Are my investments allocated in the correct locations? Kindly help

POSTED BY Dr.Sachin ON October 10, 2013 8:40 pm COMMENTS (12)

Scenario:

Age 27 years. Single. Annual Income: 3,84,000. Term cover- 50 lakhs. (premium – 6000/ year) Medical Insurance- 1 lakh. (premium – 2000) Emergency fund – 50k.

Investments: (Per month)

PPF – 5000/month

Bank FD – 5000/month

Post office RD – 500/month

SIPs

HDFC Top 200 Fund – Growth – 2000/month

RELIANCE BANKING FUND – GROWTH PLAN GROWTH OPTION  – 1000/month

RELIANCE EQUITY OPPORTUNITIES FUND – GROWTH PLAN GROWTH OPTION – 2000/month

ICICI Prudential Tax plan – Regular Plan – Growth Rs. 1000/month

Franklin India TAXSHIELD – GROWTH Rs. 1000/month

Retirement planning

Save Rs.100/day . (Just started this saving and Dont know or have not decided where to invest this. Want to invest this after every 6 months)

Goals – 

Flat/house @ age of 40 – 30lakhs.

Children’s education @ age of 47 – 40 lakhs.

Retirement @ age of 57 – 3 crores accumulation.

Are my investments per month allocated in correct locations? Kindly advise since Im a newbie in financial planning.

12 replies on this article “Are my investments allocated in the correct locations? Kindly help”

  1. ashalanshu says:

    Dear Dr. Sachin, please start investing with the 1 instrument you are comfortable most. It may be a bank FD or RD or MF or PF.

    Thanks

    Ashal

  2. Dr.Sachin says:

    But still searching for an option for this one.
    ie.
    //Retirement planning.
    Save Rs.100/day . (Just started this saving and Dont know or have not decided where to invest this. Want to invest this after every 3 or 6 months)//

  3. ashalanshu says:

    Dear Dr. Sachin, please feel free to post your queries if any in that FAQ link regarding financial planning.

    Thanks

    Ashal

    1. Dr.Sachin says:

      ok. I shall.
      Thank u!

  4. ashalanshu says:

    Dear Dr. Sachin, Yes. there is no guarantee at all that a particular asset class ‘ll perform but the asset rebalancing is done to avoid excess of anything. whereever we are in profit, we book it and invest in where we are feeling it ‘ll be safe. Normally people ‘ll book profits from Eq. and invest in Debt. In some special cases like year 2008, when Equity markets went down very low, the reverse exposure was must that’s booking profit in debt and investing in Eq. How many of us can do so without letting emotions in, is the million dolar question.

    Thanks

    Ashal

    1. Dr.Sachin says:

      Yes dear Ashal. Thats really a million dollar question.

      But this point was a really eye opener for a newbie like me.. ie. book profit from performing assets and re invest in down ones.!
      Ya that realy makes sense, thank u!

  5. Dr.Sachin says:

    Thanks Ashal,
    regarding the query on SIP, i guess this is the naswer. (from FAQ link)
    //Because as per my understanding it seems that we need to monitor the various asset classes of our portfolio say A and B. Assume at some point of time (i.e. at a predefined date) weneed to look both the asset classes and identify which is doing better. The one which gives superior returns is the one from which we need to pull away the profits and re invest it in another asset class which performs least. Assume A is doing best and asset class B doing average. so we decided tomove the profit from A to B. Now what is the guarantee that the asset class B will do better in futureand beat the asset class A. This is applicable for vice versa scenario too. I think I am communicating and hope you understand.//

    thank u!

  6. ashalanshu says:

    Dear Dr. Sachin, do not doubt your own decisions in a hurry. Please do remeber –

    “We always make correct decisions. It’s the outcome or result of our decisions which provide the final judgement that the decisions were right or wrong.”

    Enjoy your life. Please read that shared link and I hope you ‘ll be able to judge your own decisions (financial ones) better. 🙂

    Thanks

    Ashal

    1. Dr.Sachin says:

      Thanks Ashal! 🙂
      appreciated!

  7. Dr.Sachin says:

    What made me to elobarate on my investments was i was more concerned about the SIPs I started. I doubt they too much in the list!!
    But currently my point is anyhow i have started them and my goal is atleast 10 years away. Continue with them at present and re – allocate them after analysing these SIP’s perfomance after 3-4 years.
    Am I correct?

  8. ashalanshu says:

    Dear Dr. Sachin, please check below discussion first.

    jagoinvestor. com/forum/finacial-planning-faqs

    Thanks

    Ashal

    1. Dr.Sachin says:

      Thanks Ashal!

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