 FAMILY:
Mamta Bharadwaj, 42, Account Director South, Rediffusion Dentsu Young
& Rubicam (PR Division); Simran, 13
SALARY: Rs 12 lakh a year
ASSETS/INVESTMENTS: Recently bought an apartment valued
at Rs 30 lakh (EMI: Rs 27,000); Rs 30,000 a year in insurance and
education policy for daughter; Rs 60,000 a year in PPF; Rs 40,000
a year in infrastructure bonds; doesn't believe in fixed deposits
ROHIT SARIN, Partner, Client Associates,
recommends:
- Mamta should scrap her investments in infrastructure bonds
as her income is higher than Rs 5,00,000 and she is not eligible
for a rebate under Sec 88 of the Income Tax Act
- She should see whether the cover under the education policy
is adequate for her daughter's future education expenses; if not,
she should top it up with a term policy
- She should work out her loan liability and the funds required
for her daughter's wedding and cover both with a term policy
- Mamta will need Rs 20,000 per month (adjusted for inflation)
after her retirement, which is 15 years from now. Assuming she
lives till the age of 75, she needs a corpus of Rs 36 lakh invested
in debt yielding 6 per cent a year. If she saves Rs 1.86 lakh
(Rs 1.26 lakh plus the Rs 60,000 she puts in PPF) every year as
she is now doing, and if this grows by 10 per cent a year, she
would have a corpus of Rs 35 lakh by the time she retires. Ergo,
she needs to look for some way to generate returns towards her
daughter's wedding and education expenses. She may invest 20 per
cent of her savings in equity Since her savings or investible
surplus isn't mentioned, it is probably her salary less the EMI,
investments, tax (@30 per cent), and living expenses (Rs 25,000
a month). This is around Rs 1.26 lakh a year.
ROHIT SRIVASTAVA, Market Strategist,
SSKI Securities, recommends:
- Property and fixed investment instruments already account for
30 per cent of Mamta's income. She should invest a large part
of the balance in equities, mostly blue-chips. A portfolio management
services scheme is not advisable for her
- Mamta needs to take out life cover as her daughter is completely
dependent on her. She can either opt for a pure life cover or
a combination one that promises paybacks. She has to top this
up every year changing the allocation of premium when required
to life cover (75 per cent) or paybacks (25 per cent). She could
begin with a Rs 10 lakh life cover that will cost her around Rs
20,000
-compiled by Venkatesha Babu and
Shilpa Nayak
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