INVESTING YOUNG

Where to invest
Rohit Tripathi


I am only 20 year old and can invest up to 5000 ruppes monthly, I hav a sip of ICICI for 1000 rupees monthly and reliance automatic investment plan for 10000 annualy, please guide where and how to invest for my long term plans?

First and foremost is a Health Insurance of your own. Check if you have?

Second, have a reasonable Life Insurance. Take a term insurance for the longest period (say for upto 80 years) for a big amount. In case something happens to us, our nominee would get a handsome amount to sustain their living.

Next, build up initially some fixed income savings

Then jump into equities with a very long term perspective through MFs. Prefer to stick on to two or three well diversified funds like BSL Frontline Equity, HDFC Top 200, Reliance Regular Savings Equity or DSP Top 100.

Have one Midcap fund like Reliance Growth or Sundaram BNP Select Midcap focus.
The ratio to Large cap to Midcap is 60:40

Ratio to Equities to Fixed Income can be 70:30