Experience

“Experience is what you got when you didn’t get what you wanted.”

Insure or Invest?

I have been asked most of the times where should I invest (young friends and colleagues)? Typically I always mention consistent performing and good quality equity mutual funds to many of my friends. They have some surplus funds which they want to invest. I recommend doing a SIP, just like a regular recurring deposit. If one doesn’t have time or skill to invest on their own, this often provides decent returns. It has worked for me.

However, many friends will first jump on investments without looking at their own security. Insurance before investments philosophy has to be imbibed. Most of the people should do that. First, buying a term plan from LIC / HDFC / ICICI (for around 50 L – premium should be around 7000 for a 25-30 old guy). They need to understand that insurance is not investment and it has to be treated separately. The concept of not getting back the money is unheard of. They need to be aware of the fact that insurance is not for them but for the security of his dependents incase any eventuality occurs and it has to meet their current standard of living.

Similarly, it is necessary to spend on their health plans / mediclaim (around 5 lakh atleast as of today – premium of around 10000) to cover their hospital and medical bills in case one is hospitalized. It wont then put any stress on the persons savings and investments.

So overall if one is ready (generally) to spend around ~1400 monthly (for securing himself first) and as the earnings grow, he then starts doing a SIP in a good equity MF. That’s how normal progression should ideally happen.

Dear Zindagi

Listened to this song Love You Zindagi.
https://www.youtube.com/watch?v=2ZBPjt9NQtk
Nice track. And given that this film is by Gauri Shinde, it might be worth a watch. I liked her debut film, English Vinglish as well. So, looking forward to it.