4 replies on this article “The BIGGG Question may be useful for everyone”

1. ashal jauhari says:

   February 14, 2012 at 9:40 am

   Dear Sainath, when you are still unmarried, where is the question of child plan. Please do not think blindly that child plans are the only way to save for your children. You may invest in a variety of instruments for your goals. Say PF, PPF, Bank FDs, Eq. & Debt MFs to name a few.

   Thanks

   Ashal

   Reply
2. sainath says:

   February 14, 2012 at 12:18 am

   Thanks for your suggestions
   @justgrowmoney. Thank you for giving me suggestion on closing my PL

   can anyone give me idea about child plan and retirement planning
   Means which funds are better
   people are saying large cap /mid cap / balanced, bear , bull ….something something..
   I am weak in this area!
   Please give me clarity on this. So that I can take a decision on children plan and retirement planning.

   Reply
3. justgrowmymoney says:

   February 13, 2012 at 4:01 pm

   Sainath – I will answer very broadly with an intent to make you think rather than giving direct answers like select XYZ fund.

   1) Term Insurance and Health Insurance: Past claim ratio is no guarantee for future payments – slighly indicative but just that. Be honest in your declarations and insist on a medical test with the insurer – this way they can never deny saying a known/unknown disease/condition was concealed (Several recent court cases were settled in the favour of the customers when information provided by them was genuine).

   2) Your intent is to create wealth but you have a wealth drainer in your pocket. The Personal loan! Personal loans can be in the range of 15-20% or more. WHat use is there if your MF gains 13% in next 12 months and you pay 15% interest on the Personal Loan. So close your high interest loans like Personal loans/credit card etc. before investing a single paisa. Just take upon yourself to close this loan as fast as you can.

   3) Investments need some margin of safety – Chit funds dont provide one. The extra risk taken for 1-2% yield is not worthwhile. Move out of Chit funds – push funds into PPF and Short term Debt funds. If in 10% tax bracket you can even think of locking the 10+% available with Bank FDs (I am personally not a fan of Bank FDs though).

   4) I will take that you need 5 lacs to – close PL (1 lac) + 4 lacs down payment. Plug this in excel =PMT(1%,60,0,-400000,1). You will need ~ Rs. 4900 invested, growing at 12% per annum for 5 years to achieve 4 Lacs. Again – Remember – close all high interest loans before investing in MFs.

   There is no dearth of recommended funds in this forum so I am not addressing that specifically!

   Reply
4. daksh.k.maheshwari@gmail.com says:

   February 13, 2012 at 3:34 pm

   hi,

   health insurance – i believe any genuine case will be properly addressed by all the company.
   Now with respect to service, i prefer private player for their service and ones who have good network hospitals in your area. i had gone for apollo munich as they have their own network hospitals.
   term insurance – same – no issue for genuine case nd prefer private for their service and prompt actions. online term plan are at discount.
   MF- ‘MF investments are subjected to market risk pls read d offer document clearly and invest’ – dats what i think is written below :), MF and equity needs 2-3yrs to hv good returns. review ur investments every 8months comparision wt markets.
   also advice to have mf through Demat (few dp provide free online service for MF buying selling) dat will help u monitor it wt ease.
   Select MF for their past performance v/s market – the one which gains most in bull run and saves ur investments in debt in bear markets
   Suggest invest regularly instead of lumpsum considering ur immediate, short nd long term needs

   Reply

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