’t have it start with 6 month and try to increase it .
2. Any money that is required within next 1 year keep it in safest instruments in FD preferable .
3. Any money that is required within next 3 years keep it in debt fund or liquid fund .
4. Then any money which is left start investing it depending on your risk appetite. And have goal based financial plan and keep saving as much as you can
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