Need help regarding investment planning ?

POSTED BY vinay rathod ON December 5, 2012 12:30 am COMMENTS (6)

Hi,

Few months back I have started working. Now I want to plan about my investments.

Currently I am drawing 23k p.m . I have opened 2 LIC policies one of 30k and other of 19k.

Now, I have to show the investment of another 50k to save tax.

Could you please let me know, where should i invest wisely. I am confused whether to go for PPF or for some ULIP plans ( like HDFC Crest or ICICI Pinnacle ) or some Mutual fund investment..

I am the only working member in my family having the whole responsibility. So, I want to invest wisely.

Please help.

Thanks in advance.

6 replies on this article “Need help regarding investment planning ?”

  1. Dear Sir/ Madam,

    Since you are in search of a suitable investment plan, we would like to present to you HDFC SL Crest, an investment cum insurance plan to suit your needs. This ULIP product comes with a Highest NAV Guarantee* on your investment so that you can enjoy the highs of the market without being affected by the lows. The premiums need to be paid only for 5 years, while you enjoy the investment benefit for 10 years, after which you get the maturity amount. The plan also provides valuable life cover to your family, while allowing you to invest for your financial goals. If you would like to know more about this dual benefit plan, please take a minute to visit http://www.buyhdfcslonline.com/ORM/ and get an instant quote for your required investment.

    If you are completely satisfied with benefits, terms and conditions, you can go ahead and buy instantly.
    Insurance is the subject matter of the solicitation.

    Best Regards
    HDFC Life

  2. vinay rathod says:

    Hi,

    Thanks to you all for your valuable advice.

    I did the investment in LIC as suggested my fellow working friends and this was a decision made in hurry.

    My current employer is deducting EPF but that is very little in amount.

    To bring down my tax to zero i need to invest another 50k !!

    After going through the various threads i have dropped the plan for investment in ULIP’s

    But I need to do the investment of 50k anyhow. Investing in PPF won’t be a dead amount investment !!!!

    Could you please help me in doing the financial planning so that i am able to get rich returns.

    1. Ramesh says:

      As i said, first plan and then act.

      Prepare for yourself a proper written financial plan (called as Investment Policy Statement).
      eg http://www.morningstar.in/posts/10705/making-your-investment-policy-statement.aspx

      http://www.bogleheads.org/wiki/Investment_Policy_Statement

      http://www.abcsofinvesting.net/investment-policy-statement/

      Go through them.
      Read about various options like pros and cons of
      1,2 – equity investment in terms of stocks, mutual funds (including ELSS)
      3- PPF
      4- debt funds
      5- FD, NSC and other instruments.
      6- Ulips
      7- Traditional insurance plans

      And then only implement it.

      By directly investing into PPF without understanding about it, you are making the same mistake again.

  3. Dominic Prakash says:

    You have EPF and PPF. Then why did you go with LIC? Get rid of them and increase EPF and ad PPF. You can open PPF in any of State Bank group banks or Post office or ICICI bank

  4. Ramesh says:

    How much is your tax liability? Put only that much amount of money into tax-saving instruments, which brings your tax to minimum or zero. Not more than that.

    Go through the various threads in this forum, some books, and then finalise something for you.

    First doing (like those LIC policies) and then thinking is a very bad thing.

  5. Raj says:

    Strict no to ULIP plans – you have read through this forum why ULIP is highly discouraged.

    If your entire family is depending on you make sure you have a good Term insurance. If your current LIC insurance plans are not term insurance plans its better to surrender them if it is not too late.

    If you are planning to save tax and ready to keep invested for some years I’d recommend to go with ELSS mutual funds. Franklin India TaxShield and Can Robeco Equity TaxSaver are very good options.

    If you don’t have a EPF component from your current employer open a PPF account with SBI as well.

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