Financial Planning Queries

How is my current financial situation

My Name is Ravi G, 44 years old. I am working in PSU, married. My wife is house wife, and two children daughter (8), son (6) and my parents dependent on me. We have 2 BHK flat in which we are staying in, small house of three rooms in my native in Andhra Pradesh my parents are staying in. I have 45 lakhs worth term insurance from SBI and LIC, 10 lakhs worth Jeevan Anand and children policy. We have 6.72 lakhs Home Loan outstanding (insured), 1.8 lakhs car loan. My salary is 1.20 lakhs per month. Till now I am only investing in 20k/month in EPF (both statutory and optional). Medical covered in our company hospital for our family till I retire. Sir, my query is do I need to to invest further, and I want to invest 6,000 per month for long time. Please suggest me where to invest?

Apr 9, 2017 by Ravi G, Bangalore | Financial Planning

Your long query should be answered in details but that is not possible as you have not provided all the items in details. However, we have following observations to make in order to rearrange your current... Read More

Should I sell my flat at indexed value

I wish to sell my house which is in my name to my sibling but on the cost which is as per the index value of today and not at a higher value. I purchased this flat in year 2004 in Gurgaon and have been staying there since then the cost that time was around 11 Lakhs and as per the index value of today it is around 28 Lakhs plus the other cost of improvement, if added. Can the same be sold as per the index value of today and would be there be any tax liability of mine in this case. Also to confirm on the registry of the property that will happen as per the circle rate?

Apr 9, 2017 by Preeti, Gurgaon | Financial Planning

At what price the flat should be sold is totally on your discretion. Normally, the right price of the property can be discovered by the ongoing rate in that area and the negotiation between the buyer and the seller... Read More

How to set a financial goal at age 25

How to set a financial goals at the age of 25?

Apr 6, 2017 by Ravi Shah, Vadodara | Financial Planning

It is heartening to note that you are thinking of setting financial goals when you are so young. Please note that when you are young you have lesser liabilities but as you age, start working, have dependent... Read More

Is my fund selection for long term planning right

All are Growth Funds and investing Rs 2000 SIP in following funds - Birla Sun Life Frontline Equity Fund, Mirae Asset Emerging Bluechip Fund, Motilal Oswal MOSt Focused Multicap 35 Fund, Reliance Regular Savings Fund Equity Plan, Franklin India Smaller Companies, HDFC Balanced Fund. All are Growth Funds and investing Rs 5000 SIP in following funds for Tax Saving - Axis Long Term Equity Fund and Reliance Tax Saver Fund. Queries : 1) I am planning the above SIP investments for Long Term Goals : Child Higher Education, Child Marriage and Self Retirement Planning? 2) Can I used the HDFC Balanced Fund for medium term goals i.e. 4-6 years? 3) Your advise on my mutual fund portfolio and kindly suggest if any fine tuning is required?

Mar 28, 2017 by Dishant Dhokia, | Financial Planning

The funds you have selected for your monthly SIPs are good. You have selected good schemes from large cap, diversified, mid & small cap and balanced fund categories and could be a good fit for your long... Read More

Should I pay back my car loan or invest somewhere else

I have a car loan of 550000, 9.75% rate for 84 months. It is a diminishing one. I have started the loan in 2016 Aug. My doubt is, if I get some big amount like one lakh or something, what would you advice me? To invest somewhere or Pay for loan? I want to reduce my burden in fact. As my loan is in initial stage will the bulk amount go to the principle amount or to the interest?

Mar 27, 2017 by Sree, Kerala | Financial Planning

It is always advisable to reduce your liabilities as much as you can. In fact you should first limit or pay off your liabilities and then start saving. In case you repay a lump sum amount of your car loan... Read More

Am I going in right direction for achieving my financial goals

Need your advise, I'm 39, just started investing in NPS for overall 2 Lacs Per Annum for my retirement purpose. Scheme Preference - Moderate Auto Choice SBI Pension Fund Scheme C - Tier I (Corporate Bonds) - (27.00%), SBI Pension Fund Scheme E - Tier I (Equity) - (44.00%), SBI Pension Fund Scheme G - Tier I (Government Securities) - (29.00%); and I have other long term goals like kids, marriage, education coming up in 10-20 years. So I decided to do some SIP around 10k for the below categories funds like Balanced - 60%, 10% Large Cap , 20% Diversified, 10% Mid and Small Cap. Please suggest whether I'm going head for right direction?

Mar 27, 2017 by Syed, Bangalore | Financial Planning

By investing in NPS, you have opted for a safer and low cost retirement planning instrument. With regards to your other goals, you have mentioned doing Rs 10,000 SIP per month. But have you figured out if this... Read More

Can you suggest two funds for long term SIPs

My name is Ravi Kumar and I am new to this field so please suggest me best two SIP plan to invest 2500/monthly. One for large cap and second for mid cap which give me good return like 15%. I also want to take a child plan for my new born baby with 5000/monthly for next 15 years which cover her education and marriage expenses. Please suggest best one?

Mar 24, 2017 by Ravi Kumar, Hamirpur | Financial Planning

You can invest in SBI Bluechip Fund and Mirae Emerging Bluechip Fund from large cap and mid cap fund categories respectively. You need not take any child plan for meeting your child's education and... Read More

Can a son gift mutual fund units to father

Can a son gift its mutual fund units to his father instead of redemption on maturity? If yes, what is the procedure. Please mention the circular No or order of SEBI or any other valid authority?

Mar 23, 2017 by vinay vashisht, chandigarh | Financial Planning

Mutual Funds units are not transferable. In order to the son gift mutual funds units to his, therefore, is not possible. However, he can redeem the mutual fund units and gift the proceeds to his father without... Read More

How can I get regular monthly return in lieu of fixed deposits

I am 65 years of age retired with 20 lakhs in FD which is my main source of living. Can you suggest a way in which I get some amount every month unlike FD?

Jan 7, 2017 by Surmadhu, Mumbai | Financial Planning

Since you are retired and invested your money in fixed deposits, we are assuming you can not take much risk with your investments. We are also assuming that bank fixed deposit rates are going down and... Read More

Should I invest in NPS for extra tax benefit

I am a government employee with GPF within 20% of income tax bracket. My retirement will be after 15 years. Should I invest Rs. 50,000 in NPS for extra tax benefits?

Jan 5, 2017 by Naresh Kumar, Delhi | Financial Planning

You may be aware that, in the Budget of 2015, the Finance Minister announced an additional tax saving of Rs. 50,000 per year Under Section 80CCD of the Income Tax Act 1961. This is over and above the... Read More