20% of monthly income should be invested regularly for better future.
100-age shold be invested in Assets Class like Equities/Real Estate
Mutula Fund/ULIP investment is safe as compare to direct shares.
Mutual Fund
Growth Fund 80-100% Equity Exposure For age below 40 years
Balanced Fund 40-50% Equity Exposure For age between 40-60.
Secured Fund 15-25% Equity Exposure For age over then 60
Growth Fund
Front Cap Fund Investment in top 100 Companies For 1-2 year time span
Mid Cap Fund Investment in top 200 Companies For 2-3 year time horizon
Small Cap Fund Investment in top 500 Companies for 3-5 year time horizon
ULIP/ELSSis safe way to invest in marked and they also giesTax SAVING and INSURANCE
Past Performances as on Dec 06
Plan/Fund
Type of Fund
Inception Date
Inception Rate
Current Rate
Returns in %
Since Inception
Last 1 year
Sensex
Indian Index
1979
100
13500
20
50
Franklin Blue-chip
Front Cap
1993
10
138
23
38
Reliance Growth
Mid Cap
1995
10
250
35
60
SBI Mag Tax Grain
Div. Tax Saver
1994
10
57
25
60
LIC Bima Plus
ULIP
2001
10
32
25
35
Indian Stock Market has maintain a good historical return of 20% in last 25 years even our GDP was below 5% and inflation was above 7%
Right now we have more then 8% GDP and less then 5% inflation plus stron infrastructure Growth, BPO industry and FDI. Hence its assumed that Index May give aprox. 25% return in next years.
Its already prove that Mutual Funds are always gives better return then Market and Mid/Small Cap Funds can give more return then front-cap fund in long run.
