Corpus generation

Q & A ForumCategory: Financial PlanningCorpus generation
rahuls2507 asked 7 years ago
Hi, I must say you are doing great job. Please keep it up. I am a 38 years old and live with wife and 2.5 years old son. My financial goals are 1. Life Insurance 2. Retirement (10 Cr by 60 age) 3.  child education ( 2 Cr within 18 years from now). May i request you to kindly check my portfolio below and advise me accordingly. I can invest 2L every month, could you please suggest some good funds considering my existing investments. S.No Type of Investment Investment amount Date of Investment Current value Life Insurance Purpose 1 Stocks 287,084 271,847 Corpus generation 2 ICICI Pru (ICICI Pru Elite Wealth II ) { Maximiser Fund V -34% ; Opportunity Fund -66%} 1500000 17-Dec-14 1471000 7500000 Life Insurance + Retirment. In loss what should I do ?(Premium INR 500000 pa) 3 Metlife (Met Smart Plus ) { Flexi Cap-50% ; Multiplier II - 50%} 800000 27-Feb-09 1000000 2500000 Life insurance + Corpus generation ( premium INR 100000 pa) 4 Kotak opp fund (Kotak Smart Advantage - Opportunities Fund) 225000 2-Sep-08 240000 3500000 Originally insurance was taken for 35L home loan. Home loan is cleared.( Premium INR 25000 pa). Policy term -15 Years 5 LIC-Jeevan Surabhi Policy 5-Aug-05 30000 100000 1st life insurance( premium INR10631 pa) 6 Mutual fund in demat 441000 496248 Corpus generation 7 L&T Tax Advantage Fund (G)(Invested in 2006 Lump sum INR 16000) 16000 72404 Corpus generation 8 Franklin India taxshield-Growth (SIP)(Invested from 2006 -2009 for 36 months ) 77999.92 272880.59 Corpus generation 9 Fixed Deposit in Bank 6477266 6847484 Security (Should I shift some amount from FD to MF ?) 10 FD in Corporate ( Shriram transport) 200000 8-Jan-15 269900 36 months deposit 11 Cash in hand 30000 30000 Please advice where should I invest ? 10054349.92 11001763.59 13600000 Regards, Rahul Singh
7 Answers
Sreekanth Staff answered 7 years ago

Dear Rahul,
1 - Kindly go through below articles and analyze if you can achieve your long term goal values;
2 - Suggest you to buy a Term insurance plan with adequate life cover. You may then surrender ULIPs which have crossed 5 policy years. (Met Life & Kotak). You may surrender the ICICI ulip plan in 2019 (or) you can discontinue it now itself but you will get Surrender value after 5 policy years only.
3 - LIC Jeevan Surabhi is a Money-back plan.What is the total policy tenure?
4 - You may provide details (Scheme names) of your MF portfolio.
5 - Any specific investment plan or strategy for maintaining Rs 6477266 as FDs?

rahuls2507 answered 7 years ago
Hi Sreekanth,                       Thanks for your great advice.
  1. Noted
  2. Presently i have 1.36Cr insurance from ULIPs etc. Tenure of ICICI pru is 30 years, Metlife is 72 years and Kotak is 15 years. If i take term insurance at 38 age may be i have to pay more for the same amount. Don't you think with ULIPs i am achieving both goals? 
  3. 15 years and I have already paid last premium in 2016
4. Scheme Inv. Price     Axis Gold ETF 5,000.00     DSP BlackRock Micro Cap Fund - Regular Plan (G)     30000     Franklin Build India Fund (G)     10000     Franklin India Tax Shield (G) (36)     36000     HDFC Top 200 Fund (G) (12)     24000     ICICI Prudential Banking & Financial Services Fund - Direct Plan (G)     20000     IDFC Infrastructure Fund - Direct Plan (D)     20000     Invesco India Ultra Short Term Fund (G) (2)     135000     L&T Tax Advantage Fund (G)     16000     Reliance Small Cap Fund (G) (2)     15000     SBI Blue Chip Fund (G) (3)     15000      
  1. INR 6477266 is in FD and I keep renewing it. Should I continue keeping in FD or you suggest me to take some good MF ?
Sreekanth Staff answered 7 years ago
Hi, 1 - Suggest you to kindly check the premium quote for Rs 1cr online for a term plan. 2 - Are you comfortable with ULIP plan charges and satisfied with their performances? 3 - Do you have Disability risk cover? Kindly read : 4 - Renewing of FD is fine, but would like to know your investment objective for holding such high amount in FDs? Kindly read: 5 - Existing MF portfolio : Kindly be aware of high risks associated with an Infra fund & sector oriented fund (bank). Suggest you to check for any high overlap among your other Equity oriented funds. Most of them are decent funds. Read:
rahuls2507 answered 7 years ago
 Hi,      Noted all your points. Concerning FD , main objective is to have risk free safe money.  Regards, Rahul
Sreekanth Staff answered 7 years ago
Hi, Kindly go through the above suggested article on 'FD investments'. You may re-allocate these FD savings to your long-term goals into other better investment options. Read:
rahuls2507 answered 7 years ago
Thanks Sreekanth ! I really appreciate your great help. I shall review and modify my portfolio as per your advices.  As i was checking term life insurances , I saw death benefits and accidental death benefits. Could you please explain what is the difference between this two ? Regards, Rahul
Sreekanth Staff answered 7 years ago
Dear Rahul, Term insurance : Death benefit is payable if death happens due to any reason - natural, illness, accident, etc., Whereas, Accidental death benefit is payable if death happens only due to an accident. Read:
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