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POSTED BY ON June 16, 2012 6:04 pm COMMENTS (9)
Dear friends,
I am Durga Prasad, new to Mutual fund investments.
I am 28 years old and married for 2 years and recently bought a term insurance poicy for 75 Lakh coverage.
We are expecting our 1st baby in Nov, 2012.
I would like to start investing in MFs through SIP option as the risk is averaged there.
My goal of investment is to take care of future expenses like my children education, marriage expenses and retirement corpus etc.
I am providing my financial details for your reference as below.
My current salary is 57k/month,
spouse is house wife and has no income,
current living expenses are 12k/month
loan liabilities : I have a home loan of 26 lakhs and paying 26k/month towards EMI, emergency funds : I have 1.5 lakh for emergency fund,
Insurance coverage :
1. Rs.75lakh coverage term insurance for Rs.11k/yr premium
2. LIC Market Plus pension plan which I will get from at the age of 56 years. – premium Rs.25k/year
3. LIC Jeevan chaya for my niece marriage expenses- premium Rs. 6205/ yr
4. SBI Smart ULIP for Rs.1.5 lakh – I started this policy in 2009 and due one more premium of Rs.25k payable next month.
other assets & investments as on date,
1. We have farming land worth rs.13 lakh as of today
2. Other NSC bonds of worth 40k
After considering all myexpenses, I can invest upto 5k/month and I am looking for long term say 20 years.
Please suggest me good SIP plans and other better alternatives
Thanks in advance,
Durga Prasad
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@Adithya
I wouldn’t recommend IDFC PE for him since it is a midcap fund.
Quantum LTE, DSP BlackRock Top 100 Equity, HDFC Top 200 look good. Go for 3000 in Quantum LTE and 2000 in HDFC Top 200.
Stick to this for atleast 1-2 yrs and then based on your ability increase sip amounts or bring a new fund to your portfolio.
Go for DSP BlackRock Top 100 Equity Fund and/or HDFC Top 200 and/or IDFC Premier Equity Fund . This combination will cover almost all mid , large cap shares and these are well managed and have a good track record.
For SIP you can invest as low as 1k per month . Only for lumpsum (one time investment) its 5K minimum in many MF’s
Dear Ashal,
I have checked this fund on their website and the minimum amount expected is 5K
Is it for month minimum SIP value or minimum investment per year?
If its 5K per month, plz suggest any other plan for SIP investment 2K/month.
Thanks,
Durga
Dear Durga, that 5K limit is when you are investing in lump sum. For SIP/STP investment the minimum amount is 500 Rs. only.
Thanks
Ashal
Dear Ashal,
Please suggest me a good SIP to start my MF investments.
Thanks,
Durga
Dear Durga, you may start with Quantum Long Term Eq. fund (growth option).
thanks
Ashal
Dear Durga Prasad, @ 26K EMI, do you really feel your 1.5L emergency fund is enough? First of all, please increase your emergency fund to a higher level for EMI + living expenses + mly investments for 6-9 months.
Thanks
Ashal
Thanks Ashal for quick reply.
If I undestood correctly, I need to have emergency fund of 2.82 Lakhs considering 6 months period using below calculation
(Home loan EMI)@26K * 6 + (living expenses ) 15K * 6 + (mly investments ) @6K *6 = 2.82 lakhs
I think also I need to consider any other medical emergency scenarios too in emergency fund calculation.
Correct me if my understanding is wrong.
Thanks,
Durga.
Dear Durga, Yes you should increase your emergency fund to factor in that medical emergency also. that’s why I kept the figure between 6-9 months. so at the higher end of the figure, there ‘ll be an automatic provisioning for medical emergency also.
Thanks
Ashal