Invest After Understanding Financial Goals

Queries Philip Allen, email I try to save some part of my pocket money. I used to put this in my savings account but I have realised that the money tends to get spent. I want to opt for an instrument with a lock-in feature. There are a few options, such as fixed deposits/recurring deposits in banks or post offices and small savings schemes of post offices. However, if you are able to save some money regularly, you could invest your money in mutual funds through a systematic investment plan (SIP). While most mutual funds do not have a lock-in, you are allowed to withdraw partially or the entire amount. But, to discourage such practice, some mutual fund schemes charge an exit load if you withdraw before a certain period. Exit load is, typically, charged up to 1 per cent. However, if you want a lock-in, you may opt for equity-linked savings scheme (ELSS), which does not allow withdrawal...