Need advice on Finance planning

POSTED BY mangesh patil ON September 11, 2013 1:01 pm COMMENTS (26)

Hi,

I am 31 year old, wanted to build 30lakhs for my son in next 18 years and 1 Cr for my retirement in 25 years, currently i am investinng in 1. IDFC Premier equity plan A G – 2000 2. HDFC Midcap opportunity – 2500 3. Reliance equity opportunity retail plan growth 1500 since last 1 and half year monthly. Is it right amount and right fund or should i increase amount or change funds.

Kindly suggest.

26 replies on this article “Need advice on Finance planning”

  1. ashalanshu says:

    Dear Mangesh, on what basis you selected all these funds? Are you really diversified with these funds?

    Thanks

    Ashal

  2. mangesh patil says:

    Dear Sir,

    Thanks very much for your promt reply. with this i can save approx 40K yearly and 3000 monthly, and i can invest this amount for my sons education in MF.

    Your suggestion required here on my portpolio. currently i am investiong 6000 PM and now i will have 3000 more in my hand. Can you please guide me if i can increse amount in these funds or should go for any new fund for long run(12-15 years)
    IDFC Premier equity plan A G – 2000 2. HDFC Midcap opportunity – 2500 3. Reliance equity opportunity retail plan growth 1500 all since last 1 and half year

    Thanks
    Mangesh

  3. ashalanshu says:

    Dear Mangesh, please contact your serving branch with out any fear.

    Thanks

    Ashal

  4. mangesh patil says:

    Dear Ashal,

    Thanks very much for your suggestion, i have dicided to quit from both policies.
    for TATA policy i will get information about penalties and surrender value on their customer care contact no.
    But for LIC i dont know and my will not give proper information. where can i get these information for LIC ?

    Mangesh

  5. ashalanshu says:

    Dear Mangesh, as the matter was discussed in pvt. mail, I was expecting your reply there. After getting the figure of 5.22% in your policy as XIRR, it’s your call to continue or quit.

    If I’m in your place, I ‘ll quit from this policy. Same for that TATA policy.

    Thanks

    Ashal

  6. mangesh patil says:

    Dear Sir,

    Sorry for disturb you, you might be busy so couldn’t revert me. Pls revert when you get spare time.

    As per our last conversation XIRR of Komal jeevan was 5.22% so What will be your advice in this case for this policy.
    and What will be the XIRR of TATA Mahalife.

    Mangesh

  7. ashalanshu says:

    Dear Mangesh, you may share your exl. calculations in private mail to me.

    thanks

    Ashal

  8. mangesh patil says:

    Dear Sir,

    i am not able to paste my exel calculations for Tata Mahalife gold plan.
    is there any way where i can upload.

    Mangesh

  9. mangesh patil says:

    Dear sir,

    Thanks for your reply,

    Here i am sharing my calculations with you.
    kindly check if its right.

    LIC Komal Jeevan
    My Age Years Date EMI
    28 1 May-10 -14076
    29 2 May-11 -14076
    30 3 May-12 -14076
    31 4 May-13 -14076
    32 5 May-14 -14076
    33 6 May-15 -14076
    34 7 May-16 -14076
    35 8 May-17 -14076
    36 9 May-18 -14076
    37 10 May-19 -14076
    38 11 May-20 -14076
    39 12 May-21 -14076
    40 Jun-21 40000
    41 13 May-22 -14076
    42 Jun-22 40000
    43 14 May-23 -14076
    44 Jun-23 60000
    45 15 May-24 -14076
    46 Jun-24 60000
    47 16 May-25 -14076
    48 Jun-25 250000

    0.097053188
    9.705318809

  10. ashalanshu says:

    Dear Mangesh, If waht you have calculated is RIGHT (your XIRR), please continue with these policies. In case there is some fault in your calculation, you need to look into it deeply.

    As far as I know, these policies, can not provide such high returns. 🙂

    thanks

    Ashal

  11. mangesh patil says:

    Dear Ashal Sir,

    Finally I got XIRR of my policies.
    TATA AIG 7.6%
    Jeevan Komal 9.7%

    Kindly suggest further.

    Thanks
    Mangesh

  12. mangesh patil says:

    Ok Sir,

    Thanks very much, will check and come back..

    Thanks

  13. ashalanshu says:

    Dear Mangesh, ok, here is a home work for you. Please search within your exl. file on how to calculate XIRR? Do accordingly and calculate your XIRR. Come back here and we ‘ll discuss it again.

    thanks

    Ashal

  14. mangesh patil says:

    Dear Arshal Sir,

    Thanks for reply.
    I am not irritating at all. I really want to learn finance management to secure my future so welcome to all your question. and Nowadays its became my hobby to visit your site and read all old/new artilcles, its really informative.

    I don’t know how to calculate policy return using XIRR function.
    i am just making entry in xls file for all my investments where i can see total money invested and returns in %, that’s it.

    Actually the thing disturbing me is, 1. I am investing almost 30000 PA in these policy and will get hardly max 10 lakh return after 15 year and that time this amount will have no more values.
    2. And amount i am investing in MF is too small to build good amount for my goals.

    Kindly suggest.

    Thanks
    Mangesh

  15. ashalanshu says:

    Dear Mangesh, can you calculate your Mahalife and Komal Jeevan policy return by using XIRR function of exl. sheet? Many a times people do get irritated from continuous cross questioing. If you are feeling the same, please do tell me. I want you to stand on your own leg with out any support, hence trying to help you learn these things. Hope my approach is OK with you.

    Thanks

    Ashal

  16. mangesh patil says:

    Dear Sir,

    In Tata AIG Mahalife gold i have to pay 15 installment PA.
    Return is 9300 Rs 0n 7th 8th and 9th yearly and 33600 Rs from year 10th to 19th and 42900 Rs per yearly till the my sons age will be 99.

    In Jeevan Komal I have to pay 16 Installment PA.
    Return will be on 12th and 13th 40000 each and on 14th and 15th 60000 each and 250000 on maturity 16th year 450000 Approx.

    both this plan i took from relative who is agent.

    Kindly suggest.

    Regards
    Mangesh

  17. ashalanshu says:

    Dear Mangesh, please do tell me the maturity value of the 2 policies taken by you for your SON.

    thanks

    Ashal

  18. mangesh patil says:

    Dear Arshal sir,

    Kindly inform me if you need any more information from me, i am awaiting for your valuable revert.

    Regds
    Mangesh

  19. mangesh patil says:

    Dear Experts.

    kindly reply on my query.

    Regards
    Mangesh

  20. mangesh patil says:

    Dear Ashal Sir,

    First of all i am very thankful to this forum, i regularly read all questions in this forum and specially check Mr. Manish and yours comments. this forum is eductaing every one. who wants to do something for future and family.

    my details :-
    Age:- 31
    Family:- 3( Mother, Wife, Son-4 year)
    Income:- 55K( i am only earner)
    Family expense 20K
    Home Laon 4Lakh (8K EMI)
    Insurance covered:- 50lakh HDFC click to protect(8000 PA), 2.5lakh LIC(8500 PA from 2005), 15 lakh Company group insurance.

    Investment:-
    . IDFC Premier equity plan A G – 2000 2. HDFC Midcap opportunity – 2500 3. Reliance equity opportunity retail plan growth 1500 all since last 1 and half year

    VPF 3000

    Jeevan Komal 15000 PA for Son for 16 year( from 2010)
    Tata AIG mahalife gold 2300 PM for son for 15 year(from 2011)

    i cosider 8% inflation and i will require 130000K PM post my retirement and 30 lakh for my sons education. i can increase my investment, kindly suggest.

    Regards
    Mangesh

  21. ashalanshu says:

    Dear Mangesh, let me rephrase my counter question to you. What’s your current mly expenses & what it ‘ll be in your post retirement life?

    thanks

    Ashal

  22. mangesh patil says:

    Dear Ashal Sir,

    Waiting for your suggestion, whenever you will get spare time, pls reply

    Regards
    Mangesh

  23. mangesh patil says:

    Dear Ashal Sir,

    I am having VPF from my employer 2500 PM, i think it can build 60lakh over the period. i need to build more 1 cr for retirement.

    here i am repeating my question…..if you want to add something, kindly suggest.

    Currently i am investinng in 1. IDFC Premier equity plan A G – 2000 2. HDFC Midcap opportunity – 2500 3. Reliance equity opportunity retail plan growth 1500 since last 1 and half year monthly. Is it right amount and right fund or should i increase amount or change funds.

    Regds

  24. mangesh patil says:

    Thanks Jigneshji for your reply.
    You are not suggesting me any Mutual Fund investment. Is there any reason behind it.

    Regds

  25. ashalanshu says:

    Dear Mangesh, how did you come to conclusion that 1Cr. Rs. is enough for your retirement?

    Thanks

    Ashal

  26. jinesh shah says:

    Hi at 8% expected rate of return you will be able to barely make 30lacs at your current rate of investments.

    for Rs 1 cr at end of 25 years you will have to start investing Rs 10000 additional from today at 8% rate of return.

    Suggest following.

    1) see how much more money you can invest
    2) for 18 years horizon these seems fine just add some fixed income investment like PPF for stable returns
    3) for 25 years (retirement corpus) personal suggestion is NPS and PPF. NPS you will be able to divest only after 60 years of your age and so small portion which doesn’t affect your liquidity can be apportioned to the same.

    regards

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