Financial planning for next 5-10 years

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Q & A Forum › Category: Financial Planning › Financial planning for next 5-10 years
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sathishnanu asked 7 years ago
Dear Sreekanth, I am 48 years old and for the next 5-10 years time horizon, mainly for 2 kids education purposes, I wanted to know if I am doing the right investments:
  1. Have regular LIC, insurances for wife and me.
  2. Have put lump-sum of 5 lakshs in MF (Motilal) from 2017
  3. Have SIPs in MF from 2016, about 40k by me per month and 25k by my wife.
  4. Have health insurances and term insurance for myself.
Would like to discuss with more details if I am on the right track with the Mutual Funds speculating what might be the Indian economy in the coming 5-10 years. I have read most of your Questions and Answers sections and have a fair idea, but would like to give more details to get a confirmation for changes or not with you. Thank you. Regards, Sathish
4 Answers
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Sreekanth Staff answered 7 years ago
Dear Sathish, 1 - Could you kindly share your LIC plan details ? (Plan name, commence day & tenure). 2 - Are you adequately covered with Term plan? 3 - Is your wife an earning member of your family? 4 - Can you share the MF Scheme names?  
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Sreekanth Staff answered 7 years ago
Dear Sathish, 1 - You may kindly suggest your spouse to buy a Term plan. Also, both of you can consider buying a stand-alone Personal Accident Cover. Related article : Best Personal Accident Insurance Policies in India : Details & Comparison 2 - Most of your Traditional life insurance policies have been in-force for more than 2/3 rd of their respective Tenures. So, you may continue to pay premiums or make them PAID-UP. Related article : Life insurance : How to get rid off bad insurance? 3 - You may consider to have a Super Top up health insurance plan : Read : 4 - You have invested in too many MF Schemes. You may have to trim down your portfolio. Investing in schemes within same Fund category may not be really beneficial. You have 4 mid-cap funds. You may go through portfolio overlap tools and analyze the funds' overlap %s. Read : Mutual Fund Portfolio Overlap Comparison Tools 5 - Are all these investments have a time-horizon of 5 to 10 years from now? towards your Kids' education goal??  
sathishnanu replied 7 years ago

Thank you Sreekanth,

I will take a look at all your suggestions and action on them. Quickly I wanted to reply to your 5th question. Yes, I am looking at these at 5-10 time-horizon for 2 kids education who are now at 10th and 8th Std at school.

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Sreekanth Staff answered 7 years ago
Hi, As suggested in my previous reply (4th point), kindly try to trim down your portfolio. As your investment horizon is 5 to 10 years, my suggestion would be to shift to Hybrid Equity fund and/or Equity Savings fund gradually for the next 2 to 4 years and then gradually shift to lesser riskier funds.  
sathishnanu replied 7 years ago

Thank you. If I do that, shifting to a Hybrid and shifting to lesser risk funds, do you think I am on the right track for my kids education needs, even if they want some form of education outside India?

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Sreekanth Staff answered 7 years ago
Hi, Considering the time horizon, type of goal and risk profile, have suggested an Hybrid Fund(s). Suggest you to use Kid's education goal calculator(s) and may have to re-balance or tweak your contribution amount (towards this goal). Related article : Calculate how much you need to invest for your Kid’s Education
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