(Last Updated: March 26, 2018)
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Portfolio Plan for Rs 5 Lac Corpus

  • I have some savings(around 5L) at my disposal. I want to make a wise investment. I am not risk averse but I want some liquidity.

    I’m 29 and have a health insurance plan from the company I work for. I put 10k in PPF and 7k in LIC annually.

    Advice needed for things like whether I should take a separate health insurance plan, how to create an emergency corpus and where to put the rest of the money for my short term goals like marriage and travel. I read about ELSS here only and it sounded good as per my goals however I am open for other ideas as well.

  • Hi Mohan ,

    You can set aside 6 months expenses as emergency fund which can be invested in a liquid fund. Of the remaining, some portion can be invested in debt and equity funds.This will help you achieve decent returns.Also you can buy separate health insurance in case you are not planning to stay long-term with the existing company or if the cover provided is inadequate.

  • Let us analyse your queries one by one :

    1.Whether you should take a separate health insurance? This depends on what kind of insurance cover your company is providing you.Is it enough to cover any kind of medical expenses? How much cover they are providing ? If the insurance cover by your Co.does not seem adequate,then you should consider taking a separate health insurance plan.

    2.Putting some of your money in Fixed deposits and Liquid funds are 2 ways to invest money to meet your short term goals.

    You are already investing in PPF,so if you can afford to take some risk,investing in Mutual funds is a good way to grow your money.Seeing the rising inflation,mutual funds can beat inflation in the long run.

    Debt funds are safer than equity funds.The kind of investment you make is based on your age,your risk appetite and investment horizon.

    ELSS is also good investment option with a minimum lockin period of 3 years.However,based on past data,ELSS normally performs well if money is invested for longer duration.

    Hope this clarifies ! For any further queries,feel free to ask.

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