I will start my work this month. I want to save for my higher education abroad. I will go for higher studies after three or four years. How should I invest my income?
-Sumit Singh
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Best Offer :
Smartwatches,
Headphones,
Mobile,
Camera,
Computer,
Best Books
for Digital Media,
Business & Economics,
Subir Jha, founder of Buckspeak, a Hyderabad-based financial planning firm, replied:
Best Offer :
Smartwatches,
Headphones,
Mobile,
Camera,
Computer,
Best Books
for Digital Media,
Business & Economics,
If you are not in the higher tax-paying slab (taxation is less than 10% of your income), you should stick to recurring FDs. Do it for one year and then you can renew it for two-three years (assuming there is a good increase in rates or renew for only one year). We expect interest rates to rise from here (though no guarantees).
Best Offer :
Smartwatches,
Headphones,
Mobile,
Camera,
Computer,
Best Books
for Digital Media,
Business & Economics,
However, if your tax liability is going to exceed 10% of your income, you can invest 50% (in the above strategy) and 50% in FD debt fund: Kotak Corporate Bond Fund and IDFC Banking and PSU Fund.