Confession Series - 3

Confession Time !!

When my son was born, within 3 months of his birth, like any other responsible parent ,I took a Child Education policy of 18 lakhs, premium Rs 53000 p.a.

The rationale behind going for this amount was, since I am an Engineer by education and Engineering fees in my days (1998) costed approximately Rs 200000 for 4 years, I thought that even if the cost of education grows by 11% which is a fair assumption , I will still be comfortable with the investment I have made.

I made 2 mistakes here

First one I assumed, that the stream that my son would pursue would have similar expenses like Engineering but today he has taken up 'Bachelor of Design' which is costing me Rs 25 lakhs, so I have to fill the deficit of 25-18 = 7 Lakhs

Hence when you are planning for your child education, check out the current expenses of a costly stream like Medical and then make your investment accordingly. Also note that Foreign Under-Graduation expenses are approximately 5 times of that in INDIA

Second, I invested in a traditional policy, wherein along with investment, it also had insurance coverage, hence the returns are just approximately 8%.

If I had 18 years still to go for my son's education , I should have invested in *Equity Mutual Funds* and with the same outgoing from my pocket every year, I would have accumlated Rs 34 lakhs.

So plan your Goals Correctly and Early !!

Please share this with people you care for, especially the Young Population 

 

Happy Investing !!

Read More

Confession Series - 2

 I am back, with yet another Confession !!

At the age of 21, I was a sold a Life Insurance Policy, with a sum insured of 5 lakhs,which my nominee would get in case I do not survive. But in case, I survive for another 25 years, I would get approximately Rs 18 lakhs. The premium for this policy was Rs 24520 p.a., to be paid for 16 years. So basically I was sold an 'Endowment' policy which clubs insurance and investment.

If I calculate the return % for the above it comes to approx 9%.

Now there is one big mistake I did here, I mixed Insurance and Investment together, wherein neither the insurance amount of 5 lakhs would be sufficient for my family to support their expenses in my absence, nor a return of 9% is a good enough return if I am waiting for 25 years.

Alternatively I should have done this, considering I am still shelling out Rs 24520 p.a.

1) Buy a *Term Insurance for Rs 1 Crore* which would have costed me approx Rs 7500 p.a.

2) Invest the remaining amount 24520-7500 = 17020 divided into 12 months which is approx Rs 1420 p.m, into Equity Mutual Funds every year for 16 years and withdraw the matured amount on completion of the 25th year. The matured amount would be approx Rs 21 lakhs.

The numbers say it all !!

Hope I have rung a bell 🔔

Please share this with people you care for, especially the Young Population (18-25 Yrs).

 

Happy Investing !!

Read More

Shariah Mutual Funds

 

Many people from the Islamic Faith refrain themselves from investing in Mutual Funds/Stocks, since they do not want to make investments against the Shariah.
Here is an opportunity to invest ethically into Mutual funds as per Shariah but still earn good returns.

Note : These Mutual funds are open to all and not just restrcited to 'Muslims' only.

Kindly spread the word !!

Connect with me for more details.

Read More

Last Quarter of Financial Year to invest in ELSS

 

 

 

📢Last Quater remaining to invest in Tax Saving ELSS Mutual Funds

In the last 15 years ELSS has beaten PPF returns by almost 100%

The choice is obvious !!


#mutualfundssahihai #mutualfundsinvestment #taxsaving

Read More