Mistakes that can prove costly in the long run

Publication details: Money Manager – CNBC Bajar – 14-07-2015

Responses, opinion and view from Kartik Jhaveri.

Question sent by Sugnesh Barad :-

My age is 25 years. I want to invest Rs. 2,500 p.m. So please advice me as to which is the best insurance policy, SBI wealth or any LIC policy, that gives more tax and TDS benefits with maximum return in 20 years.

Please suggest any other investment option for a time horizon of 15 to 20 years.

Advice given:

1. It is not at all a good idea to do investment in insurance policies.
2. If you want to take advantage of tax free return and avoid TDS, then equity mutual fund would be a better option.
3. Assuming if you are investing Rs. 2,500 p.m. in a mutual fund expecting 14% for 20 years, your corpus value will be approximately Rs. 30 lakhs.