Long-term goals (More than 7 years)
Longer horizon allows investments in volatile but lucrative options.
Child’s marriage
Though this is a crucial goal, the long time available for growth allows you to take calculated risks. Stock investments will yield handsome returns over the long term. But equity is also a risky asset class and it is best to let an expert fund manager do the job of stock picking for you.
Where to invest: Invest in diversified equity funds through a monthly SIP. If you can’t stomach the risk, go for balanced funds that invest in stocks and debt. Want to buy gold? Buy 1 gold ETF unit every month. In 20 years you would accumulate 24 tolas of gold for your little one’s marriage.
Retirement
Retirement is everybody’s most important yet often ignored goal. If you have more than 8-10 years to retire, you cannot afford to avoid equities in your superannuation portfolio. While your Provident Fund and PPF provide the safety of debt, you should supplement that with equity investment.
Where to invest: Buy diversified equity funds which have performed consistently over the long term. You can also go for equity-oriented balanced funds if you are not comfortable with a large equity exposure.
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