Hi Pankaj I am a salried employee 25yrs of age, my mothly income is 36,000 rs. I have shortlisted the following funds to start an SIP for TAX Savings they provide. 1. HDFC Long Term Advantage- 2000 per month 2. Canara Robeco Tax Saver- 2000 per month 3. Fidelity Tax Advantage- 2000 per month 4. ICICI pru tax saver- 1500 per month Is my current strategy correct i want to invest 90,000 per year in tax saving mutual funds and 10,000 in LIC Thank you for your time
1 Answers
All funds selected by you are good, you may continue investing in them through SIP.
If you start SIP now, you will have max 60,000 (7500*8 months) invested by March. So it will be short by 30,000 as per your plan.
Moreover, tax saving mutual fund are not eligible for tax benefit from next year (Starting April, 2012) so don't start SIP which continues even after March 2012.
Also please don't invest in LIC for investment, Insurance is meant to cover risk of your life and not to fetch you returns.
Rather buy a term insurance which does not provide any return but covers for a good amount for a low premium. At your age, you can get term insurance policy of around 50 lacs for less than 10,000 per year.
You may choose LIC Amulya Jeevan, if you want to buy only LIC policy, else you can buy ICICI iProtect plan online.
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