Please advise on Investment Strategy

Q & A Forum › Category: Financial Planning › Please advise on Investment Strategy

Vishwa_y asked 10 years ago

Dear Sreekanth, Absolutely brilliant articles. I would be greatly indebted if you could lend your advise. I'm 30yrs old. I have taken a Housing Loan for 49lks from SBI in building the house which completed recently and earns rents of 25K at the moment. My parents are dependent on me (2nos). Hereon have to start from zero with my investments. I expect to save around 30k per month after household expenses and repayment of Housing Loan. I'm contemplating to invest as below -

Franklin India Prima Plus - 5K;
ICICI Prudential Value Discovery Fund - 5K;
Franklin Smaller cos fund - 5K;
UTI Mid-cap - 5K;
ICICI Pru Gold ETF - 5K;
Axis Long Term Equity Fund - 5K.

I would like keep investing 30k per month for the next 30 years so that I can achieve my Retirement corpus as well as cater to my mid life goals (kids education & marriage). I have arrived at the above plan taking into account the Tax Benefits I would receive from the HL (Sec 24 & 80C). Please advise if my investment strategy sounds good or would you suggest any other changes to it. Best regards Vishwa

3 Answers

0 Vote Up Vote Down

Sreekanth Staff answered 10 years ago

Hi Vishwa, Let's discuss about insurance requirements before analyzing or creating an investment plan. May I know if you are adequately covered with life & health insurance? What about health cover for dependents? Kindly share details about your existing life insurance policies (if any). Have you taken any Mortgage insurance (home loan insurance)? Meanwhile, kindly read below articles;

0 Vote Up Vote Down

Vishwa_y answered 10 years ago

Hi Srikanth, I have a Term policy for 1cr and my wife who's working also has an insurance of 50lks. I have the generic Health cover ( for 5lks ) that my office offers and same is the case with my wife(5lks health cover). My parents though have neither Insurance nor health cover. My dad is 61yrs old and mom is 50yrs old. I have taken the Home loan insurance offered by SBI. Thanks for helping Best regards Vishwa

0 Vote Up Vote Down

Sreekanth Staff answered 10 years ago

Hi Vishwa, 1 - Kindly do not depend totally on Employer's group health cover. Suggest you to buy a stand-alone health plan at the earliest. Also, take individual mediclaim policies for your parents. Read:

2 - Consider both of you buying a Personal Accident cover. Read this article about why you should have a PA cover.. 'Best Personal Accident insurance plan'. 3 - As parents are dependent on you, ensure that you always have an adequate Emergency fund (atleast 6 times of your monthly living expenses) in Cash + FDs + Liquid funds etc., 4 - Kindly use the calculators provided in the my previous answer to arrive at approx savings amount required for your long-term goals ie retirement & kid's education. 5 - Your shortlisted MF funds are good ones. You may opt for either Franklin Prima plus or ICICI pru value discovery fund. Also, kindly note that UTI mid-cap fund manager has been changed. So, suggest you to consider Mirae emerging opp fund instead of it. Read: