Want to invest in mutual funds but don’t know how to go about it?

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Get all your mutual fund related queries answered by our expert, Sharad Singh, chief executive officer and founder, Invezta.com, on our show Mutual Fund Corner.

Q: 48-year-old V Sankar writes us from Andhra Pradesh. I have a house and savings of Rs 8 lakh in Public Provident Fund (PPF) and no other savings. Following are my requirements and I can save up to Rs 30,000 per month. Kindly suggest whether I should invest in stocks or mutual funds.

Daughter's marriage (Seven years from now) – Rs 25 lakh.

Son's education (Three years from now) - Rs 10 lakh.

Planning my retirement (12 years from now) – Rs 20,000 per month.

A: You finances needed more detailed review and rearranging. For daughter’s marriage, invest Rs 7,000 in Aditya Birla Frontline Equity, Rs 4,000 in Franklin Prima and Rs 10,000 in Kotak Savings Fund and see if this can be partially funded with PPF loan.

For son’s education, invest Rs 7,500 in SBI BlueChip, Rs 10,000 in Kotak Savings Fund (erstwhile Kotak Treasury Adv fund) and Rs 7,500 in SBI Magnum Gilt Fund.

For retirement, you would need assets under management (AUM) of around Rs 80 lakh (to serve you for 30 years) and need to save Rs 25-30,000 per month. For this, invest Rs 15,000 in SBI BlueChip, Rs 7,500 in Franklin Prima and Rs 7,500 in L&T Mid Cap. This can be funded from after three years, when son’s education is completed. You need to prioritize goals as per investment amount available.

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