I am a 23 year old recently graduated student. I recently started working in an IT company. I am winning close to ₹38,000 per month. Spending around ₹15,000 in my rent and monthly food expenses. Rest, all are my savings. I have no liabilities. I want to buy my own car in 3-4 years for ₹10 lakh and taking a solo vacation trip abroad after five years. For my vacation I wish to have a budget of around 3 lakh. Can i achieve both goals? Where should I invest? How should I invest? Looking for the best advice.
– Aishveer Singh
By Divam Sharma, Co-Founder of Green Portfolio
Considering that you have started your career, you do not have any liabilities and can save ₹23,000 per month and you can be flexible with your gratification needs in 1-2 years, you must invest a larger sum in equity mutual fund schemes.
You should invest ₹18,000 per month in equal shares in Nippon India Index Fund – Sensex Plan (G), Quantum Long Term Equity Value Fund (G) and Axis Midcap Fund (G). These funds can give you around 10% return over the next four years and can help you achieve your goal of buying a car.
You should invest ₹5,000 per month in the SBI Magnum GILT Fund (G) scheme. This would return you around 7-8% and can be withdrawn at any time for any emergency expenses. You can use these funds at the end of the five years for your vacation. You must also invest any bonuses or salary increases in this fund.
We have also considered the tax implication when making a suggestion for investments.
(The opinions expressed by the expert are his own).
.
