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

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...
Read more

JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund

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 JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund    The new fund offer opens for subscription on 16 th June and closes on 30 th June. JP Morgan Mutual Fund today announced the launch of its open end fund of fund called Emerging Markets Opportunities Equity Offshore Fund. The fund will invest in an aggressively managed portfolio of emerging market companies in the underlying fund - JPMorgan Funds - Emerging Markets Opportunities Fund, says a JP Morgan press release. Noriko Kuroki, Client Portfolio Manager, Global Emerging Markets Team (Singapore), JPMAM said, "Emerging markets have been out of favour for several years, as growth decelerated and earnings struggled. However, in a world of globalisation, we believe that EM will eventually re-couple with DM, leading to the long-aw...
Read more

Nifty F&O

  1. What is a straddle? A strategy using Nifty options usually before a major event or when one is uncertain of market direction. Comprises purchase of a Nifty call and put option of the same strike price. Usually strikes are purchased closer to the level of the underlying index. 2. What is better ­ buying or selling a straddle? It depends.Implied volatili ty of options, or near-term expectations of price swings in an un derlier like Nifty , usually peaks before an event and falls when the outcome plays out ­ like Infy re sults in past years. However, once the event plays out, a sharp rise or fall in Nifty could result in price of the straddle rising ­ benefiting buy ers. But, normally , those who sell or write options charge hefty premiums from buyers in the hope that fall in volatility would ensure the options end out-of-the-money, hurting buyers. 3. So, do straddle sellers end up winning most of the time? Yes. That's invariably the case when market volatility is trending on the...
Read more

UTI Equity Fund Invest Online

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   UTI Equity Fund   Invest Online UTI Equity is a large cap-oriented fund with assets under management worth Rs. 2,269 crore (as on June 30, 2013). The fund was originally launched in May 1992 as UTI Mastergain and is benchmarked against S&P BSE 100. A couple of years back the name of the fund was changed to UTI Equity Fund and many of the smaller funds of UTI were merged into this fund. Performance The fund has outperformed its benchmark as well as the equity diversified category average in the last one-, three- and five-year periods. It has repeated the same in 2013 (as on May 31). Since its inception the fund has delivered an impressive 26 per cent compounded annual growth rate which is superior to its benchmark performance in the same period. Y...
Read more

Good time to invest in Infrastructure Funds

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   Good time to invest in infrastructure The Sensex has gained almost 10 per cent from May 15 till date, while the CNX Infrastructure Index has gained almost 17 per cent in the period. The price to earnings ( P/ E) ratio of the BSE Sensex is 18.96; for the CNX Infrastructure Index, it is 24.57. The estimated P/ E for next year is 14.04 for the Sensex. Of the 24 companies that make up the CNX Infrastructure Index, six have a P/ E higher than 20. Does this mean infrastructure is fairly valued? Or, has it run up quite a bit? According to experts, barring stray companies, the infra sector is fairly valued and it is a good time to invest. Even if some companies are facing debt restructuring problems, once interest rates come down and regulatory norms become flexible, they will start giving good re...
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