Targeting a crore – Switch gears now!

Publication details: Money Manager – CNBC Bajar – 13-07-2015

Responses, opinion and view from Kartik Jhaveri.

Question sent by Pravinbhai K Vanariya:-

Following are the details of my various investments:

1. LIC Jeevan Shree: sum assured – Rs. 5 lakhs; premium – Rs. 25,000 p.a.
2. LIC Jeevan Anand: sum assured – Rs. 5 lakhs; premium – Rs. 25,000 p.a.
3. ICICI Term Insurance: sum assured – Rs. 51 lakhs; premium – Rs. 10,200 p.a.
4. Post Office Recurring Deposit – Rs. 7,000 p.m.
5. Sahara India Recurring Deposit – Rs. 6,000 p.m.
6. Birla Sun Life Pure Value Fund – Rs. 2,500 p.m.
7. HDFC Midcap Opportunities Fund – Rs. 2,500 p.m.
8. ICICI Prudential Focussed Bluechip Equity Fund – Rs. 2,500 p.m.
9. L&T India Special Situations Fund – Rs. 2,500 p.m.
10. Bank FD Rs. 2.5 lakhs.

Will I be able to accumulate Rs. 1 crore by 2025 with these investments?

Advice given:

1. You have already taken term insurance plan. So there is no need for investing money in other insurance products. You can invest that money in better return generating instruments like equity oriented MFs.
2. Your MFs will give you about Rs. 26 lakhs by 2025.
3. You Bank FD & RD will give you about Rs. 30 lakhs by 2025.
4. Your insurance policies will accumulate to value of about Rs. 6.5 lakhs in the next 10 years.
5. Target is not going to be achieved hence consider higher allocation to equities.