Financial Planning..is it on right track?

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Q & A Forum › Category: Financial Planning › Financial Planning..is it on right track?
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ursnandu asked 8 years ago
Hi Sreekanth, How are you? reviewing your blog is a like vaccination which we need for a healthy financial stuff. Thanks a ton for taking this initiative. I would like you to review the below current situation and future requirements:
  1. SIP's as follows: Current value ~ 2,26,000
    1. Franklin India Prima plus (I: 30,000 & LV: 36,000) Invested from past 22 months
    2. HDFC balanced Fund: (I: 11,000 & LV: 11,773) Invested from past 10 months
    3. Reliance small cap fund: (I:78,000 & LV: 1,31,082)Invested from past 33 months
    4. SBI Magnum Mid cap fund: (I: 11,000 & LV: 12,174) Invested from past 10 months
    5. UTI Equity Fund: (I: 30,000 & LV: 35,757) Invested from past 22 months
  2. PPF: Balance 1,24,351 (Stopped investing in this since past July as the ROI from government is kept on reducing)
  3. Savings Account: ~3 lakhs (as contingency for 6-9 of monthly expenses)
  4. Term Insurance with 1Cr coverage alongwith Accident benefit rider and critical illness rider of 5L each
  5. Health Insurance for Mom 3Lakhs via Bajaj Silver health
  6. Currently health insurance for me, wife and kid are covered only via company (Will plan to buy personally next year)
Obligations:
  1. 31 lakhs home loan from Bajaj for 20yrs. completed 2 yrs
  2. 3.1 lakhs personal loan from Bajaj for 5yrs. completed 2yrs
  3. 3 lakhs gold loan
Goals:
  1. Build a house of approx. cost 1cr (By 2025)
  2. Need health insurance for me, wife and kid (Need to buy in 2018)
  3. Kids education (He is 2yrs now, maybe another 18yrs?)
Kindly review the above and let me know the approx. investment which i need to make to accomplish above goals and closure of obligations. Thanks, Nandeesh
2 Answers
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Sreekanth Staff answered 8 years ago
Dear Nandeesh, I am doing good, thank you! How abt you? Glad to know that you are going in the right direction in managing your finances. 1 - The listed MF schemes are ok. Keep an eye on UTI Equity fund's performance. 2 - If possible, try to close the Personal loan at the earliest. 3 - May I know your plan for accumulating Rs 1cr (for house construction) in next 8 years or so?? 4 - Kindly go through below articles ; https://www.relakhs.com/calculate-kids-education-goal-amount/ https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/ https://www.relakhs.com/investing-mutual-funds-paying-home-loan/ https://www.relakhs.com/best-family-floater-health-insurance-plans-details-checklist-comparison/ https://www.relakhs.com/factors-tips-best-health-insurance-plan-india/    
ursnandu replied 8 years ago

Hi Sreekanth

Thanks for your response. I’m doing good.
1. Both the UTI & Franklin have yielded ~20% for past 22 months. Please guide.
2. Is it good to stop investing in PPF?
3. For 1Cr accumulation in 8yrs what is the per month investment needed? Such that I can increase the current sip holdings.
4. Personal loan planning to close in March.
Please guide.

Thanks
Nandeesh

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Sreekanth Staff answered 8 years ago
Hi, 1 - Most of the funds have performed well during last couple of years, thanks to buoyant equity markets. These are ok funds, no issues, but there has been a change in fund manager for UTI Equity fund, so keep a track of its performance. 2 - I still believe that some contribution can be made to PPF, it is one of the best debt oriented long term savings product and tax efficient one too. 3 - Kindly go through retirement or kid's education articles, calculators are available in the articles.  
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