Raise equity investment
Bengaluru-based Gunasekar needs to stagger his goals and invest in line with his objectives.
Gunasekar is an IT consultant , who stays with his
homemaker wife in Bengaluru. His mother and sister are also financially de
pendent on him. He brings in `1.39 lakh a month as salary and, after household
and other expenses, he is left with a surplus of `18,693. He is also repaying
two loans--home and personal--worth `23.12 lakh. Gunasekar's goals include
saving for emergencies, his sister's wedding, future child's education and
wedding, retirement, buying a car and farm land.Financial Planner Pankaaj Maalde
suggests putting off the last two goals for now due to lack of surplus.
Gunasekar can begin by building an emergency corpus
of `2.91 lakh, which is equal to three months' expenses. He can assign his cash
worth `50,000 and start saving `18,000 a month for the next one year. This
should be invested in an ultra short-term fund and Gunasekar should try to
increase this amount to six months worth of expens es at the earliest.
Next, he wants to save `10 lakh for his sister's
wedding in five years. He can build it by assigning his mutual fund and chit
fund corpuses. He should continue with the SIP of `12,000 in mutual funds and
try to break the risky chit fund investment of `12,000 a month and move it to
an MIP fund. For retirement, he will need `6.8 crore in 28 years. For this, he
should assign his EPF corpus and start an SIP of `18,000 in a diversified
equity fund after a year when the emergency corpus has been built. To save for
the future child's goals, Gunasekar should start investing after two years,
when he has repaid his personal loan.
Gunasekar has no insurance except for the `6 lakh
health cover provided by his employer. Maalde suggests he buy an online term
plan worth `2 crore, which will cost `2,000 a month. He should also buy a `10
lakh family floater plan, and a `3 lakh cover for his mother and sister. These
will cost `2,167 a month. He is also advised to pick a `25 lakh critical
illness plan and a `50 lakh accident disability plan at `1,167 a month.
