I am 27 and earn Rs 25,000 a month and live with my parents and have no investments so far. How much and in what funds should I invest in?
Omkar Dutt, Jhansi
It is encouraging to note your enthusiasm to invest. The amount that you wish to invest should be driven by your ability to save or after accounting for your essential expenses the sum that you can comfortably set aside to invest regularly. Ideally you should start investing in a balanced fund such as HDFC Balanced or SBI Magnum Balanced. As you also fall under the taxpaying threshold, you should consider investing in equity-linked savings schemes like DSPBR Tax Save or Franklin India Taxshield to claim tax benefits by investing in these funds in which investments qualify for tax deductions up to Rs 1.5 lakh invested in a financial year.
