Dear Sir,
I am 32 years old with a kid (2 months).
I am investing in Reliance tax saver growth option ELSS since 2012.
Keeping in mind the child's future please advice a long term SIP plan. Along with the SIP i am planning to go for "good old short term RDs" and a long term life insurance. Also please advice if it will be better to switch from Reliance tax saver growth to a different scheme like Reliance small cap equity.
Regards and best wishes.
3 Answers
Hi dear ,
If your investment objectives are to accumulate long-term wealth & also tax saving then you may continue your investments in Reliance fund.
Reliance Tax Saver has been performing well for the last few years. But, kindly note that this fund has one of the highest Standard Deviations in ELSS fund category. It has HIGH risk grade.
Read:
Kindly use the calculator available in the below article to know the approx required savings amount for Kid's Education goal planning.
Read: Kid's education goal planning calculator.
May I know why would like to invest in Short term RDs?
Yes, kindly buy a Term insurance plan at the earliest and also a stand-alone Personal Accident cover.
Read: List of articles on key aspects of Personal Financial Planning! (Don't miss reading this post)
Dear Sir,
I am opting for short term RDs to ensure liquidity.
Child's education cost would be somewhere between 20 - 25 lac. I was planning to start a new SIP/ELSS for the same. Somehow i am not comfortable with Child plans. Please suggest a suitable SIP.
Regards and best wishes.
Dear,
Yes, it is advisable to avoid Child plans.
Kindly go through the articles provided in my previous 'Answer'. One of the article is about Best ELSS funds. Also, you can use the calculator available in the 'Kid's education goal' related article to calculate the required savings amount to reach your Goal target amount.
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