Suggestion on my investment plan

POSTED BY anup anand ON January 4, 2013 9:19 pm COMMENTS (6)

Hi,
I have completed an year of my job and am thinking of investing my money. Here is what I have been thinking so far :
PPF – 36000 per Year (I have applied for the ppf account and will get openend in Jan’13)
LIC Jeevan Anand Plan – 29275 per Year premium (I already have this)
Canara Robecco ELSS plan – 12000 per Year
HDFC Top 200 (G) plan – 24000 per Year
I think this way I can get tax benefits under Section 80C and develop a behaviour for systematic investment.
Please suggest me if I am heading into wrong direction. Any suggestion is welcome.
Thanks in advance.
– Anup

6 replies on this article “Suggestion on my investment plan”

  1. Lionel Michael says:

    Anup,

    The 11 pointers mentioned by FFC is one of the best advice you can get.

    It would do you a world of good if you can implement them.

    All the best to you.

    Regards,
    Lionel

  2. ELSS is also a good option but don’t start a SIP. invest small amts spread over a few months

  3. Anand,
    now that you have listed your goalsou, you could do the following:

    1. Get yourself online term insurance for at least 15-20 times of your annual income
    after you have children you can increase the cover.
    2. get enough mediclaim cover even if provided by employer
    3. keep 3-6 months of expenses in a savings bank with FD sweep option
    4. go to

    http://freefincal.wordpress.com/financial-health-check-3/with-optimized-goal-investor/

    check your financial health, input data for all your goals and find how how much minimum
    you need to save
    5. Use this asset allocation tool and risk analyser tool found there

    http://wealth.moneycontrol.com/jtassets.php

    to know your risk profile and asset allocation
    6. choose % of equity and % of debt you are comfortable with
    7. You could use

    http://freefincal.wordpress.com/step-by-step-guide-to-choosing-a-mutual-fund/

    to choose a mutual fund for your goals
    8 use ppf as primary tax saving option and use for retirement
    9. Analyse what to do with your Jeevan Anand policy
    10. monitor your goals closely and review at least one a year.
    11. learn what rebalancing a portfolio means

  4. anup anand says:

    Thanks FFC and Vignesh for your replies.

    I am newbie in this field and don’t know much about asset allocation/risk analysis. I would request you to help me with this. If there are sites that can give me a clear understanding of all these facts and help me with the above analysis, then please do suggest to me.

    My monthly salary is 45K and following are the biggest goals in my life :
    1. Marriage – in 2014 (1 year from now)
    2. Supporting parents – from 2015 (2 years from now)
    3. Child’s education – from 2025 (12 years from now)
    4. Retirement – in the year 2048 (35 years from now)

    Based on your experiences, please let me know if I am missing out any important aspect of my life. I would be very happy to learn. I seek your help in analysing the risks involved.

    Thanks again,
    Anup 🙂

  5. VIGNESH BASKARAN says:

    Hi Anup

    It s very good to see saving at a very earlier age!!!! Congrats!

    Opening a PPF account is a very good move!! Kudos!!

    But now the PPF interest rates are linked to the government bonds and yoy it changes. So as pointed out by FFC you can see your risk profile and according to the you can invest in Mutual fund and other debt instruments

    Both the Funds selected are time tested Funds. both are good one.

    But have a target before investing in Mutual fund and based on that do SIP.

    Pls revert if you have some more quries!!

  6. you have investments. You should now have a plan!
    Meaning you should list down your short (less than 5 years) and long (more than 5y) term goals and align your investment along with your goals. This is the primary task tax saving is an integral part of this.

    Read reviews about Jeevan Anand and see if it is worth holding on to. The short answer is NO. Easy enough to find out why. You need to start thinking about retirement investment, your risk profile in terms of how much equity investment you can handle and so on.
    only then can you decide on individual allocations (how much in ppf how much in mfs) etc.

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