Hi sir I need your help
I am 26yr old female, i might get married in another 1 year, i have 0 rs of savings. I have to start savings, i can save upto 20k+10k per month.
20k i wish to save for 1 year for my marriage
10k i wish to save for future
Please help me to start investing
Ans: Congratulations on taking the first step towards financial planning! Let's create a simple and effective plan for your short-term and long-term goals.
Short-Term Savings for Marriage (Rs. 20,000 per month)
Your priority is to save for your upcoming marriage in a year. Given the short time frame, safety and liquidity are essential.
Recurring Deposits (RDs):
Open an RD account in a bank.
It offers fixed returns and is safe.
This will help you accumulate your savings steadily.
Deposit Rs. 20,000 monthly for a year.
At the end of the year, you'll have a lump sum amount with some interest.
High-Yield Savings Account:
Choose a bank offering high-interest rates on savings accounts.
Deposit Rs. 20,000 monthly.
This provides easy access and liquidity for your wedding expenses.
Long-Term Savings for Future (Rs. 10,000 per month)
For your long-term savings, let's focus on building wealth over time. Diversification is key here.
Systematic Investment Plan (SIP) in Mutual Funds:
Large Cap Mutual Funds (40%):
Invest in well-established companies.
Offers stability with moderate returns.
Mid Cap Mutual Funds (30%):
Invest in medium-sized companies.
Offers higher growth potential.
Small Cap Mutual Funds (20%):
Invest in smaller companies.
Offers high growth potential but with higher risk.
Debt Funds (10%):
Provides stability and reduces overall risk.
Invest in government and corporate bonds.
Investment Strategy
Monthly Allocation:
Large Cap Funds: Rs. 4,000
Mid Cap Funds: Rs. 3,000
Small Cap Funds: Rs. 2,000
Debt Funds: Rs. 1,000
Choosing Funds:
Select funds with a strong performance history.
Diversify within each category for better risk management.
Consider investing through a Certified Financial Planner for professional advice and management.
Additional Tips
Emergency Fund:
Start building an emergency fund.
Save at least 3-6 months' worth of expenses.
This provides a financial cushion for unexpected events.
Health Insurance:
Ensure you have adequate health insurance.
It protects you from high medical costs and ensures financial stability.
Regular Review:
Review your investments every six months.
Adjust your portfolio based on performance and changes in your financial situation.
Final Insights
Starting early with a disciplined savings and investment plan is crucial. By following this strategy, you can achieve your short-term goal of saving for your marriage and also build a strong financial foundation for your future. Consistency, regular review, and professional guidance will help you stay on track and reach your financial goals.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
