Ajinkya-I saw your investments without any specific roadmap. Take the reverse gear. Think why you have to invest and accumulate wealth. This creates awareness about your future financial goals. Then set these future financial goals. Once all these are firm in your mind, go ahead with the products which match. Simply investment the surplus and going for tax saving instruments is a typical style of all Indians. Stay away from such practices. Do it systematically knowing of why you are investing and how much is your return expectation. The priority must be as follow.
- Create an emergency fund of at least 6 months of your committed expenses.
- Buy a term plan of around 15-20 times of your yearly income.
- Buy health insurance (even though your employer offering this facility)
- Buy accidental insurance to the tune of around 10 times of your yearly income.
- List the financial goals.
- Prioritize them to achieve.
- Start investing by choosing products.
- While choosing products, think of tax saving too.