I am stressed at work and not able to coupe with direct stock investing so I have moved all my investments to basically four mutual funds.
1. Franklin India Dynamic P E Ratio Fund Of Funds - Direct - Growth
Never know when I will be out of job so a steady growth with minimum risk is what I am looking for. This fund is basically treated as debt fund for tax purpose so I have to pay my tax bracket with in 3 years and 20% with indexation after 3 years.
2. Franklin India Ultra Short Bond Fund Super Institutional Plan - Direct - Growth
My emergency fund gives about 8 % and indexation benefit at the end of three years but basically for any emergency. I do calculate it in my net worth.
http://www.livemint.com/Money/MLT8jvYSgBa5TC99nBMKKL/How-to-plan-and-save-for-emergencies.html
Ideally, a situation should tick three boxes for you to justify dipping into this fund:
My tax saving fund, I save about 5500 every month so that I would meet 1.5 lakhs under 80C.
4. ICICI Prudential Flexible Income - Direct Plan - Growth
To save for term plan and kid school fee. I save about 2750 every month so that I will not feel burden of paying them. I do not calculate this in my net worth.
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21-07-2018
I am no longer saving 2750 in income fund because I think I can manage with existing income and worst case I can cover with emergency fund.
I will stick with original plan to have 25 times my last 12 month expenses in PE fund, it would be a decent foundation to start and can accumulate wealth once I am FI and divert to index funds after.
Also I do not think I should save in PE fund expenses are high but rather divert fresh investments into index funds, the funds of my choice are UTI Nifty Index Fund and UTI Nifty Next 50 Index Fund due to low cost. I should remember that it is very risky and with market in peak I should invest for at least 10 years. Hoping to divert pe fund money into these once it complete 3 years which will be Sep 1st 2020.
1. Franklin India Dynamic P E Ratio Fund Of Funds - Direct - Growth
Never know when I will be out of job so a steady growth with minimum risk is what I am looking for. This fund is basically treated as debt fund for tax purpose so I have to pay my tax bracket with in 3 years and 20% with indexation after 3 years.
2. Franklin India Ultra Short Bond Fund Super Institutional Plan - Direct - Growth
My emergency fund gives about 8 % and indexation benefit at the end of three years but basically for any emergency. I do calculate it in my net worth.
http://www.livemint.com/Money/MLT8jvYSgBa5TC99nBMKKL/How-to-plan-and-save-for-emergencies.html
Ideally, a situation should tick three boxes for you to justify dipping into this fund:
—it should be unexpected,
—it should be a need and not a want or desire,
—it should be unplanned, urgent and something that cannot be postponed. These would be situations like losing your job, a medical emergency, travel to take care of urgent family matters.
3. Franklin India Taxshield - Direct - Growth—it should be a need and not a want or desire,
—it should be unplanned, urgent and something that cannot be postponed. These would be situations like losing your job, a medical emergency, travel to take care of urgent family matters.
My tax saving fund, I save about 5500 every month so that I would meet 1.5 lakhs under 80C.
4. ICICI Prudential Flexible Income - Direct Plan - Growth
To save for term plan and kid school fee. I save about 2750 every month so that I will not feel burden of paying them. I do not calculate this in my net worth.
***
21-07-2018
I am no longer saving 2750 in income fund because I think I can manage with existing income and worst case I can cover with emergency fund.
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