Instantiate Particles on Prefab?

I have a problem that I can't seem to figure out. I have an AR game in which ships are approaching a planet. Everything works just fine with touch detection and destroying the prefab; however, I can't seem to instantiate a particle effect (explosion) at the position of the destroyed object.

 void Update ()
     {
         if (Input.GetMouseButton (0)) {
             Ray ray = Camera.main.ScreenPointToRay (Input.mousePosition);
             RaycastHit hit;
             if (Physics.Raycast (ray, out hit)) {
                 if (hit.collider.tag == "Red") {
                     if (GameObject.FindWithTag ("Planet").GetComponent<PlanetHealth> ().red) {
                         Destroy (hit.collider.gameObject);
                         GameObject.FindWithTag ("Planet").GetComponent<PlanetHealth> ().health -= 1f;
                         Instantiate (badCollide, transform.position, Quaternion.identity);
                     } else {
                         Destroy (hit.collider.gameObject);
                         Instantiate (badCollide, transform.position, Quaternion.identity);
                     }
                 }
             }
         }
     }

With the above script, the explosion instantiates at the position of the camera that it's attached to. Yes, the touch script has to be on the camera for it to work, because I can't put it on the ship prefab without the touch collision destroying all the red ships in the scene. At any given time in my game there could be multiple "Red" ships ... please help! Thanks!