Hi, i m 30/f earning 60k per month. Currently investing 5-10k in local chit fund, no further investment. My goal is for a job free life at the age of 40-42. Pls suggest good investment plan (ready to invest 20-30k overall per month).

Ans: kindly take a good family health cover
then buy at least 2 crores worth pure insurance
and start sips for Rs 40000 in total in UTI nifty 50 and ppfas flexi cap fund

Ans: Hi Viditha, Can you please help me to understand what will be your period of investment and what is the goal behind this investment?

Ans: Dear Santanu,

Looking at your age and investment horizon, before investing you have to understand the risk and the reward associated with the investment avenue. If your risk appetite is low and you are looking for complete safety over the period, you can opt for any debt fund which invests in government securities or high rated bonds such as AAA or you can invest in any top-rated dynamic bond fund.

However, if you are willing to take moderate risk for your investments you can also opt for any Hybrid fund category such as Balanced Advantage or Aggressive Hybrid funds - with increasing risk, the probability of getting higher returns increases.

If you are willing to take risk, I suggest you to start your monthly SIPs into any Index funds or flexi cap fund where you will get decent returns on your investments. As index funds works on the strategy that replicate the returns of the benchmark, investing in this fund is always a suggestable call. Flexi cap is the category where you get the exposure of all the three categories of equity market and get diversification within your investments.

Hence, I suggest you to evaluate your risk and do complete research before initiating the investments.

Disclaimer:
• I have just no idea about your age, future financial goals, your risk profile, other investments and whether you would have the nerves to not get unduly perturbed if stock markets go temporarily down.
• Hence, please note that I am answering your question in absolute isolation to other parameters which should definitely be considered when answering a question of this type.
• I recommend you to also consult a good financial advisor who would look at your complete profile in totality before you act on this advice given by me.

Ans: Here's a roadmap to consider for achieving your goal of a job-free life by 40-42, increasing your monthly investments to 20-30k:

1. Calculate Your Corpus:

Estimate your desired monthly income after quitting your job at 40-42. Factor in inflation over the next 8-10 years. Let's assume you target a monthly income of Rs. 50,000 in today's value (adjustable based on your needs).
Multiply your desired monthly income by 12 (months) to get your annual income target (Rs. 50,000 x 12 = Rs. 6,00,000 per year).
Consider the number of years you want to live on this passive income (retirement age onwards). Let's assume 25 years (adjustable based on your life expectancy).
Multiply your annual income target by the number of years to estimate the total corpus needed (Rs. 6,00,000/year x 25 years = Rs. 1,50,00,000).
2. Analyze Your Current Savings:

Factor in your existing annual life insurance investment (Rs. 10,000) and desired monthly increment (Rs. 20,000 - Rs. 30,000) to calculate your total potential monthly investment amount (Rs. 10,000 + Rs. 20,000 = Rs. 30,000).
3. Investment Strategy:

Given your long-term goal (8-10 years), a combination of equity and debt instruments is recommended to balance growth potential and stability. Here's a sample allocation:
Equity Mutual Funds (60%): Invest in a mix of large-cap and multi-cap equity funds for potential capital appreciation over the long term. You can invest through a Systematic Investment Plan (SIP) to rupee-cost average and potentially reduce risk.
Debt Mutual Funds (40%): Invest in debt funds like short-term or income funds to provide stability and regular income. This can help meet short-term needs and act as a buffer.
4. Investment Options:

Consider opening an investment account with a reputable broker or Robo-advisor. They can help you choose suitable mutual funds based on your risk tolerance and goals.
Explore options like Equity Linked Savings Schemes (ELSS) for tax benefits alongside regular mutual funds. However, remember ELSS also comes with market risk.
5. Review and Rebalance:

Regularly review your portfolio performance (at least annually) and rebalance if needed to maintain your desired asset allocation (60% equity, 40% debt).
Important Note:

This is a general framework, and you should consult a SEBI-registered Investment Advisor for personalized advice. They can consider your specific financial situation, risk tolerance, and goals to create a tailored investment plan.
Here's a quick recap:

Calculate your target corpus.
Analyze your current savings.
Develop an investment strategy with asset allocation.
Choose suitable investment options.
Review and rebalance your portfolio regularly.
By following these steps, increasing your investments, and seeking professional guidance, you can increase your chances of achieving your goal of a job-free life by 40-42.

Remember, this is a long-term plan, and discipline is key. Stay invested, be patient, and adapt your strategy as needed.