Your Financial Plan

Suresh Parthasarathy | Updated on January 10, 2018 Published on September 03, 2017

I am 36 and I run ice-cream parlours. My wife assists me in the business. My daughter is 4. My parents are financially independent. Since we have daily collection, all my investments are in chit funds and gold chit. Reading BusinessLine has spurred me to change my investment pattern. What is the right way to invest to attain my long- term goals?


Investing in an unregulated chit for higher return is an unwarranted risk. Also, investing in gold chit for your daughter’s marriage 20 years away is not a good idea.

She may not like the designs on offer at the time of her marriage and you may have to purchase new jewellery.

Once the current chit is over, stop saving for her marriage. Since you wish to give her 30 sovereigns, buy just a gram a month till her marriage.

For her marriage expenses, once the car EMI is over, accumulate for this goal.

With your current surplus, save ₹20 lakh for home renovation and for the rest take a home loan. Similarly, for business expansion, avail loan for ₹10 lakh. In both cases you can deduct the EMI from income. That will bring down your tax outgo.

For children’s education, earmark the insurance maturity of ₹4 lakh and for the balance ₹9 lakh invest ₹4,200 every month. Buy term insurance for ₹1.5 crore and increase your health policy to ₹5 lakh. Follow asset allocation of 55:40:5 in equity MF, debt and gold respectively.

The writer is a SEBI-registered investment advisor and founder,

Send your queries to

Read further by subscribing to

The Hindu Businessline

What You'll Get

  • Web + Mobile

    Access exclusive content of the Hindu Businessline across desktops, tablet and mobile device.

  • Exclusive portfolio stories and investment advice

    Gain exclusive market insights from the Hindu Businessline's research desk.

  • Ad free experience

    Experience cleaner site with zero ads and faster load times.

  • Personalised dashboard

    Customize your preference and get a personalized recommendation of stories based on your intrest.

This article is closed for comments.
Please Email the Editor