Adhil Shetty, CEO, BankBazaar replies, Planning ahead and saving for the future to fulfil your dreams is very responsible of you. Before you start saving, you need to calculate how much money you would require and by when. One way to do this would be to see how much your trip costs currently and calculate the future expense assuming prices increase by 6-8% every year. You may want to use a compound interest calculator available online.
Once you get an idea, you can start investing. It is definitely possible and a good strategy to invest your monthly allowance in mutual funds. Mutual funds are a less risky way to invest compared to investing in stocks. This is because in this case, you invest in a bundle of shares from different companies and sectors as opposed to individual shares. So, if the shares of one company performs badly, your investment will be still shielded by the other shares in your portfolio.
You can invest in large-cap funds or bluechip funds which will invest a larger proportion of your and other subscribers’ money in big, well-established, and financially sound companies. You could consider funds like Canara Robeco Blue Chip Equity Fund, Axis Bluechip Fund, or Mirae Asset Large Cap Fund, etc. As you are not yet 18, you will need your parents to manage your MF account for you. You will be the sole account holder represented by your parents. Once you turn 18, your parents will have to change your status as an adult, and you can take over managing your account yourself.
I’m a retired senior citizen. I bought 2,500 shares of Electrosteel in 2018. I was out of India for around two and a half years and during this time, this share got delisted. The number of shares got reduced from 2,500 to 50. Is there any way I can recover some money from this?
Vikash Jain Co-founder, Share Samadhan Pvt Ltd replies, Electrosteel Steels Ltd was declared insolvent and a restructuring plan was approved by NCLT, Kolkata in 2017. As per the plan, equity capital was reduced by 98% in 2018. Thus your 2,500 shares were reduced by 98% to 50 shares. Further Vedanta Ltd had offered to buy the shares at the rate of Rs 0.19 per share in the delisting offer. But now as the delisting offer is also not available, you cannot recover any money from your
