Dear Mr Sreekanth
I am NRI, planning to return in a year. Plan to work as freelance consult and do farming. I have invested here and accumulated about 60-70 L, like to settle with this. No loan liabilities, own house in Trichy
Seeking your advice on the following investment plan.
1.Monthly Income : target 20 K (invest 24 L).
I won't opt for SWP as i have additional income from part time job. Whenever requires, i will redeem, otherwise accumulate growth.
a) Post office MIS 9 L
b) BSL MIP-25 10 L
c) ICICI MIP 25 10 L
2. Once in two years - Vacation Target 2 L (invest 10 L)
a) BSL MIP 25 5 L
b) ICICI MIP 5 5 L
3. Five years - Niece education support - Target 5 L (invest 3 L)
a) BSL Balanced fund 95 - 3L already invested
4. Ten years - Daughter college - Target 60 L (invest 20 L)
a) STP - SBI magnum income fund 5 L to Blue chip 2500/wk
b) STP - BSL cash plus/ Treasury optimized/ MIP 10 L to Frontline equity 2500/wk & Balanced 95 2500/wk
c) STP - HDFC Medium term opportunities 5L to Balanced fund 2500/wk
5. Fifteen years - daughter wedding Target 75 L (invest 15 L)
a) STP - HDFC Medium term opportunities 5L to Midcap opportunities 2500/wk
b) STP - ICICI LT fund 5L to value discovery 2500/wk
c) STP - SBI income fund 5L to Midcap fund 2500/wk
6. SBI Life Elite 20 L insured , yearly 2L premium for 5 years. Covered 10 yrs- already taken
Pl recommend a Term insurance for 50 L
7. Health insurance : Star health 10 L. Family Health Optima - not yet taken
I will consider PPF after return to India
- Pl advice whether these funds are suitable with investment horizon, or-else suggest suitable ones
- Pl recommend good debt funds for lump-sum investment source STP
1 Answers
Hi,
1 - PO MIS is a safe and good option. You may also have a look at 8% RBI GoI Bonds, interest income is payable every six months. MF MIS, one of the fund you may opt a conservative one.
Secured NCDs with non-cumulative option is also another avenue.
Kindly read:
https://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/
https://www.relakhs.com/best-ncd-debentures-bonds-issue/
2 - STP plans are fine, but Liquid funds are advisable for STPs. Selection of equity funds fine. But kindly be aware of the risks associated with Debt funds and taxation rules (STPs are also considered as normal redemptions)
Read:
https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/
https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/
https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/
https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
3 - Consider taking Term insurance plan and Health insurance plan at the earliest.
https://www.relakhs.com/best-online-term-insurance-plans-india/
4 - Do plan to maintain adequate Emergency fund, which can be liquidated in case of unforeseen contingencies.
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