I am 27 right now and can invest around 10k per month. I wish to know the best strategy through which I can gain maximum benefits of my investments, following are the details:
1. I have a monthly contribution of around 7k in nps and do not need a health insurance right now
2.Contributing 2-3k per month in ppf
3.Want to invest for a period more than 10 years
4.want to avail tax benefits through investments also
Kindly suggest the same.
DP- 1) When you are planning for another Rs.10,000, I saw that you already committed another Rs.10,000 towards debt products (NPS and PPF). I don’t think it is right strategy to lock your money. However, if your goal is matching the PPF maturity year then you can park your debt portion into it. No need of health insurance? Think twice !!!
4) Tax Benefit at the time of investing or while withdrawing?
I am a govt. servant so I am covered under Government Health scheme. I want to avail tax benefits on both occasions (investing + withdrawing). I can also switch PPF investments with some other options also.
Whether your employer cover of health insurance continue even after retirement? You can use ELSS schemes for tax savings (strictly for long term). As I said earlier, if your goal matches PPF tenure then continue. I think you are more concerned about tax saving rather than identifying your goals and reaching them. This is the common mistake we all do.
Yes it will cover after retirement, although, I can take a health insurance with provisions of family floater. The actual reason for PPF investments is to have money to withdraw after years. Please suggest the investment portfolio for retirement (for 30+ years approx.) and other funds for the period between 5-10 years and also for period beyond 10 years.
DP-I am unable to understand what do you mean by “to have money to withdraw after years”? If your holding period is 30 years then chose a large cap fund (like ICICI or Franklin Bluechip), small/mid cap fund (HDFC Midcap or Franklin Smaller companies) and a Balanced Fund like HDFC Balanced Fund. You can have the same funds for all time frame of goals. However, include the debt portion more for shorter goals like less than 10 years. Even a single HDFC Balanced Fund is enough for 10 year period.
Thanks, Sir.. I meant from PPF Investments is that in case I wish to withdraw money then I can from PPF from the year when premature-withdrawals are allowed as I don’t have such facility with nps
DP-You mean to say liquidity. Yes, to a certain extent it is true. But you are not eligible to withdraw a total balance. Hence, don’t over into PPF.
Please tell me an option over PPF for liquidity
If your holding period is around 15 years then why you are looking for liquidity?