Hi Sreekanth
Firstly let me appreciate the effort you put to help people. I joined your blog today.
I am an NRI employed in private sector aged 50 yrs, my family is settled in India. Our combined net saving is Rs.25,000 per month.(after meeting all expenses).
I am having personal insurance coverage of 8 lacs (hdfc unit linked young star 2) and medical insurance for whole family (5 lacs) investment in share done for 5 lacs (over a period of 10 years) ; have own house with no financial liabilities or commitments as we are independent family. Recently started 2 SIP for 5000 (hdfc balance fund growth) & 2000 (Birla Sun Life Savings Fund – Growth-Regular Plan) bank savings approx. 4 lacs only as all money lost in family business.
Currently i changed job and received gratuity from old company of Rs.6 Lacs which i want to invest.I plan to continue working for next 5 years minimum. Investments can be done for a period of 5 years.
Since I have no knowledge in investment seek your advise.
Thanking you
7 Answers
Hi,
Thank you for your kind words.
Do you have any family member who is financially dependent on you?
HDFC Balanced Fund is a good choice, kindly remain invested for atleast 5 years.
Birla Sunlife Savings fund is an Ultra Short Term fund, you can expect returns of around 8% from this fund. This is a debt fund.
Read:
Bank savings of Rs 4 Lakh, is it lying idle in bank or have you saved this amount as FDs?
Considering your financial profile & age, you may consider investing a portion of Rs 6 Lakh in HDFC balance fund & some allocation in MIP fund like Birla Sun life MIP II wealth 25 (growth) plan.
Do you require this amount after 5 years?
Read: Best MIP MF schemes.
Suggest you to buy a Super Top-up Health insurance plan too.
Read: Best Super Top up health insurance plans.
Dear Sreekanth
Thank you so much for your advice.
Nobody is financially dependent on me in my family.
4 lacs is invested in FD's.
How the investment to be done in HDFC balance fund & in MIP fund by Lumpsum or SIP. Should I continue with the hdfc unit linked young star 2 plan (is it worth as the amount has never grown in the last 6 years)
Looking forward for your reply.
Thank you once again
Regards
Shreekumar
Hi,
HDFC unit linked young star 2 is a child oriented ulip plan, am I right? May I know the purpose of investing int this plan?
The returns on this plan are dependent on the type of Fund who have chosen.
Kindly re-assess your life insurance requirements, in case if you want to have life cover, you may consider buying a Term plan.
You can surrender ULIP policy and re-invest this amount in balanced fund for next 4 to 5 years.
The Rs 4 Lakhs FDs may not yield better returns for you though the principal is safe. You can keep 6 to 12 months of your living expenses in cash + FDs as your Emergency Fund and the remaining amount can be invested in other investment options.
You may invest lump sum in MIP fund. For balanced fund you can first buy a liquid fund (ex- HDFC Liquid fund) or any debt fund of HDFC and then can create a STP (Systematic Transfer Plan) to HDFC Balanced fund.
Kindly consider buying a stand-alone Personal Accident insurance plan.
Read: Best Personal Accident insurance plans.
Hi Sir
Thank you for your reply. Yes you are right, HDFC unit linked young star 2 is a child oriented ulip plan. It was taken in 2006 considering children's education. there are 2 policies(Plan Equity Managed Fund 6.24% Growth Fund 93.76%) Sum Assured : RS 360,000 (Monthly Premium Premium : RS 1,500) Maturity Year 2026 & Sum Assured : RS 480,000 (Monthly Premium Premium : RS 2000) Maturity Year 2021.
Should i continue with this or withdraw partially (as it is allowed). One more doubt what happens when these policies gets matured a) insurance ceases b) whether sum assured will be paid back by HDFC Life. Please advise on this.
Thank you
Kind Regards
Shreekumar
Hi Sir
As suggested from where I can buy balanced fund liquid fund (ex- HDFC Liquid fund) or any debt fund of HDFC and create a STP (Systematic Transfer Plan) to HDFC Balanced fund. Please guide me on this.
Thanking you
With Regards,
Shreekumar
Dear Shreekumar,
Yes, on maturity the life cover ceases and you can withdraw the Fund value. Are you satisfied with the returns on these ULIPs?
You may kindly buy a Term plan with sufficient cover based on your income & financial obligations and then can surrender these ULIP plans.
Kindly Read:
You can divert these premiums to MFs for your long-term goals.
You can buy the funds by visiting respective Mutual fund house websites or through online distribution platforms like icicidirect.com or fundsindia.com or even through mutual fund agents.
You can also invest through MF Utility online platform.
Kindly go through:
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