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How to preserve wealth using Gold investments....
I am an Indian, 40 yr old ,Single,planning to invest for 15 years. I have taken the following SIP`S Last year . Rs 3000 in HDFC Prudence,Rs 3000 in SBI Magnum Contra and Rs 1500 in Templeton India Pension Plan.
And have lumpsum investment in ICICI Fusion Series II (Rs 1.5 Lakhs) and HSBC Offshore freedom Indian Equity (10,000 Dollars ,approx Rs 4.5 lakhs) since 3 Yrs.
+ 2 ULIPS (Bajaj Allianze Unit gain and LIC Money Plus Plan 180 in growth fund) have paid Rs 60,000 in both since 3 years.
How is my Portfolio? Any correction needed.
I plan to invest another Rs 7000 thru SIP`S for 15 yrs.any corrections needed at my presnt portfolio and where shoud i invest thru Rs 7000 thru SIP`S for another 15 yrs? Awaitng your answer
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should i invest on met monthly income plan...
some feedback repply......
am a Indian, 40 yr old ,Single,planning to invest for 15 years.
I have taken the following SIP`S Last year . Rs 3000 in HDFC Prudence,Rs 3000 in SBI Magnum Contra and Rs 1500 in Templeton India Pension Plan.
And have lumpsum investment in ICICI Fusion Series II (Rs 1.5 Lakhs) and HSBC Offshore freedom Indian Equity (10,000 Dollars ,approx Rs 4.5 lakhs) since 3 Yrs.
+ 2 ULIPS (Bajaj Allianze Unit gain and LIC Money Plus Plan 180 in growth fund) have paid Rs 60,000 in both since 3 years.
How is my Portfolio? Any correction needed. I plan to invest another Rs 7000 thru SIP`S for 15 yrs.any corrections needed at my presnt portfolio and where shoud i invest thru Rs 7000 thru SIP`S for another 15 yrs?
Awaitng your answer
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You uncle can continue the ULIP without any Problem. He can make Partial withdrawl of Rs.50000 ( or less/more )every year(after 3 years Completion) & pay the Premium for next year.
He can Switch the Profit into DEBT Fund of ULIP. He can also OPT for 50% in DEBT & 50% in Equity.
A GOOD / CHEAP ULIP is an EXCELLENT option for Retirement Planning if understood Properly.
P.C.Sharma
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I want to invest Rs 500000 in safe portfolio for around 1 year. Which option would be best for me. I am considering Bank FDs, Commodities like Gold/silver, PPF....
Thanks Ashal,
Since he(Uncle) has paid 1.5L for ULIPs whcih is a big amount by all means, also The NAV has also gone up by about 50%, he is very reluctant to let go.
I`ll meet my uncle is couple of days, let`s see how he reacts.
Regards,
Brawny M...
First of all I am sorry for a late reply,i was attending a conf.
Thank you both for your views, I have asked him(uncle) to give me the ULIP document so that I can find out the surrender value etc.
Thanks again.
Regards,
Brawny M...
Dear brawnym, first of all I`m sorry for replying late as I was on vacation.
Here r my views -
ULIPs - No matter under what consideration (or should i say under the inflaunce of ins. agent as well as greed of quick returns) ur uncle invested in these ULIPs, this was a mistake. From ur query it`s already clear that there is no financial liability on Uncle (children education, career, home loan......).
In absence of any liability, having a risk cover in the form of a ULIP is an absolute waste of money & the same is also reflected in the nos. put up by dear VVRK. Even if his son opts to pay the future prem., the cost of insuance `ll eat a big chunk of the fund value & the prem. allocation charge `ll eat up the prem. amount. So continuing the ULIP is a strict NO-NO.
Plot - Here again the greed of quick return overcame every other sensible thinking. In my view, There is no guarantee of the return from the plot. The price may remain as it is for long period & it may just shoot off the roof in near future. Both cases r hazardous for uncle. Liquidity of the money at his will or as per his need is also a big question in this case. In my view even if the plot can be sold without any gain sell it immediately. Out of total sell proceeds of 10L Rs. invest this way to have cash income in his hand - 2L*3 account of SCSS in his bank (total 6L Rs.) the 3 SCSS accts. `ll provide appx. qtly. earning of 13500 Rs.(this is equal to mly. earning of appx. 4500 Rs.) I`m advising specifically to invest in 3 different SCSS account due to the reason that in case of need of some liquidity, he may liquidate only 1 SCSS acct. & remaining acct. `ll keep on working for him. Out of remaining 4L Rs. invest 3L Rs. in POMIS. Appx. mly. earnings from this `ll be 2000 Rs. For remaining 1L Rs. invest in Birla MIP Savings 5 plan (the most conservative MIP).
The income generated from these 3 instruments `ll be able to help him plan his expenses better. If any surplus is there (I`m sure about it), he may invest thru mly SIP in DSP Top 100 & HDFC Top 200 fund to get a kick in return.
Old House - Reverse mortgage is a good option but i think from the above investments his current as well as future needs r already taken care off, hence the only question remains - the house requires major repairs & he don`t have liquid cash for that. In my view, here is son should offer the reverse mortgage to him. The son should pay for all the repair works & in turn Uncle `ll enter in the reverse mortgage agreement with his son that he `ll live in this house till his life & his son can claim the house only after his death. In all probability, the repairing cost `ll be around 1.5-2L Rs. so his son may provide him the difference of house value to repair cost either in monthly installments or in a one lump sum, as both r comfortable with. Selling this house & after that living on rent is not a great idea. Yes once the repairing work is over, he may also put a part of the house on rent. the rental income `ll also support his income. As per ur post, his son is capable of paying 1.5L rs. yly. prem. so i assume that on immediate basis, he may pay the entire repairing cost.
Thanks
Ashal...
1. I am a 46 years old Army Lt colonel . My core investment is my provident fund (25k per month). Total balance is about 13 lac. I have opted to put my sixth pay commission arrears back in my provident fund. I have 2 sons in 10th and 6th class respectively. I have a 3 bedroom flat in sector 20 panchkula which require some woodwork and complete furniture (5 to 7 lac expenditure). I am not worried about pension and insurance as I am adequately covered by the Army in both. I started investing in mutual funds in 2007 only to be jolted in 2008. Presently I am invested with 2.5 lac in mutual funds with 90 percent in diversified equity as under:-
(a) BSL frontline Equity G (SIP @2k per month)
(b) DSPBR Equity – D
(c) ICICI Pru Infra-D (switched from Pru Dynamic)
(d) IDFC Premier Equity –G
(e) Kotak tax Saver-D
(f) Reliance Growth –D (SIP @2k per month)
(g) Reliance RSF Equity-G
(h) TATA Pure Equity –G (switched from TATA Indo global Infra)
2. I also have a Bajaj Allianz unit gain ULIP with 3 premiums paid @40k per year and LIC Jeevan Suraksha pension policy No122 with annual premium of 9752 Rs. I also have a LIC Jeevan Surabhi money back policy with last premium pending in 2010@27407 per year. I have the following queries:-
(a) Should I decrease my provident fund and increase equity exposure.
(b) Should I continue with my Bajaj Allianz ULIP next year.
(c) Should I increase my SIP amount in BSL and Reliance Growth/start any other SIP/ fatten up my existing portfolio.
(d) Should I invest lumpsum in magnum Contra.
(e) Where should I invest about 1 lac more in equity presently in my bank that I can spare.
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For insurance I would always suggest Term Insurance.
For investments I would suggest MFs and PPF.
With the new tax laws FD`s and RD`s are also going to be attractive since these will have the same tax treatment as MF`s.
Regarding existing ULIP investment, we can not make a generalized statement that surrendering is the best option. Each ULIP has to be analyzed individually if it fits in the bigger scheme of things for that individual
-vvrk...
For Insurance, only Pure Term Plan is BEST. The reason, insurance agents don`t promote / sell these because they get very less commission, while in money back plans they get good commission and in ULIPS they get very very high commission.
This is the reason, they promote / sell ULIPs at first place.
For investment, a mix of MF and PPF are best, while a part of saving should be in Bank Fixed Deposits (in case of emergency needs, these can be liquidated).
regards,
MIK...
Raj,
good calculation...so can it be concluded for any one in general(any age group) that its a better option to terminate traditional ULIP premium in initial years so as to minimize further losses? I guess there are other instruments in market (in combination like MF, term insurance, PPF etc) which will provide better and more transparent returns than common ULIPs?...
You are Correct. Partial Withdrawl are allowed after 3 years.
P.C.Sharma...
