My son wants to invest in mutual fund. Kindly suggest the best mutual fund scheme to invest. currently my son is working in IT firm in chennai. He has current investment in PPF 3rd year running with corpus of 3 Lakhs, Lic Jeevan Anand policy monthly premium. (15 years 10 Lakhs).personal mediclaim with yearly premium 30000 includes self and parents. No term insurance so far. Home loan pending to be paid 8 Lakhs with a monthly emi of 18000. Monthly income 1 lakh. Monthly I can spare 30000rupees for new investment. kindly suggest best mutual fund option with tax benefit. Plan to close the housing loan in next 2 years and any other invest options Regards Janakiraman
Before going for investment, advice your son to buy an online term insurance to the tune of around 15-20 times of yearly income. Let him create an emergency fund of around 6-12 months household expenses. Advice him to buy an accidental insurance. Once these basics are set, then think of investment. Regarding mutual fund investments, you have not specified any time limit. Hence, it is hard for me to guide you. Please let me know the same.
In that case, invest 40% in short-term or ultra short-term debt funds (Franklin India Low Duration or HDFC PSU Banking) and rest 60% in one large cap fund (Franklin India bluechip or ICICI Bluechip Fund) and small and mid-cap fund like (HDFC Midcap Opp Fund or Franklin India Prima Fund).