Growth Investing Basics: How to invest my money for growth with securityInterested in Growth Investing basics. I want to invest my money for growth. Please suggest me where can I invest my money (with security)? I am working in an MNC in India, salary 15,000 per month. I am guessing you are someone in the initial years of your career. And am glad that you are asking these questions now. There is nothing like starting early, in your investing life and use the power of compounding to your advantage. Next, you can invest in a mix of the following growth investing strategies, depending on your return requirements and risk tolerance, as indicated below. Invest only those funds that you do not need. Get in the habit of saving 30-35% of your salary regularly. Create an emergency fund, roughly equal to 4-6 months of regular monthly expenses. Once this is covered, you may have funds that you will not need say for next 3-5 years for regular or emergency expenses. Use these funds to invest wisely. You need to remain invested for the long term, since you want capital growth. Conservative Risk Profile (you seem to be of this type; someone who wants his principle to be secure and is looking for a decent growth over the long term) 1. PPF (Public Provident Fund) - account can be opened with any State Bank of India branch, or at the Post Office. This currently gives you a compounded 8% return per year, is currently tax free, and is the safest instrument available. Invest 50% of funds you can spare in that. 2. A Balanced mutual fund like HDFC Prudence Fund - This Mutual Fund invests in both equity (65%) and debt (35%) instruments. This is one of the safest funds with a great track record of over 14 years, and has been giving a compounding return of around 20-25% per year. This fund has one important virtue: it manages to lose less than the category average in periods of downside. Couple this with its tendency to top charts & you get a safe & sure fund in HDFC Prudence. Invest 30% of the funds in HDPC Prudence. Check out HDFC Prudence fund performance at ValueResearchOnline. 3. Equity Diversified MF - like SBI Magnum Contra, Reliance Growth. These are funds having a very good long term record in delivering great returns with low to average risk. They have figured among the top fund ratings for a very long time. Invest the balance 20% in funds like these. Check out more on the Recommendations for other risk profiles Moderate: (someone who can take a little more risk with some of his money) Aggressive: (someone who can take higher risks with some of his money)
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