investment suggestions

Hi Pankaj,

Please suggest me a tax-saving investment plan for a taxable salary of Rs. 50000 p.a., considering that my risk appetite is 30-40% (i.e. 60-70% fixed income plans) & my preferred investment plans include PPF, FD, Mutual Funds/ULIP. Moreover I would like to know which is better - ULIP or Mutual Fund?

asked Jul 13 '12 at 15:29 by rakesh7 1125


Out of 50,000. You can invest 20K into tax saving mutual funds. Some of the best mutual funds are: Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield and DSPBR Tax Saver.

Buy a pure term insurance plan if not already taken. ICICI iCare and HDFC click2protect are some good online policies. For 50 lakh sum assured policy, it won't cost you more than 8-10K.

Rest amount you can invest into tax saving fixed deposits and PPF divided equally.

ULIP are not good products as they mix investment and insurance and does not do justice with either.

answered Jul 18 '12 at 08:53 by Pankaj Batra 5.2k320

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Thanks Pankaj for your advice.
(Jul 19 '12 at 10:22) rakesh7

Mutual Funds are certainly better than ULIPs. Did you mean 5Lakh annual Salary?

answered Jul 13 '12 at 18:48 by pompom 16134

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I have an annual salary of 3 lac,of which 50000/- is the taxable income. In what respect, Mutual funds is better than ULIPs? please clarify.
(Jul 13 '12 at 20:28) rakesh7

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Asked: Jul 13 '12 at 15:29

Seen: 2,258 times

Last updated: Jul 19 '12 at 10:22