Dear Sree,
Hope you are doing well. Below I have detailed my current investments and would appreciate you evaluation of the portfolio. Also, need some help with couple of quires as defined below?
Investing since Jan 2017
My current Investments (All Direct Plans) 10+ Yrs horizon, My current age 34 Yrs
Allocation Large Cap 36% Mid/Small Cap 57% Diversified 8%
1. HDFC Balance Fund
2. HDFC Mid-Cap Opportunities Fund
3. Birla Sunlife MIP II WEALTH 25 Plan
4. UTI MID CAP Fund
5. Franklin India Smaller Companies fund
6. DSP Black Rock Micro-Cap Fund-G
7. DSP BlackRock Tax Saver Fund
8. SBI Blue chip
9. ICICI Pru Value Discovery fund
10. Axis Long Term Equity Fund
My wife’s Investments (All Direct Plans) 10+ Yrs horizon, Her current age 31 Yrs
Allocation Large Cap 30% Mid/Small Cap 60% Diversified 10%
1. Tata India Tax Savings Fund
2. Franklin India High Growth Companies
3. L&T India Value Fund
4. Birla Sun Life Tax Saver 96
5. Birla SL Frontline Equity Fund
10 Lakhs in Bank FD’s(Emergency Fund) and 4 Lakhs in Saving accounts.
1.4 Cr Term plan for myself. 14Lakhs company medical insurance for family plus wife has 6 lakhs medical insurance from her company.
1 Jeevan Tarang policy- currently status PAID UP, maturity date 2027, current benefit 10lakhs maturity benefit will be 20 lakhs.
1 Money back policy- monthly premium 4400 for another 10yrs
Kindly share your point of view on my concerns below.
1) Need your comments on what to do with LIC policy Jeevan Tarang?
2) What should I do with the FD’s and Saving balance. Current ROI considering
Inflation and Tax. I understand Debt MF better than above options as I don’t want
principle to be at RISK here. Please suggest some funds.
3) What funds would be better say for targeting annual school fees for my children’s.
1 Answers
Hi,
Kindly note that Investing in too many funds may or may not be really beneficial. Individually almost all of your existing MF schemes are good.
Read :
https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/
https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
2 - You are maintaining around Rs 14 lakh as Emergency fund. Is this on a higher side? (analyze it based on your monthly living expenses and job profile /security). If you are ok to take risk and looking for better tax efficient options then you may consider Liquid or short term debt funds / Arbitrage funds along with FDs. Arbitrage funds can mostly give positive returns.
Read :
https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/
https://www.relakhs.com/best-arbitrage-funds-returns/
3 - Jeevan Tarang policy has already be paid-up, so what else can we do now??
4 - You may discontinue LIC money back plan.
Read :
https://www.relakhs.com/good-debt-bad-debt/
https://www.relakhs.com/traditional-life-insurance-plan/
5 - Kindly do not entirely depend on Companies' provide health cover. Do take stand-alone mediclaim policy.
Read :
https://www.relakhs.com/best-family-floater-health-insurance-plans-details-checklist-comparison/
https://www.relakhs.com/best-health-insurance-comparison-websites-portals/
https://www.relakhs.com/top-up-health-insurance-plans-super-top-up-india/
6 - For recurring expenses, Bank RD's can be considered to accumulate the required corpus.
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