Good Funds at this time

Mr. nitesh wrote back
Thanks for your reply.My age is 25.time horizon-Not decided (jab tak paise ki jaroorat na pade),Risk-80:20(Equity:Debt).

Details of my investments are as follows:
1)One ICICI endowment policy premium@25k
2)One ICICI ULIP premium@24K
3)One Term MAX New York premium@5K
4)F.D of 1L(got from my father Life insurance)
5)Stocks of 1L

As you figure out from the above facts My Payout is 55K.I still left with 45K income tax discount.Does premium paid in mutual funds are counted in tax free category?

Also,I want to know :

1) If I go for ELSS(SIP) option with diversified equity funds than which funds are good for me?
2) Does the premium is tax free or the Income coming after selling the funds is tax free?
3) For how much time should I opt for the Premium period?
4)If I go
for Sip +insurance for 3 years then If something happens to me after 3 years then there is insurance benefit.what do you say upon this?

I aslo want to take Rs.2000 monthly on my mother's name.Her age is 53.She is an govt. employee.which funds are suitable for her(ULIP/Pension plans/Mutual funds etc.)?

SRIKANTH SHANKAR MATRUBAI's reply








Dear Nitesh,
As told to you earlier, it is better you try to stop your ULIP and start investing in Mutual Funds., the earlier the better.
First of all, let me clarify your doubts.
I could not understand your question "Does premium paid in mutual funds are counted in tax free category? ". Probably, you may mean whether the premium paid for ULIPs are counted in tax free category (sec 80c). yes, they are.
And ALL your investments in ELSS are Tax Free. If you sell your mutual funds after 1 year, they are completely TAX FREE. Regarding your 4th question about sip insure, Yes, in Reliance and Kotak Sip Schemes, you will not get any insurance after 3 Years, if anything happens to you.
But, if you have invested in Birla and DWS Tax Saving Fund, then the Insurance will continue till you are 55 years of age.

After knowing your age and risk profile, I am recommending the following funds, do invest in them, preferably through SIPs.
Birla Sunlife Equity Fund
DSPML World Gold Fund
DWS Tax Saving Fund
Fidelity Equity Fund
Jm Contra Fund
HDFC Prudence Fund
Reliance Natural Resources Fund
Mirae Asset India Opportunities Fund
Sundaram Select Focus Fund

Best of luck.
Srikanth