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Topic : Financial Goals $$...
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Started by : Sonali Sarkar, Trading Advisor, American Express   05 03 2010 13:09:06 +0000
Industry : BankingFunctional Area : Financial Goals(Others)
Activity:  132 views;  last activity : 10 13 2010 07:58:58 +0000


Investing small amounts can be done very easy. Most people think they need a great capital to start investing and often don't understand why they should invest. They consider investing as a financial instrument which can only grow if you spend a large amount in the stock market.


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It is true that rich people can easier invest money because they can afford to set more money aside for several years without struggling to pay their bills. Investing is nowadays a necessity because everyone needs to save for a secure future and for some long-term goals.

So, how to go for investments in small amounts??

 
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1 2 3 4 5
1 Investing in mutual funds through systematic investment plans
2 Equity - Blue Chip Cash - Strictly
3 SIP
4 yes it is good investing in mutual funds
5 SIP
6 ANY PENSION SCHEMES WITH REASONABLE RETURNS
7 Open a Recurring Depoist as a safe saving (either in Post office or Bank)

Investing in mutual funds through systematic investment plans

idea posted by Sonali Sarkar Trading Advisor, American Express

A savings account is the best start to invest your money but you will likely reach higher returns with money you don't need immediately. It is possible to invest small amounts of money in these plans and it is maybe best to consider investing every month a same amount. This system of investing has the benefit that you don't buy always on peak prices and often reach the higher returns than you spend a large  amount of money at once. Systematic investing will reduce your average cost of investing.

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An important issue is the risk you want to take and it is often wise to invest in balanced mutual funds (mutual funds which invest for 50% in shares and 50% in bonds). If you come near to the age of retirement you can limit the risk and switch them in mutual funds which invest for a higher percentile in bonds.

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by sivaramaprasad , Financial Accountant slb  | 07 07 2010 10:58:19 +0000

Yes there is opportunity to invest in very small amount as already stated minimum Rs. 100 on monthly basis. only issue is which fund you invest. if the person is risk averse he can pick Recurring deposits also. But Mutual fund is the best option for better return and fighting the inflation.

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by T N Jaikumar, Manager - AGMO: T Nagar, Chennai 600017  | 05 11 2010 02:40:33 +0000

No doubt, MF SIPs are the best.  But here also, one should not choose a singe Fund or two or three funds.  Several MFs should be selected and several variety of funds and categories and choosing different options like Dividend Payout, Dividend Reinvestment and Growth will also help. A SIP can be started for as little as Rs.100 to Rs.500.

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by Vipin Bhasin, Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.  | 05 09 2010 08:31:37 +0000

Sonali you are right if a person has not knowledge to equity market then he /she can opt for investing in MF SIPs although in both of cases we invest as a small amount for investment for short to long term...........

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Equity - Blue Chip Cash - Strictly

idea posted by Jyoti CHETANI Freelancer, Equity Research/Analytics

How can a mutual fund grow without the growth of equity.

Did mutual fund guarantee for the capital? Never !

Mutual fund manager are licensed dacoits for retailers to fill there own salary pockets from the retailer`s money.

If small inveters invest in Blue Chips definately can earn tax free returns for long terms.

Mutual funds only help in tax saving tool u/s 80 C.

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by sivaramaprasad , Financial Accountant slb  | 07 07 2010 11:01:10 +0000

Not a bad idea, but investing in blue chip is not guarantee the return. If a blue chip falls 10% it does not mean that Mutual fund investment will fall by the percentage. Only the mutual fund which invested in that blue chip stock will fall that too because of diversification the overall effect will be minimized. Example : Satyam computer, once upon a blue chip company.

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idea posted by Swapan Kumar Gorai Head/VP/GM-Finance/Audit, Foster Wheeler Bengal Pvt Ltd

Systemic Investment with any reputed Mutual Fund house has the potential of excellant return with relatively low risk as compared to investment in equity stock

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by SHRIKANT MANOHAR DANKE, Zonal Manager / Sr. Project Manager ( Civil Engineering), Kumar Properties  | 09 29 2010 09:48:23 +0000

This is good option in current situation.

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yes it is good investing in mutual funds

idea posted by sanjay kumar mangal IT , TATA Group Co.

yes it is good investing in mutual funds. it gives good returns and less risk is involved. there is more risk and more gain in stocks comparing to mf.

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by Lalit Saren, Cluster Head, Reliance Money  | 05 07 2010 09:44:33 +0000

That's true investing in mutual fund by monthly or quarterly is a good excersice even you can average money cost will come very easy which you can not get in saving A/C if you will see the last 05 year data in SIP/FMP etc instruments for investments you will find lot of confidence gain on investment in mutual fund. 

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idea posted by suresh asher Agency Associate, Max New York Life

The best way of "small amount" of money investment is in MUTUAL FUND through SIP. On a long term it gives you good return. which can take care of children education, medical expencses and personal retirement also.

To take more benefit one can think for ULIP also because in child ulip plan in the event of death of father, child education is secured. so ULIP is also one solution.

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ANY PENSION SCHEMES WITH REASONABLE RETURNS

idea posted by kasturirangan.r INSURANCE ADVISOR, Life Insurance Corporation Of India

BANK LONG TERM 10 YEAR RECURRING DEPOSIT SCHEMES,PUBLIC PROVIDENT FUND RUN BY POSTAL DEPT;HDFC BANK IN THE PRIVATE SECTOR;KVP FOR NON TAX PAYERS

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Open a Recurring Depoist as a safe saving (either in Post office or Bank)

idea posted by Apeksha IT/Technical Editor,

If you are looking at a safe return of your investment, invest that portion of your salary not spent ( everymonth) by opening a recurring depoist account in bank or post office for leser duration ( 3years or 5 years (6yrs in po)). On maturity take the principal amount and reinvest that, take out that interest and open a term depoist for lesser duration. That is how you rotate your money.

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