How much amount does one can invest?
It depends on one's financial position and income.
for example, if your income is
- less than Rs.2 lacs - 10% of income
- between Rs.2 lacs - Rs. 5 lacs - 15% to 25% of income
- above Rs. 5lacs - 25% - 40% of income
In what combination you can invest?
once again lets have a look at requirements,
Illustration:
lets take the case of a working couple with two kids. Living a comfortable life.But they need to plan for the future and invest their earnings wisely to take care of future expenses. In next 4 to 5yrs children will be ready for schooling, after 15 -17yrs children want to go for higher education family might need a bigger house, there might be some major illness in family etc.
All these expenses will have to be met and income may not increase in propotion to expenses. So this couple need to estimate their income flow & visualize their expenses. An investment plan will help.
Illustration -2 :
After retirement if u want Rs.10,000/m amount coming to you, then
10,000 * 12(months) = 1,20,000/yr is needed
to get 1,20,000/yr at 5% interest rate, you need to accumulate Rs. 24,00,000
................................................................................................................................................
Above two illustrations give a clear requirement of things. Firstly, we need to take appropriate insurance for self & family. For short term of 3-5yrs of investment ELSS will help. For long term(15-20ys) of investments ULIP will be helpful.
Finally, i would like to say that one would choose the investment vehicles according to one's needs.
For any further info you may contact at : Incometowealth@gmail.com
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