Investing for yearly premium payments

POSTED BY deepakgudla ON June 6, 2013 11:45 am ONE COMMENT

Hello all,

Need a suggestion in saving the money for yearly premium payments.

For a whole year, i need to pay around Rs. 80,000 for all the premiums of term insurance, medical insurance, vehicle insurance. And i need this money in different months of the year.

And not to overburden for that paying month, i opened different recurring deposits (around 10 RDs) which will mature in the following month so that i can pay the premium. This is working fine with me. But main issue is that, i have to open one RD as and when one RD matures. This is little time consuming and some times, i may miss to open the RD also.

I have a solution for it but i dont know which investing instrument supports this need.

  • I can invest monthly as a SIP to only instrument (same like an RD but not multple RDs)
  • Intest/returns of the same will be reinvested in that instrument
  • I can take/redeem money from that instrument as when there is due for paying the premium
  • My monthly SIP will continue to that instrument till the policy expiry.

But i am not sure where can i invest in that way. MFs attact shortterm capital gains tax. RDs have loss of interest amount and also i can not withdraw partially.

Please Suggest which instrument i can go for below benifits

1. Single instrument

2. Good retunrs.. not expecting more that RD

3. Partial withdrawl without charges

 

Regards,

Deepak Gudla.

 

One reply on this article “Investing for yearly premium payments”

  1. Dear Deepak, please invest the money in Liquid fund. Please read past discussion here in the forum to understand it better. If you do have queries even after that, please feel free to ask.

    Thanks

    Ashal

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