I am a 20-year old, working in the State Bank of India as a clerk. My monthly income is around Rs 7,000, of which I can easily save Rs 2,000. I want to buy a bike (around Rs 70,000) as fast as possible. I can go for a moderate risk equity diversified fund. What fund should I choose? How should I apply for it?
Since, by your question, you seem to be just starting on your investment journey, our suggestion would be to go for a balanced funds, which as you desire is a moderate risk fund. Invest your savings via a systematic investment plan (SIP) in the following funds: DSPBR Balanced, HDFC Prudence, FT India Balanced.
As for the second part of your question, you can either go to the website, or the offices, of any of the fund houses mentioned above, and get the application form, fill it up and send it back to the fund house. If this is too much of a hassle then you can go to any of the mutual fund distributors’ offices and they will do it for you.