I’ve become fan of your blog since the day I visited it! It’s simple, detailed and well explained. You’re doing a very good job of helping people with your knowledge. I do the same thing, helping people by my knowledge,on my YouTube channel (which is same as my name). You can visit that in your free time. I’m reviewing some android apps related to Mutual Fund and Investments. I’ve some questions to ask-
1. What’s the difference between ELSS and Balanced MF (equity oriented) ? Since they both invest in equities about 60%.
2. What is meant by 3-year lock-in-period in ELSS ? Can I not redeem my money before 3 years once invested? Or I can do that after one year without paying LTCG tax? Or within one year with 20% tax?
3. If a person has utilized 1.5 lakh of 80c with ELSS and say EPF/PPF, should he/she continue to invest in ELSS or should invest in other MF products? If so, what are your suggestions?
4. Can a salaried tax-payee citizen join both PMJJBY and PMSBY at the same time? Will nominee get 2+2 lakhs in case of accidental death?
5. For SIP investment, is there any option to invest in a centralized fund from where the money will be automatically divided into best performing SIPs in appropriate portions ?
Sorry for bombarding you with lots of questions, but you’ve inspired us to learn – ask! Thanks and keep up the good work!
I am 31years old I bought 2lic policy jeevan mitra n Saral in 2010 I pay 14400 yearly sum assured total is 300000 then I’m 2014 I got jeevan tarun sum assured 2lacs with a premium of 7000 yearly n now in 2016 I got jeevan anand monthly 1444 with 4lacs sum assured. I need 15lacs after 15years for child education n good amount for retiremet could u please suggest me have I taken a wise decision ? Or do I need to close any of the Lic policies n switch to mutual funds m saving 4000 a month please suggest.
If you feel the returns of 5% to 6% are great return to meet all your long-term financial goals, then definitely you continue. Otherwise, you have to think seriously.
Sujoyn-Thanks for your kind words 🙂
1) Who said you that ELSS invest around 35% to 40% in Debt? They are pure equity products and equity exposure is higher than balanced funds.
2) You can’t redeem before the completion of 3 years. That is the reason they call it as 3 years of lock-in.
3) If he is so fond of ELSS and already completed the Sec.80C limit of Rs.1.5 lakh, then too he is free to invest. But his money get locked for 3 years, which is not the case with other non ELSS funds.
4) Yes, salaried can subscribe to both PMJJBY and PMSBY. In case of death, a nominee receives Rs.2,00,000 only from PMJJBY. Because it is life insurance. Whereas you get the benefit of PMSBY only when you alive but met with an accident. So in case of accidental death nominee not get Rs.4,00,000 but only Rs.2,00,000.
5) This option what you are thinking is most dangerous. Because there is no hard or universal rule to specify that a fund will be BEST to all. It is purely an individual’s perception about funds. Hence, personalizing it on your own is best.
Thanks for your quick reply!<br><br>3) In reply to question no 3, if 80c is used with ELSS and other products, then what are the other options for investments with good returns for mid-term capital appreciation?Should he continue with MF or other options are there?If in MF, ELSS or other products for mid-term?Need little guidance on this.<br><br>4) Need little clarification on point 4.PMSBY means accidental death- so for accidental death person should get 2lakhPMJJBY means any death – so for accidental death (which is also a kind of death) person should 2lakh. Total 2+2 = 4lakh
3) Please define “mid-term” according to what you understand.
4) You are right. In case of PMSBY, if death occurs due to accident then you get Rs.4,00,000.
Sorry for late reply. By mid-term I mean to say 3-5 years. One more question, if Demand Loan is taken against an FD for 36 months, during that period interest is paid by bank monthly/quarterly and TDS deducted on that FD interest income. Now can the interest paid against that loan (which is 0.5% above FD rate) deducted from total income at the time of claiming ITR each year?
Sujoyn-No equity if your time horizon is less than 5 years or so. No, the interest earned is taxable but can not be set off against your loan.