Tuesday, September 23, 2008

Daughter Eduaction


Would like to invest for my daughter education should I invest in ULIP children plan from HDFC/ICICI or SIP in MF investment horizon is for 10-15 yrs. Requesting if someone can advise by illustration, that which is more beneficial for my child future.
I will really appreciate

I will you need Atleast 1.5 - 2 Lacs for Graduation and If she goes for MBA then at least 6-7Lacs as per today scenerio.
Presenly she is 8 yrs and studying in Third standard
I Am 35 yrs Please suggest Good diversified fund for 7-10 Yrs horizon and also about Present SIP+INSURANCE MF and which is good is good
Presently Have 90000 already invested in Below Mutual Fund
1. Magnum Contra
2. Reliance Growth
3. HDFC Equity
4. Reliance Power Diversified
6. Magnum Tax Gain
7. HDFC Prudence



While investing in mutual funds - try and avoid putting too much money in thematic / sector funds. Your core investment of 60-70% must be in large caps.
Please avoid ULIPs. They are very expensive and not transperant. Go for good Diversified Equity Funds. Preferably through SIPs. For your need of 16 lakhs in 10 years, at a assumed return of 18% per annum, you need to invest monthly 5200.
Your present portfolio is good and you can stay invested. However, it lacks Solid Large Cap Funds and you can consider investing in the same through SIPs, which will help achiever your goal faster.
While combining insurance and investment is definitely not advisable, you can certainly consider investing in DWS TAx Saving Fund, which has given a good account of itself in its short history. Investment in this fund will get you 5 times Free Life Insurance of your Investment Amount.

You can also consider investing through Century Sip Plan in Birla Mutual Fund schemes. This offers your upto 100 times Free Life Insuance of your monthly Investment.

With the above in mind, I recommend you to invest in the following funds
Birla Sunlife equity Fund
DWs Tax sAving Fund
DSPML Natural Resources and New Energy Fund
Fidelity Equity Fund
Sundaram Select Focus Fund

From your present portfolio, you should
HDFC Equity - Switch to HDFC Top 200 Fund
ICICI Infra - Switch to ICICI Dynamic Fund

Before committing to any sip, first insure yourself adequately with TERM Insurance, which is cheap and effective way of insuring yourself.

Best of luck,
Srikanth Shanakar Matrubai

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