Help required in defining my Investment strategy

POSTED BY sureshsatya ON March 11, 2014 11:25 am COMMENTS (11)

Dear All,

First of all Thank you very much for all the support and guidance in financial planning and i have been following ”Jago Investor” for last 6 months. One of my friend referred this site to me.

I need some help and guidance on the investment strategy. Here are my details

Name : Suresh – Age 29 Years – Married – No Kids – Salary : 10 LPA

Term Insurance – 1 Crore, Health Insurance – From Company ( 3 LPA) and personal floater plan – 7 LPA and LIC – Jeevan Anand – Sum Assured : 5 LPA

Investing 5,0000 Per month in PPF account

4 Lakhs in Savings account – I may need this money anytime so i did not invested anywhere. Suggest how to handle this amount effectively. No risk and should be able to withdraw anytime.

I recently opened account with ”” and i am planning to invest 10,000 rupees per month( Through SIP) from this april onwards in Mutual funds. I would like to continue keep this investment for next 7 + years.

Suggest me good Mutual Funds and how much i should invest in each fund and portfolio for me.  Also suggest me on any mistakes i am doing interms of financial planning and corrective actions.

Thanks in advance.











11 replies on this article “Help required in defining my Investment strategy”

  1. ashalanshu says:

    Dear Suresh, how did you arrived to 2Crore Rs. figure is enough for your retirement? Your current age is 29, hence roughly 31 years’ earning life is still there. After that at least 25Y non working retirement life. Do you think inflation ‘ll stop in your post retirement years? At your age54-55, when your yly expense alone is 45L Rs. how come your retirement corpus of 2 Crore Rs. is enough?

    You may invest in Quantum Tax saver fund.



  2. sureshsatya says:

    Hi Ashal,

    I need atleast 1.5 – 2 cr for post retirement. Please suggest some good mutual funds to take that all important first step. As the financial year is just started, i committed myself to have proper planning than last year and also take wise steps going forward.

    Also, suggest me ELSS funds for tax free. I can continue the investment through SIP for next 7-10 years.


  3. ashalanshu says:

    Dear Suresh, please be assured, we are already lending a helping hand to you. Now the critical work starts. Please try to calculate how much corpus you need to have at the time of your retirement so that in post retirement years say from age 60 to 85Y, you may retain the existing level of living if not upgraded?



  4. ashalanshu says:

    Dear Suresh, now from the above data, can you understand or calculate how much money you need for your retirement alone? We can discuss other goals also but this one is surely the biggest and yet the most underestimated goal.



    1. sureshsatya says:

      Dear Ashal,

      I am kind of understood your point. But i need guidance on the investment for future and wealth creation.

      Thanks for your time in helping me.


  5. sureshsatya says:

    Hi Ashalanshu,

    Here is my prediction based on the current expenditure.

    12% inflation on avg per year

    Year Monthly Yearly Expense
    2015 25000 300000
    2016 28000 336000
    2017 31360 376320
    2018 35123 421476
    2019 39337 472044
    2020 44057 528684
    2021 49343 592116
    2022 55264 663168
    2023 61895 742740
    2024 69322 831864
    2025 77640 931680
    2026 86956 1043472
    2027 97390 1168680
    2028 109076 1308912
    2029 122165 1465980
    2030 136824 1641888
    2031 153242 1838904
    2032 171631 2059572
    2033 192226 2306712
    2034 215293 2583516
    2035 241128 2893536
    2036 270063 3240756
    2037 302470 3629640
    2038 338766 4065192
    2039 379417 4553004


  6. ashalanshu says:

    Dear Suresh, as per your own estimate of inflation, what ‘ll be your expenses in year –

    2039 (25 years from here onwards)



  7. ashalanshu says:

    Dear Suresh, what are your mly expenses?



    1. sureshsatya says:

      Thanks Hemanth and Viren for the inputs.

      HI Ashalanshu,

      My monthly expenses are around 25k per month for now. I am also investing 10000/- rupees into FD and it will mature in Sep 2014. 3000 rupees in another FD and will expire in Sep 2017.

      Right now, i have all my money in Saving account and i know it is not a good option and it is taxing me heavily ( 20% bracket) 🙁

      What is the risk involved in Debt funds ? Are they completely Risk Free ?

      Should i continue my LIC Jeevan Anand policy ? SA – 5 LPA and 6 Premiums paid. Premium – 25028/year


  8. Viren Phansalkar says:

    Hello Suresh,

    Since you mentioned that amount in SB account would be needed shortly, it implies that it is not your emergency fund. You may wish to build your emergency fund first and then venture out for investment.
    You can read about importance of emergency funds here:
    I have heard that fundsindia give suggestions too. Check with them and then verify their suggestions from sites like valueresearchonline or money control.
    Inform your findings to Ashal and he would be happy to help you once you present your findings.

  9. Hemanth Chandra says:

    Hi Suresh,

    Regarding the 4L in your saving account, you can park them in FDs as they are liquid. But, as you come under 30% tax bracket, better park this idle money in liquid funds which are really liquid (you can take at any time you want) instead of FDs.


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