Need guidance for investments

POSTED BY Mandar ON August 28, 2012 10:24 am COMMENTS (10)


I’d like to ask about investment planning before that introduce myself.

I’m a design engineer and working at MNC in abroad & my Age is 34 yr.

I already did some investment like ULIP policy , life Insurance policy , RD for that paying premium 1.5 lac per annum by that total sum assuared for my life is around 25 lac . Also invested some amount in gold & FDs. In 2010 purchased a flat (cost 27 Lac with 16 lac SBI home loan so paying EMI Rs.21000).

Apart from this I want to invest 12 to 15 lac, for that what kind of option you will suggest for me? I don’t have good knowledge in mutual funds, Stock market investment.Planing to buy a plot near to my home town. hoping for good appreciation for land.

Which is a good plan for retirement policy,family health insurance and child policy for my 4 yr old kid?

Please Give me some tips to get maximum gain on my investment with minimum risk.


10 replies on this article “Need guidance for investments”

  1. Hi Mandar,

    AEGON Religare Health Insurance provides you with guarantee in the following ways: Guaranteed payout even if the claim is less. Guaranteed fixed premium rate for 3 years. Renewal guarantee till 100 years of age. To know more, visit

    Team AEGON Religare

  2. Mandar says:

    Dear Ramesh,
    Thanks for this valuable information. what is mean by AMC and YMMV?

    1. Ramesh says:

      Asset Management Company.
      Your Mileage May Vary (means, change according to your own inherent values).

  3. Mandar says:

    Dear Ramesh , thanks for your prompt reply, I feel very sorry if you got any wrong impression from my question. I have read this forum from long back and it’s gives really very nice information about investments and other topics for that many many thanks for all you guy’s efforts.
    Now turning to my question ..

    My intention to know some major tips that will be helpful for my future investments & to chose better policy plan which I mention in my question. As I not sure about my previous policy plan are beneficial or not, that all policy had taken for tax saving purpose.

    1. Ramesh says:

      1. Keep things simple and stupid. (corollary: complex products tend to confuse you and are underperforming).
      2. In the long term: inflation is the biggest risk.
      3. For long term, to beat inflation, equities and real-estate (if you have the know-how) are the only real options. If you are just hoping, that means you dont know. In equities term, that is like saying, I will buy this stock, and hope it works out well in the long term.
      4. For short term goals (EMIs, emergency fund, other fixed goals), debt instruments are good. (Corollary: for long term, debt instruments will give you better protection of capital and less volatility, but AT THE COST of loss of purchasing power).

      Short To-do:
      1. Create 3 baskets.
      2. Basket 1: For emergency money, and other daily expenses (around 4-6 months). Put money in cash / FD / short term bond funds.
      3. Basket 2: For near-term money requirements, upto next 2-3 years. Put money in dynamic bond fund or a combination of short-term and income funds.
      4. Basket 3: For your long term requirements (put child education, marriage (personally, i find it silly to think about this at this point of time, but anyways), your + your wife’s retirement corpus, distant holiday plans, etc).
      – Decide on an asset allocation between debt and equity at a level at which you are comfortable with. High risk people can opt for 75-90% equity. While Moderate risk can opt for 55-75% equity. Lower risk can opt for 30-50%. Just depends upon the growling in your stomach, so it is for you to decide.
      – If you are very new to MFs, then preferably choose a single AMC or at max. 2, and choose a direct investment option, if you have that know-how. YMMV. Choose two different styled diversified equity funds, with a long consistent performance level, and then start investing in them. Choose a flexi-type debt fund for managing your debt portfolio. PPF can also be considered as part of this.
      – Keep learning and tinker things at leisure, once you have set things. A 6-monthly review is more than enough.

  4. Mandar says:

    Dear Ashal
    Thanks for reply

    my annual package is 15 lac and family included wife, son , mom & dad … my monthly expense is around 60k including my all EMI and premium.

    1. Dear Madar, If something happens to you today, out of those 25L Rs. insurance amount, roughly 16L Rs. ‘ll be used to pay back home loan. From remaining 9L Rs. how many months or years your family can survive?

      Please think over it.



  5. Mandar says:

    Dear Ashal
    thanks for reply

    my annual package is 15 lac and famliy included wife, son , mom & dad … my monthly expense is around 60k including my all EMI and premum.

  6. Dear Mandar, May I know your income? Expenses? family size?



  7. Ramesh says:

    How can you even ask for “maximum gains with minimum risk” AFTER you have invested in various complex products, FDs, real-estate with the “hope” for good appreciation ?

    Is there some philosopher’s stone out there which will let you do that?

    Please go through this forum, through the main blog, read from elsewhere about various things, and then discuss things about what is exactly wrong with your present status (you know, there is something wrong, otherwise, you would not have asked here) and then go about correcting that, if you can identify that.

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