I am 43 years old. I have lic je
Ivan Anand policy for 25 years, whose premium is Rs 61,559 per year for a coverage of Rs 15 lakh. I have already paid the premium for 11 years. The total paid-up value is Rs.6,77,149. The bonus was Rs 8,02,500 as on 31 March 2020. The total price till date is Rs 14,79,649. I want to surrender my policy and take term insurance. Would it be wise? If yes, where should I invest my funds to get good returns?

Dev Ashish, Founder, Stable Investor and SEBI-registered investment advisor answers, “You should buy a term insurance plan first. That too at the earliest. It provides a great cover in a cost-effective manner. Now comes the question of surrendering your LIC. life bliss Policy. One approach is to deduct your losses and surrender the policy. The premium saved in future can earn better returns even if you invest in a combination of pure equity and debt funds. Also, the surrender amount that you get can be properly invested to recover certain losses. Another consideration is that your annual premium (Rs 61,559) against your income is much lower today than it was 11 years ago. If you are already investing large amount from time to time in assets like equities (through MFs, ETFs), shares) and loans (through EPF, VPF, PPF, NPS, etc.), then increase it a bit more by using the money released from the surrender LIC Policy And there will be no more amount if the premium amount is used up. I am in favor of not mixing insurance and investment. But what is done is done. So since a major part of the tenure is over, you can consider this policy as a part of your low return debt portfolio and continue with it till maturity. The last option is to stop paying further premiums and pay off the policy. You can use the (free-up) future premiums to invest and get better returns. Assuming you have surrendered the policy (and are willing to invest for at least 10+ years), you can start a SIP in large-cap index funds and flexi-cap funds with a premium amount of Rs 61,559 Huh. Surrender amount received can be kept in debt fund of the same AMC and then transferred to equity fund through STP over next 1-2 years.

I am 26 year old female. My take home salary is Rs 28,000 per month. I have a SIP of Rs 1,000 in SBI Bluechip MF, a lump sum investment of Rs 13,000 in DSP BlackRock Equity and an FD of Rs 65,000. i pay too EMI 9,708 for my car which will expire in 2025. I want to buy my own house in 2025. How should I invest to deposit a decent amount for down payment?

Praleen Bajpai, Founder, Finfix® Research & Analytics, replied, “Your home buying target is just four years away. It can be assumed that a good property will cost around Rs 40-50 lakh. Though 75 to 90% of the cost of the property can be taken as home loan, It is best to deposit as much as possible for low EMI, down payment. You should consider pursuing your home buying goal by 2-3 years. If you have no major expenses other than a car loan, then Start monthly by investing Rs 10,000 in equity mutual funds and Rs 5,000 in debt mutual funds. Within equity funds, choose an index fund tracking the Nifty 50 index and supplement it with a flexi-cap fund (Rs 5,000 each) This investment will help you generate close to Rs.10 lakh in the next six years assuming 10% CAGR, Do not stop your SIP during recession or redeem this amount midway. Start moving towards safer options closer to the goal. Also, invest Rs 5,000 in a short duration debt fund to build a buffer. Increase monthly investment with any increase in salary.”