Investement tips required for future planning

POSTED BY gsandeep_123 ON December 12, 2011 5:28 pm COMMENTS (8)

I recently got married and starting to think to invest my savings in a systematic manner,but I dont have a correct idea on where and how to invest my money
Below are my details of my financial details and am ready to invest atleast Rs 10,000 per month
Please let me know on how to proceed with my investments
My age is 28 and current salary is 70,000/-
Current Loans:Home loan=> 24 L ,paying an EMI of 23,500/-
Have an ULIP policy worth max newyork life where am investing 36K/year from last 4 years
Have an LIC policy of worth 5L
Please suggest me some mutual funds/heath insurances where i could get some good returns
Also am thinking of investing some money in Gold ETF’s. So would it be a better idea than investing in physical gold??
Would be very grateful of any responses received

8 replies on this article “Investement tips required for future planning”

  1. Syed Sagheer says:

    Two things to do first
    1. Do not mix insurance and investments, get rid of the ULIP
    2. Get a bigger life cover, for your annual income, you are woefully under insured
    3. 2-3 months reserve would be perfect for your outgo
    4. Initiate some portion of your portfolio to a passive index fund like IDBI Nifty or UTI Nifty, will ensure you get market returns

  2. Dear Gsandeep, for 40K mly expenses, maintaining 1L contingency fund is surely recipe to disaster. In my view first of all increase your emergency funding from current 2 month expense level to at least 6 months level on priority. Then only think of investing.

    Regarding your 15K exposure in chit fund, only you can justify yourself, I can’t. As of now please keep investing in the ULIP to earn more units due to market down turn.

    Please purchase a term plan of at least 1C Rs. for yourself. As & when your wife starts earning, you may go for all out investing for her salary.

    As of now do as the above & visit here again on this forum after 3-4 months as & when your emergency funding is over as well as the term plan purchase.



  3. says:

    Hi Ashal,

    My monthly expenses would be around 40K(Including my home loan EMI+ monthly expenses)

    Current monthly investments are 3K in max newyork life ULIP policy+15K in a chit fund company(Chit value is 5L for 2 yrs)

    I already invested around 1.6L in max newyork policy and my current fund value is around 1.4L.So do you say it is better to close my policy here and invest some where

    I have a contingency fund of around 1 L for emergency in availability

    My wife was not working currently and she is planning to get a job in next 3 months

    Please advise me on hoe to invest

  4. Dear gsandeep, You posted your mly income. home loan EMI, ins. prem. but my dear friend you forget to post your current mly expenses & the current status of your portfolio. Where do you have investments right now? Do you have any emergency fund for your rescue in case you are not able to work for next 6-12 months due to any reason.

    Before investing anywhere, first make a contingency fund for yourself. Is your wife working or a housewife?

    Answer all these questions first.



  5. Lokesh Jain says:

    Hi Sandeep,

    Below is my advise based on the info given by you –

    1. Get a term insurance of atleast 50 lakhs which would cover your home loan and also your expenses in case you are not there for your family. This premium should cost anywhere between

    2. Start Investing in Mutual Funds as an SIP. I am including gold funds in the portfolio so that you need not invest in gold etf separately.
    – HDFC Top200
    – ICICI Focussed Bluechip
    – IDFC Small and Midcap Fund
    – Reliance / HDFC Gold Fund

    The ratio can be equal for investment in all funds. In case you require tax saving mutual fund you can include Canara Robeco Equity Taxsaver.

    3. For Health Insurance go for Apollo, currently that is the best. or you can go for Oriental Insurance also.

    4. Check whats your fund value of Max New York Policy. If the loss is not more dan 10-15%, you can surrender the policy and take out the money and switch to other investment options such as fixed income investments – PPF or others.

  6. Maitri Maroo says:

    – ULIP Policy will prove very costly and generate low returns in future. (Never combine insurance and investments together)

    – I guess 5 Lac Policy of LIC is a traditional Policy which is expensive and you are under-insured here as it covers you only for 5 lacs

    – For health Insurance check out Apollo Munich and Star – have a family floater policy

    – Investing in Gold ETF is a good move… Stay invested

    – Set of Diversified Mutual Funds:
    1. IDFC Premier
    2. UTI Opportunities
    3. DSP BR Top 100
    4. Quantum Long Term

    – Get a term insurance

  7. Ramsundar Kandsamy says:

    1. Start SIP with balanced funds like HDFC Balanced/Prudence fund, so you can experience how M works.


    2.Else u can also start SIP in large or large/midcap diversified funds like Franklin India Bluechip, ICICI Bluechip, HDFC Top 200.

    Since the market is down, I would suggest to go for the second option (diversified equity fund) so that you can gain when the market moves up.

    But NEVER invest lumpsum, go for SIP.

    1. subhabrata says:

      Surrender the Max pol when the surrender penalty is zero. Also try to get an idea abt the LIC policy returns. You should take a term cover of about 1 Cr

      Abt Health Insurance you can opt for Apollo Munich health Insurance Standard Floater pol of 3 to 5 lac Sum Insured.

      About MFs u can go for balanced funds like HDFC Prudence or HDFC Balanced. ICICI Pru Focussed Bluechip, Franklin India Bluechip, HDFC Top 200, IDFC Premier Equity can be the choices.

      Opt for Gold ETF instead of Physical Gold anyday. No second thoughts on that,

      The Contingency Fund Should be atleast Rs. 240000/-.

      Investing in a Chit fund is not prudent at all. It should be stopped and redeemed at the earliest.

      Increase yr Investmt thru SIP when yr wife starts working

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