Query Corner: Finance

Our PF expert helps you navigate the complex world of finance.

I am 29 years old and my current CTC is Rs 4.5 lakh per annum. My family includes my sister (35 yrs old) and wife (25 yrs old). Her income is Rs 3.5 lakh per annum. How much should I invest in one mutual fund/scheme? Should the maximum amount be based on the family as a whole? For example, if I invest Rs 1 lakh per scheme and another 1 lakh each in my wife’s and sister’s name or collectively Rs 3 lakh in one scheme?
— Jim Patel

I would recommend you to have limited number of schemes in your portfolio. If money is being invested from three individual accounts and you are going to manage the entire family portfolio, I would recommend you to select two different schemes in each individual’s name. You will have a total of six schemes in your portfolio. Proportion of investment can be decided based on investible surplus in individual account.

I am 25 years old and I am working as software professional. My monthly savings are around Rs 16k-18k. I am planning to buy a flat for approximately Rs 30-35 lakh in 3-4 years. Please suggest an appropriate investment option so as to achieve my goal.
— Vaibhav Agarwal

Invest your savings in diversified equity mutual fund and balance mutual fund schemes through SIP route. Though returns from mutual funds are market linked and therefore, cannot be assured yet if you assume a return of 10% per annum from your portfolio, you can expect around Rs 10,00,000 after 4 years. You can raise loan for balance amount to buy your house.

My PPF a/c is going to mature with a corpus of Rs 15 lakh. Please give some investment options for the next 5-year period.
— Dinesh Jain

Your investment objective, investment horizon and risk-taking ability, all will play a role
in determining the investment instrument you choose. If you are a risk-taking investor and looking for capital appreciation, you can invest in a diversified portfolio of equity and debt mutual funds; else you can extend your PPF account for further block of five years with or without contribution.

I am around 52 years old, I want to invest up to Rs 40,000 per annum. Kindly advise on what is the best and safe instrument for 5-6 years.
— Jangam CS

If you consider yourself a risk-taking investor, then I would recommend you to invest some amount in diversified equity mutual fund for better capital appreciation and the balance you can invest in assured returns schemes like bank FD and Company FD. Returns from mutual funds are market linked and therefore, cannot be assured; The possibility of capital erosion cannot be ruled out, but equity has always given better returns in the long term.

( Pankaj Mathpal, Certified financial planner)