Which is a better investment option between insurance and mutual funds?
Gaurav Mashruwala: An insurance cover is to keep your family protected. I recommend an insurance term plan. There are so many expenses involved in market linked insurance products. So, considering this, equity linked savings schemes are certainly good. I quit my job with a semi-government organisation in December. What should I do with the provident fund money? Should I repay the home loan or invest? — Vittal Jamle, Pune Gaurav Mashruwala: Always get out of the loan first. Vijay Sinha: Insurance should cover your debt and responsibilities. Having done that, you will require an insurance cover of a lesser amount. An insurance cover of Rs 40 lakh is adequate when you are 40-years old and earning Rs 4 lakh in a year, whereas an insurance cover of Rs 60 lakh is enough for a 30-year-old person seeking a cover. My annual pay package is around Rs 5 lakh. I have invested Rs 3 lakh in LIC and Rs 10,000 in ICICI Prudential. I also have to repay a home loan of around Rs 10 lakh. What investments
