I am currently unemployed, how should I invest my savings?

home loan of 59 lakh- EMI 54,000 per month for 15 years; loan against property of 27 lakh-EMI 25,000 per month for 15 years. my current monthly income is 62,000 and my husband earns 80,000.

My current investments are: 12,000 per annum for LIC insurance premium; 15,000 for annual term plan premium 50 lakh cover for both of us; SIP of 10,000 per month, mediclaim of for 21,000 5 lakh cover, stock price 2 lakhs; and an emergency fund fixed deposit 7 lakhs.

-Sneha Abhishek Murkari

Since a major component of your income goes towards paying EMIs, you need to keep an eye on the interest rates. You should also aim to gradually reduce and prepay the loan against the property as this will result in a higher cost of a home loan than borrowing the loan. You need to hold a stock portfolio provided you can keep track of the same. Instead, you can consider buying mutual funds and gradually increasing the monthly investment. Asset allocation can be done on the basis of your financial objectives which prima facie appear to be long term and hence equity allocation may be preferred subject to your risk appetite.

I have returned from Nigeria after a few years. Now, I am 48 years old. Despite spending on my wife’s cancer treatment, I still have some savings. What should be my investment plan for this? Also, now I am unemployed and looking for a job or starting a small business.

—Abdul Wahedi

You need to make a regular source of income as you are currently without employment. Even if you are planning to start your own startup, you will still need regular income till the time the business is established. And once your regular income starts from your employment or from your business, your investment income can be stopped and converted from Pay-out to Cumulative/Growth option. A portion of your savings should be invested in an emergency fund and should be available on call. Also, you can consider regular income investments with high coupons such as post office, RBI bonds with interest payouts. A part of the portfolio can be invested in equity MFs. You should also ensure that you have a medical insurance policy for yourself and your family.

Surya Bhatia is the Managing Partner of Asset Managers.