Hi. My monthly salary is 47 thousand rupees per month. I invest 5000 per month in mutual funds (SBI blue chip), 2650 (950+1700) rupees per month in two separate LIC policies, 3050 rupees per month in a single life policy of Future Generali insurance company. I also have a FD of INR 2,50,000 as an emergency fund. Now I am considering starting another investment of 5000 rupees per month in the share market as a long-term investment. Do you approve of my savings plan?
Ans: Hi Irish,
Good that you have created emergency reserve.
Please keep investments and insurance separately. Don't invest via insurance policies. For life cover purposes please choose term insurance.
The additional investment which you want to make, if you can hold them for 5-7 years, then choose diversified equity funds.