Investment Advise

Hi Pankaj,

I need some guideline regarding the investments. I m 30 yrs old & have a daughter of 6 months old & housewife. Parents are not dependent on me.

My salary is @ 38Kpm. I pay 12K home EMI. I have invested in ULIP with premium 25K/year in year 2008 {still paying premium :) }, @60000 in mutual fund (ELSS, balanced & diversified) till date. LIC term policy of 25lacs. @50k in stocks (not going well). 3 (2 policy for wife) policies of LIC, where premium is roughly 4K per month. I m planning to buy a car @5lacs in Divali2011

How should I go further keeping in mind daughter's education.

Thanks, Shirish Umadi

asked Mar 01 '11 at 08:45 by shirish 1112

  1. If three years have finished for ULIP, stop paying to ULIP.
  2. Buy an additional term insurance for sum assured atleast equal to 50 lakhs, for 30-35 year policy term. You may choose LIC Amulya Jeevan or ICICI iProtect. If your wife is also working, get a term insurance for her too. If possible stop paying towards her LIC policy which is taking 4K pm.
  3. Buy family floater medical insurance for your family for atleast 3-4 lakhs sum assured. You may choose from Apollo Munich, Max Bupa or Star Health for the same.
  4. Get personal accident and disability, critical illness insurance for yourself.
  5. Get insurance for your home and all electronics and costly items purchased.
  6. For buying car around Diwali, investment period is less than a year, so I would advise you to invest all remaining savings into FMP (Fixed Maturity plans) mutual funds for around 6 months. They would give similar returns like fixed deposits and amount will be safe also.
  7. Once car is purchased, you can create your portfolio like this:
    MIP (Monthly income plans) mutual funds + Post Office Monthly Income Scheme + PPF - 20%
    Liquid (Fixed Deposits + Liquid Mutual Funds + Fixed maturity plans) - 10%
    Gold and other metals - 10%
    Equity MF + Stocks - 60%

answered Mar 01 '11 at 13:30 by Pankaj Batra 5.2k320

Hello Pankaj, Thanks for your valuable answere. I would like to discuss more on this. ULIP,I would like to continue to invest for total 5 years since it is giving more returns. I have medical insurance for my family for 2 lac's. Home-loan left only 3 lac's, do you think I should go for insurance. Could you please suggest me some good FMP & some good equity mutual funds. Also I would like to know how to secure my child's future.
(Mar 02 '11 at 05:03) shirish
Fine with ULIP, but note that they may not be accepted for tax exemption after April, 2012. Once insurance portability arrives (from July 2011), you may get a better medical insurance for more sum assured. I was saying about Home insurance and not the home loan insurance. FMPs are closed ended MFs and new NFO are launched on daily basis. You may pick from any good company. Good equity MFs are Birla Sunlife Frontline equity fund, HDFC Top 200 Fund, DSP Backrock Top 100 fund and Reliance Regular Savings – Equity. If you create portfolio as in 7th point, child future will be safe.
(Mar 02 '11 at 08:32) Pankaj Batra

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Asked: Mar 01 '11 at 08:45

Seen: 3,430 times

Last updated: Mar 02 '11 at 08:32