I would like to invest Rs.1,50,000 for my children's education and marraige. Pls give me yr advice?

Question

I have a kid 9 month old and another child is 6 year old. I would like to invest this money and have advice from those who have invested their money on a long term basis in equity, stocks, mutual funds etc. I can spare this money for 15 years. Are there any good schemse. Please help. Your advice is most valuable to me. ARe there any schemes in Mutual Funds for a fixed period of time? Any good insurance policies or any other scheme which can give me a good result for both my kids. All are most welcome to give their valuable suggestions and advice.

I am 35 year old.

Answer 1

Hi there,

15 years is a long period for investment. So you can afford to take risks by investing most or all of the amount in Equity Mutual Funds. But even then you should look at investing about 50,000 of the amount in NSC or KVP. This will keep your money safe and you will get assured returns. You can buy these certificates from most post offices in India. They offer 8% interest.
Invest the other 1 lakh into Mutual Funds.
Look for some equity diversified funds, Balanced Funds and funds investing in infrastructure.
Do not invest all the amount in just one fund.
Pick about 3 to 4 funds from different AMCs. AMCs are the companies offering Mutual Funds. For example, HDFC, SBI etc. So if you invest about 30,000 in HDFC Prudence, the other funds should be of other AMCs. Divide your money this way among the major AMCs which are HDFC, SBI Magnum, Franklin India, DSPML, Reliance etc.
Try doing SIP instead of lumpsum investment. So you can invest Rs. 3000 in every fund every month. This will take care of market fluctuations. And with this you can also continue investing even after you have invested 1 lakh.
Also in all Mutual Funds you can take out the amount invested whenever you want to. There is no fixed period. You can stay invested for as long as you want and as less a time as you want.
Do not invest in stocks and shares if you do not have good knowledge about them. If you still want to do extensive research on this.
If you want insurance look for term insurance.
Look at this site and pick 3 to 4 funds which they have a 4 to 5 star rating. The website is www.valueresearchonline.com
It will also provide you with more information on mutual funds.
So go for mutual funds. It is the best way to invest in the share market and get good returns.
All the best.

Answer 2

I think this will be the best advice since I had the adv of reading the other answers.

It seems that you are young and have collected a good sum of money that you want to assure will be useful in the future for a good cause. So that you do not gamble it away with a High Risk and potential High Return reward I would recommend the following:

1. Open a brokerage account at ICICI or Sharekhan or .....
2. Then deposit the money in a savings account.
3. Link the savings to the Brokerage account.
4. Pick 2 mutual funds (lowest cost, higher return over 1,3,5 and 10 years). See one of my earlier posts for a few names.
5. Be ready for having your funds go up and down over the years
6. Start investing the 1.5L into it at the rate of 10K per fund.
7. In approx, 7 months your entire sum will be invested.
8. Keep with this plan, and then watch it every quarter or preferabbly every year.
9. Do NOT Sell so that you can achieve your goals.
10. Finally, write down why you have invested in a goal sheet, and put a table below it to tabulate the results every year.

Guarantee the results to be mind-blowing at the time you need it.
I have done the same although I have older kids, and am planning to invest continuosly for a long time.

Good luck.

KKP

Answer 3

You seems to be young. Invest in mutual fund particularly equity based mutual fund. Insurance may cut more of mortality charges. Try two or three different types of funds like mid cap, Technology, Infrastructure etc. Do not go in for more than 3-4 funds. I hope you shall get good returns in time to come.

Answer 4

I would not suggest a single point of investment. It should be spread, between NSCs, Bank deposits, Equity oriented mutual funds and also in liquid money market funds. Fifteen years is optimum period for your money to grow.

Answer 5

Unit Linked Insurance Plans (ULIP) with a single premium payment seems to be an appropriate investment for you. You can invest for 10 to 15 years with attractive returns. I think Bajaj Allianz is doing good these days followed by ICICI. You can contact them and understand the details about this investment procedure and related pros and cons. The best part is that the investment and the returns are all tax-free.

Answer 6

donot buy insurance 4 kids. buy term insurance 4 u ,10 % of your budget
10% of budget gold
10% silver
10% plot, real estate
20% stocks of blue chips when market is attractive
10 % bank fix deposit
10% ppf a/c of u , ur wife , ur 2 kids 4 seperate a/c s of ppf must
remaining amount keep aside think later in coming months as new opportunity comes
this is ur own mutual fund donot pay mutual fund manager 2 manage u r money . u will manage better

Answer 7

insurance is not investment

balance MF r less risky 4 long term 10-20 yr

buying good stock like IDFC IFCI HDFC is OK

Hand over some money to private fund manager

But with littele effort & time u can do it &
get more return & satisfaction

trade in commodity & index future with
buy sell signal
detail on my blog

Answer 8

you go with a good mutual fund as icici power or dynamic divident reinvestment plan. if you had want a urgent requirement you can redeem what abot you need. one more i say to you not go other choice. this is my expierience. after 14 years you get for this amount will be sure 25 laksh and more

Answer 9

try LIC and Mutual funds go to an agent get the detailed info abt them both n whatever u like u can invest in them

Answer 10

My suggesion for u is envest that money to purchase land or plot after 15 year you can sell it.that will give u good return compare to investment in mutual funds etc.