Hyderabad : A father has a 13 year-old son. Considering his higher studies, he wants to invest Rs 25,000 per month. What kind of investment plans are there? First he should provide adequate protection for his son's future financial needs. For this, he should take an adequate life insurance policy in his name.
There are still seven or eight years left for his son's higher studies. Hence, equity based investments should be chosen to outpace education inflation. For this, it is best to invest in equity mutual funds. If you invest Rs 25 thousand per month for eight years, you can get around Rs 36,89,900. Don't forget to review investments from time to time.
A 24-years-old person recently joined a job and getting up to Rs. 28 thousand per month. Out of this he is thinking of investing Rs. 10 thousand per month. What should be his plans? First of all, take a life insurance policy of at least 10-12 times your annual income. For this, consider a term policy that offers more protection at a lower premium.
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Health and personal accident insurance policies must be taken. Calculate how much you need to spend each month and build an emergency fund that will last you at least three to six months. After all this think about investments. Deposit Rs. 3 thousand out of Rs. 10 thousand in Public Provident Fund (PPF) every month. Invest the remaining Rs 7 thousand in diversified equity mutual funds through a gradual investment strategy.
PPF has a lock-in period of 15 years. It can be continued later. If you invest regularly for 25 years at the rate of Rs. 10,000 per month, it is possible to get Rs. 1,37,29,596 with an average return of 11 percent.
A family is thinking of investing Rs. 8 thousand per month in gold. What kind of schemes can be chosen? They can invest in gold based mutual funds through the systematic investment method. If you only think about general investment, invest Rs. 2,000 in gold funds. Invest the rest in equity hybrid and balanced advantage funds. It is better to continue investing like this for at least five years.
A person took a unit based policy four years ago. Premium was not paid in March this year. Can it be canceled now? Is there an option to continue until the deadline? Unit based policies generally have a lock-in period of five years. Pay the premium till it expires. Otherwise the policy may be cancelled. If you pay the premium for another year, the policy will have a vested value. So, try to pay premium if possible. After the expiry of five years, the policy can be taken over and the investment can be withdrawn to the extent of the fund value.
