Thanks for your time and awesome work that you are putting for helping all of us, I am 25 year old sole bread earner for my family looking to invest 2 lakhs in lump sum and also want to start a sip to maintain a regular practice of investing, please suggest me the portfolio which will help me save taxes on lump sum and will give me good returns. I met a advisor who suggested me to invest lump sum in life time classic fund of ICICI Prudential for tax savings, is it a good option? And is there any loss investing through advisors compare to buying the funds directly on company websites?
Thanks for the kind words about our work !
First, let me tell you that the advisor you met has suggested you NOT a mutual fund but a ULIP (unit linked insurance plan) plan. Though it will give you tax rebate upto Rs 150,000 in a year on the premiums paid, under Section 80C, you may not get the desired returns as you would get from a tax saving mutual fund scheme.
I think, you should keep life insurance and investments separate. As you are young, you can take a term life cover - this will help you protect your life at a very affordable premium. And for wealth creation over long term period, you can bank on equity mutual funds as historically they have given the highest returns on investments.
Among equity mutual funds, you can invest in ELSS funds which will provide you tax rebate under Section 80C. Please check the returns of these funds here - https://www.advisorkhoj.com/mutual-funds.... Therefore, out of the Rs 2 Lakhs that you want to invest as lump sum, you may invest Rs 1.50 Lakhs in an ELSS Fund and the rest in a diversified equity fund. However, remember to keep minimum 5 years of investment horizon in mind to get the best returns from equity mutual fund investing. Read https://www.advisorkhoj.com/miraeasset/why-elss-tax-saving-mutual-funds-is-best-choice-for-tax-planning
With regards to SIPs, the same suggestion will apply. You can start a SIP in an ELSS fund, which will help you save taxes as well as accumulate long term wealth. Please read more on this https://www.advisorkhoj.com/crmf/elss-is-one-of-the-best-retirement-planning-investments-for-young-investors
Please check the SIP returns of ELSS mutual funds from here https://www.advisorkhoj.com/mutual-funds...
Hope the above is helpful.
You can buy funds directly from the mutual fund company website only if you can service your investments yourself. Otherwise, you should go with a mutual fund advisor who will help you making your mutual fund KYC, investing in mutual funds and servicing your investments as well.
Thanks for writing to Advisorkhoj!