Ujwal Saproo, ujwalsaproo@gmail.com

What factors shall I keep in mind before buying home insurance for a 20-year-old property in the metro city?

You should try to take a comprehensive householder’s package policy which will cover the structure as well as the home contents. Reinstatement is the value of reconstructing the house. I would suggest you go in for reinstatement cover even in case of the contents of the house. Remember to check if the insurer settles the claim only after the house is reconstructed or makes partial payments to help you reconstruct the house. The insurer may not pay for damages in case of poor or unauthorised construction. It is safe to keep a proof of insured items.

Kk Jha, sujeetjhalic@yahoo.co.in

I am a retired person and have received a lump sum amount as a retirement benefit. Please suggest where to invest my retirement money based on the present market scenario.

As a retired person, you can invest the lump sum amount in various instruments, depending on your requirement. There are options like Senior Citizen Saving Schemes, Post Office Schemes, Bank Fixed Deposits, Pension Schemes, and also Hybrid mutual funds & Debt Mutual Funds with Systematic Withdrawal Plan options (monthly payout) which are more tax efficient. The information provided is not enough to suggest an exact asset allocation. I would highly recommend you to connect to a financial planner, who can guide you depending on your monthly income requirements.

Manoj Sirdeshpande, sirmanoj2001@gmail.com

I have been investing in SIP of Rs 2,000 for the past 70 months. Shall I continue my sip in the HDFC equity fund? Please suggest the same.

Investment in mutual funds should be made depending on your financial goals and period remaining for the goal. Equity mutual fund investments should be for the long term. One needs to keep reviewing the investment periodically. If a fund has not performed compared with its peers within the fund category consistently over a long period, then, it needs a change.

Uma and Suhel Chander are CFPCMs from Handholding Financials