My nephew who has just joined as a trainee was sent by his parents to learn about how to save some money.

I am one of those lazy people who invest based on priorities instead of disciplined investing. However, it was a requirement that I share my limited knowledge and explain to him about the importance and how as one ages and looks around, it seems that the bus has gone past. Trusting people to invest on one’s behalf but not verifying it would lead to practically no returns.

Given the fact that he is just 23 years old, lives with his parents and can afford Rs. 5000/- as monthly investment to begin with, I considered the following factors as important 1) Amount 5000 2) Convenience – Mobile 3) Safety and returns. 4) Time frame of 3-5 years.

So we began to search around, soon Apps, websites, advantage, funds, names were flying around. So he came up with wanting to directly invest via a known name instead of broker. Whilst going thru the search, there seem to be plethora of Apps but a couple of people did mention trying out ICICI Pru Balanced Advantage Fund which seemed to be quite good, mostly as good as others. So did read up here and whilst did not understand the complete picture (or too much to take in at one go ) it seemed to be a good option.

Spoke to a friend who sent some material over which was simple to understand.

Equity is volatile in the short term and if you are too impatient then it is not for you. And the balanced advantage fund apparently factors that in – buy when valuations are low and sell when valuation are high; ensuring my fear and greed is under control.

Some other points that made sense to me was – Minimum Rs. 5000/- (yes I know most others also have same or lower) to begin with and bench mark was against CRISIL Balanced Fund – Aggressive Index. A commitment of Rs 3 lacs over 30 months is what I am pegging it here.

Disclaimer: I am not an expert and do not advise, but am sharing my POV and how I also learnt a bit. I understand that there may be different funds offering the same or better returns, however currently we have settled on this.

Standard Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully

Written by AD
ex waiter, angadia, travel agent, dotcomer, dukaandaar, marketeer, people watcher. appreciates single malt, food, friends