Have I done the right investment planning

Thanks for writing to us. Following is our suggestion –

1. Your monthly earning is Rs 80,000 but with two LIC plans, we think, you are not adequately covered. You should consider buying a term plan to the extent of 15-10 times of your annual income. A suggested term life cover for you is approx 1.50-2.00 Crores. You can buy a term plan online with an idea to protect the financial future of your family.

2. You have two daughters but you have not mentioned their age and if you have planned for their education/ higher education and marriage. Since you are young, you should start planning for your financial goals and start saving for it from now. This will help you reach the goals easily and timely. Some of your financial goals could be daughter’s higher education, their marriage and your retirement.

3. You have selected good funds for your monthly SIP and thus continue with them.

4. You have rightly saved in Reliance Money Manager Fund for meeting your emergency needs

5. The schemes selected for investments in debt funds are amongst top performing and should get you better than FD returns.

6. Your current monthly SIP is Rs 20,000. This can create a corpus of Rs 2.14 Crores in next 20 years assuming return of 12.50%. At 13.50% and 15% annual returns, the expected corpus can be Rs 2.45 Crores and Rs 3.03 Crores.

7. Since you have selected good funds and invested for long term horizon of 20 years you are set to create long term wealth for you. However, you have to account inflation into it and also plan for your other goals and then see if the expected corpus would be enough or you need to save more every month.

Hope the above gives you a broad idea about planning your finances. Thanks.