I am a 40-year old single mother with a 5-year old son as my only dependent. I have a stable job and can set aside Rs 10,000 each month for my son’s future needs like education. Where can I invest?
Prateek Kak, Delhi
It is encouraging to note your desire to invest for your son’s future. He still has at least 10 more years to go before you will need money for his college education, you should consider putting this money into mutual funds for long-term wealth creation. As you come across as a first time investor, you could consider investing in funds from the OLM Elite list for beginners. Investing regularly through a monthly systematic investment plan (SIP) is something that you should consider. For instance, Rs 10,000 invested in a fund that earns 12 per cent a year, will help you to build a corpus of Rs 22.4 lakh at the end of ten years. You could invest in HDFC Balanced or SBI Magnum Balanced. You could also invest in DSPBR Tax Saver or Franklin India Taxshield, in which investments qualify for tax deduction under Section 80C of the Income tax. All these investments are well diversified with a proven history and performance track record over different market cycles.
