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Let's Talk Money Team

YOUR QUERIES HAVE BEEN ANSWERED BY OUR EXPERT VIVEK REGE 


Q 1) Mahendra



 



Dear Money control team,



 



It’s a
bit lengthy mail but please bear with me since I wanted to bring about all
points that you would require to help me for my investments options.



 



I'm 32.
My monthly source of income thru salary is an average 75K and another 16K thru
rented accommodation + my wife contributes 45K to the monthly family income.



 



Our
monthly fixed expenditures are towards EMI - 40K and another say 20K towards
grocery, fuel+.... and towards current rented accommodation another 9K. We
don't spend from my spouse's account. That we save as is.



 



I don't
have any investment options i.e. No shares, no ULIP, no MF or bonds, etcetera
except for a monthly 15K RD account. I don't have an insurance bought
separately for me either. My employer covers me for insurance at about 70 lacs
in the eventuality of my death.



 



I’m
insured from EMI perspective for housing loan as well; loan will be short
closed with the life insurance amount taken at the time of loan. I also have a
group health insurance from office for up to 13 lacs for yearly health
treatments etcetera which covers me, wife and child.



 



My wife
has a traditional LIC plan going on for some years now - atleast about 10 years
where the yearly premium is about 12K and insurance amount is 3 lacs. It is a
money back plan - every 5 it gives 30K back. I want to close this insurance and
get a comprehensive one for her. Is closing this one an option and a wise one
is my 1st question.



 



My son is
4 and like every parent, we too want to ensure quality education for him -
which means we might need about 25 lac rupees, is another 15 years or so for
higher education.



 



I have a
housing loan of 28 lacs from SBI (I'm in the process of moving it to another
bank) and a personal loan of 4 lacs - total EMI is 30 + 10 = 40 (as mentioned
above). House bought in 2009 in Pune at 2000 per sqft is at 4800 per sqft as on
today. It has appreciated a little more than twice since I bought it. At times,
I think of selling it and re-investing the entire amount somewhere else. Not
sure though



 



Our
personal target for this year is to clear off 5 lac rupees from the 28 lac loan
which as on today is around 26.5 lacs outstanding.



 



I drive a
small car and have a 2 wheeler and don't look to changing both the vehicles for
another 2 years atleast.



 



Now I
think I have given as clear picture possible for my financials. My question to
the esteemed panel is to suggest me on what and how to invest with whatever my
financials support. I would be delighted to receive your suggestions and
receive an e-mail or a call from your end to suggest me investment options.



 



Regards,



Mahendra



7829918369



 



Dear Mahendra
,



Your approach
looks very structured , as of now you are heavy on Real Estate which is fine
but for a corrective action you also need to build an equal proportion of
financial assets , since there will always be a dilemma whether you should or should
not be selling the real estate asset . Having said that , you will first need
to set aside Rs 15k pm for you child in a equity oriented fund e.g HDFC
Childrens Gift Fund or HDFC Prudence and FT India Balanced fund , as you goal
being Rs 25 lacs over 15 years , if I take inflation of even 8% for education
you will require Rs 80 lacs , so go ahead and action this .



I don’t think
it’s a good idea to count on employer given insurance be it life or mediclaim ,
so I would certainly suggest you own one , its not about cost saving its about
risk mitigating at any stage when you wont have the employer provided cover ,
you need a cover of Rs 1 cr which will be sufficient for a few years .



Go ahead with
your loan pre-payment , there is no right or wrong answer here the more you do
the better keeping you tax breaks alive.



I think you
have not touched upon the retirement aspect , this is the big ticket item ,
don’t miss this , also ensure that you are beating inflation and taxes , hence
equity exposure through mutual fund route will be a good investment vehicle for
wealth creation . 



 



 



Q 2) Baeshir Ahmmad



 



Hello
This is Baeshir Ahmmad and would like to have your advise on my Mutual Fund
Portfolio and SIPs I currently do.



 



I am
enclosing my current MF Holding and a few SIPs that I current do. I have
started investment in ME about a year back and have invested about 3 lac till
now. Almost half of the total investment has been through monthly SIPs and the
balance half was purchases made in tranches. As on now there is no gain / loss
on the portfolio. I had done SIPs for 12 months (with monthly outflow of Rs
15,000) which is ending this month. I would need your advise on the following
areas:



Are
the current SIPs OK or need to re-jig. Is the sect oral spread OK.



Is
my portfolio balanced or need to add / reshuffle it.



As
on date I have not got any returns on the investment. Should I continue to hold
to it or redeem the units and come out.



 



Would
appreciate your expert advise.



 

























Hi ,



Look I don’t know how you have selected the funds ,
it appears to me that the choice you have done is not incorrect , these funds
are not as per your risk profile , now in this case either you rejig the
complete portfolio and introduce Debt funds e.g MIP , Short term debt , and
even Balanced funds , max upto large cap funds . So you should be either
continuing the SIP in the exiting funds since these are high risk high reward
atleast the micro cap and small cap funds plus markets are under severe
pressure , if you don’t like the result then the risk profile is incorrect and
you will need to completely re-work on the portfolio so that the outcome is
what you expected and not the other way round .



Q 3) Sameer Singhal





Do suggest the best term plan rate for a cover of 40 lacs and the premium

Entry at age 46 and half



Rgds



Sameer Singhal



You can go for HDFC Click2 Protect. This is
online Term plan which will save your premium cost. You will get 40 lacs cover
by paying premium of Rs 18000 approx, term 15 Years



Q
4)
linto 



  



i used to watch ur regular show . it was very useful for me guiding in
mutual fund .



 



basically
i am a business man from  kerala having a income of average of 25000 per
month .



 



currently
i am doing sip in mutual fund  ,



 



here my
details 



 



1,icici
pru focused blue chip equity  fund - growth -1000/- month 



from
11/11/2011 onwards 



 



2,hdfc
top 200 fund -growth -1000/--month 



from
05/07/2011 onwards 



 



3,reliance
gold savings fund -growth plan-1000/- month



from
18/04/2011 onwards 



 



4,reliance
growth fund -retail plan -growth-1000/ month



from
22/10/2010 onwards 



 



above sip
are still going on 



 



5
,reliance regular savings fund -equity plan-growth -1000/- month started
from 



14/08/2008
upto  18/08/2011  which invested rs 37000/-  have stopped
sip 



 



my plan
is to do for 10 year sip 



 



after all
my investment and expenses , i have about rs 2000/- month ,which i have decided
to do in mutual fund .



 



 my
question is should i invest this amt in ongoing sip ,in which fund and how
much 



 



or which
new mutual fund should i consider ?



 



i am
seeking ur valuable tips from u 



 



by 



 



linto 



9387100401



 



 



I will suggest
you to start SIP in HDFC Prudence Fund for Rs 2000, because your all SIP’s are
going in 100% equity funds & balanced fund exposure is missing in your
portfolio



 



Q
5)
Murthy.





I have started SIP of 5000/- each in



 



DSP
Equity, ICICI Discovery, IDFC Premier, HDFC Equity, HDFC Top200, HDFC Prudence
and Reliance Banking and Reliance RSF Equity. I also have TATA AIG Invest
Assure Gold ULIP and it is doing well.



 



The
Reliance funds are not upto benchmark and would like to know your suggestion on
these funds. I would like to discontinue these funds and start a different one.



 



And also
need your suggestion on, what should I do with these funds take small risk and
move the fund to Debt-Income or Equity funds, pls suggest to move this money to
good funds.



 



Pls
suggest any good funds for Short Term 1 years horizon funds.



 



 



Kindly
provide your valuable suggestion on these funds. My SIP are two years old and
need to re-organize them in this month.



 



thanks,



Murthy.



 



 



Hello Mr Murthy , You Hold Banking fund in Reliance
among the two , this being a sectoral fund , it is obvious that the risk you
have assumed is higher , now the question is whether this risk suits your risk
profile , if not then you can stop SIP’s Reliance Banking fund , Relaicne RSF
has been laggard but recent performance shows some improvement so you can
either choose to exit or even stay and give some time , alternatively you may
consider  Franklin India Bluechip Fund or
DSP BlackRock Top 100 Equity Fund instead of these. Rest current SIP;s in your
portfolio is doing good so continue it.



For short term 1 year investment, you can invest in
IDFC Super Saver Income Fund – Short Term Plan



 



 



 



 



 



 

7 years ago

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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’.


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