7 Replies to “I have 1 lac rs which i can invest for 5 years, kindly suggest me?”

  1. the best options if your investment horizon is 5 years and risk appetite is medium to high is
    1. Mutual fund
    2. Ulip
    3. NPS(New pension scheme.

    Mutual fund: very good option and Fund management charges are 2.25% for equity funds and invested amount as well as returns are completely tax free if invested for 1 year +.

    ULIP: very good investment option only if invested for 4 years +. Fund managemnt charges for equity fund are upto 1.5 %. However beware of ULIP plans as most plans sold by the insurance agents have very high allocation charges in initial years.

    better opt for Bajaj Allianz I gain Policy as this is an insurance policy which can be bought directly from the company and no agents are involved. The agents commision portion is also passed on to the customer.

    NPS(New Pension scheme): this is an investment option comparable to mutual fund as well as ulips and this is the lowst cost option which has started last year. If you open an NPS account in financial year 2010-11 the there will be a contribution of Rs 1000 per year from government of india.
    Fund managemnt charges are 1000 times lower than mutual funds and ulips. there are 2 types of account tier1 and tier 2. Tier 1 account proceedings can be withdrawn only at the age of 60 but tier 2 account can be partially withdrawn anytime.
    However maturity proceedings at NPS investments are taxable




  2. Dear Rich,

    Invest back in source from you got this, in first place.
    Or
    give it to me [or part of it; even 10,000 is good to start with]. visit my website gondwana.co.in Come to my office or call me to your place. We are small company in power sector.

    Pradeep K Trivedi
    [email protected]



  3. It completely depends on your risk factor. If u can take risk then you can invest the whole amount into equity or u can spread the investment
    I think you should spread your investment to lower the risk.

    Example:
    50000 into Fixed Deposit
    30000 into Mutual Fund
    20000 into Equity(shares)

    It will lower your risk.


  4. what if u do not get this money in 5 years and if u hv to wait for another 2 years….are you ok?

    if ok, and if you are new for investing in shares, then

    1. Decide how much return you need.
    2. Invest now in short term debt funds
    3. wait for sensex to reach P/E 15. It may take a year or 2
    4. Identify a index fund from renowned AMC (eg: Franklin)
    5. Start SIP (for 12 months, equal value).
    6. Once complete, based on 1, decide at what NAV you should exit.
    (Watchout: consider tax implications and returns from debt fund already earned)
    7. When NAV reaches that level, encash





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