Portfolio Suggestion

POSTED BY Navneet Kumar ON October 18, 2012 7:48 pm COMMENTS (2)

Please suggest me over the following portfolio as do i need to have any change in my portfolio to accomplish my targets.
Age: 27 Years
Salary: 50K PM
Monthly Exp: 10 K PM

1: 3+ Crores at my retirement time
2: 1 crore for my children’s(2) education and marriage.
3: Planning to buy a car by next year of 7-8 lacs
4. Assist my father in my sister’s marriage in 4 years from now.- 10 lacs.
5. Purchase a house in 10 years.- 50 lacs.
Recurring Deposits:-
1. 9900 PM @ 10.75% (Twice withdrawalable annually)
2. 1000 PM @ 12.25% (50% Withdrawalable after 5 years and after that every 3 years)

1. Jeevan Anand – 10 Lacs cover (20 years premium @ 4523 PM)
2. Money Back – 10 lacs cover (25 years premium @ 4412 PM, 1.5 lacs cash back every 5 years and 17.5 lacs in the 25th year).
3. 3 other policies for which my father is paying- 30k per annum.

I understand this is not a good profile for someone who has been working for last 5 years. I expect my salary to double in 4 years from now and treble in 8 years. As of now, I have no liabilities. I plan to invest in mutual funds but have no knowledge about it. Please help me about how to distribute my income in debt and equities. Also, I do not have a PPF account as it doesn’t seem very useful to me at its current rate of interest, the lock in period of 15 years, and the uncertainty around the future probable rates of interest.
I am currently paying an annual income tax of 30k despite completely covering the 80C with LIC and PF money. As tax saving infrastructure bonds are no more an option, it would be very helpful if someone suggests me a way to save more.

Thanks for your patience,
Navneet Kumar 🙂

2 replies on this article “Portfolio Suggestion”

  1. Navneet Kumar says:

    @TheZionView Thanks for responding 🙂

    As I said, my insecurity with PPF has its roots in the uncertainty over the interest rate changes , which is an inherent property of this scheme. And if the past is any indicator, it is going to go down( certainly not up to the glorious levels of 12%). Also, I already have two long term policies so I do not think it would be wise to invest more in debt. I understand my policies are a bit hefty on my paycheck right now but after 3-4 years it wont be much compared to my take home.

    It would be very helpful if you could suggest some reads for MF investments. I have tried to find as much material as I can and going through it, but I think it would be better if someone who knows it guides me a bit.

    Thanks again 🙂

  2. TheZionView says:

    For someone investing all his money in Debt with post tax returns close to 7-8% i am appalled at the way you look at PPF as not attractive with 8.5% return post tax with exemptions under 80c.

    That apart you have your worth in debt and you need proper financial planning.

    I would suggest you to go through the forum and see the discussions and also learn more by reading main website and http://www.subramoney.com. Only you can teach yourself.

    After you spend some good 3-6 months you yourself will be in position to decide what to close/choose and what not to.

    All the best

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