I want to invest Rs 5000 monthly. Where can I invest?

Here are some suggestions on where to invest:

1. Invest only in Direct Plans of Mutual Funds. At 0% commission it is a great deal. The 1.5% commission per year (incurred daily) adds upto 40% of TOTAL investment.
2. Investment in funds that map to an objective and horizon based on your risk appetite.
   1. As a youngster, an open ended objective (to build wealth) is also fine.
   2. If you are willing to take higher risk go for a combination of multicap, mid cap or small cap funds. Use a risk profiler that helps recommend which funds to invest based on the risk profile. You can get a risk profile done here.
3. Target a goal, e.g.: financially free by age 40 (possible, if you invest 40%-50% of your earnings).

Here is an illustration of ₹ 5k investment per month can get you about ₹ 75 lakhs over 20 years (assuming 15% return). That is the power of compounding.