Hello Basu sir,
I am 30 yr old Central Govt. Employee. My net salary is Rs.27,000 per month. In that, I pay Rs.54,000 towards my yearly LIC premium. Apart from this, I don’t have any other investments. Recently I had a baby boy whose age is 2 months. For his graduation. Your suggestion is very important for me please suggest. Thanks.
First try to dump all those LIC policies (if they completed 3 years). Buy a term insurance on your name to the tune of around 15-20 times of your yearly income. Considering goal as almost 18 years, I suggest an asset allocation of 70:30 between equity:debt. For debt, you can use PPF. Otherwise, a single product like equity oriented mutual funds (like HDFC Balanced Fund) is enough to manage equity to debt allocation in a single fund.
Otherwise, use PPF for debt and for equity one large cap fund like Birla Sunlife Frontline Equity Fund or Franklin India Bluechip Fund and one small and mid cap fund like HDFC Midcap Opp Fund or Franklin India Prima Fund. Two mutual funds are enough.
Thanks sir for your suggestions.
Ek Or question sir, kis platform k through mujhe SIP(mutual fund) me invest karni chahia, online or direct? If online then tell me some good websites name. Thanks
If you are able to manage your own portfolio then go for DIRECT. Otherwise you can use the regular plans through an adviser of your choice or online portals like FundsIndia.
My wife(age 29) is working in IOB employee with net pay 26k per month and investing in NPS from her salary for Rs 2600 per month. Before marriage she got Jeevan tarang plan for 72,000 PA (Rs 24,610 three times). I told my wife if I had know I would have made her to invest in TERM INSURANCE AND MF THROUGH SIP (30:70 RATION IN DEBT : EQUITY AS YOU HAVE ADVISED) . She has already paid three years. Now I see u have advised to Mr.Prabhat to dump after three years. Hence I got the following doubts.
1. Is it advisable to tell my wife to dump that policy now and go with term and MF.
2. Will my wife get any thing in return since u have told to dump after three years I guessed there must be some money return, if so how much and where should I find it)
3. Since She is also paying some amount for NPS from her office, is 30:70 ratio good enough in debt:equity OR can I go with 40:60 (SINCE I AM IN THE ASSUMPTION THAT NPS AMOUNT IS ALSO INVESTED IN MARKET EQUITY).
Balaji-1) I know it is paining to be in negative return if you surrender now. But the wise idea is to come out as soon as possible.
2) Yes, but definitely less that what she paid.
3) Check which option she selected in NPS. Based on that you can allocate for fresh debt:equity. All NPS money will not be invested in equity. There are other options also. Hence, first check and then decide.