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
Dear Rahul,
1 - Kindly go through below articles and analyze if you can achieve your long term goal values;
https://www.relakhs.com/calculate-kids-education-goal-amount/
https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/
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.
Read:
https://www.relakhs.com/best-online-term-insurance-plans-india/
3 - LIC Jeevan Surabhi is a Money-back plan.What is the total policy tenure?
Read:
https://www.relakhs.com/term-insurance-plan-a-waste-of-money/
https://www.relakhs.com/traditional-life-insurance-plan/
4 - You may provide details (Scheme names) of your MF portfolio.
5 - Any specific investment plan or strategy for maintaining Rs 6477266 as FDs?
Hi Sreekanth,
Thanks for your great advice.
- Noted
- 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?
- 15 years and I have already paid last premium in 2016
- 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 ?
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 :
https://www.relakhs.com/best-personal-accident-insurance-policies-in-india-details-comparison/
4 - Renewing of FD is fine, but would like to know your investment objective for holding such high amount in FDs?
Kindly read:
https://www.relakhs.com/avoid-fixed-deposits-rds-for-long-term/
https://www.relakhs.com/real-rate-of-return-inflation-adjusted/
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:
https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/
https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
https://www.relakhs.com/best-mutual-fund-schemes-2017/
Hi,
Noted all your points. Concerning FD , main objective is to have risk free safe money.
Regards,
Rahul
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:
https://www.relakhs.com/list-of-best-investment-options-schemes-in-india/
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
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:
https://www.relakhs.com/best-personal-accident-insurance-policies-in-india-details-comparison/
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