raksrules
Northstar
I am planning to have 5K per month as my equity amount as in I will invest in some stocks. Consider like SIP in stocks directly but I will decide on the fly every month which stock to invest in.
What Investment mistakes you made that you want others to avoid?
- Thread starter raksrules
- Start date
I am planning to have 5K per month as my equity amount as in I will invest in some stocks. Consider like SIP in stocks directly but I will decide on the fly every month which stock to invest in.
I am guilty of exactly this. Early on in my career, I only had a LIC policy and that too because it was mandated as a collateral for my education loan. Apart from the employer insurance cover, I had nothing for quite many years. I realised pretty late that I need insurance for what it actually is rather than just as an investment or tax saving instrument. Thank goodness it did not come back to bite me !
Bad: Started two SIPs early in the career, on advice of a friend. Bad that I didn't continued that.
Worst : Still don't have term & health insurances other than company provided. Only thing, since wife is also working and making each other dependent, we have two health insurances. A Term policy is in todo list for last years.
Good : In another few months Home Loan would be over. Took around 6 years. I have SBI Maxgain account, so not repaying the whole amount now, rather parking there. Need to decide if to foreclose the loan or invest the money somewhere else. (Home loan interest rate these days is 7.5%)
Okayish: Started few SIP in last two years. Mostly in bluechip funds, 1 debt, 1 small cap.
Todo : Start a SIP like in stocks
Going through these : Investment Basics - Groww
Worst : Still don't have term & health insurances other than company provided. Only thing, since wife is also working and making each other dependent, we have two health insurances. A Term policy is in todo list for last years.
Good : In another few months Home Loan would be over. Took around 6 years. I have SBI Maxgain account, so not repaying the whole amount now, rather parking there. Need to decide if to foreclose the loan or invest the money somewhere else. (Home loan interest rate these days is 7.5%)
Okayish: Started few SIP in last two years. Mostly in bluechip funds, 1 debt, 1 small cap.
Todo : Start a SIP like in stocks
Going through these : Investment Basics - Groww
alekhkhanna
Herald
I'll recommend: https://indiainvestments.github.io/
Why do want to save up beside your children's education? Old age? Health ?
letmein
Guide
Go for index funds. A good split would be 40% in UTI Nifty 50, 40% in UTI Next Nifty 50 and 20% in Motilal S&P 500.
Make sure you go for Direct funds over regular.
raksrules
Northstar
I may be outlier but I am not saving for any specific goal. I just have mentality to save and only spend when I feel it is worth it or is absolutely needed. I am not a miser per se.
But yes I do want to save for going for foreign holidays ocassionally.
I agree with whatever you said but there is no compounding in mutual funds. It's confounding.
raksrules
Northstar
+1 to this. I mean for the DIRECT part. Do not go for Regular funds as their expense ratio is higher. It is like having middle man in your funds which eats some of your profits. You will always see NAV of direct fund of same fund being higher than regular fund.
Also if you are already in a regular fund and want to change it to direct of same fund, you can but be aware that this means you will be selling your units and repurchasing it so if you have any gains, it will be taxable. It is not direct switch.
I redeemed all our family lic policies by booking losses. Please calculate xirr for them all and calculate opportunity cost.
raksrules
Northstar
I do agree. Those youtube videos etc take all made up numbers like assume 15% assured interest and then see Rs. 10000 se Crorepati kaise bane.
Think of the amount you saved in terms of time by not continuing them.
raksrules
Northstar
I need some help here. My dad invested in one LIC policy in 2002 or something and although policy paying period is over, the policy matures in 2027 which is when I will get money back.
Now apart from above, my dad started another LIC policy for which I pay Rs. 24K per year (since 2011) but worst part is, policy paying term ends in 2046 !!!!!
I have till now paid 2.42L in this. I want to know if I surrendered now, how much I will get back if any as there are some things like surrender value and special surrender value and such and I don't know how to easily calculate. Any website where I put policy name, when started, how much paid and time duration etc and it tells me surrender value or so?
Via vested? At what price did you buy them?
raksrules
Northstar
He is in US so I guess it is easier for him. For people in India, we have to go through vested etc.
Surrender value only lic can tell you.
XIRR you can calculate. I bet you it will be less than 5%, taking into account all the benefits. You will be at loss now. But cut a finger now or cut the hand at maturity, what will you choose? Do consider inflation and opportunity cost. Check these links in the order posted
XIRR Calculator | Calculate XIRR Online
XIRR Calculator - use this calculator to calculate IRR of irregular cash flows
XIRR Returns Calculator
You can use this calculator to determine the compounded annualized growth rate on your investments like endowment policies, ULIPS, Chit funds or any
freefincal.com
What is XIRR in Mutual Funds 2024
XIRR is that single rate of return, which when applied to every installment would give the current value of the total investment. Get step by step process to calculate extended internal rate of return at groww.in
XIRR Calculator for Investments with Irregular Cash Flows
Calculate the internal rate of return of a cash flow schedule having any number of non-uniform investments and withdrawals. Chart shows FV of each flow.
www.free-online-calculator-use.com
Good for him. Away from this country. Are you investing in US stocks?
Why? It is a very good debt component.
What if in the 7th year we have India's lost decade here?
raksrules
Northstar
How do I contact LIC for surrender value. Also less than 5% means I will get less than 5% of my amount paid?
I am invested in MO S&P 500 Mutual Fund for international exposure.
Do you believe in Jumlas?
022 6827 6827. Look up the term xirr and then use those links to calculate yours.
Not in NASDAQ?
Hope you know that a house is not an asset.
raksrules
Northstar
I also have about 35K in MO NASDAQ FoF but stopped recently.
Why did you stop?