is TAX saving SIP can be converted in to Retirement plan.

Dear Sir, I am w'king profsnl and do not have much idea about investment, as i have been told by ma adviser that the sip which is going on as a tax saving can be converted in to retirement plan is that right? my sec question is that, i am investing in to following SIP,can you advise how to go ahead.

1- KOTAK MAHINDRA LIFE INSURANCE Effective from 25th April 2006 Premium Rs.14,889.00/yr
2- HDFC LIFE INSURANCE Policy Effective from 28th Feb 2005.Premium Rs.10,000.00/yr
3- LIC Jeevan Saral Effective from 18th Jan 2011.Premium SIP RS.2042.00X12
4- HDFC TAX SAVER Mutual Fund SIP Rs.2500/PM
5- CANARA ROBECO TAX SAVER SIP RS.3000.00/PM Effective from 24 Dec 2011
6- EPF Rs.780.00/PM Rs.9360.00/yr Effective from 24 Dec 2010
7- PPF Rs.1000.00/yr

I would be really grateful to you and for your kind advise. many Thanks Regards Krishna Dwivedi

asked Jul 03 '12 at 12:19 by Krishna dwivedi 111

I am not sure if your adviser is guiding you properly. The fact is that most of the so-called financial advisers in India are not financial planners/advisers but just a commission agent. They only focus on maximizing their commissions from insurance and mutual funds. It does not matter if a plan is good for investor or not.

Three insurance policies (Kotak, HDFC and LIC) does not seems to be good. I am sure none of these is a term insurance plan. I would advise if you can get rid of these, do that and buy only a plain vanilla online term insurance policy.

Tax saver mutual funds are good but don't redeem them unless you really need the money. Keep it remain invested till your retirement.

No mutual fund can be converted to any insurance plan or a retirement plan. Adviser must be looking for more commission by selling you another retirement plan.

For retirement needs, I would advise you to invest into New Pension System, PPF and equity diversified mutual fund SIP.

Also please read below pages to gain more knowledge:
Regarding Financial Planning/review of profile
Rescheduling of savings and investment to achieve goals

answered Jul 04 '12 at 00:48 by Pankaj Batra 5.2k320


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Asked: Jul 03 '12 at 12:19

Seen: 1,935 times

Last updated: Jul 04 '12 at 00:48