Securing The Future | Value Research Securing The Future | Value Research https://www.valueresearchonline.com/stories/17297/securing-the-future/ Invest in good funds & have adequate life insurance to secure the future of your child…
Invest in good funds & have adequate life insurance to secure the future of your child…
I am 34 and am investing for the past six months for my year and half old daughter’s future education expenses and marriage. I am investing Rs 4,000 in ICICI Prudential Discovery, IDFC Premier Equity and Reliance Regular Savings Equity. I am left with Rs 2,000 more to invest; please suggest funds to invest in? Also, I have not taken any insurance plan for my daughter and wife; could you please suggest any insurance plans for both of them?
- K Shankar
You have investments in good funds that have a proven track record and performance history. Collectively these form an aggressive portfolio of funds, and you should consider investing the additional Rs 2,000 that you have in a large-cap fund such as DSPBR Top 100 Equity or Franklin India Bluechip to balance the existing funds that you have to have a diversified portfolio to achieve your long-term investment goal of saving for your daughter’s education and marriage. As both the goals are a long way to go; you should invest regularly and track the performance of your funds through this period to evaluate its progress and make any changes to the funds you hold if needed.
As for life insurance for your wife and daughter; you don’t need to cover for your daughter, you should make sure that between you and your wife you are adequately insured so that your daughter’ future needs are taken care of if something happens to you. You should also make sure to take cover for any liabilities that you may have such as a home loan. As for your wife; if she is working, you should consider insurance that that is 8-10 times her annual income to start with. But, insurance should be taken only to cover for risks and not as investments.