Mutual funds to buy car and go on foreign holiday in five years
For my holiday, I wish to have a budget of around ₹3 lakhTo buy a car, I need ₹10 lakh
I am a 23 year old, fresh graduate. I have recently started working in an IT firm. I am earning close to ₹38,000 per month. I spend around ₹15,000 on my rent and food expenses monthly. Rest all are my savings. I don't have any liabilities. I want to buy my own car in 3-4 years for ₹10 lakh and go on a foreign holiday solo trip after five years. For my holiday, I wish to have a budget of around 3 lakh. Can I achieve both these goals? Where should I invest? How should I invest? Looking for the best advice.
- Aishveer Singh
By Divam Sharma, co-founder, Green Portfolio
Considering that you have started your career, do not have any liabilities, and can save ₹23,000 per month and that you can be flexible with your gratification needs by 1-2 years, you should invest a higher sum in equity mutual fund schemes.
You should invest ₹18,000 per month equally in Nippon India Index Fund- Sensex Plan (G), Quantum Long Term Equity Value Fund (G), and Axis Midcap Fund (G). These funds can give you around 10% returns for the next four years and can help you achieve your goal to buy a car.
You should invest ₹5,000 per month in SBI Magnum GILT Fund (G) scheme. This would return you around 7-8% and can be withdrawn anytime for any emergency spends. You can use these funds at the end of the five years for your holidays. You should also invest any bonus or salary increase in this fund.
We have also considered the tax implication while making you a suggestion for the investments.
(Views expressed by the expert is his own.)
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