Queries

How To Tackle A Joint Home Loan?

Neeraj, Coimbatore

I am 39 year old and intend to invest around Rs30,000 every month to support the higher education of my two kids at a later stage. Taking into consideration that I am a government employee and will be retiring by 2036, kindly suggest long-term plans to meet the future goals overcoming inflation.

You can invest in HDFC Child gift fund for education goal of your kids. Alternatively, you can also do SIP in Mirae Emerging Bluechip or Can Robeco Emerging Bluechip if you are willing to take higher volatility and market risk. Both the schemes have potential to beat inflation.

Neeraj Chauhan,  Certified Financial Planner and CEO, The Financial Mall

Anjan Biswas, Bengaluru

 I have a joint home loan for which the outstanding is Rs14 lakh. I am paying an EMI of Rs22,009 till January 2034. Should I withdraw from my PF and pay out the loan and invest the EMI towards the retirement savings in an equity fund? I am 44, and my wife is 40, and we have a second house too for which we are paying an EMI of Rs70,000. Please advice.

Repayment is advisable if you are in low tax bracket or not getting tax benefits on your home loan EMI. Otherwise I would suggest you to continue your loan.

Neeraj Chauhan,  Certified Financial Planner and CEO, The Financial Mall

Shyamak Gupta, Noida

I am a 27 year old male and plan to buy a term plan. I may get married in the next couple of years and want to know if the premium of a term plan bought today, will change in the future because of that?

Term plans are the most fundamental kind of life insurance plans that offer protection for the family in case of demise of the policyholder. It is also the cheapest form of life insurance plan and should form the base of any financial portfolio. Once you take a term plan, the premium will remain unchanged throughout the tenure of the plan, unless you wish to increase your cover, which you may consider once your family grows. Additionally, the only increase or decrease in net premium could be on account of changes in taxes. In fact, that is the reason why it is advisable to buy a term plan early, so that you can enjoy the benefit of low premium throughout your life and cover against the uncertainties of life early. You can also increase your cover in the future, basis your life stage goals.

Aalok Bhan,  Director and Chief Marketing Officer, Max Life Insurance

Jeet Singh, Barnala

I am 62 year old and want to purchase a term insurance. Can I buy it?   

Insurance companies do offer term plans even above the age of 60. You can buy a term plan for a period of 10 or 15 years, after evaluating your life goals. If your family members are dependent on you financially or you have any loan liabilities, buying a term plan will be the ideal protection tool. This will ensure your dependents continue to have the same lifestyle and go on to achieve their life goals even in your absence. However, an important factor to consider is that, with age the premiums towards a term plan increases and health conditions will also play a vital role in the underwriting.

Manish Sangal,  Chief Distribution Officer - Retail, Bajaj Allianz Life Insurance

Naveen, Rohtak

Can we invest in the shares of PC Jewellers for profit?

The stock was beaten down completely in the near term on account of various corporate governance issues surrounding the company. Since the company is still not out of the woods yet, investing with an objective to earn profit may not play out in the short term. Thus, looking at the prevailing selloff in the space and issues relating to corporate governance, we would advise you to stay away from the stocks.

Vijay Kuppa, Co – Founder, Orowealth