I am 40 yrs old working in PSU. I have 2 sons older is now in7th std. & younger one is in nursery. I have to plan for their higher study & also to buy a flat after 10-12yrs.at present my EPF balance is around 24 lakh. Besides I invest 8000/month in VPF & 2000/month in PPF. For the last 2 yrs, I am investing in mutual funds in SIP. My funds & INVESTMENT are as follows.
- HDFC EQUITY FUND(G) 3000/MONTH (2YRS)
- UTI OPPERTUNITY FUND(G)-1000/MONTH(2 YRS)
- UTI MNC FUND(G)-2000/MONTH (2 MONTHS)
- ICICI EXP& OTHER SERVICES(G)-1000/MONTH (2 MONTHS)
- UTI EXPORT& LOGISTICS FUND-1000/MONTH (2 MONTHS)
- KOTAK FOLD FUND (FUND VALUE-48000, STOPPED SIP)
- IDBI ULTRA SHORT TERM FUND(100,000 ONE TIME 2YRS BACK)
- UTI GOLD ETF (19 SHARES)
- POSTAL MIS OF 10,00,000
- BANK FD 5,00,000
- BANK RD 3000/MONTH
NOW I want a very effective planning & selection of good funds to ensure a good return for my sons higher study most likely after 5 yrs,10 yrs & a good amount reserved for retirement. What to do with gold funds?
so I need your help for giving me proper advice in this regard.
Sachi-How you selected these funds?
i selected these funds by merely seeing the fund performances & comparing in economic times & money control site, myself.
Effective planning needs to be a goal-based investment. Whether you calculated the future values of the goal amount you set TODAY by inflating them? First you have to do that. That must be your target. Once you know that, then the next step is to understand the time frame and risk you take. Based on that you have to allocate debt:equity investment. Blindly investing in VPF, PPF or in MF will no longer a proper plan. Can you do it using compounding formula? It is easy and you can google it.
1.ist target is – 15 lakh afer-5 yrs(for elder sons higher study)2. 50 lakh after 15 yrs(for elder sons marriage & younger sons higher study)3. 30 lakh for younger sons marriage(after 20-25yr)4. 1-1.5 lakh/month after retirement for household expenditure.after 20 yrsi left the idea of buying a flat after seeing the requirment using inflation calculator. but i have to fulfill the above not avoidable needs. all calculations are done using average 8% inflation.
1. 1st target- 15 lak after 5 yrs(for elder sons study)2. 50 lakhs – after 15 yrs(for marriage of elder & higher study of younger son)3.30 lakh after 20-25 yrs (for younger sons marriage)4.1-1.5 lak/month after 20 yrs(for house hold expenses)post retirementsir, i have calculated all these needs using inflation of 8%. i left the idea of buying a flat after seeing the needs using inflation calculator. thanks a lot for guiding me. now i reuest you to set a plan to achieve these above targets.
Now the next work for you 🙂 1) Use debt for this goal as time frame is just 5 years from now. Consider the return expectation around 8% and calculate the monthly requirement to achieve this goal. 2) This is long term goal. Consider return expectation of around 12% and calculate the month requirement. Follow the same for 3. For retirement, use the retirement calculator available online or in freefincal.com. Arrive at the value and share all information with me.