Need suggestion regarding investment in ELSS Direct Fund

Q & A Forum › Category: Financial Planning › Need suggestion regarding investment in ELSS Direct Fund

atanudutta asked 8 years ago

Dear Team, First of all thanks a lot for this this wonderful forum & blog. I have spend a whole day to understand ELSS and went through different blogs and Q&A. I'm writing it it to get some suggestion for investment planning in ELSS or EPF. I'm get married next year and hence, planning for investment for my retirement plan & as well as short term 5 to 10 years. Below is my current portfolio which might help you suggest: Age: 35 Years Current Monthly In-hand: Rs 1,05,000 + Rs 13,000 Rental income I have HDFC home loan of 29 Lakhs for 15 years starting 2012, with monthly EMI of Rs 29,500 My current home load EMI helps me with 80c 1.5 Lakhs savings & 24c deduction. Current Investment and duration: 1. ULIP with monthly EMI of Rs 3000. Started it in Nov 2006, and still active with SumAssured of 8 Lakhs Plan Name: HDFC Unit Linked Endowment Plus Current NAV: Rs 168, started when it was Rs 54 in 2006. Total Units 4400 till date. Valuation Rs 7,38,000 Question: Will you suggest me to continue with it or shall I stop and start investing in ELSS or Mutual fund 2. Monthly PF contribution Rs 3620, currently Total PF saving is Rs 11.5 Lakhs 3. I have FD of around Rs 37 Lakhs with average 7% interest for 399 Days 4. Current Liquid cash of around Rs 20 Lakhs Question: 1. Can you kindly help me suggest if I should put certain percentage of investment in Mutual Funds or ELSS direct fund as I'm already completed by 80c quota. 2. Can you suggest me good ELSS or Mutual Fund. I came across Axis, Birla Sunlife, Franklin & DSP Would you suggest me to put in EPF for my retirement plan 2k per month, which will be tax free or start with SIP. 3 to 5k in MF 3. I'm only covered under company policy and current don't have any term additional health insurance plan. Would you suggest to get one post I get married ? Thanks, Atanu Dutta

3 Answers

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Sreekanth Staff answered 8 years ago

Dear Atanu, 1 - HDFC ULIP : May I know the policy tenure? 2 - Any specific objective for maintaining high corpus in FD+cash? 3 - Do you have any dependents (as of now)? Is your home loan covered with any type of insurance? (Mortgage insurance) Suggest you to take health insurance plan (do not depend entirely on company provided group cover) and Personal Accident insurance cover. Related articles : https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/ https://www.relakhs.com/best-personal-accident-insurance-policies-in-india-details-comparison/ https://www.relakhs.com/employer-based-health-insurance-plans-vs-individual/

atanudutta replied 8 years ago

1 – HDFC ULIP : May I know the policy tenure?
I have continued for 10 Years, But I have exit anytime if required. I decided to continue so far as it was growth fund
2 – Any specific objective for maintaining high corpus in FD+cash?
Not really, except my next years marriage and any emergency medial need. Until now wanted to always invest safe. Hence, kept most of my savings of 37 Lakhs in FD, Was as onsite for 3+ years. So, use to invest in FD in chuck of 50k. Recently decided to put it in MF as it will help me grow the money and it will be tax free
3 – Do you have any dependents (as of now)? Is your home loan covered with any type of insurance? (Mortgage insurance)
As of now I don’t have any dependent and planning to marry early next year. So, thinking post that after 3-4 Yrs need to plan for kids education etc.

No, I didn’t take any insurance for home-loan. Curren, 24 lakhs is outstanding. I purchased by own plot and constructed a Duplex for my family and rented a 1BK which help me pay EMI. Current EMI is 29,500 and I get Rs 13,000 as rent

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Sreekanth Staff answered 8 years ago

Hi, 1 - Suggest you to take a Term plan , health plan and personal accident cover at the earliest. You may add your spouse to your mediclaim plan (if required and make it as a family floater plan). 2 - You may bifurcate the corpus required to meet your marriage expenses form the total corpus and plan your investments for your Retirement. Kindly read : https://www.relakhs.com/emergency-fund-importance/ https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/ 3 - You can invest some lump sum amount in Liquid funds and make STPs to equity funds. Kindly read : https://www.relakhs.com/forum/question/mutual-fund-lumpsum/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ https://www.relakhs.com/investments-options-indian-expats-uae/

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Sreekanth Staff answered 8 years ago

https://www.relakhs.com/list-of-best-investment-options-schemes-in-india/