Hello Srikanth, need your help.
I am 30 years old, single, doctor by profession, average monthly income 70,000.
My monthly expenses are around 35000, which are-
I pay 2 EMIs, 10k for home and 7k for car.
So, excluding some more liabilities and expenses, around 30k is my saving every month.
I have recently bought term insurance of HDFC with sum assured 50 lakhs for 35 years including riders for critical illness and disability, premium 12229/-
I will be purchasing a health insurance-basic without Top-up, of 5 lakhs from April 2017.
I have invested in mutual funds as below
1) For retirement duration 30 years- SBI Bluechip Fund D-G 1500 pm
And will be starting as SIP of 2500 from April 2017 in ELSS, and will increase it
By 5% every year as my earnings increase.
These 2 types of funds I will hold for about 30-35 years, which I think will be enough to give me corpus of about 5 crores after 30 tears.
2) For Children's Education duration after and between 20-25 years- ICICI Pru Value Disc 2000 pm
And will be starting 3000 to 4000 in 1 more Multi cap fund.
Should I add 1 mid cap and 1 balanced fund here?
These funds I will hold for about 20 years, which I think will provide corpus of about 1-1.5 crore in 20 years.
3) For Wealth Creation duration 7-10 years
Mirae Asset Emerging bluechip 2000 pm
Franklin Smaller companies 2000 pm
DSP Micro cap 1000 pm
BSL frontline equity 2000 pm
Here I may add Franklin Prima Fund, SBI Small and Mid Cap fund Or UTI mid cap fund.
So approx. 15k to 17 k will be my investment per month. All these plans are DIRECT GROWTH.
Kindly guide me whether I am on right track, with respect to Goal Planning And Fund Selection.
I have purposefully kept all funds and investments separate, so that I can pursue them separately.
I am yet to build my Emergency Fund.
Please answer my queries. Thank You.
7 Answers
Hi,
1 - Does your Term plan Accident benefit rider gives you Disability cover if met with an accident (god forbids)?
2 - All the mentioned funds are good ones. You may keep the number of funds limited may be 3 to 5 max. You can have same funds for different goals/objectives with diff SIP amount.
But if the overlap among the funds is limited say <25%, you may pick same funds within category. But generally too many funds may not be required.
Are you planning to get married in near future?
Do you have any family member(s) dependent on you financially?
1- Yes my Term Insurance provides disability cover.
2- I will be reducing number of funds after 7 years, will keep investing for retirement and for children only.
3- Yes I am planning to get married in 2017.
4- I have parents dependant on me, they have group insurance cover of 4 lakhs and I have purchased Top Up of more 4 lakhs for them.
Kindly note this and reply.
Suggest you to kindly go through below articles;
http://www.relakhs.com/calculate-kids-education-goal-amount/
http://www.relakhs.com/retirement-planning-calculator-3-easy-steps/
Also, as your parents are dependent on you financially, suggest you to start accumulating your Emergency fund. You may consider mix of Cash + FDs + Liquid funds / arbitrage funds.
http://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/
http://www.relakhs.com/best-arbitrage-funds-returns/
Hi there, I was not able to ask this question separately because of log in issues, hence asking here. I have an endowment plan pay till 75 years of age. Its limited pay plan by Maxlife. Im 31 years old now and pay 13k every year for this plan. They do give bonus every year which is too low. Sum assured is 1,85,000Rs. I was thinking of surrendering it, but not able to decide. Please guide me. I have paid 5 premiums so far and surrender value till date is 23k. Please reply.
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