I earn Rs 47,000 every month. I have made a monthly recurring deposit of Rs 3,000 and my monthly expenses are Rs 10,000. I want to invest Rs 10,000 to Rs 15,000 every month through SIP. Please suggest a good fund to invest in.
Dharmesh Sharma, Nagpur
It is a good step to invest in mutual funds through systematic investment plans (SIP). You will gain from the power of compounding and averaging of investments over time. But, you come across as a first time investor, in which case you should first maximise the investments under Section 80C limit to save on tax. You could invest Rs 1.5 lakh in a financial year in these funds and claim tax deductions. However instead of SIP, you should stagger your investments in ELSS funds. If SIP is the only way you wish to invest, you could invest in balanced funds like HDFC Balanced, ICICI Pru Balanced or SBI Magnum Balanced.
