Investment for a SHORT TERM GOAL – Resources all set.

POSTED BY sunil ON February 12, 2013 4:08 pm COMMENTS (4)

Dear All,

In response to my previous post http://localhost/jagoforum2/investment-for-a-short-term-goal/6631/  this is the breakup of my financial plan for accumulating 10 lacs over a period of 5 years – By Mid 2018.

1. Planning to invest 8000 per month as below – Tenure left to grow 5 Years

   5000 in MIP and expecting an appreciation at 9% gives a final value of ‘359083’
   2000 in Pure Debt expecting an appreciation at 8% gives a final value of ‘140798’
   1000 in Equity – Balanced Fund expecting an appreciation at 8% gives a final value of ‘71817’

Total Amount gathered from this investment scenario = 571698

2. I shall be receiving an amount of 110000 in Mid 2014 which i will invest as below – Tenure to Grow 4 years

   90000 into Pure Debt expecting an appreciation at 8% gives a final value of ‘122444’
   20000 into MIP expecting an appreciation at 9% gives a final value of ‘28232’

Total Amount gathered from this investment scenario = 150676

3. I shall be receiving an amount of 15000 in Mid 2014 (from other source than that of point 2) which i will invest as below – Tenure to Grow 4 years

   15000 into MIP expecting an appreciation at 9% gives a final value of ‘21174’

Total Amount gathered from this investment scenario = 150676

4. I shall be receiving an amount of 180000 in 2015 (February)  which i will invest as below – Tenure to Grow 3 years

   160000 into Pure Debt expecting an appreciation at 8% gives a final value of ‘201554’
   20000 into MIP expecting an appreciation at 9% gives a final value of ‘25901’

Total Amount gathered from this investment scenario = 227455

After 5 years i shall be having a total asset of 971003 – which just falls short of 10 lacs, but i am pretty sure to cover up that 28,000 from my bonus.

Do you think this looks pretty good, or any refinement is needed.

Kindly review the detailed plan and let me know if the plan needs any changes.

Thanks all for your views.

4 replies on this article “Investment for a SHORT TERM GOAL – Resources all set.”

  1. Dear Sunil, we are with you always.

    Thanks

    Ashal

  2. sunil says:

    Thanks Ashal and Ramesh fo the views..
    Let me do my calculations on this and will come back to you….

    Thanks for helping…. But need your support till i fnalize my plan (i hope and am sure that it will continue as always)…

  3. Dear Sunil, please read my reply in addition to what dear Ramesh is already telling. Instead of sticking to too many funds. Please opt only 2 funds. 1 Pure debt fund invest 75% money into it or may be 70% only.

    Remaining 25% to 30% into Pure Eq. fund.

    This combo ‘ll do the same (even better) than what your MIP suppose to do for you. In fact as on date you may allocate even 40% into Eq. as the time frame is 5+Y. Subject to your risk taking abilities.

    Thanks

    Ashal

  4. Ramesh says:

    Good ideas all round.

    Just one suggestion – Since you are using pure debt options, it will be wiser to use pure equity options too instead of MIPs and balanced funds.
    Why?
    1. Remember, LTCG on equity funds is Zero, while the MIPs will be taxed like debt funds. With larger sums involved as in your case, it makes sense to assess the risk level and use the percentage of equities in this way. If you are using MIPs, you are just paying tax on the equity component as well.
    2. Separating like this also keeps the investment process more granular, instead of messing around 3-4 funds, you can work with 2 funds.

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