Disclaimer: This story is for informational purposes only and should not be taken as investment advice.

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When it comes to investments it is best to think of the whole exercise as storing food away for the winter just like animals do. In the Polar Regions where going outside to hunt seems almost impossible the animals have already stocked up on their nutrition needs for the winter months.

‘Should I invest in ELSS?’ or Equity Linked Savings Schemes is a popular question by new investors.

Advice solicited by a 32-year old working professional, who earned Rs 1.10 lakh per month, was exactly this.

The person had written into ET Mutual Funds queries and had a monthly savings of Rs 60,000 per month.

The individual had also invested in a number of Systematic Investment Plans (SIPs) ranging from Rs 3,600 to Rs 7,500 and wanted to start another SIP of Rs 10,000.

“Yes, you should definitely invest in ELSS or tax planning mutual fund schemes, based on two important parameters: your age and long-term investment horizon. Both these factors are on your side. It will help you to take more risk and seek higher returns. Risk always gets mitigated in the long term. ELSS may also give you better returns than PPF, that too with a lower lock-in period of three years. So, start investing in ELSS immediately,” was the response given by Rishabh Parakh, Chief Gardener and Founder Director, Money Plant Consulting.

A similar query was asked to Zee Business’ Mutual Fund Helpline on mutual fund investment.

Investment advice on long term savings by a 44-year old woman who wanted to save Rs 1 crore in 11 years.

The woman had already invested her money in nearly six to seven schemes.

“If you have Rs 1 crore as your goal you will need to put Rs 42,000 per month in investments. So that at least if you get 10% returns on investment you can reach your goal. The schemes that you have mentioned are quite good for a diversified portfolio. Although there aren’t too many schemes invested in,” said Shweta Jain, COO International Money Matters.

You may also want to watch: Know in which funds you should invest to achieve goal!

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