I save Rs 4500(USD 100)/month, I would like to know where should I invest this money regularly for retirement?

I would like to invest regularly for my future, I am a salaried person and will retire at the age of 60yrs. Kindly advise me to invest where there is maximum return and moderate risk.

Before answering this question, a few things more need to be ascertained -

1. What is your age right now?
2. Are you married? - if yes then do you have kids (and their ages) and if not married then when do you intend to.
3. Do you own the house that you stay in or are you staying in rented accomodation?

Since the above information is not available, I will try to give a general reply.

1. First and fore most is to have life insurance. That is the most important things and you should have a life insurance policy where the insurance cover is at least 4 times your current annual income. Since you are a salaried person I am assuming that you already have it and this money is surplus after that.

2. Assuming that you are at least 15 years away from retirement, you should put 1000 - 1500 out of this surplus income every month into the Systematic Investment Plan of a good equity mutual fund. If you are under the age of 30 then this can even be 2000-2500 rupees per month. You should choose a well diversified mutual fund having a good track record and - most importantly - invest every month regularly (through an ECS mechanism on your bank account) and for the next 10 - 15 years. Donot even think of putting money into the stock market directly through a broker at the current savings level. Rather stick to a good mutual fund and do monthly SIP. While doing this donot be swayed by the rise and fall of the stock market just keep investing regularly every month. That is what will build wealth in the long term for you. In the long term equities will give you the best return.

3. If you donot own the house that you live in then you should look to purchase a house by taking a home loan. The savings on rental that you will make, the tax benefits and this surplus income (over and above what is invested in point 2 above) will allow you to service the EMI of the home loan and after some time you will have an owned house of your own. That will give you the best security for a retired life. If you already own a house then you can even increase your contribution to SIP mentioned in point 2 to 2500 per month.

4. What is left after points 2 and 3 should be kept in FDs with banks. You can open a recurring deposit and look for the best rate of interest. That will help you to meet your cash requirements when you have them. You can even invest in a debt mutual fund scheme which gives a decent return and the good part is that there is no tax if invested for one year - unlike FDs.

I think you must invest your money at (ICICI) bank because its work is going god

If you are in your 30's why not earn more with Investing in
a SIP plan into Mutual funds (Why not start today with the currently in Offer: DSP Merrill Lynch SMALL & MID CAP FUND)-you can slowly built a multi-Manager multi Sector portfolio as your money and saving grows.

Hello,

Glad to help you out. You have several options. You could go the popular route and buy small to mid cap stock in companies from the developed world, like Western Europe, Canada, and the United States. You might want to consider investing in mutual funds. There are mutual funds for all kinds of tastes, including "Sin" funds made up of companies that profit from gambling, the sex industry, etc to mutual funds with high risk, high potential for return. Look around, you'll find one that fits your situation.

Another option, one I'm currently exploring is the developing world. Placed like Brazil and China are growing rapidly. Chinese companies have great potential for return.

If you do decide to go with China, I would stick with manufacturing and internet companies like Baidu or SINA.

Graciously
The Investing Sensei
http://www.investingsensei.blogspot.com

If you have any other questions, comments, or concerns you can contact me at:

My Site: http://investingsensei.blogspot.com
Email: investingsensei@yahoo.com

Some of the funds that I have seen being invested as a Systematic Investment Plan are:

Franklin Flexicap - Dividend (reinvested)
HDFC Equity - Dividend (reinvested)
HSBC Equity - Dividend (reinvested)
Reliance Vision - Dividend (reinvested)
SBI Magnum Contrafund - Dividend (reinvested)
Templeton India Growth - Dividend (reinvested)

The best Income fund is

JM Arbitrage Advantage Fund - Growth

You could find detailed plan as to how to invest regularly in these funds and make a CRORE rupees out of a monthly investment of Rs 5000 at ttp://in.groups.yahoo.com/group/MAKING_A...

invest in sip( systematic investment plan ) in diversified equity scheme of a mutual fund

the best option for you for moderat risk plus good return profile is to invest in a market link insurance pension plan. it gives a good return after your retirement and you also get life risk cover which no other investment instrument gives to you. as far as i know best pension plan in market is icici pension plan. if you want more details on it you can contact me any time.