12 Replies to “I am having Rs.16000/- where to invest and why?”

  1. Congratulations on deciding to invest your hard earned money and for thinking of making your money work for you.

    Before you go ahead and invest your money, you should define what is your objective for the investment and what type of risk – return parameter do you expect.

    When I refer objective, what I mean are:

    a. What do you expect out of your investment?
    b. What is your time span for investment?
    c. What happens if you loose a part of the money? How much are you ready to forgo for the possibility of getting higher returns.

    Please note that there is always a risk – return trade off. When you want to get higher returns, you will have to take higher risks, meaning that there is equally a possibility of loosing a part of the capital.

    Further, strictly PPF and Mutual Funds are not comparable. I assume that you are talking about equity mutual fund schemes when you refer mutual funds. PPF comes under the ‘debt’ asset class, wherein you get fixed returns for your investments while Mutual Funds are ‘market returns’ and you get returns based on the stocks in which the scheme you have invested in has invested.

    Further, these two are not comparable because PPF is a long term, locked in investment while generally mutual fund is a liquid investment. By this I mean that when you invest in PPF, encashment of the money can not be done at your requirements, but you will have to wait for the term to get over.However, generally in a mutual fund scheme which is open ended, if you decide to withdraw money you can do so at any time.

    Assuming you have decided to invest for a long term, which I mean 5 years and above, and you are willing to take the ‘volatility’ in the markets which will make your investment value move up and down, Mutual Fund will be ideal as over a longer periods like 5 years, historically, equities have outperformed debt investments.

    Happy investing

    Fundu Vishy – Your ‘Mutual’ Friend
    Follow me on twitter @funduvishy
    I blog @ http://blog.powermf.com

  2. To whom it may concern,

    I highly recommend doing your own research and due diligence. Investing is not for the uneducated! It’s a serious business that takes time and knowledge, knowledge that is not acquired overnight or through a forum. The knowledge I am talking about is shown in The Holy Bible, King James Verison. always seek after The Lord and Savior Jesus Christ and God The Father and put them first in your life and then you will understand what it is that you need to know.

  3. It really depends on what u want to achieve with that investment. Want big and not mind taking risks, go For Gold ETF, and if u want to secure the money and not want to risk too much, choose a right Mutual Fund with a proven track records. Who knows?… they may even get you high value for your money

    Good luck.

  4. You may split your fund in 4 part. your investment are following
    1. PPF
    2. Life insurance
    3. Mutual fund
    4. Direct share market

    PPF : gives you stable secure pre calculate return.

    Life insurance : give stable return and after death benefit to your family

    Mutual fund : give you return profit or some time loss (very few) for long time investment. it depend on share market but you need not know every thing of share market.

    Direct share market: give high profit or high loss in a short period. You must have some basic knowledge and regular updates. It may increase your amount highly in very short time.

    First you decided your risk taking ability. If you take high risk your fund growth or loss is high. If you take low risk your fund growth or loss is low.

    PPFLife Mutual Share Risk factor

    My suggestion, invest in all 4 fund above said according your risk ability. It balances your risk factor.

    Best of luck,

  5. To answer your question and give you the right advice, the following information is a must:

    1. what is your investment horizon: how long you want to invest will determine where should you investment. Without this, whatever info anyone is giving you is incorrect

    2. what is your investment goal and risk profile
    you want to invest for some necessity or added comfort
    can you take risk or want safety of capital

    Remember high returns require taking high risk
    if you cant takerisk, returns will be less

    So this will help in answering your question.

    Generally, if you are fairly young, don’t need that money for next 3-5 years, he best place to invest will be in Equity (Share) Market.
    – either directly
    – or through mutual funds

    You can invest in a tax saving mutual fund scheme, which will exempt tx under setion 80 C, just like what ppf does.

    If you need the right advice or more info, you may consider sending an email to: [email protected] and an investmen expert can help you with making investment.

    For investment basics or to answer your qustion, you can also check this link:

  6. Hi It really make difference at what age the person is ? if he is young no douth to invest in direct market for long term basis, only because market will show good positive sign in couple of month time. And side by take mutual fund on SIP scheme to be secure.

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