I want to invest Rs 10,000 a month to build a corpus of ₹1 crore for my 2-year-old daughter's education and wedding. Where should I invest? I have an annual contribution in the PPF as well as an annual premium in the LIC Jeevan Anand policy.
-Mohit Sharma
Your current contributions to the provident fund and the ULIP are low-yielding fixed income investments, which are not suited for your investment horizon and goals. The first thing you should do is look at your LIC Jeevan Anand policy document and figure out a way to exit the policy. Then, keep your PPF contribution to a minimum. Add the money you will save from these investments to the ₹10,000 you intend to invest and put it together in a portfolio of mutual funds. Since you're investing for the first time, we would suggest that you begin with a couple of balanced funds. Once you have a hang of how mutual funds work, you can move to pure equity funds. For now, start off with ICICI Prudential Balanced Advantage and Canara Robeco Balanced.
This article was originally published on April 08, 2014.
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