POSTED BY insach ON April 6, 2012 1:34 pm COMMENTS (12)

i am samar, working in Automobile Pvt. Sector from last 12yrs. n till time there is no any investement frm me, i am 32 yrs old having child of 2.5yrs. wife,mother N father are the dependands, i have monthly salary 53000.having Houseloan -11,00000lacs for 15 yrs. from last 6months. with EMI 12166.
Personal loan – 2,50000Lacs from last 4 months with EMI 9061 .
Having 3,00000 Lacs gold loan frm pvt. firm.
only one ulip from Bajaj allianze having Sum Asured amt 1,50000 in 2021.
so pls. suggest me how i have proceed for invesment which will give me more return in less time.
Pls. give me a plan for invesment in PPF,MF,LIC……..

12 replies on this article “FINANCIAL PLANNING”

  1. says:

    Hi, my Brother in law gots 40 lacs from hisland selling, he wants to invest that amount which will give him regular monthly income as an interest n didnt want any income tax fr the same. he is Teacher with regular Monthly Income 18000 RS. having two kids with the age 4yrs & 6 months resp. living in mumbai witn rent 0f rs.7500/month.

    Pls. advise for the invenstment of this money.

    1. Dear Samar, first of there is a capital Gain Tax liability on your brother for that 40L Rs. land selling amount. Please confirm the purchase year & sell year.

      If your BIL wants to invest in such a manner that income generated from these 40L Rs. is tax free, well it’s possible but for that I need more info about your BIL.



      1. says:

        what type of info you required so i wil replyed to you.


        1. Dear Samar, please post, the exact date of purchase or the month & year of purchase of that land, date of sell, original purchase price, sell price, is this 40L Rs. is the on paper declared value or is it the actual amount realized but the sell price on paper is lower?

          What’s the current income slab of your BIL? Is his wife earning? If yes her income slab?



  2. Dear Samar, are you ready to answer few questions?

    1. Your current living expenses?
    2. The EMI for your Gold Loan?
    3. The reason of Personal Loan & Gold Loan?
    4. Do your father has any pension income or some other income?
    5. What’s your PF value with your employer?
    6. Do you have any home loan cover to protect your family in your absence?

    Please answer.



    1. says:

      Hello Ashal,
      1. By considering all EMI my total expences are abt 35K.
      2. For gold loan interest are 12%yearly which i pay at the end of year for this year i have already paid 40k.
      3. both per. & gold loan are for only to puchase a flat as for down payment to builder.
      4. My father has no any pension or any other income source.
      5. PF value is abt 1200,bt in last 12 yrs. there are abt 6 compaines i had worked & considering all that till time amt is abt 125000.
      6. No any.
      Pls. reply how i am tovercome these all n make to start investment.

      1. Dear Samar, Forget any investments. First of all purchase a term cover of around 1 Crore Rs. for you are & 30Y term the 1 Crore cover ‘ll cost around 10-11K Rs. in online policies. Out of your 53K take home salary, paying 35K EMI is too much. It’s almost 70% of your slary that you are paying in EMI. Once that Term cover is in place, Sell your Gold which is locked in to that Gold Loan, After paying back the Gold Loan, use the surplus amount to pay back the Personal Loan. In parallel, please start creating an emergency fund for yourself of around 9 months salary. Please update with your views.



  3. bharat shah says:

    leave other things of above reply, i think , equity (direct or through diversified equity mf) are vehicles for longer term goals and one should not think any life insurance except term insurance for covering the risk of llife.

    1. says:

      Hello Mr.Bharat,
      Can you pls. guide in details so it will be better for me to understand clearly.


  4. Since you are only 32 years of age, you need a mix of various instruments. Any instrument will not solve your purpose. Your goals will include short term targets, Loan repayments, Retirement plan, child education, security etc.

    With Equity oriented instruments like MF, you can concentrate on short and mid term targets i.e. from 3/5 yrs to 10 yrs.

    For longer targets, LIC plans + PPF are good.

    Immediate security, term plan works best.

    From you income-expense details, I believe you should be able to save and invest about 15k pm.

    So I suggest, you have an SIP with 5k pm.
    Have LIC plans with 4k pm including term plan of at least 75Lacs cover.
    Invest in PPF 5k pm.
    And buy health insurance plans with left over 1k pm. Go for a floater plan with 3Lac cover for 3 of you and 5Lac cover for parents.

    Since you have a child, in LIC, you can consider Jeevan Chhaya.
    In MF, you have decide your risk appetite. If you dont wish to take risks, go for HDFC Top 200. A very safe fund, with regular non risky returns. Else go for DSP or Birla funds.

    1. says:

      Hello Mr.Bharat,
      Realy very thanks to give such detailed plan, can you pls. suggest for SIP,MF cause i didnt knw abt these clearly n if i want to invest in these as a bigginer ,how n where i have to go? which are best returns MF for start.

    2. shekhar says:

      Hi Samar,

      no investment can assure you more then 12% returns. i would suggest, to pay off Personal Loan ASAP for which you are paying higher interest. then Gold Loan. then go far any investment.

      Regards, Shekhar

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