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Swad2017 8th April 2017 11:52 PM

Where to Invest LIC Matured Amount?
 
Hi, my father had done a LIC in my name and now that's maturing and will come to my bank account in June 2017. I want to invest this amount in a mutual fund that pays monthly/quaterly. So that I can use these amount to support additional family expenses. I was thinking of a tax saver ELSS plan!

What do you suggest?

nitinku5021a 9th April 2017 09:06 AM

Quote:

Originally Posted by Swad2017 (Post 47339)
Hi, my father had done a LIC in my name and now that's maturing and will come to my bank account in June 2017. I want to invest this amount in a mutual fund that pays monthly/quaterly. So that I can use these amount to support additional family expenses. I was thinking of a tax saver elss plan!

What do you suggest?

I will suggest to avoid equity fund at this moment. Try Liquid Funds.

Swad2017 9th April 2017 08:45 PM

Quote:

Originally Posted by nitinku5021a (Post 47341)
I will suggest to avoid equity fund at this moment. Try Liquid Funds.

You are suggesting to avoid equity funds due to the volatility? If I invest in Liquid fund, what will be the tax implications for dividend payout?

Prudent_Investor 24th April 2017 01:55 AM

Quote:

Originally Posted by Swad2017 (Post 47339)
Hi, my father had done a LIC in my name and now that's maturing and will come to my bank account in June 2017. I want to invest this amount in a mutual fund that pays monthly/quaterly. So that I can use these amount to support additional family expenses. I was thinking of a tax saver ELSS plan!

What do you suggest?

I am assuming you need assured monthly income out of this corpus. Any ELSS would have a 3 year lock in and would not be helpful.

For monthly payout, deposit the corpus in a long term debt fund and set up a monthly/quarterly SWP (Systematic Withdrawal Plan). Check the required lock in period so that you don't incur in exit loads.

Alternatively, I would suggest putting 30-40% in Bank FDs for meeting adhoc expenses, and invest the balance 60-70% in equities for wealth creation.

LIC uses the equity market only to generate the returns - although a very small part of their entire corpus is into stocks - we as retail investors should be more prudent to earn superior returns from stocks.


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