Best financial options for a teenager to spend Rs 10,000 a month?
My daughter is 23 years old and receives Rs 23,000 a month. She’s going to invest Rs 10,000 a month. Please suggest any opportunities for investment. It has a period of five years.
Prableen Bajpai Ceo, Managing Partner, FinFix Research & Analytics responses: at the age of your wife, about three-fourth of her investments will preferably be committed to a dividends-oriented portfolio. Furthermore, the choice relies on other considerations, such as the economic target, the risk appetite, and portfolio allocation. You have described a five-year time horizon that makes investment fund a little tricky. However, there is no discussion of any specific objective or appetite for risk. On the basis of data, you may take two wider strategies.
Next, if you have a set timeframe and want to go with a low-risk item, either spend Rs 10,000 a month in a low-term debt fund or open a revolving savings account. The Low Duration Debt Fund does not have an exit charge and the money can be withdrawn whenever needed and the returns should be more or less in line with periodic fixed-income choices.
Instead, if a certain amount of exposure can be assumed and half of the asset can be retained for about seven or ten years, then the portfolio can be separated into two components — equity and debt. Invest one third in a multi-cap account and the other half in a bond fund. This means, half of her investments would be stable, while the other half would provide some boost to the overall portfolio. When you can distinguish between equity and debt on the basis of your comfort and intent, do assign some sum to an equity-oriented fund with a lengthy-term view.