Hi Shreekanth,
Your articles are quite informative. Thanks for sharing the same.
I am a 35 year old Software consultant working in an IT company. Annual CTC around 16 lacs. I am a single working woman and have no dependents as such so far.
My current investments/ savings include:
FDs: Rs. 30 lacs
PPF: Over 8 lacs so far (opened 10 yrs ago)
MF sips: Rs. 20k p.m. (started in Sep 2017)
Term insurance: Rs. 15 lacs cover (4k premium p.a.)
I need to invest 80,000 lump sum for tax saving (over and above EPF deduction) under sec. 80c. Request you to please suggest what should be good tax saving options for me? Options before me include:
- Increase term insurance (as my personal insurance cover is only Rs. 15 lacs now). What should be ideal insurance cover for my profile?
- ELSS - not sure how safe they shall be considering i have already SIPs running in normal MFs
- PPF - i have been investing in PPF all these years but not sure if its a good option now with reducing returns
- NPS - have not heard much good reviews on this
- some ideal mix of the above
1 Answers
Hi,
1 - Any specific objective for maintaining a higher corpus in FDs?
Suggested reading :
https://www.relakhs.com/avoid-fixed-deposits-rds-for-long-term/
2 - Do you have any riders attached to your Term insurance policy? Do you have a stand-alone Personal Accident cover?
Ideally, if one has dependents and/or has financial liabilities, can go for a life cover. But, PA cover is a must have, even if one does not have dependents.
Kindly read :
https://www.relakhs.com/best-personal-accident-insurance-policies-in-india-details-comparison/
3 - May I know what do you mean by 'how safe are ELSS funds', would like to understand your perception...
If possible, you may kindly share the scheme names of your existing MFs.
4 - PPF is one of the best long term savings options (debt product).
Related articles :
https://www.relakhs.com/national-pension-scheme-nps-drawbacks/
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