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Mutual Fund SIP or STP

 

If you have a lot of money lying idle in your savings bank account, you can opt for the STP route. Otherwise, you can start a Systematic Investment Plan (SIP) in a smallcap scheme

 

To begin with, you should create a contingency fund that would cover your six month's living expense and a medical emergency of your parents. You should set aside more for the medical emergency if your parents don't have a medical insurance cover. You can keep the money in a bank fixed deposit (or half the money in a liquid fund) that can be broken easily. A contingency fund is very important because it will ensure that a financial emergency won't upset your investment plans in a big way.

If you have a lot of money lying idle in your savings bank account, you can opt for the STP route. Otherwise, you can start a Systematic Investment Plan (SIP) in an equity scheme. However, remember that you should invest in equity only to fund your financial goals that are at least five years away.

As far as investing in a small cap scheme is concerned, don't go by the theory that you are young and you can take risk. Risk-taking ability differs from individual to individual. Ask these questions: Do you think you can withstand the volatility, typically associated with small cap schemes? Would you be okay if you see your investment lose value sharply? Would you still continue with your investment plan? If the answer to these question is a resounding yes, go ahead and invest in a small cap scheme.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. IDFC Tax Advantage (ELSS) Fund

4. ICICI Prudential Long Term Equity Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. DSP BlackRock Tax Saver Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. HDFC TaxSaver

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online

Invest in Tax Saver Mutual Funds Online

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