Skip to main content

Implementation and regular review key to successful Financial Planning

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

Implementation and regular review key to successful Financial Planning

 

 


When it comes to planning finances, each family has its own unique problems. While some may face a cash crunch, others don't know what to do with their cash surplus. The Sangoi family belongs to the latter category. Parin (46) and Charmi (42), based in Mumbai, are working with a foreign firm. The couple has a daughter, Nehal (16) and a son, Kush (12). Parin is in the high-income bracket, can save 1/3rd of his monthly income and these savings can be properly channelized into investments to meet the family's financial goals.

The present situation

Their take-home monthly salary is Rs 1.99 lakh. Their monthly household expenses are Rs 71,000, another Rs 26,000 goes towards monthly insurance premium, and home loan EMI is Rs 51,000. Their monthly cash surplus is Rs 51,000.

The goals

For the Sangois, the financial goals are Nahal and Kush's education (between 7 and 10 years from now) and their marriage (10 and 14 years), a vacation (14 years), donation to NGO (14 years) and retirement (11 years). The total corpus they need for all these add up to about Rs 5.1 crore.

The solution

Parin has an individual health cover of Rs 8 lakh and a family floater of Rs 3 lakh. He also has a personal accident cover of Rs 90 lakh and Rs 10 lakh for his wife. In addition, Parin also has a critical illness cover of Rs 3 lakh.


Before the Sangois start investing for their goals, based on the human life value concept, Parin must get adequate term cover of Rs 1.57 crore for himself and Rs 15 lakh for Charmi. They were advised to discontinue the family floater policy because of the high premium they were paying. Instead, they were advised to opt for individual health covers of Rs 5 lakh each for Parin and Charmi, and Rs 3 lakh each for the children. Parin was advised to reduce his personal accident cover to Rs 50 lakh and get a critical cover of Rs 10 lakh. Since they had spent a good amount on the interiors of their house, they were advised to get a comprehensive content householder insurance. Parin also had Rs 4.21 lakh in sweep-in fixed deposits to take care of unexpected expenses, which was sufficient.


Parin's top priority is to fund the children's education. For Nehal's education, he will need Rs 20.46 lakh in 7 years, for which their stocks, mutual funds and insurance are likely to grow to Rs 10.36 lakh. For the balance, he has to invest Rs 8,500 per month through systematic investment plans (SIPs). For Kush's education, he will require Rs 27.23 lakh in 10 years, for which his gratuity and the child plan would together give about Rs 18.92 lakh. For the balance, they would need to invest Rs 4,300 per month.


The Sangois also plan to build a Rs 39.34 lakh kitty to fund Nehal's marriage, in 10 years. For this Charmi's gold jewellery has been aligned to grow at 10% annually to Rs 5.18 lakh by then. For the balance, they have to invest Rs 17,500 per month. And for Kush's marriage they will require Rs 51.57 lakh. Parin's gratuity and part of his EPF are likely to grow to Rs 44.14 lakh. For the balance, the target investment is Rs 2,400 per month.


The couple plans for a vacation to cost of Rs 12.89 lakh. For this, Parin has to invest Rs 4,100 per month. The family also has a noble aspiration to donate about Rs 26 lakh to an NGO working to promote girl child. They need to invest Rs 8,200 per month for this for the next 14 years.


Finally, for a comfortable retired life, the couple will need a corpus of Rs 3.31 crore in 11 years. For this Charmi's EPF and gratuity are likely to grow to Rs 21.29 lakh and Parin's balance EPF, superannuation, an endowment plan and secondary property are utilized. There is a marginal shortfall for which Parin needs to do an investment of Rs 6,000 per month.


All the monthly SIPs put together add up to Rs 51,000, which can be taken care of from their monthly surplus. The Sangois have a doable plan in place. All they need to ensure is the implementation part and review it every year to ensure that it's on track.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...
Read more

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Read more

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Read more

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...
Read more

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now