First of all thanks for all the prompt and wonderful advice. you are really doing a great work. Need your advice on an investment plan for my 1-year kid. I have opened a PPF- account-minor of a mother, saving account and sip for 5k in ICICI Prudential Focussed Bluechip (3k) and HDFC Mid Cap fund(2k). Planning to contribute in ppf (36k yearly) to get benefit for 80c for my wife. Goal is education(current exp: 10-15lk) and marriage(20-25 lakh). Am I in right direction. Pls suggest if I need to realign my financial plan for my kid.
Advik-Let us consider the graduation period left 17years and marriage 24 years. Also, considering the cost of inflation for both goals as 8% (in reality it is more than 10% !!!), then the future value of education cost will be Rs.55,50,027 (I considered the current cost as Rs.15,00,000) and the future value of marriage cost will be Rs.1,58,52,951 (I considered the current cost as Rs.25,00,000). Considering both goals as long-term and overall return on investment as 12% (from both debt and equity), I feel you need a monthly investment of Rs.8,392 for education goal and Rs.9,572. So overall investment required is Rs.17,964.
If we consider a current cost of education as Rs.10,00,000 and marriage cost as Rs.25,00,000, then your monthly requirement of investment will be Rs.5,595 and Rs.7,657 respectively. Hence, I suggest to allocate more fund to reach these two goals.
At the same, I suggest to buy a term plan immediately to cover your life risk.