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Do you have financial planning or income tax queries?
Please ask your questions HERE and rediffGURU Anil Rego, founder and CEO, Right Horizons (external link), will answer them.
Anonymous: Hi, I am working in corporate sector, my age is 38 year. My annual income is 12.5L. My contribution towards EPF is monthly 5028 INR, LIC monthly 13000 INR, SBI Nifty index fund direct plan monthly SIP 1500 INR, SBI equity hybrid fund direct plan SIP 2500 INR, HDFC small cap fund direct plan SIP 1000 INR, TATA nifty tourism index fund direct plan monthly SIP 700 INR.
I have stocks of SBI of amount 91000 INR. I saved home loan emi 38000 INR. I own 5 Lakh rupees gold and hold SGB of 12400 INR.
I have a 2 years daughter. How can I plan for my retirement, daughter's education, her marriage and few foreign travels in future. I don't have any vehicle right now.
Looking at the details, it looks evident that the investments being done by you are not enough to generate good corpus.
Given that there are multiple goals involved, you have to look at at-least 25-30k per month into mutual funds to look at generating decent corpus, let's say 5-7 Years down the line.
Start streamlining your expenses and invest more to start planning for the goals better.
Anonymous: Hi, my age is 24 next year will be 25 And I started SIP approx 8k per month it's been 2 months I've started in different funds large, small, flexi but I'm confused that I'm doing it Right or not. I'll increase it 10 per cent or 5 per cent every year. Please guide Thanks in advance
You should analyse whether 8k per month is a good enough investment per month given your income. Target to invest at-least 25-30 per cent of your monthly income.
Since you are young, you can consider Mid & Small-cap funds with a small portion to large-cap funds to generate wealth in the long run.
You can consider increasing the investment by 10-15 per cent every year to build upon the wealth.
Harsh: I am a 23-year-old with a monthly income of Rs 49,000. I am keen to initiate an investment strategy, allocating Rs 6,000 to Rs 8,000 per month, with a gradual increase over time. I currently possess a fixed deposit of Rs50,000. Kindly provide guidance on suitable investment goals and strategies.
You are young and have the time to invest for long duration. We advise that you strive to increase your investment to 15-20k per month (less than half your income) over the next 10-15 years to achieve a good corpus. You can plan to invest in a mix of Large, Mid & Small-cap funds with a higher allocation to Mid & Small-cap funds.
Anonymous: I'm 45, earning 2.5L per month, debt free, married 2 kids, son studying 11standard and daughter 7th standard. My monthly expenses comes to 65000 per month currently, rest all saved and invested. I own villa in city, a sedan, no credit card debt.
I have 60L savings in account, 2.6L in LIC annuity lifelong 1400 interest/month, 12L PPF, 6L in Post-office Savings SST, 11L ICICI signature plan need to pay 5L every year for next 5 years, 1L PRAN, 5L worth gold-silver coins, 45L in fixed deposits in mom and wife names in many different small finance banks earning monthly interest, 46L in my EPF.
I want to retire by 50 with at least 5 crore corpus as goal. Kindly advice and guide me how to achieve it.
To start with, savings account will not help your goal. We advise you to invest this corpus in a mix of Large cap & balanced advantage funds through STP mode to help you reach the goal. We advise to invest the 1.85 lakh saved every month in a mix of Large, Midcap and Hybrid funds to help you towards the goal.
FDs also would not help you in achieving the goal that you have mentioned. EPF amount can be withdrawn once you cross 55 years. Putting all of this together, you should be able to achieve a corpus mentioned by you in 7 years and not 5 years provided it is invested into higher returns generating instruments. Since you have 5-7 year time, it is possible to generate the corpus needed.
Anonymous: Hi all. I am a 24 year old who has worked 11 months and am in a big IT company. I get approx 40k per month. 17k per month goes to a policy which my parents have opened. Can you please tell what should I do and where should I invest so that I may have 18L in 3-3.5 years.
First of all, we would advise you to check which policy is it that your parents have opened for you. If it is a life insurance policy requiring 17k per month, it might not be an effective policy because it might include an investment portion too.
Many organisations today have a decent health insurance policy for their employees. Hence, anything additional on the health insurance front should not cost you a lot of money.
Coming to your goal of accumulating 18 lakh in 3-3.5 years, we would like to say that the duration considered is short and prone to volatility. The more time spent, the better is the generation of wealth.
However, to achieve your 18 lakh goal over 4 years at 12 per cent annualised returns, monthly investment comes to around 29k. One advice which we would like to give is, target a higher corpus and a longer duration to accumulate a larger corpus because you are still young.
Disclaimer: This advisory is meant for information purposes only. This advisory and the information in it does not constitute distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.