NDTV Social
Let's Talk Money

Let's Talk Money Team wrote a post :

Let's Talk Money Team

YOUR QUERIES HAVE BEEN ANSWERED BY OUR EXPERT HARSH ROONGTA



 



Q 1) B.V.MALLIKARJUN RAO



 



 I HAVE RUNNING SIP IN FIDELITY EQUITY
FUND.



AS PER NEWS FIDELITY INDIA MUTUAL FUNDS
OPERATION WILL BE SOLD TO L&T MUTUAL FUND



I WANT TO KNOW WHETHER I SHOULD CONTINUE
SIP IN FIDELITY EQUITY FUND OR NOT.



 



ANOTHER THING I WANT TO ASK YOU THAT HAVE
SIPS IN EIGHT FUNDS. I WANT TO REDUCE THE NO. OF FUNDS IN MY PORTFOLIO.



 



PRESENTLY I AM HAVING SIPS IN



 



ICICI FOCUSSED FUND - RS. 1000



HDFC EQUITY FUND - RS. 2000



HDFC TOP 200 - RS. 1000



FIDELITY EQUITY FUND - RS. 1000



DSPBR EQUITY FUND - RS. 1000



IDFC PREMIER EQUITY FUND - RS. 1000



ICICI DISCOVERY FUND - RS. 1000



DSPBR EQUITY FUND - RS. 1000



SBI GOLD FUND - RS. 2000.



 



TELL ME WHICH I CAN DISCONTINUE AND ADD
THAT AMOUNT TO EXISTING FUNDS.



 



2. SUGGEST ME 3 TAX MUTUAL FUNDS 



 



B.V.MALLIKARJUN RAO



9932900719



 



Reply: -



 



For a monthly SIP of Rs. 9,000 in equity
funds you should at the most look at 3 mutual funds. You are advised to
continue HDFC Equity, ICICI Focused and IDFC Premier equity fund. Fidelity is
taken over by L & T. Performance of equity schemes of L & T is not
great and many mutual fund holders are likely to exit putting further pressure
on the new owners so it is advisable to quit the scheme.



 



Tax
Saving (ELSS) schemes of MF(choose only one)



 



ICICI Prudential Tax Plan



HDFC Tax Saver



Canara Robeco Equity Tax Saver



Also please invest through monthly SIP in
the tax savings fund and not as a lump sum.



 



Q 2) N K SANDEEP



 



I have an ULIP policy with SBI LIFE-UNIT
PLUS-II REGULAR. I had invested till now Rs.1, 05,000 till now, but my fund
value is always on the negative side and total fund value is Rs.95375.44 till
date against the invested value.



I had completed the mandatory 3-year investment period.



Please advice me whether to surrender the policy or continue with it. --



N K SANDEEP



PUMPS PURCHASE



BHEL



HYDERABAD – 502032



 



Reply:



 



SBI Life Unit Plus II Regular plan is a
unit linked Endowment plan with regular premium paying term, which offers you
four Fund option for investment. ULIP plans have higher allocation charges in
the initial years and also have policy administration charges, which reduce
your overall return. Assuming your investment done into Equity Growth Fund,
below is the performance with MF schemes.



 






























Comparative
Analysis



1 year



3 years



Unit Plus II



-8.20



17.80



BSE 200



-12.33



16.31



S&P
CNX Nifty



-11.58



14.35



HDFC
Top 200



-9.80



22.49




                       



 



Fund Performance of SBI Life-Unit
Plus-II Regular is comparable to its benchmark. But you have also to see
ongoing charges in the plan like allocation charges and policy admin charges
before continuing the same. Allocation charge is 5% for 4th and 5th
year. There is policy admin charges of Rs. 60/- per month which will reduce
your over all returns. There is surrender charge of 1% of the fund value till
10th year. It is advisable to surrender the plan. We always advise
to separate your insurance and investment needs.



 



 



Q 3) kanchan
bakade



My husband (age 34 years) and me (age 30
years) we both are working. My income is Rs. 40000/- and my husband income is
Rs50000/-. My husband has purchased a under construction home (in the year 2009
still not ready) of Rs. 25 lakhs, by taking loan of Rs.20 lakhs for 20 years
only on their salary. My husband has taken loan from SBI, Home Loan Advantage Scheme
where the interest is 8% fixed for the first year & 8.5 % interest for the
next two years.



My questions are



1) We want to complete the home loan as
early as possible after getting possession in the span of 10 years. I know he
is not getting any tax benefit due to under construction. Is it advisable to
complete the home loan as early as possible or take the income tax benefit
after possession and for how many years?



 2) We have two children’s (Son’s
age 3 years and Daughter’s age 3months) and we want to have a corpus of Rs 60
lakhs for their education after 15 years. Is this money enough for their
education and how to achieve the target?



3) We want to have retirement
planning, so that we should get the income of Rs. 1.5 lakhs per month after 25
years. For this how and where to invest.



4) We want to have 2nd home
of 50 lakhs after 6 years i.e. in the year 2018. I want to buy house on my name
by taking home loan. How much corpus we have to make and how much loan I will
get?



5) How much medical & health
insurance is required for my family and how to go about it?



looking for a response and guidance



thanks and regards

kanchan bakade



 



Reply:



1) Whether it is good to pre pay off
your home loan early depends on whether you have enough funds for your other
goals and also on the rate of interest on the home loan. If you have surplus
funds after meeting your future needs for your goals then you should definitely
consider early payment of the home loan. If the funds for other goals are not
enough than home loan tends to be cheapest post tax borrowing method and may
make sense to continue while you invest surplus for your other goals.



 



2) 60 lakhs after 15 years is Rs. 19
lakhs today assuming inflation @8% p.a. You need to invest Rs. 10,000 per month
in equity mutual fund assuming return of 14% p.a.



 



 3) to have 1.5 lakhs per month for 25 years,
you require a retirement corpus of 4 crores at the time of retirement. You
would require to invest Rs. 14,800 per month in equity mutual fund assuming
return of 14% p.a.



 



4) Whether to buy a second home or not
depends on exact availability of surplus after all expenses are taken care.
Further your requirements are too detailed for the column. It is advisable to
consult professional firm like apnapaisa and make a financial plan for your
family.



 



5) You should buy individual health
insurance of Rs.3 lakh separately for each of your family member. You can go
for Apollo Munich Easy Health Standard Individual Plan which will cost you
Rs.13,400 p.a.. Also, you should buy a top-up plan of Rs.5lakhs each with
Rs.3lakh deductible amount. For top-up plan, you can go for Apollo Munich
Optima Plus, which will cost you Rs.3,600 p.a. for all 4 members put together.
You should keep in mind before buying policy from Apollo Munich, that if any of
the family member becomes non-resident then the policy will cease for that
member.



As a thumb rule, you should have life
insurance cover of 10 times your annual income. Thus, you should have life
insurance cover of Rs.50 lakhs for yourself and Rs.60 lakhs for your husband.
Also add 20 lakhs each for the home loan amount and minus redeemable assets for
calculating the exact life insurance need.



Online Term Plans (Yourself)


























Plan Name



Age



Term



SA



Premium



AEGON
Religare I-term



30



30



50 Lakhs



Rs.3,989



Bharti
AXA e-protect



30



30



50 Lakhs



Rs.4,270




 



Online Term Plans (Husband)


























Plan Name



Age



Term



SA



Premium



AEGON
Religare I-term



34



26



60 Lakhs



Rs.6,539



Bharti
AXA e-protect



34



26



60 Lakhs



Rs.6,746




 



It is always advisable to disclose all the
facts correctly while buying any insurance plan.





Q 4) Imran  Chikode



Dear sir/madam

My name is imran  chikode currently i'm working in HDFC Life as a

insurance co-exc.& 21 years old as per my age do I need to take life

insurance if yes then suggest me some good options if not then why? My

family is dependent on me & my dad will retire from service in next 2

month. Right now I am single actually I’m confused what to do? My

monthly income is 10000





Thanks for the fantastic show and great effort put in by you. We have been
following your show for over a year now. Will be grateful if you can consider
our queries.



 



Reply:



As your parents are dependants on you, you
require life insurance. By rule of thumb it is advisable to have term insurance
cover of at least 12 times of your annual income. Looking at you income you
should buy term cover for Rs.15Lac.



 



Recommendation for Online term
Insurance:



Sum Assured 15 Lac, Age 21 yrs, considering
non-tobacco user, term 30yrs.



 

















Plan Name



Premium



Kotak e term



2330



HDFC Click 2 Protect



2374




 



It is always advisable to disclose all the
facts correctly while buying any insurance plan.



 



Q 5) Gaurav
Farkade





We are working couple Gaurav Farkade ( 32 Years) and Suvarna ( 30 Years);
married for the past 2.5 years from Pune. Both work in the IT Industry - Gaurav
with IBM and Suvarna with Cognizant technologies. 

Gaurav likes photography and reading; Suvarna like gardening. We both enjoy
traveling and are foodies. We might start a family in the next 2-.25 years.



Salary, expenses, home loan details in the Queries.txt file.



We have bought a flat under construction at Pune and have took a 40L loan for
the same. We expect the possession in Oct-2012. The EMI start from May-2012.

We have been investing in Mutual Funds through SIP ( fundsindia.com)
since 2010-11. Details in
theMFsCurrentCorpus.xls and Current_MF_SIPs.xls files.

The investment details in shares are detailed in Stocks-31-Mar-2012.xls

Details of the EPF, PPF, Bonds, ULIPs in the 'EPF_PPF_Insurance_Cash'
Sheet of the Goals_Savings.xls



Our goal is to have secure financial future. We have listed the goals in the
'Goals' Sheet of theGoals_Savings.xls. We need your help on queries related to
Insurance and Investment. Also your opinion on any changes required in the
Mutual Fund portfolio and investment strategy.



Regards,

Gaurav Farkade

923206968



 



Reply:





No attachments found and also your requirements
are too detailed for the column. It is advisable to consult professional like
certified financial planner and make a financial plan for your family.



 



Q 6) C.Srinivas



Hi Manisha Natarajan,



> first of all i thank NDTV profit for bringing excellent program on

> investment which i have been viewing from past 3 months & u are doing

> a excellent job in hosting the same.

> I am C.Srinivas age 41 years located in bangalore looking for your

> advice on investment.

> present employee = 10.2 lakhs ctc per annum.

> wife = housewife.

> children = 2 daughters (8 & 5 years) studing.

> Present protfolio :

> 1)investment in LIC & ulip icici prudential life = 118854 Rs.Annually

> @ returns of 10 lakhs from 2020 on wards.

> 2) I have applied for apollo munich optima restore for Rs.10 lakhs for

> me & my family floater and is under medical report clarification.

> 3)staying in own house which is in my mothers name in jayangar bangalore.

> 4)A vacant plot 30x40 which is valued @ Rs.15 lakhs as of now in
bangalore.

> i want your advice for acheiving the targets as below

> i can invest monthly Rs.40000.0.

> a)Rs.10 crores by next 10 years to take care of my daughters education

> & to build my own house in bangalore.

> b)Rs.15 crores by next 15 years to take care of my daughters marriage

> & to take care of my old age and medical expenses of me and wife.

> c)term insurance for me & wife (app 2 crores each for 40 years).

> kindly help me in achieving above goals and along with details of the

> companies were i can invest .

> thanks & regards,

> C.Srinivas

> 9342134397.



 



Reply:



 



You should keep your insurance
and investments separately. The LIC and ICICI’s 
plans maturity value depends on future bonus and fund performance of the
scheme opted. You are expecting Rs. 10 lakhs p.a. from 2020 which is not correct.
Do not rely on figures given by your agent.



You have right decision to take health
policy of 10 lakhs for your family. Just keep in mind that in case of Apollo
Munich Optima Restore, if any of the members in the policy becomes a
non-resident then the policy will cease for that member.It is otherwise a good
policy.



 



As a thumb rule, you need to have life
cover of 10 times of your annual income, thus you require life cover of Rs.1
crore. 2crore cover is not required for you, and also, life cover is required
only till your retirement age. You can buy online term plan, since they are the
cheapest. Your wife is a homemaker and thus does not require life insurance.



 



Online Term Plans for yourself


























Plan Name



Age



Term



SA



Premium



AEGON
Religare I-term



41



19



1 crore



Rs.15,618



Avia
I-life



41



19



1 crore



Rs.16,626




 



Your goals for education, marriage and
retirement are unrealistic given the amount you are willing to invest. It is
advisable to consult professional firm like apna paisa and make a financial
plan for your family.



 



 



Q 7) Amit Walanj



Hi,



 



    Your talk show on
NDTV profit is an amazing one and gets to know the insights of the money
investments to every individual interested in making investments.



    I need some guidance
from you regarding the Term insurance, which I haven’t planned till now, and
also few investments if you can suggest me that could be beneficial for my
future Life.



 



    My Investment
holdings are as follows, I am ‘Amit Walanj’ 33 years of age unmarried and an IT
professional:  -



    1.   LIC
Insurance (Maturity benefit plan)   - 200000 for 20 years



    2.   SBI
Insurance (Maturity benefit [plan)  - 200000 for 20 years



    3.   Kotak
Life Insurance (Equity Linked)   - 400,000 for 10 years



    4.  Bought Home
Loan for Rs 1200000 for 15 years   



    5.   FD’s
for few amounts



    6.   NSC



    7.   Infra
Bonds and Mutual fund investments  



 



       As
per the above matrix, I have few questions for you and need your guidance.



a.         I
am not holding any term insurance but interested in buying it after watching
your show, so suggest me some good products And companies I can go with.



b.        With
the present Insurance plans should I close down any of the plans and then go
for the term plans.



    
  (Note - I can go with discontinuing SBI Life cover but in that
risk factors such as Accidental death and permanent disability is covered)



c.       Of
all the above investments highlighted please suggest if I need to drop or add
any of other investment plans for my



      Future
life benefit or expand the risk cover.



 



 



Regards



Amit Walanj



 



 



Reply:



 



It is appreciated that you have thought of
buying term Insurance. As it is an foremost requirement of any working person
having dependants on him, even before you take investment decision. By rule of
thumb it is advisable to go with insurance plan for cover of 10 times of your
annual income. Online term plan which gives you the cheapest deal are good as
long as you make full and disclosure. Also take into account Health Insurance
need and also critical illness for your other risk cover.



 



Details given of your insurance plan are
incomplete. But, with the available information, it is not advisable to combine
Insurance and investment both together. Your both LICInsurance
(Maturity benefit plan) and SBI Insurance (Maturity benefit (plan) are
traditional plans where you returns will range between 5 to 6% pa., and it is
without considering the inflation into account. Kotak Life Insurance (Equity
Linked) is unit linked insurance plan with regular premium paying term,
which offers you four Fund option for investment. Here the investment risk is
borne by the investor.ULIP plans have higher allocation charges in the initial
years and also have policy administration charges, which reduce your overall
return. It is advisable to compare the performance of the scheme compared to
bench mark index and performing MF schemes before continuing.



 



Before you start your investment you should
always set your priorities and goals taking the fact of risk taking ability. It
is advisable to consult professional firm like apna paisa and make a financial
plan for your family.



 



 



 Q
8) Anand Agarwal



 



I am having Bajaj Allianz new unit gain
which I bought in December 2006 with annual premium of 12000. I paid annually
till 2010 and from 2011 started paying monthly installment. Funds were switched
in April 2011 as I took suggestion from someone. I have attached the file in
which details are mentioned. Please tell what should I do at this stage, should
I quit or keep paying premium.





Regards

Anand Agarwal

91-9136303630



 



Reply:



 



Bajaj Allianz New unit gain plan is a ULIP, where investment risk is to
be borne by the policyholder. You should never mix insurance and investments.
These ULIP’s carry a lot of charges like Premium Allocation and Policy admin
charge, which are very high. These charges will reduce your overall return. The
return from the plan is almost similar to the benchmark and lowers than
performing MF scheme. So, it is advisable to surrender the policy, but you will
have to bear a surrender charge that will be deducted from the Fund Value. It
advisable to keep insurance and investment need separately.



Assuming you have invested in equity scheme.






























Comparative Analysis



3 year



5 years



 



 



 



Unit Gain



18.30



5.80



S&P CNX Nifty



14.35



4.91



HDFC Top 200



22.49



12.04




 

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

Recommendations