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

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Financial goals are an integral part of investing money into various schemes. Setting aside a life or financial goal can often be motivational for higher investments. 

A call to Zee Business mutual fund helpline came from a 28 year old investor who has started an SIP in six funds. His dream is to buy a house after a period of seven year and will continue with his investments after that.

For that he said he wanted a corpus of Rs 1 crore in seven years to achieve this goal.

“For a goal of Rs 1 crore in seven years he will have to invest close to Rs 80,000 per month, if we assume 12% as the rate of return, Shweta Jain, International Money Matters said.

She further added, “Buying a house shouldn’t be the only target the investor should look at. As Indians we concentrate on the goal of buying a house more than other life goals. But in that we cannot give the ‘compounding benefit’ to our investment. The longer you invest your money the higher benefits you receive.”
 
The investor was further advised to buy a few more large-cap funds.

ClearTax, tax solutions website described the goal of buying a house as a ‘non-negotiable goal’ for which ‘guaranteed-return investments would be a good choice,’ the tech savy tax advising company said.

“For a short-term goal, you should opt for a safer investment and use the return-generating potential of equities for long-term goals. Goals can also be negotiable and non-negotiable. For non-negotiable goals like children’s education or down payment for a house, guaranteed-return investments would be a good choice. But if the goal is negotiable, which means that it can be pushed back by a few months, then investing in equity mutual funds or stocks can be beneficial. Plus, if these investments do really well, then you can even meet the goal before time,” the report said.
 
Another query queued into the Zeebiz mutual fund portal wanted the answer to ‘guaranteed returns’ or ‘safe mutual funds’.

The investor was looking to invest Rs 5,000 to Rs 6,000 per month in a ‘safe’ mutual fund in a time period of at least 5-10 years. By ‘safe’, the investor explained he wanted nearly 10% return on his investment.
 
“If the investor wants a tax saving benefit as well he should look at investing in ELSS schemes,” Jain from International Money Matters replied.

“For a return on investment of at least 10%, investment in equity is not ‘safe’. There will be a three year lock-in period for these funds because of its tax saving aspect. If you want to look at ‘safe’ mutual funds then the investor should look at deck where you will not be able to avail 80C (tax) benefits),” she replied.
 
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