Hyderabad: A couple is blessed with a baby girl recently. Wants to safeguard their daughter's future financial needs. Ready to invest up to Rs 15,000 per month. Like all others, they also want to gift gold to her. What kind of investments to choose now? Experts say they should analyse what their daughter's financial needs would be over the next few years. Accordingly, they can plan investments.
They can go for a life insurance policy of at least 12 times the annual income in their name. A term insurance policy can be chosen for this which provides more protection at a lower premium. If they want to invest for a long time, they can deposit Rs 4,000 every month in a completely safe PPF account. Over Rs 6,000 can be invested in Hybrid Equity Funds and Balanced Advantage Funds through SIP (systematic investment plan). It may be a little risky but yield good returns in the long run.
It is advisable for everyone to sip Rs 8,000 out of Rs 15,000 in diversified equity mutual funds. Divert Rs 2,000 to Gold Mutual Funds. Deposit the remaining Rs 5,000 in Sukanya Samriddhi Yojana. If you invest like this every month for 20 years, you can accumulate Rs 1,15,56,500 with an average return of 11 percent.
Also Read: Secure your child's future with insurance cum investment plans
If you took a unit based policy four years ago, doubt arises whether you can cancel it now. They say that it is likely to be less compared to the premium you have paid. What should you do now? Unit-based policies should be continued for at least five years. Only then will there be a chance to cancel them. Now even if you stop paying the premium, you can withdraw the entire amount within five years of the policy.
Possession fees also apply for unit-based policies. First, you contact the service center or branch of the insurance company. Find out how much your fund is worth. Can some amount be partially withdrawn? Can the policy be repossessed? The details will be known.
Also Read: Pass on assets to the rightful heirs the right way
A person is 69 years old. He wants to take health insurance policy now. They say banks also give this policy. Is it true? Some banks offer group health insurance policies. Find out in advance if the bank where you have the account has such a facility. These policies include room rent limit, co-payment etc. though the premium is low. Know the terms first. One can opt for this policy in addition to taking a regular insurance policy.
A small trader wants to invest anything up to Rs 10,000 per month. He is 37 years old. What plans should he choose to be a bit safer? First, prepare an emergency fund that covers at least six months of expenses. Deposit these in bank fixed deposit or liquid funds. Take a term insurance policy in your name and a health insurance policy for the entire family. After that, start investing.
