Planning short term and long term Investments

Q & A Forum › Category: Financial Planning › Planning short term and long term Investments

ramkumar asked 8 years ago

HI Sreekanth, I am 31 years old (single). In 2015 based on your articles, I started investing in Axis LTE for retirement planning till March 2017. Then I stopped it since I bought an apartment through home loan. For the past one year, I used home loan transactions for tax purposes. Now I am planning to invest goal-wise hereafter for short term and long term. Purpose (Duration) - Value - Planned fund

Retirement (25 years) - 5000 per month - Franklin templeton smaller cos (midcap)
Wealth creation-preclosing home loan (8 years)-7000 per month - DSP blackrock smallcap fund (smallcap)
Medical expenses for my mother (approx 3 years) - 2000 per month - Any liquid fund
Child's school education (5 years) - 2500 per month - Balanced (HDFC) or Debt fund
Undefined - 4000 per month - Please suggest

Emergency fund - 150000 - CITI sweepin Marriage - 150000 (for initial expenses) - CITI sweepin This is my plan. Please suggest/correct me the type of funds or any specific funds for the above investments. Note:Expected duration for marriage is six months, so I have included it in emergency expenses. Thanks and regards, Ramkumar

2 Answers

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Sreekanth Staff answered 8 years ago

Hi, 1 - Retirement Planning Goal - The shortlisted fund is fine. Suggested reading : https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/ 2 - As your investment time-frame is 8 years, you may consider a diversified equity fund / Balanced fund instead of a small cap fund. Kindly read : https://www.relakhs.com/investing-mutual-funds-paying-home-loan/ https://www.relakhs.com/best-balanced-mutual-fund-schemes-review/ 3 - Yes, any Liquid fund or Arbitrage fund should be fine. Ex : Kotak Liquid fund / HDFC Liquid Fund / ICICI Equity Arbitrage Fund etc., 4 - Education expenses : If you can afford to take risk, consider Balanced funds else can opt for MIP Funds. Ex : HDFC Balanced Fund / Birla MIP II Wealth 25 fund Kindly read : https://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/ May I know if you have health insurance cover for self & mother? What about a Personal Accident insurance cover?

ramkumar replied 8 years ago

Hi Sreekanth,
Thanks for your suggestions.
I have health insurance cover from my employer for myself and my mother. Also, I have a Max term insurance for 1 crore.

But I dont have accident cover till now.

Also, is there any of your article which explains the duration (long, medium & short) and accordingly choose the type of mutual funds?

Also, since the 200DMA of indices are less, I am planning to invest lumpsum. Any suggestions for funds?

Thanks in advance.

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Sreekanth Staff answered 8 years ago

Hi, 1 - Kindly do not depend entirely on your company provided health insurance cover. Suggest you to get yourself a mediclaim policy and also for your mother. Kindly read : https://www.relakhs.com/employer-based-health-insurance-plans-vs-individual/ https://www.relakhs.com/best-health-insurance-comparison-websites-portals/ 2 - Also, buy a Personal Accident cover. Read : https://www.relakhs.com/best-personal-accident-insurance-policies-in-india-details-comparison/ 3 - For long term, you may pick funds from diversified and mid/small cap categories. For medium term, you can consider Balanced funds, Equity savings funds, or MIP funds. For short term, can consider Debt funds. Ex : Diversified : Franklin High Growth Cos fund / Birla Equity Fund Mid / Small cap : HDFC Mid-cap opp fund Mirae Emerging Blue chip Franklin Smaller Cos Fund etc., Balanced : HDFC Balanced Fund MIP : Birla MIP II Wealth 25 fund etc., Related articles : https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ https://www.relakhs.com/mutual-fund-schemes-categorization-latest-guidelines/