15 February 2013

Please find below the snapshot of forthcoming tax free issues


HDFC Growth: Invest :: Business Line


Do not buy insurance policy to achieve targets :: Business Line


I am 56, working in a Central government organisation. I would like to start investing in three funds, each Rs 5,000, starting from April 2013. Later on, from April 2014, I may add another Rs 10,000 through two more funds.
My investment horizon is 7-10 years. My aim is growth. Please suggest some suitable funds from reputed houses. My risk appetite is medium.
Madhu Pillai

Moderate expenses and channel savings towards financial goals :: Business Line


I am 44 years old and my wife is 39. We run a tax consultancy firm. Our daughters are aged 14 and 12. We live in our own house. Our present monthly income is Rs 1.5 lakh besides which we earn Rs 25,000 through rentals. Our annual income is expected to increase at 10 per cent over the next 14 years.
Our monthly expenses are Rs 60,000. We have an annual budget of Rs 1.8 lakh for leisure travel. If I settle in a metropolitan post-retirement, my expenses may increase.
I have a term insurance cover for Rs 50 lakh and a mediclaim policy for Rs 3 lakh per family member. The annual premium for both is Rs 60,000.
We have bought a piece of land for Rs 50 lakh with a loan of Rs 25 lakh. Our EMI is Rs 55,000 and the loan will be repaid by 2019.
I am investing in mutual funds through the SIP mode, a sum of Rs 20,000 and the present value of our investment is Rs 10 lakh.
I am running an RD for Rs 5,000 a month and the accumulated balance is Rs 1.2 lakh.
From January, I have started contributing Rs 10,000 towards PPF.
Requirements: To finance the education of my elder daughter I need Rs 5 lakh a year from 2016 for five years. For my younger daughter I need Rs 12 lakh a year for six years from 2018.
For their marriage I need Rs 15 lakh each in present value after 10 years.
At 58, I wish to retire from active practice. If I sell my consultancy today, I will receive a goodwill amount of Rs 90 lakh in five instalments. How much do I need to accumulate for my retirement?
— Chandramohan