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Want suggestions on my investments in NSC and Gold Sovereign bonds?

Date: 17 Dec 2015   Posted By: Bharat Venkatesh     Group: Finance and Investments    Category: Investments   

I am 35 years old, married and have a 2.6 year old child. I work for a government institute with salary of 35,000 per month with no other benefits. I have started financial planning 4 years ago which includes:
1. SBI Life insurance Shubh Nivesh (Premium 100,000 per Year) for 15 yrs. For this I've opened an RD account with 8000 per month.
2. I've also invested in Sukanya kathe at Post office for my child with 6,000 per month.
3. I've also invested 50k fixed amount in Franklin India High Growth Companies Fund and Franklin India Prima Plus.
4. I pay 2000/- quarterly to LIC and Tata AIA.
5. I also Pay 25,000/- every year to ICICI Prudential Guaranteed savings plan.
6. I've invested 10,000/- in shares
My question is: Would you recommend any other investment like: NSC or Gold Sovereign Bonds?

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Author: Mahesh    17 Dec 2015      Member Level: Gold     Points : 5  (Rs 5)    Voting Score: 0

Your investment sounds very good. And I don't think you should change anything from the one you have done as of now. You should make few changes towards future investment like removing interest towards gold and NSC.

I'd add PPF/EPF and FD component to current folio. This would balance the debt side and compensate for gold bonds.

NSC is a good investment only if you don't mind the lock in period and the Govt interest of reducing the returns from NSC. I suggest EPF/PPF from the existing investment instead of NSC. You should also avoid ULIP if possible.

Gold bonds are good but current generation investing less into gold and the market value of gold going down. So this shows you gold may recover in future but it is not going to be enough for your needs.

I'd say contact the financial planner and think of investment from here onwards as investing for the retirement.

Author: Kailash Kumar    17 Dec 2015      Member Level: Platinum     Points : 2  (Rs 2)    Voting Score: 0

The author is already dealing with the products of six companies namely SBI, Post office, Franklin India, LIC, Tata AIA, ICICI plus other shares. In my opinion further diversification is not advisable at least not in NSC or gold bonds. However from tax saving point of view Public Provident Fund (PPF) Account is considered as one of the best investment option.

Author: Partha Kansabanik    18 Dec 2015      Member Level: Diamond     Points : 3  (Rs 3)    Voting Score: 0

My free and frank advice for you:

(a) Your present investment seems to be TOTALLY WRONG considering your financial position.
(b) Immediately open a PPF Account and religiously put Rs. 5000/- every month in this account.
(c) Immediately subscribe to a family health insurance of at least Rs. 5 lakh for the entire family, if your family is not presently covered by any health scheme.
(d) Try to stop paying premia to other insurance policies, or discontinue these policies. Instead opt for a term insurance policy of at least Rs. 50 lakh. The yearly premium would be much less.
(e) Considering your monthly salary, don't invest in mid and small-cap funds. Instead opt for large-cap, bluechip fund. You can shift your invested amount from the mentioned fund to Franklin India Bluechip fund and continue investing in this fund through SIP route.
(f) Always remember that Insurance is not an investment, it only provides you a protective umbrella. So don't subscribe to policies for investment, or for saving tax. Instead take a term insurance policy at much less premium and invest the saved amount in bluechip mutual fund and PPF.

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