I am 23 and earn Rs 26,000 every month. I would like to invest Rs 10,000 every month through SIPs. Please guide me with investments as I am planning to go for higher education in 3-4 years.
Suchitra Pillai, Kochi
It is encouraging to note your enthusiasm to invest so early in life and plan to build a corpus to fund your higher education two years from now. As you are a first time investor, we suggest you invest in a tax saving fund from the Beginner category of OLM Elite, which has hand-picked funds that are regularly tracked and invested in. Funds such as DSPBR Tax Saver and Franklin India Taxshield are good to start. Preferably invest in this tax saving funds 2-3 time in a year than use the SIP route as investments in these funds have a 3-year lock-in and you would not be able to use the gains when you need it. You could also pick one balanced fund from HDFC Balanced or SBI Magnum Balanced to invest in. Make sure you track the progress made by your investments at least once a year and assess the performance of the funds that you invest in.
