Post all your financial planning queries here Part-2

Re: Investment for NRIs in India

I have started investing ICICI prulife. It acts as a life insurance and also my premium is invested in high risk hedge funds. I chose to invest high risk for now because I still have a long time to retire. eventually i will change this to moderate and low risk. So far the fund has not disappointed me. Go to ICICI's website and look for pru-life.

If you are investing in LIC, its also a very safe place to invest.

I wouldnt suggest you to invest large amounts (over 5 lacks) yet in NRI category because you are not going to be there often monitoring it. Of course, if you end up finding a good portfolio manager, then its a different ball game altogether.

Good luck.

 

Re: Systematic Investment Plan - SIP

Hi ILs,

Please suggest some good funds for SIP investment (both for short term (1-3 years) and long term (10-15 years)). One of my friend who works in HDFC AMC has suggested me to go with HDFC Equity Fund and Reliance Growth Fund. Is it worth investing ? If not, please suggest some good ones. Thanks in advance.

 

Re: Post all your financial planning queries here

Hi Shaishav,

i have noticed that you are giving a good advice to the indusladies here.

Please let me know the plan- mutual fund, pension plan etc for myseld, my hubby and 12 year old kid. my age is 36, my husband is 40 years old. I will prefer to do one time investment (INR 5 to 10 lac) instead of paying it yearly for 15-20 years. otherwise if you can advise a plan in which i can invest INR. 10000 per month for 5 years and then don't have to a single penny, then also fine

As our status is NRI, the plan should be suitable for NRI persons as well as with the possibility of apply it online.

awaiting for your valubale suggestion,
thanks in advance

 

Re: Systematic Investment Plan - SIP

SIP sounds interesting; does anyone know which is the best SIP option??

also is it the right time to opt for SIP's coz the sensex is 20K+ ?

just curious, please suggest

 

Re: Post all your financial planning queries here

If i am opting a SIP for 3 years, and after completion of 3 years, if i dont want the money right back and also if i am unable to renew the SIP, can the amount which was invested for 3 years still lye in the same MF. Is there an option to close the account after 5 or more years. Do we get any benefit for the amount which were simply lying in the MF account.

Please clarify my doubt.

 

Re: Post all your financial planning queries here

Hi Shaishav,

Congrats on your new job. I have been reading this thread and must say you are doing a great job clearing people's doubts.

I have a question too. It is about the best investment option for my 19 yr old sibling who is in college right now. Parents are retired, they have started a ppf a/c for my sibling few years back. They want to invest in some scheme which can give good returns after say 5 years so that they have some extra money for my siblings education, since education costs are rising day by day. They can spare rs 2000-3000/month for this purpose can you suggest any such scheme. They cannot take high risk as they are not working now.

Also they bought SBI mutual fund 4 years back. I am not sure which MF it was exactly but I guess it was Magnum Taxgain. Now they want to sell it so that the money can contribute towards my siblings education costs. Is it a good time to do that? Should they wait for some more time, like another year?

Thanks.

 

I have downloaded all the queries and will post the answers today.

 

Hello Shaishav

We are eagerly waiting for your response

 

No reply from Shaishav. Looking forward for your replies.

Your suggestions have been great in other posts.

Thanks

 

Re: Post all your financial planning queries here

Hi Shuba,

I would suggest you to continue with your home loan.

The payments towards insurance seems to be pretty high. I would suggest you to stop paying for ULIPs after completing 3 years and then withdraw the money once there is no charge for withdrawal. We can then decide what to do with the money you receive after clsing your ULIPs.

I still think that the EMI amount for your home loan is high. I have a 20 year home loan and I pay 11000 a month. You need to check the tenure and I am sure its less than 20 years. Also tell me the interest rate on your home loan.

Now about your long tem goals:

Goal No 1 – Child Education

If I assume your kids graduation to be 10 lakhs at today’s cost and inflation @ 10%, the amount you would need when your son turns 17 is 42 Lakhs approx. Now following is the investment plan you need to follow for achieving this goal.

Assuming a very conservative return of 12% per annum you need to invest approx INR 8300 per month and INR 6200 per month if you get 15% per annum.
You also need a life cover equal to your goal value as this is a non negotiable goal i.e. you want your kid to get good education irrespective of whether you live or die (sorry to say this bluntly but that’s the fact)

You can invest in two good mutual funds and as you need to invest for next 15 years one can be a diversified equity fund like HDFC Top 200 (growth) and the other can be a midcap fund like IDFC premier equity planA.

For insurance you need to consider term insurance plan only. You can contact your insurance agent for options. You also need to take mortgage insurance for the home loan you have (if not already taken)

Now about the other two goals: retirement and building wealth. I think both are the same because if you build considerable wealth you will enjoy your retirement years and vice versa.

I do not have information about your monthly expenditure so I have assumed a figure of INR 30,000.

Here is the calculation:

Current age – 32 years
Retirement age – 60 years
Planning regular income after retirement for 25 years
Assumed rate of return from retirement fund – 8%
Assumed inflation rate 8%

The retirement corpus required is 8 crores.

Investment required @ 12% per annum – 28000 per month
Investment required @ 15% per annum – 15000 per month

The investment should be made equally in 3 different mutual funds. One diversified equity, one midcap and one sectoral fund. Following will be my choices

Diversified equity – HDFC top 200
Midcap fund – IDFC premier equity plan A
Sectoral fund – ICICI prudential infrastructure or DSPBR TIGER fund.

So, with your proposed investment of 50k per month i think you are perfectly placed in life as far as your finances are concerned


Regards,

Shaishav