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Investment suggestions

Suresh M (Software Engineer) (30 Points)

12 August 2014

Hi All,

I am working in a software firm. Currently I have a Jeevan Saral LIC policy paying 48040 per year. Completed three years. I am currently looking for some investment plans. I can allot 10k per month for investments. My 80c declaration is around 85k (lic premium + PF contribution).As the current year slab has been increased to 1.50 lacs, I want to cover the rest of 65k with investments

As I earlier stated I can allot 1.2lac per year for new investments, please guide me how I can distribute money to get full tax benefit and also good returns.

.[Not sure how to go ahead, Postal NSC vs RD vs FD vs SIP vs Mutual Funds]

Also, I would like to know is there any way, where I can pay the LIC premium with the investment returns itself over a period of time, rather than I pay it separately.

Please help me out

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2 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 12 August 2014

If an FD is offering 8% pa, you are required to invest Rs. 670,000/- to receive Rs. 53,600/- (less 10% TDS = Rs. 48,240/-) to cover the LIC premium payment.

You may invest in 5-year FD or 5-year NSC (both taxable) to get good returns as well 80C deduction, provided you do not need liquidity within these 5 years. For longer term benefits, you may invest in PPF. PPF gives 8%+ interest which is non-taxable and has 15 year maturity.