I have SIP investments of Rs 2,000 each in Mirae Asset Emerging Blue Chip and DSP Blackrock Tax Saver. I also have a term insurance for Rs 50 lakh. I am 36 and married with a kid, earning Rs 20 lakh a year. Is my insurance enough and are the funds that I am investing in good?
Avinash Pathak, Bhopal
You have mentioned both life insurance and investments, but health insurance is missing from the list. Our advice would be for you to take adequate health insurance. Likewise, your term insurance is fine at the moment, but if you take a loan to buy a house or something, you should consider increasing this cover. As for the investments—both the funds are good to invest in. However, investing in an ELSS would suit if you do so in lump sum spread over 2-3 times in a year instead of using the monthly SIP format. More importantly, invest with a financial goal; say your child’s education or your retirement at the time of investing to get a better outcome of your money.
