First of all, I would like to define what do I mean by the word "Savings".
In plain english and simpler terms, Savings means money saved or left with us after taken care of
living expenses, bill payments, taxes, loan installment payments and any other important outgos from earnings.
I have allocated my savings amount in following proportion:
1. Bank accounts...15%
2. Tax Savings Mutual Funds (Lock-in 3 years)...20%
3. Public Provident Fund (P.P.F.)...25%
4. Diversified Equity Mutual Funds...10%
5. Fixed Deposits Lock-in 1year)...10%
6. ULIP (Unit Linked Insurance Plan)...10%
7. Immediate Money (Cash for urgency, Physical Gold etc.)...10%
My Investment Strategy:
Identify top 5 (consistent over last 3 years) mutual funds in each category mentioned above and spread money across them in given percentage values respectively to minimise risks even further. Then Invest Fixed Deposit money in top 3 national banks giving good FD (fixed deposit) returns for last 5 yrs.
I would like to share my personal experience with you all:
Always Keep in mind one thing: "Try and Learn to save at least 5 to 10% of your earnings each year."
If you really like this article, please visit my blog and provide your valuable comments on this article.
This same article was already published on my blog in April 2008 and this was the first article that I published on my blog.
Disclaimer:
No one can claim us responsible for any investment failures/losses based on the ideas OR opinions OR suggestions mentioned here. Please consult Financial Advisor and/or Financial Experts first before taking any investment decision and/or investing money. The information on this blog might be in-accurate OR outdated.
Author: Krunal Shimpi
This article is a blog Entry on my blog: http://kruns.blogspot.com
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