Have you ever wondered about the opportunities offered by this class of assets. A Mutual Fund Portfolio comes with Equity, Debt and their various combinations in the Long Term or short Term across different sectors of the economy depending upon the Investemt Objective.
Now have alook at how a youg man is planning:
- Emergecy Planning: Money Market Mutual Funds
- Short Term Needs upto 3 months: Liquid funds
- Asset Acquisition Planning: upto 3 years-Equity or debt Funds; 3-7 years-Equity or Debt Funds; above 7 years- equity Funds(pl remember to switch to stable debt funds as you near the target time horizon)
- Other Life Needs Planning: This deals mainly with planning for your Higher studies & marriage, Your Children's Education & their Marriage or Profession, World Tour etc.. You can use the same products as in Item 3 above.
- Protection Planning: The SIPs with Insurance help you here
- Retirement Planning: Exclusive Funds are available from UTI and Templeton ; Otherwise use any good diversified equity fund
- Tax Planning: ELSS or SIPs with Insurance that have the tax savng feature
- Estate Planning: use Nomination irrespective of the scheme.
The risk-return profile attached with each asset class and its various shades being different, you may need professionla expertise to select what is suitable for you.
No comments:
Post a Comment