NDTV Social
Let's Talk Money

Let's Talk Money Team wrote a post :

Let's Talk Money Team



I need advise on financial planning. Please find my details below and advise:

1. I am 34 yr old IT professional, single with mom as dependent and getting married in 3 months.

2. Net take home salary is 50K+ per month, I may be able to save around 40% after marriage.

3. At this point I do not have any loan and do not own any property.

4. I have two Life Insurance - one for 3L with annual premium of 3K and second is ULIP with annual premium of 50K.

5. My organization provide medical insurance of 2.5L per annum and life insurance of 25L.

6. Net worth 50L with 40% in equity (mostly in one company) and rest fixed deposit.

Things which I will like to do/have to do

1. Marriage will have an expense around 5L.

2. Plan to buy a car after marriage, approx. 5L.

3. Plan to buy a flat, in range 30-40L.

4. I buy medical insurance for my mom for 50K yearly coverage.

5. ULIP do not seem to working well, as CAGR is 7%. It may be as I moved to fund preservation from market crash and missed the opportunity of market gain.

 Please advise how to invest and go for the expenses to have better financial future.


Mr. Summet vaid says …


1.       Since your marriage is in 3 months time please park the amount of money you need  in Liquid funds.

2.       Your question regarding buying a flat & car in which you have given the value but the time frame is not given in which you want to purchase the above said items.

3.        Medical expenses are on rise very year you need to sit down with a financial planner to determine the value of Health Insurance required by you. Frankly medical insurance of 50000 is very less.

4.        Generally we suggest our customers not to Invest in insurance rather buy insurance. Details would be required regarding your policy before commenting on them.

5.       You have said that you have invested in stocks in Rs 20,00,000 mostly in 1 stock . Hear I would advise you diversify your portfolio in different stocks because risk factor is very high.



Hello Team, 

My name is Nisanth.I have started watching your show recently.I am a software engineer by profession.I am 25 years old and haven't started saving yet.My monthly salary is 17,500.I would like to know what kind of investment will be the best for me.I have heard about investing in stock market,mutual funds etc.Please guide me on which would be the best option for me.Please help me in creating a portfolio.I could save upto 9000 a month after my expenses.Kindly advice. 

Thanks & Regards,




Mr. Summet vaid says …

1.        The earlier you start for your retirement better return you generate. the power of compounding is ideal suited for young person like you as you have got Time factor in your side.

2.        You can start with an aggressive portfolio in 80 % Equity & 20 % Debt ratio.


a)       You would retire at age 60

b)      Your Equity portfolio will generate around 14% return & Fixed asset 8 % . The aggressive portfolio  you would maintain the return generated would be around 12.6%

The amount of retirement corpus you would generate by investing in Mutual funds in the above said ratios with a good track record of 5years by investing  Rs9000 per month for 25year will be Rs 1,90,17,000.



My name is Satish working as a Analyst in IT Industry Bangalore. I would need your help to advise on investing in some mutual funds. Currently I have invested around 3 lacs in Insurance and some Mutual fund.

            However I had car loans and some personal Loans which I have managed to clear and now I have             a savings of 20000 per month apart from my RD account savings of 2 lacs per annum.

            Please suggest in some investing in mutual fund or is it advisable to go for buying a home (home             loan).

Mr. Summet vaid says …


Financial Planning is a disciplined process to achieve the life goals that a Family has throughout the life span. We do not have adequate information in regards to your age, your current expense and income, your goals, the goals of your family such as children education, marriage etc.

As specified by you have invested around Rs 3 lacs in insurance and mutual funds. Ideally speaking your insurance requirements should be viewed independent of your investment goals. The best approach is to consider insurance as an expense rather than investment. Here we suggest a Pure term cover to meet your insurance needs and Diversified equity mutual funds for your meeting your other long term goals.

You have cleared your personal loans, and managed to save a monthly amount of Rs 20,000. This amount requires systematic investment in the right asset allocation – which again is dependent on the proximity of goals and your risk profile.

Assuming that you have a saving of Rs 20,000 allotted for the long term (20 years), invested systematically in an aggressive asset allocation containg equity and debt in the ratio of 80:20 you would accumulate an amount of Rs 1.96 crores.

Instead of making regular investments in RD account, you may create an adequate contingency fund equivalent to 3 months of your regular expenses and invest the balance systematically as indicated above.

Whether you need to source the funding of your goal of purchase of home through regular savings or through a home loan would depend upon the proximity of the goal, the goal amount, savings already made towards the same and the how much you are able to contribute each month.


I m investing a mutual fund from SBI and the name of the fund is Magnum COMMA.I m investing through SIP mode by now i have invested Rs 43000 and the returns I have got is 22.92%.My question is that should I continue with this fund or should i shift to some other fund. I am a long term investor

Mr. Summet vaid says …


Ravi, Good to know that you believe in long term investment and understand the importance of SIP mode of investing.  We believe that before investing your money we must clearly define what your goals are. We first define your goals in terms of the amount involved and proximity to the goal.

Based on the goal involved we decide the Asset allocation strategy i. e what proportion to invest in equity and debt. For example investing in an aggressive asset allocation involves investing in equity and debt in the ration of 80:20 and progressively reduces exposures to equity as the goal approaches. Within the equity asset class we suggest to invest in Diversified equity funds.

The investment in diversified equity mutual fund results needs to be reviewed on a periodical basis. The mutual fund that you have suggested is in the category of a diversified equity mutual fund and is a poor performance in comparison to its peers in this category. Some of the better performing funds are HDFC 200 fund, HDFC equity, Reliance growth fund.

 Good day.

I am Daison Souza (27 years), currently working with a Shipping firm. Its been 4years of my association with the company. I started with an annual income of 3Lakhs and now i draw 7.8 Lakhs per annum. My current take home is INR 50,000.


I have the following investments :

1. LIC (Money Back ) : Premium INR 18819 p. a

          - sum assured is INR 300000

          -  term 20 years

          - Policy date: 07.01.2008

  Features :    20% of sum assured after 5yrs, 10 yrs and15yrs

                        40% of sum invested+ vested bonus on maturity

2.  ICICI Prudential (Life Time Super) : Premium INR 24000 p.a

             Benefit amount - 240000

             Term - 20 yrs

             Policy date:30.07.2007

   Features :  Surrender value of the policy currently after 3 yrs is INR 81000.

 3. Kotak Life Insurance( Smart Advantage) : Premium INR 12000 p.a( 2 policies)

            Sum assured:  INR 60,000 per policy

            Term : 10 yrs per policy

  Features : Currently if i surrender the policy the first year of premium will be deducted.

  4. House Investment : HDFC LTD

             Total worth : 17 Lakhs

             Bank Loan : Approx14lakhs

             EMI : INR14000

 Features: Currently the house is under construction and I am paying an Interest of INR 5900 per month

 5.  Loan from Office:   INR 1,0000@ 4%

             EMI: INR 4400

             Term : 2 years

             From: 1st Jan 2010 - 31stDec 2011

 Savings:  Approx : 2Lakhs.


Mr. Summet vaid says …


We do not have a clear understanding of what your goals are since you have provided us with the insurance details and the premium amounts.  A disciplined process of investing involves articulation of your goals, savings you have made towards towards that goal and an analysis of what you need to do for the same.

We believe that your insurance requirements and your financial goals are separate goals that require a separate approach. We therefore suggest that in regards to your insurance you treat this as an expense and ensure adequate insurance for yourself through a pure term cover. Based on your human life value calculations (Assuming monthly expenses of 35,000, retirement age of 50) your insurance requirement works out to be Rs 1.50 crores. At your age you can buy a term policy worth Rs 1.50 crores for a premium of Rs 27,000 per year for the next 30 years. Compare this with your existing structure where you are covered for an amount of Rs 6.60 lakhs and paying a premium of Rs 55,000 for the same. We will need to verify the insurance documents to clearly understand the benefits.



7 years ago

Share This Page

Ask The Expert

Confused about your investments? Fill in the form below for expert advice.

About The Anchor: Manisha Natarajan

Manisha Natarajan is Executive Editor Business and Real Estate at NDTV. She currently hosts the daily prime time real estate programme 'The Property Show' and a weekend personal finance show ‘Let's Talk Money’.

Manisha learnt the ropes of television journalism as a reporter for BBC World's 'Moneywise' and 'India Business Report'. She has anchored over 1000 hours of live business news, including key events such as the Union Budget, Economic Survey, Credit Policy and Tax Roundtables.

She's also a keen blogger on ndtv.com and has been an in between columnist with Indian Express - ‘Stock Talk’ and Mint - ‘Money Matters’.

About The Show

There are either personal finance shows or business shows. The two don't meet. Let's Talk Money decodes top business headlines for your wallet.

Fun segments on money and strong advise on money management follow. No long winding discussions, no hedging answers to play safe. Along with industry specialists and experts, the show gets viewers to sit up and take control of their money, asking questions relevant to a large audience out there.

Join Us

Recent Updates