new to the world of investment

#1
Dear Sir,
my question is given below , i am looking forward to your valuable reply at the earliest.

Q. I am naive at these investment plans dated 4/1/11, its tax benefits, future planning etc. and a fresher employee in a good firm earning Rs 27k/month as take away salary in the training period. Can you please guide me for an ideal investment and insurance plan i should proceed with keeping in mind the following two facts.

1) My health has been erratic.
2) I am 22yrs at present and my father had invested in PPF in my name (minor) 10 yrs back.
3) I am studying for MBA exams, and most probably i"ll quit the job after 15 months and pursue higher degree.
4) My training period will end after 6 months , after which i ll be qualified for tax payment.
 

comm4300

Well-Known Member
#2
a) Term Insurance : to protect your dependants; shop online for term plans.
b) Medical Insurance : over and above provided by your employer [after training period] to take care of any medical problems.
c) Mutual fund investments : based on your financial needs :
Retirement : SIP in good equity fund spanning 30-40 years.
Marriage/house/car etc: SIP in balanced fund if the goals are below 5 year period.
Emergency fund : 3 times your salary to be kept in Floating rate fund/bank for emergencies.

SIP amount depends on your financial capacity. As you grow in your career keep increasing the SIP amount.

a) and b) provide for tax benefit.

Best Wishes,
 
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#3
Thanks a tonne comm4300, it was a very satisfying reply.

1) i would be grateful if you can just confirm if the plan suggested by you would work even if i resign 15mnths from now for studies.

2) also i would like to know which part of your suggestions should be addressed with urgency 1st , and their prioritization for my case.

awaiting your valuable reply again.
 

comm4300

Well-Known Member
#4
a) Term poilcy is top priority : anything happens to you, your family should be financially compensated.
b) So is medical: God forbid, just a week in an ICU can wipe off someone's hard earned life savings.

implement ASAP if you have cash reserve for paying premium year on year [even after 15month job].

Mutual Fund SIP can be started for 15 months and then re-started after your studies. remember: Any money saved in good

best wishes.
 
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#5
should i be careful before starting any of these ventures because of the new direct tax code (DTC) , which will come in 2012.
How does it affect my term insurance and medical insurance if i go for it right now.
awaiting your kind reply as usual.
 

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