3 yrs into job and no savings!!

Question

Hi,

I have been working from 3 yrs now, take home pay 40k and have no savings till date. I began my career in 2008. Till date, I have invested in 1. Canara Bank Reboco Mutual funds - Rs. 20,000 in 2009 (one time payment) 2. ICICI Bank Insurance policy (payable yearly once) tax saver in 2011 - Rs. 30,000/yr for 7 yrs

I wanna do some kinda investment now, which is 100% safe (unlink mutual funds and others) 1. Buy a house taking loan (this will also give me tax benefit): I can spend upto 20k/month for this 2. Invest in post office or somewhere, where I would like to pay 5k/month

Pls advise. I have gone through so many websites and not understanding a thing. Pls advise, as you would be the best person to look upto.

Thanks a ton! Hitesh

Pankaj Batra · Answer

If you want to invest into safe assets then fixed deposits, Fixed maturity plan(FMP) mutual funds, PPF and bonds would be ideal products. If investment is for short term (less than three years), Fixed deposit and FMP would suit you.

For long term investment(more than 5 years), I would advise you to start SIP into equity diversified mutual funds.

Try to avoid insurance for investment needs. If ICICI policy you have taken is not a term insurance, it is not a good choice as will not give a good return and also not cover for a good sum.

Also, I would recommend you to read this detailed page: Regarding Financial Planning/review of my profile

Feel free to ask more specific questions that comes to your mind after reading above response.

3 yrs into job and no savings!!

1 Answers