Investment Related Questions (re-investment of Life Insurance policy proceeds..)

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rsaxena8 asked 7 years ago

Hello Sreekanth, Recently my LIC policy reached maturity and I have received proceeds amounting 8 lac rs. Could you please suggest me the best way/s to invest this money which would attract higher returns. Investing in FD does not look promising to me and putting lumpsum in some mutual fund too either. I don't see using this money in next 3-4 years of horizon. Thanks in advance for your expert advise.

4 Answers

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Sreekanth Staff answered 7 years ago

Hi, If your expectation is higher returns when compared to FDs then you have to take some risk to achieve this.. Can you afford to take a bit of investment risk? Or safety of capital is your objective/priority..

rsaxena8 replied 7 years ago

Thanks for the reply
Yes, I can very well afford the investment risk.
So looking for how and which mutual fund should I go for

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Sreekanth Staff answered 7 years ago

Hi, If your investment objective is to accumulate corpus with an investment horizon of say 5+ years then you can consider investing in Hybrid Equity funds, Secured NCDs etc., Suggest you to kindly go through below articles and revert with more queries;

rsaxena8 replied 7 years ago

Thanks for the reply . I am thinking to invest lumpsum in some liquid/ultra short term fund and start STP to some good equity fund.
I am planning to invest 5 lakhs in one go. Which fund combination do you suggest for liquid/equity STP
Thanks in advance

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Sreekanth Staff answered 7 years ago

Hi, Considering your investment time-frame, you may consider HDFC Liquid fund to HDFC Hybrid Equity Fund.

rsaxena8 replied 7 years ago

Thanks Sir
I have already SIP for 5000 rs running in HDFC Hybrid equity fund,
Can you please recommend any other combination please

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Sreekanth Staff answered 7 years ago

Hi, If you can afford to take risk, you may invest in a Large cap Mutual fund scheme or any index fund on Nifty. Ex : Birla Frontline / SBI Bluechip / Franklin Bluechip / UTI Nifty Fund etc.,