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I am working in CBI as a stenographer (central govt. job) since 1999. My take-home salary for the month of Oct 2021 is 57,000 and my monthly expenditure is about 35,000. Although I have completed 21 years of service but could not deposit good money in any way except purchasing 2-3 small policies like SIP of 2000 monthly since last 3-4 years, LIC policy of 2 lakh etc. Except these 7-8 lakh in GPF. How should I go about investing my monies?

Now I have to fund the education of my only daughter who is going for graduation next year, then the expenditure of her marriage in 7-8 years. Except for these, I also want to purchase a house but I do not have much money for the above-mentioned expenditures. I have only left 12 years of my service. It is, therefore, requested that please guide/suggest me suitable plans for making money to carry out the above-mentioned expenditures.

-Name withheld on request

We suggest continuing with your investments in GPF for accumulating the wealth for your retirement needs. However, your ongoing investments in LIC policy will provide the life cover till the policy term along with maturity corpus.

For further wealth creation to achieve your goals, we suggest you invest in equity-oriented mutual fund schemes. Considering SIP investment of 22000 (monthly savings) for the remaining service term and assuming 12% p.a. returns from equity funds, you may be able to accumulate ~70 lakh approximately in 12 years. You may consider a healthy mix of Large & Mid Cap, Flexi Cap & Value Funds in your portfolio for the investments. You can choose Axis Growth Opportunity Fund & HDFC Large & Mid Cap Fund in Large & Mid Cap category, UTI Flexi Cap Fund & Parag Parikh Flexi Cap Fund in Flexi Cap category and IDFC Sterling Value Fund in Value category.

I am 26 years old and my income is 30,000 per month. I am investing 1.5 lakh per annum in PPF. Please suggest any mutual fund to invest in to collect a big corpus in 15 years.

-Name withheld on request

It is a wise decision to invest 1.5 lakh p.a. in PPF. This will not only provide you with wealth creation but also the tax benefits every year under section 80C of the Income Tax Act. Considering your early age, we appreciate your decision of investing in Mutual Funds. You can build your portfolio through SIP investment in Mid Cap, Small Cap, Value and Flexi Cap Funds over a period of 15 years. You can think of equally dividing your monthly SIPs into Mirae Asset Mid Cap Fund, Kotak Small Cap Fund, IDFC Sterling Value Fund and Parag Parikh Flexi Cap Fund.

Sanjiv Bajaj, Joint Chairman and MD, Bajaj Capital. 

(Queries and views at mintmoney@livemint.com)

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