POSTED BY November 5, 2013 5:07 pm COMMENTS (4)ON
I’m a IT professional aged 25 and living in Chennai. I’m finding difficulties in my financial planning doing investments. My only investment is an LIC policy which I took couple of years back for Rs. 3,00,000. So I’m paying around 20k anually which is the only component (apart from medical insurance – 80D) which I show under 80C.
I’m hearing three type of financial components-
1. Pure Insurance
2. Pure Investment
3. Investment + Insurance
My findings –
1. I’ve heard my friends that telling that my LIC coverage is very less. The more amount you invest in this as early possible is more beneficial.
2. Mutual Funds require atleast 5 years to earn you good returns.
3. All types of investments involve risk.
My concerns –
1. Reducing tax component and put it in short term investments
2. Also not to miss the de-facto long term investments that have to be made (like LIC).
I’m completely new to all these and seek your guidance to plan my financial properly.