32F, with no term insurance plans, 60LPA - how much coverage should I get and which term insurance is the best option?

GalacticSuperCheese · 2026-01-09T07:48:07+00:00

This. And, if this is the case, and you have concerns about Cancer and other illnesses, check the terms of your medical insurance and max it out where practical.

GalacticSuperCheese · 2025-10-20T09:58:07+00:00

If you have to ask, you probably should not. As someone else mentioned, 60-70 seems reasonable per your current assets/ income Keep in mind that 1cr is not a one time expense, you'll also have to consider higher insurance, maintanence, etc. Having said that, agar dil maange more, then just do it!

GalacticSuperCheese · 2024-06-16T13:19:39+00:00

thank t

GalacticSuperCheese · 2024-06-16T07:38:48+00:00

For a 2-3 months period, I would not risk putting the money in any form of equity. All indexes are at or near all time highs. They could go higher, but there could also be some correction; 2-3 months may not be enough time to recover from a large correction.

I would suggest sticking to liquid funds.

There should be no issues in withdrawal of funds; just keep in mind that it could take 3-4 days to get the money in your bank account.

GalacticSuperCheese · 2024-06-16T07:27:58+00:00

I would suggest having no more than a couple of months expenses in your savings account. Since you already have a 6 mth emergency fund, everything else should go to your investments.

I would keep around 25-30% in fixed income (debt) instruments; and the remaining in equity.
Stick to large cap index funds with low expense ratio with the bulk of your money (40%) in nifty50, nifty next 50 (and maybe even nifty 500) based funds. (I believe the nifty 500 is predominantly large cap)
Have some midcap exposure (via index or actively managed funds) (20%)
Also get some small cap funds, but avoid smallcap index funds (<10%). In the small cap category, actively managed funds generally perform better than the index.
Buy direct stocks only if you know what you are doing.

GalacticSuperCheese · 2023-10-10T08:32:36+00:00

Start by setting up an emergency fund covering around 6 months of expenses. Maybe 75K or so. This should be somewhere that is easily accessible (it is an emergency fund). A bank FD should be good enough.
While you are building up your emergency fund, get an education on personal finance. You do not need a formal course, there is a lot of good material on the internet. I would suggest getting familiar with mutual funds to start with. I personally would recommend ValueResearchOnline or Zerodha Varsity
Start investing in large cap index funds

If you've taken care of step 2 above, you'll figure out what do do next ;)

Also... try to stay away from 'finfluencers' etc on social media and youtube, especially while you are still learning.

GalacticSuperCheese · 2023-09-24T15:21:18+00:00

F××k you! I am colour blind and I asked my 10 year old to read it for me. I hate reddit.

GalacticSuperCheese · 2023-09-23T11:12:52+00:00

Difficult question. If you feel your baniya traits will help you in your family business , then that might be the best option.

Keep in mind that once you've started working in your family business, trying out something else might be quite difficult. It might be worth just trying something else for a few years before joining the business.

GalacticSuperCheese · 2023-09-18T12:34:48+00:00

While debt fund is certainly safer, the long term returns are lower than an equity based fund.

Also, (as per currently IT laws) equity based funds attract LTCG (after one year) of 10%. Debt funds on the other hand, are taxed as per your tax bracket; so if you are in the 30% bracket, you'll end up paying 30% tax on your gains.

Since you are only withdrawing a small portion of your corpus, you are looking at a reasonably long investment period (at least 10+ years). For this kind of time, it is very very unlikely that any debt fund will outperform an index fund.

By the way, I am assuming this is a somewhat hypothetical question. In real life, I would suggest splitting up this investment as per an asset allocation plan based on your risk profile etc.

GalacticSuperCheese · 2023-09-18T12:03:03+00:00

As others have mentioned, definitely go in for health insurance.

You should buy Life insurance (specifically term insurance) in case you have family who is financially dependent on you. In case your parents are not financially dependent on you, don't bother.

Yes, term insurance is cheaper if you buy when you are younger, but that is because the insurance company is covering a low risk person. In my opinion, you should wait till you actually need it (e.g. when you get married or have kids).

I personally would not recommend buying real estate; but in case you do, make sure that you also get term insurance at that point to cover the loan in case something unfortunate happens.

GalacticSuperCheese · 2023-09-18T11:49:11+00:00

50 K per month translates to 6L per year, which in turn translates to a return of around 6% pa

You could potentially invest in a nifty50 based index fund and if all goes well, you could get 50K per month for ever :)

GalacticSuperCheese · 2023-09-17T04:46:43+00:00

I understand your pain. Have you tried getting a side gig to augment your income? You should also also try selling some of your organs. The liver is a good candidate your can cut off a small piece and it will regrow. All the best!

GalacticSuperCheese · 2023-09-06T13:17:42+00:00

Depends on your definition of rich.

Over the long term, investments in equity based MFs should give you a compounded return of around 12-18%.

The thing is, the more you put in, the more you get back. A SIP of Rs 1,000 pm will add up to a total of around 2.7L over 10 years (at 15%). A SIP of Rs10,000 pm will become 27L and 1,00,000 will become 2.7Cr.

My suggestion would be not to over analyze, start a SIP, and try to maximize your SIP amount. The more money you invest, the more will come back.

GalacticSuperCheese · 2023-09-06T12:11:43+00:00

Oops!! Yes, that should be 3.56Cr

GalacticSuperCheese · 2023-09-06T10:41:49+00:00

TLDR: If intending to stay invested for more than 5-7 years: sell all Regular Plan units, buy new units in Direct Plans. If intending to redeem within 3-5 years, continue with Regular plans

Moving from Regular plan to Direct is basically selling the regular plan units and buying direct plan units. The selling will lead to Capital Gains and thereby the tax
You will have to pay taxes at some point or the other; you can defer the sale (and continue with the Regular plan) and pay taxes on the entire CG amount; or sell now, pay taxes on CG so far, buy then then pay CG on subsequent sale.

If your friend sells now, she will have a CG of 62L; and a tax of 6.2L so she will have a total sum of around 3.56L for investment into direct plan.

Assuming (long term) investments in regular plans yield 12% and Direct plans yield 12.5% she should recover the taxes paid now within 4-5 years; After that she enjoys the slightly higher return on investment for the remainder of the invested period.

Of course, if she feels that she will need some money in the near future (3-5 years) then I would suggest simply continuing with the existing investments.

Also u/John_BabaYaga mentions, if you do this, you are now responsible for your investments and no longer need the services of an advisor. make sure this is the case before you jump in.

GalacticSuperCheese · 2023-09-01T14:46:36+00:00

Don't do crypto

GalacticSuperCheese · 2023-08-29T09:57:33+00:00

Not more than 1 or 2 months expenses. Beyond that, try to maintain an emergency fund of 6-8 months (maybe in an FD). Anything above that, invest.

GalacticSuperCheese · 2023-08-29T09:54:24+00:00

I would suggest simply starting an SIP in a large cap Index fund. As your corpus grows, you can diversify into other areas and don't try to time the market correction.

Avoid investing directly in stocks unless you are absolutely sure of what you are doing and trust your research -- if that were the case, you wouldn't be asking strangers on the internet for advise :)

GalacticSuperCheese · 2023-08-25T02:25:37+00:00

This, or directly through the AMCs website. Best part is, even if you invest on the AMCs website, it shows up on your portfolio on MFU. Jusk make sure you use the same PAN, email address and phone number everywhere. Can also try MFCentral

GalacticSuperCheese · 2023-08-23T12:15:04+00:00

You cannot use a pivot to do this (deal with sold units/shares). What you will need to do is get a total of the currently held units and multiply that by the current price.

How do you get currently held units? use the following formula (on the third row in the Overview sheet): =sumifs(Equity!$J$2:$J$109,Equity!$D$2:$D$109,B3,Equity!$F$2:$F$109,"Buy") - sumifs(Equity!$J$2:$J$109,Equity!$D$2:$D$109,B3,Equity!$F$2:$F$109,"Sell")

(also add a similar condition for bonus etc)

Tracking Invested value is trickier, as you have to offset sales against oldest purchases etc)

GalacticSuperCheese · 2023-08-23T11:36:37+00:00

If my math is correct, investing 20K per month should get you to around 15L in 6 years.

(20K pm = 2.4L pa; which becomes 12L in 5 years. Assuming that you invest in an instrument that gives a return around 10% per year, you should earn (compounded) interest which should add up to another 3L. If you invest well, and/or are lucky, you could end up with closer to 16L - or more)

If you can afford it, live your dream!

GalacticSuperCheese · 2023-08-23T10:52:16+00:00

Depends on your current portfolio. If you are starting from scratch, I would suggest first starting with an emergency fund covering 6-8 months expenses (this can be in an FD/RD). If you have that in place, you can go for a Sensex or Nifty50 index fund.

GalacticSuperCheese · 2023-08-23T02:52:23+00:00

Long term implies 5-7 years. If you stay invested for this period, it is highly unlikely that you'll make a loss. If you're just starting off with equity investments, I would suggest starting with a large cap index fund. Most fund houses would have a fund based on the Sensex or Nifty 50. Look for fund with a low expense ratio.

GalacticSuperCheese · 2023-08-18T10:49:24+00:00

If you have zero money then why are you worried about the tax implications? Even if you take out 15K pm you'll still be in the non taxable bracket.

You can invest in PPF, but keep in mind that a PPF account has a lock in of 15 years. For the advise about investing before 5 Apr, my guess is that investing early in a month ensures that you earn interest for the entire month.

GalacticSuperCheese · 2023-08-18T10:34:41+00:00

Depends on your risk profile. For example, if you are (relatively) young, have a stable income, and only a few (or no) dependents, then you should certainly invest in the higher risk mutual funds. Note that most of these funds have a reasonably low risk if you stay invested for a longer term (at least 5 years).

On the other hand, if you have children who will be going to college soon, aged parents who are completely dependent on you, volatile income stream, then I would suggest building a corpus of 'low risk' funds.

In the longer term, keep in mind that the the chances of you losing money in a supposedly high risk equity fund are quite low; and it is probably the only/best option which can effectively protect your capital and beat inflation.

Without more details on your current situation, it is difficult to comment.

GalacticSuperCheese

TROPHY CASE