Got a question about your money? What you should or should not do with it?

Our expert Devang Shah has the answers. Got a question? Please write to us.

I'm 27 and earn close to Rs 5,00,000 per annum. In an impulsive moment, I went ahead and invested Reliance [Get Quote] Growth, Franklin Prima, Magnum TaxGain and Magnum Multicap.

I also pledged to park Rs 5,000 every month in ICICI [Get Quote] LifeTime ULIP scheme.

Now I want to get out of the ULIP as soon as possible and park my money in a term insurance plan and other mutual funds and Public Provident Fund.

But the problem is that I am locked for three years (starting June 2005).

I have already paid a huge first year administrative charges. What must I do?

- Nitin Chandra

Dear Nitin,

Is there a way for you to stop putting in the Rs 5,000 every month without a penalty? If there is a penalty, how much is it?
Or, do you lose the investment you have made?

How does that compare with the cost you have to bear on every additional Rs 5,000 you put in? Will you lose more in the long run if you continue with it?

It would help you to find out what choices you have and evaluate all the alternatives.

Don't be too upset about this. You must look at the fact that you are learning about financial markets quite early on in life and this will be a strength for many years to come.

To see the other query answered by Devang Shah, read Home loans: Increase EMI or tenure?

Got a question for Devang Shah? Please write to us.

Illustration: Dominic Xavier

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