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.