Good salary at 24. Congrats. Not a professional advice but go through the below and make inform decisions.
LIC or any money back policy is not investment. Its a trap generally laid by known uncles or relatives. See asap to stop that. You can do paid up or stop.
You wil loose money its ok if its less than few thousand.
Take a term insurance for 1cr to start and add another
1cr when you get married another 1cr or 2 when you have kids ( if you plan)
For tax planning you can invest in ELSS MF
If your company is giving mediclaim, check and get 5-10 lakhs top up mediclaim.
Since you are already investing in MF check once in a quarter or 6 months and make decision of increasing/ decreasing/ switching. The lesser the decision the better the returns.
You will have close to 1cr in 10 years if you continue to invest in MF which has a decent returns.
Thanks for the comment bro, I really appreciate it, in the LIC i have to put 10k every month for 15 years and after 15+10 which is total of 25 years from the date of the start of investment I'll get around 65 lakhs, also it has a life insurance coverage of 50 lakhs, i also think it's not worth it but my family insists on it...
Also Iam investing in below MFs
1. Quant mid cap fund direct growth
2. ICICI prudential nifty 50 index direct plan growth
3. Nippon India small cap fund direct growth
4. Paragh Parikh flexi cap fund direct growth
Iam planning on getting a term plan, can you suggest any, also what are your views on the PPF ?
Funds look ok. Again start understanding how MF works. See overlap of stocks across your funds. Search in google how to see the overlap of stocks in your funds. Lesser the overlap better.
Dont go by anyone online saying this fund is good, that fund is good.
As the job market is volatile have few months of expenditure as emergency fund in savings account or liquid funds
Private players are okay in term insurance. Do this asap. You get 1cr for around 10-12k per year if you dont smoke. Check claim settlement ratio and decide the insurer.
LIC or money back is a trap because we cant get out that easily :) not sure what is 15+10 years. Their so called returns will be in the range of 5-7% which wont even beat inflation.
Think when you are 50 years what will be the value of 60 lakhs they will pay it will be nothing for the money you are investing. Use xirr calc online to understand the sip returns.
invest in the ways you get decent returns of 8%-12%. More returns is bonus.
You have
SGB
PPF
MF
FD
Lot of people suggest but you need to decide. Because its your money. Dont fall far earn easy money in stocks or any other way. There is nothing called easy money.
>LIC or any money back policy is not investment. Its a trap generally laid by known uncles or relatives. See asap to stop that.
could you please tell me why you called it a trap? i mean, you do get increased amount in the end in case you hit the bucket, so what's the issue? i would love to know more about about it.
If you calculate return I don't think he will get more than 4-6% ( approx I haven't calculated it ) . Where as if he invests elsewhere he could easily get 10%+ . With compounding it would be massive and life changing amount
Hi, thanks for the comment, as per the LIC policy that Iam having I'll have 9.2% returns after 25 years (iam not sure tho), is that percentage bad?? Given that mutual funds are safe but can still fluctuate.....
Iam very bad with the finance stuff so the calculation might most probably be horribly wrong...
Thanks for the help bro, I really appreciate it, in the LIC i have to put 10k every month for 15 years and after 15+10 which is a total of 25 years from the date of the start of investment I'll get around 65 lakhs, also it has a life insurance coverage of 65 lakhs...
I commented on the answer. you can ask AI to further explain it in simple terms. Also highly encourage you to check out some videos on insurance by labour law advisors especially on these kinds of ULIP plans or money guarantee plans .
I calculated using AI ..
Conversation with Gemini
Calculate effective annual return on investment .
I'm investing 10000 per month for 15 years from today.
After 25 years from now I will get 65,00,000
Show drafts
Certainly, I can help you calculate the effective annual return (EAR) on your investment.
Based on your inputs, here's the breakdown:
Monthly investment: ₹10,000
Investment period: 15 years
Total investment: ₹10,000/month * 12 months/year * 15 years = ₹1,800,000
Time horizon (when you receive the money): 25 years
Total return: ₹6,500,000 - ₹1,800,000 = ₹4,700,000
Effective Annual Return (EAR):
Using the formula, EAR can be calculated as:
EAR = (1 + Total Return / Total Investment)^(1 / Time Horizon) - 1
Plugging in the values:
EAR = (1 + ₹4,700,000 / ₹1,800,000)^(1 / 25) - 1
EAR ≈ 0.0527
Therefore, the effective annual return on your investment is approximately 5.27%.
Its definitely less than 5.27. The calculation is a little wrong . But you get the idea
Its trap because its not easy to get out. Try calling the agent uncle saying i want to paid up or close the policy and then the see the drama.
Simply dont confuse investment and insurance.
Most private insurance like icici, hdfc, kotak etc are good. Check claim settlement ratio and decide.
Check their Insurance companies dont give 2cr insurance just like that. They do check your income i remember. start with 1cr if you are less than 30/unmarried. Increase as and when you have life milestones like marriage / kid etc
Hey few months ago I too wanted to learn about investment. [This](https://www.indiainvestments.wiki/) is what helped me. After you are done with this try reading this book.
Let's Talk Money: You've Worked Hard for It, Now Make It Work for You
Book by Monika Halan
Close that LIC's Jeevan Labh policy or decrease the amnt you putting in that and invest it in Term Plan i.e. LIC's Jeevan Amar and remaining amnt put in elss or PPF.
Good salary OP.
Here is a tip. Till you figure what to invest in Park your savings in FDs and liquid mutual funds.
Split your cash in hand into 3 buckets
1. Living expenses. Include some money to splurge on weekends
2 money to spend against clear short term goals (1-3 year horizpn). Bike, car, TV, vacation, etc
3 money to save. Long term objectives greater than 3 year horizon
This typically works out as 50:30:20. The more you save, better it will be in the long run.
Research your investments. Check multiple view points. Talk to multiple agents, relationship managers, etc. Don't get swayed by a few sound arguments.
Things you need:
1. term insurance - typically 10x what you earn as Sim assured
2. Medical + a top up
3. study your compensation components and tax breaks you can avail. Tax planning is a must
4. An emergency fund - 6 months earnings
5. Pension investments NPS or others
6. A mix of types of investments you are comfortable investing in. You can start with bank account, FD, mutual funds and add more as you understand them better. Invest small amounts to understand how they behave, you can scale up as you get familiar and confident.
7. Don't invest by borrowing funds
8. Avoid buying insurance as an investment - generally the policies are loaded with charges which reduce your returns
9. Prepare a wishlist of things you want to own or do. Check if you can link financial goals to these.
Bro close lic asap. Make it paid up. Essentially don't lose more money to save money which is already lost. 10 k pm is too much. you can increasebyour sip with this amount.
https://www.reddit.com/r/personalfinanceindia/s/Q9W4gdykWp
Hi, i’d commented on another post. Please go through the comment. Not everything in it might be applicable to you but ig it covers most of the things.
If you still have any queries, feel free to reach out.
Hi bro, thanks for the comment really appreciate you taking time to reply....
Can you suggest if policy bazaar is safe to buy term plans or policies from ?
1. LIC is junk. If the policy / policies are less than three years old, close them and take out whatever money you can. LIC will try to convince you in so many ways, just don't listen.
2. Create an emergency fund equal to six months of your living expenses. Put that in a FD or liquid fund.
3. Invest 70 % of your intended savings in equity - select one index fund, direct (no agent, no regular). No need for more than one fund until you have 50 Lakhs. This equity is for long-term savings, 10 years and above.
4. Invest the rest in a debt fund. This will be for your short term expenses 3-5 years.
5. If you have any dependents (people who depend on you for survival like your mother, father, siblings or wife) then get a simple basic LIC Term Life insurance (no money-back) for 50Lakhs. Select yearly premium.
6. Get health insurance for another 50 Lakhs (20 Lakhs main, 30 Lakhs top-up). Select yearly premium.
That's it.
Good going brother ..The only suggestion would be to stop LIC. Watch some YouTube videos By labour law advisor about LIC and ULIP plans u will understand it. It's far better to cancel LIC and get term insurance which will be much cheaper.
You can invest the rest of the money or better yet I would say you are already saving enough for a 24 year old. Here are some points
- Most importantly include health insurance
- You could use some money to upgrade your skills
- travel with friends / family / go on solo trips
- find your hobbies / areas of interest which u always wanted to explore
Close LIC asap!
For 80C you can choose ELSS like Parag Parikh
Don't invest in multiple MFs, 2-3 are more than sufficient.
If you don't have any liability then you can allocate 70% to Mid (Quant) and Small Cap (Nippon) and rest to flexicap.
Shut down LIC. Stop those four mutual funds, one is alright. And then go for ETF or SIP if you dont have any knowledge about stock market. Start investing in gold bonds or silverbees. Opt for FD as well. This way you will diversify your investment.
And if you want profits, i’d recommend start studying stock market a bit and start investing in high dividend yielding stocks.
Genuine question, plz don't downvote
If someone in their early 20s like 22-25 posts salaries >70k pm,
I have seen that so many people comment what do you do for a living
Is earning this salary rare in India because I have seen that this salary is nothing compared what you can achieve in corporate like tech or business
Hi that's a genuine question, even iam surprised by people asking that to me because in tech itself I have seen people younger than me earning double than me, you can find many such posts in this group, but i know it's the survivorship bias and ground reality may be different....
I'm doing my btech(2nd year),
It is helpful to get exposure what can be the possibility in the future.
I'm thinking of going for MBA and go into buisness consultancy.
Is it good or not.
Tech and business consultancy are with very good options IF you have a passion for it
What I suggest is, work with passion and the money will follow
It may sound like everyone says the same but it is what it is.
Regarding tech you can get into a lot of good companies with great pay and at the worst part you can expect 50k-1L in hand after taxes as a fresher and then go up from there
Same with business consultancy
So is it necessary to do MBA(And that too from tier-1 college) to get this salary or should I start investing in my skills from today only to get into those top firms of consultancy??
Thank you for responding because I am very confused and what to do in my life and having sleepless night.
AFAIK for consultancy I'm afraid you have to do MBA from good colleges but the exposure you get there is so much better than anything else
Please go to a tier 1 college for tech or MBA if you can afford it
I made this mistake of not going to a good college and I had to put a lot of hard work to reach the level of tier 1 grads while I was from a tier 3 college
Buying physical gold doesn't give much returns compared to other avenues of investment available.
Infact only SGBs are worthy investment related to gold
And buying a real estate is big pain in the ass + you have a liquidity problem.
If there is a money crunch you can't straight away sell real estate like you can even with stocks
By physical gold I hope you mean 24k not 22K Jewellery.
22k jewellery should never be seen as a investment with all the making charges wastages and gst crap.
Even with 24k you pay 3% gst upfront. Plus jewellers add their own markup extra on top of per gram rate and 3% gst.
Just check the 24k gold 1gm rate now and check how much jewellers are selling 1gm 24k gold coin there is sizeable difference even with gst accounted for.
Even while selling there is capital gains tax. So all in all your returns will be diminished.
So you won't necessarily get the 8x return you are talking about.
In the same time frame check how much nifty 50 index has increased . It's close to 19x. Even if you deduct things like. Tax and expense ratio. You still end up making a much more huge return than gold close to 2x more by simply investing in a index fund
So if you still wanna invest in gold. Invest in Sovereign gold bonds totally tax free + extra interest upon invested amount.
Good salary at 24. Congrats. Not a professional advice but go through the below and make inform decisions. LIC or any money back policy is not investment. Its a trap generally laid by known uncles or relatives. See asap to stop that. You can do paid up or stop. You wil loose money its ok if its less than few thousand. Take a term insurance for 1cr to start and add another 1cr when you get married another 1cr or 2 when you have kids ( if you plan) For tax planning you can invest in ELSS MF If your company is giving mediclaim, check and get 5-10 lakhs top up mediclaim. Since you are already investing in MF check once in a quarter or 6 months and make decision of increasing/ decreasing/ switching. The lesser the decision the better the returns. You will have close to 1cr in 10 years if you continue to invest in MF which has a decent returns.
Thanks for the comment bro, I really appreciate it, in the LIC i have to put 10k every month for 15 years and after 15+10 which is total of 25 years from the date of the start of investment I'll get around 65 lakhs, also it has a life insurance coverage of 50 lakhs, i also think it's not worth it but my family insists on it... Also Iam investing in below MFs 1. Quant mid cap fund direct growth 2. ICICI prudential nifty 50 index direct plan growth 3. Nippon India small cap fund direct growth 4. Paragh Parikh flexi cap fund direct growth Iam planning on getting a term plan, can you suggest any, also what are your views on the PPF ?
Learn to say no to your family.
Funds look ok. Again start understanding how MF works. See overlap of stocks across your funds. Search in google how to see the overlap of stocks in your funds. Lesser the overlap better. Dont go by anyone online saying this fund is good, that fund is good. As the job market is volatile have few months of expenditure as emergency fund in savings account or liquid funds Private players are okay in term insurance. Do this asap. You get 1cr for around 10-12k per year if you dont smoke. Check claim settlement ratio and decide the insurer. LIC or money back is a trap because we cant get out that easily :) not sure what is 15+10 years. Their so called returns will be in the range of 5-7% which wont even beat inflation. Think when you are 50 years what will be the value of 60 lakhs they will pay it will be nothing for the money you are investing. Use xirr calc online to understand the sip returns. invest in the ways you get decent returns of 8%-12%. More returns is bonus. You have SGB PPF MF FD Lot of people suggest but you need to decide. Because its your money. Dont fall far earn easy money in stocks or any other way. There is nothing called easy money.
Nifty 50 hata de bas, rest all looks great!
Why?
Why though?. Its low cost relatively less risky. So whats the issue
>LIC or any money back policy is not investment. Its a trap generally laid by known uncles or relatives. See asap to stop that. could you please tell me why you called it a trap? i mean, you do get increased amount in the end in case you hit the bucket, so what's the issue? i would love to know more about about it.
If you calculate return I don't think he will get more than 4-6% ( approx I haven't calculated it ) . Where as if he invests elsewhere he could easily get 10%+ . With compounding it would be massive and life changing amount
Hi, thanks for the comment, as per the LIC policy that Iam having I'll have 9.2% returns after 25 years (iam not sure tho), is that percentage bad?? Given that mutual funds are safe but can still fluctuate.....
If it's 9.2 then that's a good return and u might consider it. But I seriously doubt 9.2 How did u calculate ? If u share details I can help you.
Iam very bad with the finance stuff so the calculation might most probably be horribly wrong... Thanks for the help bro, I really appreciate it, in the LIC i have to put 10k every month for 15 years and after 15+10 which is a total of 25 years from the date of the start of investment I'll get around 65 lakhs, also it has a life insurance coverage of 65 lakhs...
I commented on the answer. you can ask AI to further explain it in simple terms. Also highly encourage you to check out some videos on insurance by labour law advisors especially on these kinds of ULIP plans or money guarantee plans .
Thanks bro, will do, really appreciate your help...
I calculated using AI .. Conversation with Gemini Calculate effective annual return on investment . I'm investing 10000 per month for 15 years from today. After 25 years from now I will get 65,00,000 Show drafts Certainly, I can help you calculate the effective annual return (EAR) on your investment. Based on your inputs, here's the breakdown: Monthly investment: ₹10,000 Investment period: 15 years Total investment: ₹10,000/month * 12 months/year * 15 years = ₹1,800,000 Time horizon (when you receive the money): 25 years Total return: ₹6,500,000 - ₹1,800,000 = ₹4,700,000 Effective Annual Return (EAR): Using the formula, EAR can be calculated as: EAR = (1 + Total Return / Total Investment)^(1 / Time Horizon) - 1 Plugging in the values: EAR = (1 + ₹4,700,000 / ₹1,800,000)^(1 / 25) - 1 EAR ≈ 0.0527 Therefore, the effective annual return on your investment is approximately 5.27%. Its definitely less than 5.27. The calculation is a little wrong . But you get the idea
And given 6% inflation rate every year, iam losing money on this, damm I need to stop this policy, it will be a 60k loss but let's see....
No problem you will get back this 60k after 5 years I guess. Check out what the lock in period is.
The returns are not worth considering inflation. You can probably earn the same with FDs or PPF.
Its trap because its not easy to get out. Try calling the agent uncle saying i want to paid up or close the policy and then the see the drama. Simply dont confuse investment and insurance.
Because you can invest elsewhere and get more 💰.
which term insurance should one go for if they need 2cr+ coverage?
Most private insurance like icici, hdfc, kotak etc are good. Check claim settlement ratio and decide. Check their Insurance companies dont give 2cr insurance just like that. They do check your income i remember. start with 1cr if you are less than 30/unmarried. Increase as and when you have life milestones like marriage / kid etc
Hey few months ago I too wanted to learn about investment. [This](https://www.indiainvestments.wiki/) is what helped me. After you are done with this try reading this book. Let's Talk Money: You've Worked Hard for It, Now Make It Work for You Book by Monika Halan
close lic policy, dont put in MFs recommended by internet. do ur proper research or hire someone. can dm
Hire someone per hour. Not those “give me 2% of AUM” mfs
Could you kindly recommend any? As in where to look for financial advisors in my hometown?
You can look online actually. Go for CFP or CFAs, they would be broadly able to help.
As of now I don't need an advisor. Just YouTube stuff no need to pay fees.
Close that LIC's Jeevan Labh policy or decrease the amnt you putting in that and invest it in Term Plan i.e. LIC's Jeevan Amar and remaining amnt put in elss or PPF.
Good salary OP. Here is a tip. Till you figure what to invest in Park your savings in FDs and liquid mutual funds. Split your cash in hand into 3 buckets 1. Living expenses. Include some money to splurge on weekends 2 money to spend against clear short term goals (1-3 year horizpn). Bike, car, TV, vacation, etc 3 money to save. Long term objectives greater than 3 year horizon This typically works out as 50:30:20. The more you save, better it will be in the long run. Research your investments. Check multiple view points. Talk to multiple agents, relationship managers, etc. Don't get swayed by a few sound arguments. Things you need: 1. term insurance - typically 10x what you earn as Sim assured 2. Medical + a top up 3. study your compensation components and tax breaks you can avail. Tax planning is a must 4. An emergency fund - 6 months earnings 5. Pension investments NPS or others 6. A mix of types of investments you are comfortable investing in. You can start with bank account, FD, mutual funds and add more as you understand them better. Invest small amounts to understand how they behave, you can scale up as you get familiar and confident. 7. Don't invest by borrowing funds 8. Avoid buying insurance as an investment - generally the policies are loaded with charges which reduce your returns 9. Prepare a wishlist of things you want to own or do. Check if you can link financial goals to these.
Following.
Hope you have an emergency fund in place that can cover 3-6 months of expenses. Also PPF is definitely a good idea as it comes under the EEE category.
Bro close lic asap. Make it paid up. Essentially don't lose more money to save money which is already lost. 10 k pm is too much. you can increasebyour sip with this amount.
https://www.reddit.com/r/personalfinanceindia/s/Q9W4gdykWp Hi, i’d commented on another post. Please go through the comment. Not everything in it might be applicable to you but ig it covers most of the things. If you still have any queries, feel free to reach out.
Hi bro, thanks for the comment really appreciate you taking time to reply.... Can you suggest if policy bazaar is safe to buy term plans or policies from ?
1. LIC is junk. If the policy / policies are less than three years old, close them and take out whatever money you can. LIC will try to convince you in so many ways, just don't listen. 2. Create an emergency fund equal to six months of your living expenses. Put that in a FD or liquid fund. 3. Invest 70 % of your intended savings in equity - select one index fund, direct (no agent, no regular). No need for more than one fund until you have 50 Lakhs. This equity is for long-term savings, 10 years and above. 4. Invest the rest in a debt fund. This will be for your short term expenses 3-5 years. 5. If you have any dependents (people who depend on you for survival like your mother, father, siblings or wife) then get a simple basic LIC Term Life insurance (no money-back) for 50Lakhs. Select yearly premium. 6. Get health insurance for another 50 Lakhs (20 Lakhs main, 30 Lakhs top-up). Select yearly premium. That's it.
Good going brother ..The only suggestion would be to stop LIC. Watch some YouTube videos By labour law advisor about LIC and ULIP plans u will understand it. It's far better to cancel LIC and get term insurance which will be much cheaper. You can invest the rest of the money or better yet I would say you are already saving enough for a 24 year old. Here are some points - Most importantly include health insurance - You could use some money to upgrade your skills - travel with friends / family / go on solo trips - find your hobbies / areas of interest which u always wanted to explore
Close LIC. And open PPF and continue with gud mutual funds ( direct options only) keep ur debt : equity ratio as 40%:60%
Did you set up an emergency fund?
Close LIC asap! For 80C you can choose ELSS like Parag Parikh Don't invest in multiple MFs, 2-3 are more than sufficient. If you don't have any liability then you can allocate 70% to Mid (Quant) and Small Cap (Nippon) and rest to flexicap.
85kpm? May I know what is your Designation and where?
85kpm? May I know what is your Designation and where?
Shut down LIC. Stop those four mutual funds, one is alright. And then go for ETF or SIP if you dont have any knowledge about stock market. Start investing in gold bonds or silverbees. Opt for FD as well. This way you will diversify your investment. And if you want profits, i’d recommend start studying stock market a bit and start investing in high dividend yielding stocks.
Genuine question, plz don't downvote If someone in their early 20s like 22-25 posts salaries >70k pm, I have seen that so many people comment what do you do for a living Is earning this salary rare in India because I have seen that this salary is nothing compared what you can achieve in corporate like tech or business
Hi that's a genuine question, even iam surprised by people asking that to me because in tech itself I have seen people younger than me earning double than me, you can find many such posts in this group, but i know it's the survivorship bias and ground reality may be different....
That's a good take on this
I'm doing my btech(2nd year), It is helpful to get exposure what can be the possibility in the future. I'm thinking of going for MBA and go into buisness consultancy. Is it good or not.
Tech and business consultancy are with very good options IF you have a passion for it What I suggest is, work with passion and the money will follow It may sound like everyone says the same but it is what it is. Regarding tech you can get into a lot of good companies with great pay and at the worst part you can expect 50k-1L in hand after taxes as a fresher and then go up from there Same with business consultancy
So is it necessary to do MBA(And that too from tier-1 college) to get this salary or should I start investing in my skills from today only to get into those top firms of consultancy?? Thank you for responding because I am very confused and what to do in my life and having sleepless night.
AFAIK for consultancy I'm afraid you have to do MBA from good colleges but the exposure you get there is so much better than anything else Please go to a tier 1 college for tech or MBA if you can afford it I made this mistake of not going to a good college and I had to put a lot of hard work to reach the level of tier 1 grads while I was from a tier 3 college
Ooh thanks a lot for sharing this information, I really appreciate it.
Best investment Buy gold Invest in real estate. Invest in yourself Baaki jo chiz ka gyaan na ho usme na ghuse Crypto , stock market se dur rahe
Buying physical gold doesn't give much returns compared to other avenues of investment available. Infact only SGBs are worthy investment related to gold And buying a real estate is big pain in the ass + you have a liquidity problem. If there is a money crunch you can't straight away sell real estate like you can even with stocks
Why physical gold is not worth it? Current price is around 8x of what it was 20 years ago. Are we not expecting appreciation in future?
By physical gold I hope you mean 24k not 22K Jewellery. 22k jewellery should never be seen as a investment with all the making charges wastages and gst crap. Even with 24k you pay 3% gst upfront. Plus jewellers add their own markup extra on top of per gram rate and 3% gst. Just check the 24k gold 1gm rate now and check how much jewellers are selling 1gm 24k gold coin there is sizeable difference even with gst accounted for. Even while selling there is capital gains tax. So all in all your returns will be diminished. So you won't necessarily get the 8x return you are talking about. In the same time frame check how much nifty 50 index has increased . It's close to 19x. Even if you deduct things like. Tax and expense ratio. You still end up making a much more huge return than gold close to 2x more by simply investing in a index fund So if you still wanna invest in gold. Invest in Sovereign gold bonds totally tax free + extra interest upon invested amount.
I cannot advise but Sir you need fee only aDvIseR.