Investment strategy

POSTED BY pragnesh patel ON January 7, 2011 5:39 pm COMMENTS (3)

Hi manish,

I am pragnesh and i am 28 yrs old married person. Here is my portfolio:

Total income – Rs. 35K/per month
Home Loan – Rs. 5800/- per month for 4 yrs.
1 New Bima Gold (873491503) 13884 (4 lac coverage) — shall i surrender? how is this policy. just 4 yrs old
2 Jivan Mitra Policy (873257493) 5010 (1 lac coverage)

Mutual Fund monthly SIPs:
HDFC Top 200 Fund 2000
IDFC Premier Equity Plan A – 2000
Sundaram Tax Saver Fund – 1500
DSP BR Equity Mutual Fund – 1000

PPF total investment till date: Rs. 20000/- (NO EPF deducted in my co.)

I want to take Term plan. suggest me what should be cover i should buy and from which company and do you think i need to add more SIPs to get more returns?


3 replies on this article “Investment strategy”

  1. pragnesh patel says:

    Hi raj,
    My goal is to have good money at end of 20-25 yrs as i am looking for retirement as well as money for my children’s education.


  2. randomguy says:

    Here is my few paisa worth suggestion.

    1. Term plan – take multiple policies of various duration instead of one policy of say 30 years – it will work out cheaper. Eg- 5 lakh for 5 years, 10 lakh for 10 years, 15 lakh for 15 years, 20 lakh for 20 years, 25 lakh for 30 years. The aim is to lessen the reliance on insurance as you get older and assuming you will be accumulating and growing your assets in the future. The more assets you have, the less your family will rely on insurance. Stick to pure term policy only. No ULIPs/Money back etc etc-they are crap and designed for companies and not policy owners!!

    2. Continue SIP in mutual funds – diversified equity is my favorite. Also consider debt funds and there are lots of them. Dont be afraid to buy equities and create a nice little portfolio of equities – blue chips to begin with and add mid/small caps later when you are comfortable investing directly. The earlier you do it, the better. Take some calculated risks when you are young!!

    3. Medical insurance is a must for you.

    4. Tax shouldnt be a big issue for you at this stage. Worry about it when your assets have grown to a sizeable amount.

    5. Buy a house to live in asap and another investment property at a later stage.

    6. Read and read more. The only two books I would suggest are 1. Intelligent investor-benjamin graham. 2. One up on wall st – peter lynch. Rich dad, poor dad by Robert Kiyosaki is also good but dont follow his investment style(unreal)- follow his principle.


  3. Raj says:

    Kotak Preferred Term Plan is a good option for term insurance. It also has Critical illness rider. I’m as old as you and got 50L + 15L CIR for 12.7K. Critical illness rider got cover on 12 diseases like Cancer, liver issues, Heart attack etc.

    You need to tell us about your objectives in order for us to help you decide on investment. Are you saving for your retirement or what?

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