Publication details: Money Manager – CNBC Bajar – 30-03-2016
Responses, opinion and view from Kartik Jhaveri.
Question sent by Jay Shah:-
I am currently working in an MNC. My income and investments are as below:
Income : Rs. 25,000 p.m. ; Saving : Rs. 15,000 p.m.
Life Cover : LIC Jeevan Anand – Rs. 5 lakhs normal risk cover and Rs. 10 lakhs accidental risk.
Mediclaim : Rs. 7 lakhs for each family member, provided by my company.
My future expenses will be:
- One flat (2 BHK ) in Ahmedabad as I am doing job there.
- My marriage.
Please suggest me how can I invest my money in the best way to get maximum returns with minimum risk.
Advice given:
- You can start investing in equity mutual funds, via SIP route.
- This is powerful tool for long term wealth creation.
- For instance, an SIP of Rs. 5,000 done for the next 10 years, will amass approximately Rs. 13 lakhs. This is assuming a growth rate of 14% p.a.
- You can start with about Rs. 5,000 and step up this amount on an annual basis, as your income increases.
- It is also advised to analyse your insurance requirements and restructure your existing policies. You can consider making your policies paid up or surrendering them, depending on the time elapsed and the T&C of the policy. Opting for term plan is a good option.
- Also it is recommended to have a standalone medical cover in the form of a family floater policy, so that you are not left stranded in case of a sudden job loss / change.