Publication details: Money Manager โ CNBC Bajar – 13-07-2015
Responses, opinion and view from Kartik Jhaveri.
Question sent by Vishal Bhatt :-
I am 26 years old and married. My income is Rs. 35,000 p.m.
I have a loan of Rs 7.5 lakhs and the EMI is Rs. 8,600.
I am doing an SIP of Rs. 1,000 in Birla Sunlife.
I have 2 insurance policies: LIC term plan, yearly premium Rs. 6,000 and LIC Jeevan Tarang, monthly premium Rs. 1,100.
My monthly expenses are about Rs. 15,000.
Where should I invest my money for a better future. I want approx. Rs. 12 to 15 lakhs after 10 years. Please advice me on the same.
Advice given:
- To accumulate Rs. 15 lakhs you need to invest Rs. 6,000 p.m. The LIC Jeevan Tarang is draining your resources and you must stop that (surrender / make paid up).
- After deducting all the expenses you are left with surplus amount of Rs. 7,000.
- For your better future you need to see through following things: You also donโt have health insurance, so you should get a family floater insurance which would cover your family. Get a proper large term plan of about Rs. 50 lakhs to Rs. 1 crore.
- Invest in equity mutual funds – as an example an SIP of just Rs. 5,000 p.m. will accumulate to approx. Rs. 1.4 crores in about 25 years at 14% p.a. – that is wealth creation!