 FAMILY:
T.M. Vasudevan, 56, retired banker who runs a small textiles
business; V. Nappinnai, 53, housewife; (son and daughter, both married)
SALARY: Rs 1.8 lakh a year
ASSETS/INVESTMENTS: House in Nanganallur, a middle-class
neighbourhood of Chennai (acquired for Rs 45,000 in 1977 and valued
at Rs 20 lakh today); Two shops and one apartment in Nanganallur
(the retirement benefit of Rs 21 lakh went into these, and into
foreclosing existing housing and vehicle loans); shares valued at
between Rs 12,000 and Rs 15,000; deposits of Rs 4.5 lakh in ICICI
Bank; Rs 1 lakh in mutual funds; no insurance policies.
RAJIV BAJAJ, Managing Director,
Bajaj Capital recommends:
- The Vasudevans opt for a medical insurance policy that will
set them back by Rs 5,000 a year
- They should withdraw Rs 4,00,000 from the deposit, leaving
Rs 50,000 for contingencies, and invest this in Post Office Monthly
Income Scheme to generate a regular fixed return.
- The monthly return from this scheme should be invested in a
systematic investment plan of a mutual fund with an 80 per cent
equity and 20 per cent debt component
- The shares should be sold off and the proceeds, along with
the 1 lakh in mutual funds, invested in monthly income plans of
mutual funds with an eye on capital growth Assuming Vasudevan
is a conservative investor and that the rental and business income
is enough to meet the family's monthly expenses
ROHIT SRIVASTAVA, Market Strategist,
SSKI Securities recommends:
- Vasudevan's investment corpus is Rs 21 lakh + Rs 4.5 lakh +
Rs 1 lakh.That's Rs 26 lakh. Rentals and his business earn him
a return of 8 to 10 per cent. His real estate investments (including
the house he lives in) and the deposit account for 90 per cent
of his portfolio. Since his children are settled, he should increase
his equity exposure to 20 to 30 per cent of his portfolio
- He should close his deposit with ICICI Bank and move it to
equities
- At his age, Vasudevan should avoid PMs or direct investment
and opt for a liquid fund or a flexible one (equity plus debt)
whose equity investments are committed to blue-chips and safe
sectors
-compiled by Nitya Varadarajan and
Shilpa Nayak
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