provided fund vs mutual fund

#1
Hello forum, this is shahid/m/35... A central govt employee under old pension scheme. I want to invest around 10,000 pm in mf through sip for long term not less than 10 yrs, and 7000 pm in vpf, apart from regular pf..the purpose of vpf is tax saving with guaranteed returns. Now, returns + tax saving through vpf is better or should i invest all money in mf? Please help. Also, please tell me how much return/ cagr i should expect in 15 years. Thanks a lot.:)
 

Mr.G

Well-Known Member
#2
Hello forum, this is shahid/m/35... A central govt employee under old pension scheme. I want to invest around 10,000 pm in mf through sip for long term not less than 10 yrs, and 7000 pm in vpf, apart from regular pf..the purpose of vpf is tax saving with guaranteed returns. Now, returns + tax saving through vpf is better or should i invest all money in mf? Please help. Also, please tell me how much return/ cagr i should expect in 15 years. Thanks a lot.:)
Max out your PF and VPF before investing in the market.
 
#3
If you can afford to take a little risk, go for a 50:50 ratio between your PF and Mutual Fund (ELSS). Worst case, the ELSS should give same returns as your PF, and in good scenario they may give double your pf returns over 10-15 years period.
 

Mr.G

Well-Known Member
#4
If you can afford to take a little risk, go for a 50:50 ratio between your PF and Mutual Fund (ELSS). Worst case, the ELSS should give same returns as your PF, and in good scenario they may give double your pf returns over 10-15 years period.
The basics of asset allocation states, To build a fixed-income base BEFORE investing any amount in equity. It would be foolish to expose oneself to risk if there is (luckily) a fixed income vehicle yielding such a high return. :thumb:

My suggestion stands to invest in equity only after he has maxed out PF.