Portfolio Suggestion required for 32 year old NRI who will return to india in future ?

POSTED BY VinManHBK007 ON January 6, 2014 8:58 am COMMENTS (7)

Dear Experts,

I would like to seek your help in doing Financial Planning for myself. Will try to list as much info as possible.

Age = 32 years with wife & daughter (2 yrs old) and parents (57 & 53 ) as dependents

Salary = 3,00,000 INR per month

Expenses = 1,25,000 INR per month

No tax liability abroad.

Assets (real estate) = 65,00,000 INR (2 units of housing with no loan outstanding)

Gold = 9,00,000 INR (jointly held by parents & self)

Rental Income (going to parents) = 15,000 INR per month

Term Insurance for Self for Sum Assured of 1 Crore via online mode with annual premium of 19,551 INR

Oriental Insurance Family Floater for Self,Spouse,Daughter+parents of SI = 8,00,000 INR with premium of 22,622 INR per annum

Parents Monthly Income = 1,00,000 INR

Parents Monthly Expense = 35,0000 INR

Goals :

1. Support to Parents = Corpus of 10,00,000

2. 3rd Home in 2015 = Corpus for 20% downpayment = 15,00,000 INR

3. Child’s education in 2029 (Grad+PG in 2033) , Corpus = 30,00,000 INR as per today

4. Child’s Marriage in 2035 , Corpus = 15,00,000 INR as per today

5. Retirement Corpus for Self in 2041, monthly expense of 35,000 INR as per Indian living conditions

Please suggest me avenues where i need to invest in order to realize the above goals. I guess it is too much to ask but some answers in the right direction will help.

Cheers

Vin

7 replies on this article “Portfolio Suggestion required for 32 year old NRI who will return to india in future ?”

  1. ashalanshu says:

    Dear Vinman, you are always welcome.

    Thanks

    Ashal

  2. ashalanshu says:

    Dear Vinman, personally I w’d prefer my own MF investment in direct mode. 0.75% fee and regular plans under your broker (I’m not calling him the planner), your expense ratio ‘ll be regular plan for MF +0.75%. Whereas if you opt to invest in direct plans and pay an upfront fee to your broker, you w’d save a lot of amount. How?

    Say upfront fee is 20000 Rs. but %age sharing fee is just 0.75% of your investment portfolio. Now if your portfolio is say 5L Rs. in 1st year, it’s 3850 Rs. in 1st year but next year, the portfolio value is say 12L Rs. (5L old investment + 5L Rs. new Investment + 2L Rs. growth in investment). Now this same 0.75% on 12L Rs. ‘ll be 9000 Rs. Now for 3rd Year say portfolio value is 20L Rs. Now the %age sharing ‘ll be 15000 Rs.

    Now do tell me w’d you still prefer %age sharing?

    Thanks

    Ashal

    1. VinManHBK007 says:

      Thank you Ashal for the reply which clearly explains your point and addresses my concern.
      Yes you are right over a period of time this 0.75% of the investment portfolio would become enormous.
      So a DIRECT mode of investing is definitely better and the advise can come for a fee.

      Appreciate your time and effort.

  3. ashalanshu says:

    Dear Vinman, you are already on track. Please add 3-4 more real estate properties and some 5-6 Kilograms of Gold. All your goals ‘ll be completed. No need to contact any paid planner. Why should one pay when the things can be arranged on her own? Keep up the good work you have done till date. By the way, when ‘ll you return to India?

    thanks

    Ashal

    1. VinManHBK007 says:

      Ha Ha Ha… Ashal. I can see the satire in your reply 🙂
      Now i saw the reply. I hired a Planner finally during the time i posted the question. It was just i wanted to compare the ‘learned crowd’ opinion with my dedicated financial planner.
      I have been advised some MF recommendation (5 nos) based on the goals i indicated. Morning star Xray results for past performance for them look good but there is 40 to 50% over lap among them. Is it good to have such portfolio?

      Is it good to invest directly or should i invest through him ? For sure i will not have the ability to rebalance the portfolio for which i feel i need the advisor for sure. FP has proposed to charge me 0.75% of invested value as his fees. Is it ethical for me to ask him to process MF in direct mode since he is already charging 0.75% ?

  4. Sumit says:

    With all the figures and goals are in place (need to be tweaked), I think you need sound financial planning and advises from professional.

    I think you can opt for JagoInvestor’s Financial planning/coaching (from Manish/Nadish), here is the link below if you want to contact:-

    https://www.jagoinvestor.com/services

    1. VinManHBK007 says:

      Thanks Sumit for the suggestion.

      I thought there were some online platforms wherein i can do this myself.

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