Family: Anurag Bose, 35, and Anusuya Bose, 34
Profession: Administrative in-charge at private firm and education consultant, respectively
Income: Rs 7.2 lakh p.a.
Aspiration: “I want to save enough to be able to afford a good education for my 6-year-old daughter.”
Planning and budgeting are two buzzwords in the Bose household.
Anurag Bose prefers making regular and systematic savings to secure their future. “I believe in making regular, albeit small, savings, so that we get safe returns in future,” says Bose, administrative in-charge at a private limited company.
The economic downturn and the profusion of hard luck stories in the media as well as in his social circle has made him all the more determined to ensure safe returns for his family. “I also invest in my daughter’s name to ensure a good education for her,” he says.
The couple has recently bought a flat in a Delhi suburb and will have to pay regular EMIs over the next 20 years. They know this will affect their regular savings pattern and are exploring other options for safe returns on their modest savings.
“I am often advised to invest in stocks for quicker and better returns, but the uncertainty scares me,” says Bose.
However, the question that often haunts them is: will their savings be enough to fund their daughter’s
professional education in a good university?
Your investments are skewed towards long-term debt. So, it may be a good idea to get some exposure to equity.
Historically, equities have generated the best returns over the long term. However, since you’re wary of the stock market, I would suggest you to invest in mutual funds that invest in large cap companies. In this regard, index funds that invest in the 30 companies that form the BSE Sensex or the 50 that form the Nifty, are ideal. You can also invest in balanced funds.
“Invest through systematic investment plans. Investment in balanced funds limits your risk as they can invest up to 35 per cent of their corpus in debt products,” says Surya Bhartia, a Delhi-based financial planner.
Advice by Sandeep Singh