@prerna You are in a strong financial position right now where you can well manage your investments. One right financial step taken at this point shall make you happy years later. So, it's really great on your part to start thinking about your financial planning. You already have a house, a car and an emergency fund. That's really great! If you can take moderate risk as you have mentioned, you can try out investing in mutual funds. SIP in mutual funds is in fact a trending method for regular monthly investments in India. Here, also the equity mutual funds are a bit more riskier than debt funds.
Investing in fixed income generating alternatives like FD/PPF is a good option for safe investors who are not willing to take any risk. For you, a combination of both safe and a bit risky profile can be a good idea. However, the risk portion should not be much initially being a new investor.
I’m invested in a ULIP which matures in 2022. I had started it in Jan 2012. I was expected to pay premiums for first 5 yrs only. I’ve managed to pay all already.
In 2022, I’m expected to take away either the entire fund value as a lump sum or give Standing Instructions to be able to withdraw the fund value in installments over the next 5 yrs.
As it stands today, my investment is spread over equity funds (>90%) and debt funds (<10%) that are available as part of the ULIP.
I’ve been managing asset allocation on my own so far. I cannot change asset allocation once policy matures.
Should I withdraw entire fund value or portions only? I don’t foresee a need in 2022 to withdraw a lump sum.
If in parts, should I withdraw monthly, quarterly, annually etc?
Should I leave asset allocation as is, even at time of maturity, so it may have a chance to earn higher returns?
Should I start moving assets from equity portion to debt portion (and when), so as to complete the entire movement prior to maturity, and to ensure that
a. my entire fund value at time of withdrawal attracts zero or least tax?
b. my investment is safe from market volatility if I choose to withdraw post maturity over 5 yrs?
Appreciate your responses and any other strategic advice. Please let me know if you have any questions before you are able to answer mine
Discussion about investment in mutual funds in India
In one line, Expense Ratio is the bread and butter for fund manager. It’s the charges you pay to Asset Management Company i.e. fund house to manage the fund portfolio. Fund houses manage all their expenses through earning from expense ratio.
@sdadwal Hi, Can you refer some best saving schemes for girl child in India. I am looking for a good investment plan for my daughter. Are there any Government schemes for girls to support in their education and growth? I have heard about Sukanya Samridhi Scheme. But, is it worth investing in such schemes? Please give your suggestion.
Nice information. I too believe that women can manage money well. A homemaker or a working woman, all should think about financial planning. Women should not ignore this important aspect of their life. Planning finances ahould be a topmost priority to lead a better and secured life ahead.
Stockedge is a good choice. I like this app. It's quite easy to download and use. There are so many stock market apps. But, I think sticking to only one good app solves the purpose. We can stay updated.
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