Financial suggestions as i dont have any income source for 3 years atleast

[prathamesh.g.j]

Hello, i recently lost my father and me and younger brother are still studying no source of income as of now, so how can I diversify ammount around 30L. I did check out your videos so thought if keeping 5L with my mother, brother and mine in small finance banks and 5 L in NSC and rest LIC insurance. Will this be good or would you suggest for any other method to keep money.

For around 1 year I don't have issue for expenses, they are covered by other way

Please suggest best way to diversify 30L, as still I'm studying for 3 yrs atleast so no income source for 3 years

 

[soum_bhowmik]

Hi @prathamesh.g.j -

You have 30 lakhs to invest. First and foremost, I would suggest staying away from life insurance companies like LIC, SBI Life, HDFC Life, ICICI Life, and their agents, as well as bank employees. When considering any investment, it's crucial to focus on four important points:

1. Risk
2. Return
3. Liquidity
4. Tax

Life insurance products typically fall short in terms of return and liquidity. Never mix insurance with investment, and be aware of mis-selling. If you search on Google or YouTube, you'll find the real picture regarding life insurance products and mis-selling.

Evaluating your current situation, I would suggest only going with Fixed Deposits (FDs) with reputed banks like SBI or any PSU bank. If you have an account with SBI or any other PSU bank, you can open an FD online and opt for monthly interest payouts. The FD amount should be decided based on your monthly expenses for three years.

If possible, buy health insurance for your family members and set aside some amount as an emergency fund. I believe this approach will work for you. However, do your own research and make an informed decision. It's your hard-earned money, so never invest in any kind of investment vehicle without understanding it thoroughly. Be aware of fraudulent schemes; I've suffered and don't want anyone to suffer like me.

For example, if you book a 20 lakh FD with SBI at an interest rate of 7% for 3 years, your yearly interest would be 140,000. Divide this by 12 because you need the interest to be paid out monthly to meet your monthly expenses (140,000/12 = 11,666). The TDS would be 10%, but you'll get it back during your Income Tax Return (ITR) filing.

You can keep the remaining 10 lakhs in arbitrage, any kind of short-term, or overnight debt mutual funds to meet your emergency needs. You can check this on the Groww app, which is a discount broker. Once you start earning, try investing in equity and equity mutual funds, and buy term insurance.

Hope this helps.

 

[Maitri Maniya]

Hello, i recently lost my father and me and younger brother are still studying no source of income as of now, so how can I diversify ammount around 30L. I did check out your videos so thought if keeping 5L with my mother, brother and mine in small finance banks and 5 L in NSC and rest LIC insurance. Will this be good or would you suggest for any other method to keep money.

For around 1 year I don't have issue for expenses, they are covered by other way

Please suggest best way to diversify 30L, as still I'm studying for 3 yrs atleast so no income source for 3 years

Hello,

I'm sorry to hear about your loss. Given your situation, it's important to manage your funds wisely. Here are some suggestions for diversifying your 30L amount:

1. Mutual Funds SIP: Consider investing a portion of your funds through Systematic Investment Plans (SIP) in mutual funds. Diversify across 2-3 mutual funds to spread risk and potentially earn returns over time.

2. Upstox for Mutual Fund Investments: You can use Upstox for convenient mutual fund investments. Feel free to download the app using my referral link: https://link.upstox.com/LUwe

3. Uni Pay Check: Explore applying for Uni Pay Check, which offers a certain amount at the end of each month based on your CIBIL score. You can repay this amount after 15 days. Apply from here: https://uni-app.onelink.me/yuBA/86hvulo3

However, always ensure to do thorough research and consider seeking advice from a financial advisor to tailor your investment strategy based on your specific needs and goals.

Wishing you the best in managing your finances during this challenging time.

 

[prathamesh.g.j]

Hi @prathamesh.g.j -

You have 30 lakhs to invest. First and foremost, I would suggest staying away from life insurance companies like LIC, SBI Life, HDFC Life, ICICI Life, and their agents, as well as bank employees. When considering any investment, it's crucial to focus on four important points:

1. Risk
2. Return
3. Liquidity
4. Tax

Life insurance products typically fall short in terms of return and liquidity. Never mix insurance with investment, and be aware of mis-selling. If you search on Google or YouTube, you'll find the real picture regarding life insurance products and mis-selling.

Evaluating your current situation, I would suggest only going with Fixed Deposits (FDs) with reputed banks like SBI or any PSU bank. If you have an account with SBI or any other PSU bank, you can open an FD online and opt for monthly interest payouts. The FD amount should be decided based on your monthly expenses for three years.

If possible, buy health insurance for your family members and set aside some amount as an emergency fund. I believe this approach will work for you. However, do your own research and make an informed decision. It's your hard-earned money, so never invest in any kind of investment vehicle without understanding it thoroughly. Be aware of fraudulent schemes; I've suffered and don't want anyone to suffer like me.

For example, if you book a 20 lakh FD with SBI at an interest rate of 7% for 3 years, your yearly interest would be 140,000. Divide this by 12 because you need the interest to be paid out monthly to meet your monthly expenses (140,000/12 = 11,666). The TDS would be 10%, but you'll get it back during your Income Tax Return (ITR) filing.

You can keep the remaining 10 lakhs in arbitrage, any kind of short-term, or overnight debt mutual funds to meet your emergency needs. You can check this on the Groww app, which is a discount broker. Once you start earning, try investing in equity and equity mutual funds, and buy term insurance.

Hope this helps.

Thank you so much for detailed answer, this will surely help me to decide things .

 

[prathamesh.g.j]

Hello,

I'm sorry to hear about your loss. Given your situation, it's important to manage your funds wisely. Here are some suggestions for diversifying your 30L amount:

1. Mutual Funds SIP: Consider investing a portion of your funds through Systematic Investment Plans (SIP) in mutual funds. Diversify across 2-3 mutual funds to spread risk and potentially earn returns over time.

2. Upstox for Mutual Fund Investments: You can use Upstox for convenient mutual fund investments. Feel free to download the app using my referral link: https://link.upstox.com/LUwe

3. Uni Pay Check: Explore applying for Uni Pay Check, which offers a certain amount at the end of each month based on your CIBIL score. You can repay this amount after 15 days. Apply from here: https://uni-app.onelink.me/yuBA/86hvulo3

However, always ensure to do thorough research and consider seeking advice from a financial advisor to tailor your investment strategy based on your specific needs and goals.

Wishing you the best in managing your finances during this challenging time.

Thank you so much for detailed answer, this will surely help me to decide things.