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Mutual Funds - Start Investing for The Long Term as soon as You Get a Job

09 Oct 2020

I am 28 years old and my current in-hand salary is 91,000. I am paying 12,500 for a health insurance policy of 20 lakh and 8,224 for a term insurance plan of 1 crore. I have systematic investment plans (SIPs) in the following funds: 1,500 each in L&T Midcap, Axis Long Term Equity and Aditya Birla Sun Life Tax Relief 96; and 500 in Nippon India Small Cap. Currently, my mutual fund investments are worth 1 lakh. My fixed expenses are 50,000 with zero debt. I expect my salary to increase by 10% a year. My annual bonus for the current year in 2 lakh, which increases each year by at least 15%. I want to buy a house in 15 years. What goals should I plan for? How much should I be investing each month?

Answer: It is good that you have started to save at the start of your career. The advantage you get at such an age is a disciplined approach along with the benefit of compounding.

A few financial goals are common to most. For example, at your age, it could be marriage expenses and buying a house for yourself. Going forward, it could be your children’s education and retirement. These may seem far-fetched right now but over time you will start planning for the same. To start with, your focus should be investing for the long term, creating a corpus for short-term goals, if any, as well as putting in place a contingency fund.

Source: Live Mint BACK

To be added soon

Priyanshu B. Tanna

SEBI registered IFA

ARN119467 & EUIN E-183966

To be added soon

Bharat Tanna

SEBI registered IFA

ARN26176 & EUIN E-044509

To be added soon

Kundan B. Tanna

SEBI registered IFA

ARN294073 & EUIN E-553599

Risk factor

Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.

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