Best option available for further Investments.

POSTED BY Vijay Popat ON March 14, 2013 12:37 pm COMMENTS (6)


In additions to my previous questions, I want to add that currently I am investing as follows :-

1) 18000 Monthly as S.I.P in 8 MF accross different sectors including Gold, Infra, equity, etc.

2) 8400 Monthly in PPF ( 100000 ) annually in PPF.

3) 15000 – 30000 in physical gold ( Annually )

5) 6000 Monthly in RD.

Further to above I am paying following as my Insurance premiums.

1) 15000 in Max Newyork Life endownment plan. ( Annually ) for 1 individual .

2) 29000 ( Approx ) in LIC in two different policies. ( Annually ) for two individuals.

3) 6000 in Mediclaim from Sundaram. ( Annually ) for 3 members covering 5,00,000 each

4) 13000 in Health Insurance from Tata AIG . ( Annually ) for 3 members covering 26,00,000 each.

With additional inflow of income I have surplus 7000 / Month extra, left to be invested more.

I want a good suggestion on where should I invest them wisely so that I can gain maximum benifit in terms of returns and also Tax benifits.

Should i opt for more SI.P in Tax saving mutual funds or should I invest in other tools ?

Also note I planning to purchase a 2000 Sq ft flat in Kolkata with a maximum budget of 70,00,000 including renovation cost as well. Currently I am staying in a flat with approx valution of 45,00,000 and want to swap it with new one after selling it.

I dont wan’t to take major help from Home loan from bank as after calculation its seen that you end up paying 3 times the orignal loan amount to banks in long term.

Thus advice me the most fesible amount of loan that i should opt for and where should I park my income to fulfill the target of home as fast as possible as its known fact real estate prices will shoot by each passing time.

Also to simplfy for your suggentions my Approx annual Income is near about 10,00,000 annually, with a minimum monthly expenditure of around 35000 PM. Thus based on above data provided if anyone can suggest me any good options for more investments, or changing my current portfolio etc.

Thanks in advance.







6 replies on this article “Best option available for further Investments.”

  1. Dear Vijay, thanks for the clarification. Here onwards I’m asking or should I say discussing to understand your situation & your future actions. Say you get a different answer at forum than what your paid planner has suggested, which ‘ll you follow? In general, those 8L Rs. in a single fund is ok. 7K should also be invest in the same funds you are already invested. Please make sure, you do not have too many funds. 2-3 funds are more than enough.

    Regarding Tax saving instrument for your mother, if not opting Tax saver funds, Tax saver FDs are the next best thing. High interest rates, after tax saver funds least lock in period, easy to understand & easy to operate.



  2. Vijay Popat says:

    Dear Ashal,

    Thanks for your valuable reply. I know that for claiming tax benifit I have to make investment in her name and I have splitted the same accordingly.

    I also don’t believe in free lunches, I already have a paid financial planner, who had advised me above mentioned investments. I just wanted more feedbacks on same and further suggestions from forum if they can provide.

    I know I had asked 2-3 querys at a time would have confused you. But all of them were quite straight forward.

    1) I asked about 7 K further investment, and I needed straight suggestion on same.

    2) I asked about some tax benifit instrument , and on cross question I had to further clarify why i needed one, instead of getting clear answer on particular tool or instrument.

    3) I asked very straight question on 8 lac liquid fund, wheather I should switch to other fund or mentioned one is fine ? I needed straight answer rather than comments.

    I appreciate your concern in thinking me as a novice with a intention of free advises, but may be not as silly as not hiring a paid financial planner. This forum is made for public to gather more advises on doubtful issues, thus made a request to mass in journal to help/advise if my planners planning and mine is safe and correct.

    Thanks for your help though.

  3. Dear Vijay, if the tax benefit is to be claimed for your mother, the investment should be in her name only. Please hire a paid financial planner to solve your all worries. I feel you are playing with fire by handling all the issues on your own. Do you really feel that fielding all your queries once in while in random order can get your perfect answers?

    Why I’m saying so? The original query was for 7K Rs. to be invested into tax related things. When I cross questioned you, then you popped the mother thing & now add 8L Rs. liquid fund…….

    The answers given by me or anybody else without knowing your full background ‘ll only complicate the matters for you. Please for your own good, come out from free lunch mindset.



  4. Vijay Popat says:

    @ Ashal, Actually I am not showing my complete income and investments in one IT file, but have splitted in two, i.e other being my mothers. Thus I was wondering to include more tax saving instruments to reduce liablity if rquired.

    Also note I am still confused regarding feasible options to park additional 7000 pm. As I am not keen to open another RD for same, will incereasing the amount of monthly SIP of my existing MF kitty will help ?

    Also note I have around 8,00,000 invested in HDFC Cash Management Fund- Treasury Advantage Plan – Retail Plan (G) which is a liqid fund with tax benifits but moderate returns. Kindly advice if its a wise investment or should i park it in some other place.

  5. Dear Vijay, when you are investing 1L Rs. already in PPF & having other insurance policies also, why are you asking for tax benefits related on new investment.



  6. If you could pay 50% or more for the house from your funds then you can decrease the loan liability and choose a low no of years and get rid of it quickly.

    You are already investing 1L in PPF. So no need of ELSS MFs.

    You need to list you financial goals and allocate your investments into short-term (less than 5Yrs) and long term goals.

    Dont have more than 10% gold in your portfolio. So reduce investments accordingly.

    Buy gold if you must via ETFs.

    Simplify your financial life by evaluating your insurance polices (1 and 2) and see if you could make then paid-up or surrender them depending on age of policy and if you used them for 80C deductions

    Reduce the no of MFs. Four or so should do. Avoid sector funds unless you understand and can evaluate them well. Stick to diversified equity funds.

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