Confession Series - 3

Confession Time !!

When my son was born, within 3 months of his birth, like any other responsible parent ,I took a Child Education policy of 18 lakhs, premium Rs 53000 p.a.

The rationale behind going for this amount was, since I am an Engineer by education and Engineering fees in my days (1998) costed approximately Rs 200000 for 4 years, I thought that even if the cost of education grows by 11% which is a fair assumption , I will still be comfortable with the investment I have made.

I made 2 mistakes here

First one I assumed, that the stream that my son would pursue would have similar expenses like Engineering but today he has taken up 'Bachelor of Design' which is costing me Rs 25 lakhs, so I have to fill the deficit of 25-18 = 7 Lakhs

Hence when you are planning for your child education, check out the current expenses of a costly stream like Medical and then make your investment accordingly. Also note that Foreign Under-Graduation expenses are approximately 5 times of that in INDIA

Second, I invested in a traditional policy, wherein along with investment, it also had insurance coverage, hence the returns are just approximately 8%.

If I had 18 years still to go for my son's education , I should have invested in *Equity Mutual Funds* and with the same outgoing from my pocket every year, I would have accumlated Rs 34 lakhs.

So plan your Goals Correctly and Early !!

Please share this with people you care for, especially the Young Population 

 

Happy Investing !!

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Confession Series - 2

 I am back, with yet another Confession !!

At the age of 21, I was a sold a Life Insurance Policy, with a sum insured of 5 lakhs,which my nominee would get in case I do not survive. But in case, I survive for another 25 years, I would get approximately Rs 18 lakhs. The premium for this policy was Rs 24520 p.a., to be paid for 16 years. So basically I was sold an 'Endowment' policy which clubs insurance and investment.

If I calculate the return % for the above it comes to approx 9%.

Now there is one big mistake I did here, I mixed Insurance and Investment together, wherein neither the insurance amount of 5 lakhs would be sufficient for my family to support their expenses in my absence, nor a return of 9% is a good enough return if I am waiting for 25 years.

Alternatively I should have done this, considering I am still shelling out Rs 24520 p.a.

1) Buy a *Term Insurance for Rs 1 Crore* which would have costed me approx Rs 7500 p.a.

2) Invest the remaining amount 24520-7500 = 17020 divided into 12 months which is approx Rs 1420 p.m, into Equity Mutual Funds every year for 16 years and withdraw the matured amount on completion of the 25th year. The matured amount would be approx Rs 21 lakhs.

The numbers say it all !!

Hope I have rung a bell 🔔

Please share this with people you care for, especially the Young Population (18-25 Yrs).

 

Happy Investing !!

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Shariah Mutual Funds

 

Many people from the Islamic Faith refrain themselves from investing in Mutual Funds/Stocks, since they do not want to make investments against the Shariah.
Here is an opportunity to invest ethically into Mutual funds as per Shariah but still earn good returns.

Note : These Mutual funds are open to all and not just restrcited to 'Muslims' only.

Kindly spread the word !!

Connect with me for more details.

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Last Quarter of Financial Year to invest in ELSS

 

 

 

📢Last Quater remaining to invest in Tax Saving ELSS Mutual Funds

In the last 15 years ELSS has beaten PPF returns by almost 100%

The choice is obvious !!


#mutualfundssahihai #mutualfundsinvestment #taxsaving

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Confession Series - 1

Confession Time !!

Today and in few of the future posts I will pen down some of the financial mistakes I made in my life,cause I don't want others to commit the same mistake.

I started earning right after I completed my graduation at the age of 21. I was earning around Rs 8000 a month, with no responsibilities to shoulder.

I did not invest much then except in a Life Insurance Policy. I felt liberated, with money in my hand and no one to answer to.

At 21, had I kept 'Retirement' as a goal and would have started investing only Rs 5000 per month and increased it by 10% every year and invested in Equity Mutual Funds, after 24 years, today, I would have been sitting on a whopping corpus of Rs 2 Crores.

So the key is think of retirement the day you start earning and invest in instruments capable of giving 2 digit returns.

Please share this with people you care for especially the Young Population (18-25 Yrs).

 

Happy Investing !!

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ELSS a better Tax Saving Instrument as compared to PPF

 

Traditionally we all have been investing in PPF (Public Provident Fund) mainly because
1) It can be shown as part of Sec 80C to reduce our Taxable Income
2) The returns are tax free
3) Guaranteed Return
4) High Rate of Returns
 
Although the above first 3 points still hold true, for the 4th point it is historically seen that the Rate of Return has seen a downward trend.
 
In the year 2000 the Return% was 11% and with every passing year the returns have reduced and now in 2021 it has come down to 7.1%.
 
Honestly PPF is no longer a lucrative investment option instead one should invest in ELSS (Equity linked Saving Schemes - Mutual Fund)
 
 because
 1) It can be shown as part of Sec 80C
 2) Lock in is 3 years as opposed to 15 years in PPF
 3) If one had invested 1.5 lakhs in PPF and 1.5 lakhs into ELSS every year since April 2007, the returns would have been as follows
 
 PPF - 42.46 Lakhs
 ELSS - Average - 77.45 Lakhs
        Maximum - 94.53 Lakhs
        Minimum - 67.63 Lakhs
 
 The choice is obvious if the purpose is Tax Saving as well as Superior Returns.
 
Happy Investing !!

 

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Surety to get your share in desired IPOs

 

Now a days Retail Investors applying for IPOs have a common complaint that they End up not getting any allotment.

And this is inspite of applying through multiple members of the same family.

To cater to this pain point , here is a mutual fund by Edelweiss which invests in recently listed and upcoming IPOs.

I think this is an excellent avenue for retail investors to have their share in the IPO world.

 

Happy Investing !!

 

Investo Acumen

Tasneem Sharma

(Certified Mutual Fund Distributor)

 

#Mutual Funds #IPO

 

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Money needs nurturing to GROW !!

 

 

Money isn’t like that cactus you bought last month — it definitely doesn’t thrive on neglect.

Staying on top of what you have — your bank accounts, your investments, your money goals is a must !!

 

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Generate Regular Income with FREE Insurance

 

Want to generate a regular income, be it to support your child's additional expenses or to support your retirement monthly expenses, then this is the product for you- ICICI Freedom SIP

It allows you to make monthly investments for different tenures and then receive regular monthly income for your entire life time.

And like a 'Cherry' on the Ice-cream, it provides a FREE insurance coverage as well.

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What is Financial Freedom ?

 

What is Financial Freedom ?

 

Different people would have different opinions like

1) Earning Lots of Money

2) No Debt

3) Lavish Vacation

4) Owning a Bungalow

5) Bigger Car

But actually it means that 'Having Enough Money to make decision and choices that YOU want to make without having to worry about money'.

For 'Free Consultation', kindly connect with me.

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Recover your Entire Home Loan Interest

Most of us have a goal to buy our own home. With the affordable home loan interest rates , its possible to achieve this goal.

But what pinches the most is paying the interest component. In a span of 20-25 years one ends up paying almost double the loan amount.

Connect with me and understand how you can recover your home loan interest as you pay your EMI.

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