Investment Planning advise please

POSTED BY RV ON October 8, 2012 7:57 pm COMMENTS (10)

Hi All,
I would like your astute inputs for me to plan my finances in a correct direction. I’ve gone through some of the tips and recommendations you’ve provided and it looks to me that I too would find a good advise.

Below is my current portfolio:
1) Salary 60k
2) PF: Accumulated amount around 6.2 lacs
3) Investment in UTI Adv Series-I 5k
4) Investment in NSC 11k gets matured in 2013
5) RD 9k for 1 year
6) Shares 24k just going good
7) LIC 59340.00 p.a. basically on Jeevan Anand
8) Montly Expenses 35k including Credit Cards etc
9) Zero Loans/Debts
10) Dependents: Mother – 69 yrs and Wife. Health cover: 15k pa standard one + 2 lacs for mother + company for myself and spouse.

Wife portfolio (currently not working)
1) Earning: 20k
2) Saving: 7k pm
3) PF around: 1 lac unclaimed, still at PF office.
4) LIC 5,000 quarterly (Money Back and Jeevan Anand)
5) Expense: 12k, misc spending on house 1k sometimes

Please advise, I know I’m on basic low yield savings hence looking for a better options, now I’m somewhat thinking to go on Large CAP Mutual Funds.

Kind Regards,

10 replies on this article “Investment Planning advise please”

  1. mani says:

    Hi Manish,

    I had sought advice from one of the leading tax consultant companies on how/where to invest to help me save taxes.
    I had also shared my latest salary slip, IT computation sheet,LIC receipt and also my rent receipts (Bangalore) with them so as to have an all-round information.
    They had viewed the same and had responded back to me with the following suggestions:

    1. Take Supplementary allowance as reimbursement.
    2. Take home loan and save your tax liability.
    3. Take car lease from your company and avail the benefits of installment paid from the company.
    4. Invest in NPS to save your tax liability.
    5. Also take Mediclaim policy.
    6. Also you can invest in 80CCG i.e Rajiv Ghandhi Saving Scheme and avail benefits for tax saving
    7. Also take rent receipts of an amount of Rs.14500 per month and save your tax liability.
    8. Only 5yrs FD’s is eligible for tax savings its better to invested either in 5 years or some other investment.

    I have my own doubts/questions related to the above suggestions (pointwise questions as mentioned below).

    1. In my job grade, I will be eligible only for medical reimbursement as supplementary allowance & leave travel allowance (LTA). I cannot opt for LTA as I will not be in a position to submit the train tickets and take leaves for continuous 10 days at a single stretch. So the only option left with me is medical reimbursement which I am currently taking as monthly taxable. I am getting 1250 per month (1250*12=150000) credited and the same reflects in my salary slip and hence not sure of the difference it makes when the change is made from monthly taxable to reimbursement. Also note that my company does not provide any food/meal coupon for any supplementary allowance.
    2. I am not planning to take a home loan as this is not suited for my requirement.
    3. My job grade does not permit me to take car lease or car loan from the company.
    4. Please let me know whether investing in NPS is a good option. If yes, let me know any recommended NPS names associated with this scheme.
    5. Currently myself,spouse and kid are covered under my company medical insurance coverage which is quite good. If still this needs to be considered, let me know any recommended mediclaim policy. As my parents have their own medical insurance(Ex Army insurance coverage), they do not need one as of now.
    6. Please let me know whether Rajiv Ghandhi Saving Scheme is a good scheme for tax saving. If yes, how much amount needs to be deposited.
    7. I am paying a rent of 12000 INR (currently) and while declaring the same on my company payroll procedure, I need to declare the PAN number of my owner. So is changing the rent amount to Rs 14500 per month be a cause of concern to my owner.
    8. I have knowledge and had invested in 5 year FDs for tax savings. Any suggestions on much more attractive schemes for this place. I have heard a lot on ELSS but not sure on the fund names and the real benefits comparing to 5 year FDs when it comes to tax savings.

    Over and above all the questions, I have heard that the max amount we can show for tax savings is 1,50,000 no matter whatever the salary is credited. Does it include all the sections or is it that only for 80C. If so what about the caps for other sections like 80CC, 80 CG and all.

    A detailed answer to above will be of great help. Thanks.

    1. Hi Mani

      I have not gone through your comment as its very long. Our comments section will not be able to help you with such a long query. I hope you understand.

      1. Mani says:

        Thanks Manish.

        What needs to be done from my end so as to receive a reply.
        Please advise.

        1. Hi Mani

          Please ask shorter questions and a crisp one.

          1. Mani says:

            Thanks Manish.
            Will prepare a crisp question summarising all my questions and will come back.
            Thank You.

            1. Mani says:

              Which is the best tax saving instrument you will suggest for a salaried indiviual. I understand there are various factors associated with it but overall would like to know the best tax saving fund/instrument as per your advise.

              Thank you.

  2. popo gaa says:

    Biswa is right… some few meaning abt investment..
    Why so many are after mutual fund(SIP)?
    = Its totally a BIG LOSS THAT’S WHY PEOPLE RUNS AFTER IT.
    in simple words, better yielding(higher %) than RD.
    What abt Risk? no problem…coz its Diversified.

    But the big challance is that, In which one? Ask yourself….
    Which one is healtheir/healtheis/Stronger/strongest And which one shouldn’t get Rust in a Bad weather?
    Everything we need is RESEARCE…BUT HOWWWW????
    THAT’S THE REASON WHY WE ARE ALL IN THIS FORUM.

    IS THERE ANY ONE WHO COULD GIVE ME/US GUIDE? mine is given below,,,,

    Hello Sir,
    I’m planning to setup my own business after 10 years for which I need atleast Rs.50lacs.
    Kindly suggest me the best investment for duration 10years with rs.10k p.m to attain 50lacs maturity value.
    Thank you.

  3. Biswa Singh says:

    I think Anubhav is new to the world of investing. Tax saver deposits do not beat inflation and in long term they only retain the current value of the money. So hardly you get any actual return.

  4. Anubhav Ranjan says:

    Do not invest in mutual funds. They are very very market sensitive. In MF you will get max 12% interest but that depends on market at that time. if you want money and market/NAV is down then your earned amount will be < principle amount.
    Invest in tax saver deposits in Bank. That's best way to do savings.
    Bettwr to go with bank recurring deposit than SIP.

  5. Biswa Singh says:

    Yes surrender low yielding policies and invest in good equity MF. Also get a term insurance.

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