Mutual Fund Queries

How to invest my life insurance maturity proceeds

I am Prabhakar, aged 33 years, working in a software company drawing take home pay of Rs. 86000 pm and I live in Pune with my parents, wife and 6 years old son. My financial particulars are as following: Bank FD Rs. 2200000, MFs: Rs. 850000, MF SIPs: 12000 pm, Life Insurance: Rs. 5000000 in my name. Health Insurance: Rs. 2500000 for our entire family. Own flat purchased with loan of Rs. 5000000 present outstandings Rs. 1850000 (apprx) with EMI of Rs. 20500. Now my question: I have, last month, received an amount of Rs. 1287000 as LIC maturity amount which my father bought in my name when I was 17 years old. I propose to invest in good performing MFs with SWP so that the SWP amount will partially take care of my existing HL EMI. Kindly advise me if my proposal is a good idea if so please suggest me 2/3 MF schemes where I can expect a reasonable returns of between 10 to 12 CAGR. I am not averse to moderate risk?

Mar 28, 2017 by Prabhakar Yeditha, | Mutual Fund

Glad to hear that you received a good amount from LIC of India against maturity of your policy which your father took when you were young. The idea that you have sounded – investing the money in mutual... Read More

What is the optimum time horizon if I invest in balanced fund SWP

I would like to invest 50 lakh of my retirement fund in equity oriented hybrid MFs basically to save on tax. Can you please suggest some high yielding funds. Also please suggest optimum time horizon. Is it a good idea to withdraw after every 12 months and reinvest? How do returns from this compare to returns from gold emfs?

Mar 27, 2017 by Genesis, Hyderabad | Mutual Fund

Yes, you can invest in hybrid equity oriented funds (balanced funds) for withdrawing by way of monthly SWPs. Capital gains arising out of each SWP withdrawal after 12 months will be tax fee under long term... Read More

How to invest my lump sum amount

I am a senior. I wish to reinvest my maturing FDs to balanced funds with SWP option. I am told it is best to reinvest not in lump sum but over a year or more to avoid in SIP to take care of market fluctuations and to avoid buying at peak. it is difficult to do so as I will have loss of income in the interim. which is the best way to do this? invest in liquid fund and STP to target fund with SWP from both funds. is it possible?

Mar 27, 2017 by Subbarao M.N, Bengalore | Mutual Fund

There is bit of confusion in your query. Lump sum and STP are different ways of investing in mutual funds and SWP is all about withdrawing a fixed amount regularly (say monthly) from mutual funds... Read More

Is SWP withdrawal from balanced funds taxable

Is SWP amount is taxable on balance funds for every month withdrawal? Will AMC Deducts the TDS? or shall I need to show in the IT returns? Please clarify?

Mar 27, 2017 by Syed, Bangalore | Mutual Fund

Please note the following in context to your query about SWP withdrawals from balanced funds... Read More

Which mutual fund scheme should I invest for tax benefit

I would like to invest Rs. 10,000 in mutual funds. Please advise me which MF is the best one for me and also tax exempted?

Mar 27, 2017 by K.S.Srinivas, Hyderabad | Mutual Fund

As you want to save taxes by investing Rs 10,000 in mutual funds, you should invest in ELSS funds. Investments in ELSS Mutual Funds help you save taxes under section 80C of the Income Tax Act 1961 upto... Read More

Which ELSS fund should I invest in Mutual Fund

I am 60 years of age and want to invest around 1.5 lakh in ELSS. Please Help. Since the last one year I have been investing Rs. 10,000 per month in Axis Long term equity fund?

Mar 27, 2017 by J Chhabra, 110092 | Mutual Fund

Axis Long Term Equity Fund has a good long term performance track record. But during the last one year the fund failed to beat the benchmark and ELSS category returns. Therefore, if you wish to invest further... Read More

Have I selected the right funds for 5 years SIP investment horizon

I am thinking to start SIP in Sundaram Select Midcap Fund (2k), SBI Bluechip Fund (2k), DSP Mid and Small Cap Fund (2k), DSP Tax Saving Fund (3k), ICICI Prudential Tax Saving Fund (2k). Are this fund ok time horizon is 5 years+?

Mar 27, 2017 by Abhishek Poddar, Guwahati | Mutual Fund

You fund selection from large cap, mid cap and ELSS categories is good for 5 years+ investment... Read More

Should I invest through STP route or in lump sum

I am looking to invest 10 lakhs via STP. I am 27 years old, with risk appetite moderately high and want to invest for 5+ years. I want to first invest 10 lakhs in a short term debt fund and then via STP invest 80% of the amount in Largecap and Midcap funds over a period of one year. Can you please tell if this strategy is ok or should I invest lumpsum in my targeted funds? Also can you please suggest the best large cap and mid cap funds or any other funds based on my risk profile?

Mar 27, 2017 by Jaiveer Kalia, Chandigarh | Mutual Fund

Your strategy to invest via STP - short term debt fund to equity - is a good one over investing in one go in lump sum. It would even be better if you could go for weekly STP instead of monthly... Read More

Have I selected the right funds based on my risk profile

I am 37 years old and would like to invest for next 10 yr through SIP of 30-36K to achieve 1 Crore goal. Following are my fund selection after reviewing & analysis and can take average to moderate risk (60 Equity and 40 Debt). Request for your inputs on portfolio. Birla Sun Life Dynamic Bond Fund 1,000, Birla Sun Life MIP II Wealth 25 10,000, Franklin MIP 4,000, Birla Sun Life Relief 96 3,000, DSP BlackRock Tax Saver ELSS 2,000, Birla Sun Life Top 100 fund 3,000 Birla Sun Life Pure Value 7,500, Franklin Small Companies 7,500?

Mar 27, 2017 by Lalit Soni, Mumbai | Mutual Fund

You have almost selected the right funds based on your risk profile excepting that mid cap and small cap funds may not be the right fit for you as your risk profile is moderate. Mid and small cap funds are... Read More

Should I continue my investment in Gilt Funds

Really great to see the contents and articles in your website. Truly enriching. Glad to come across. Would like to ask one suggestion regarding investment in Gilt Fund.Invested in Franklin Government Securities Fund Long Term Direct. In losses after the recent RBI decision in Feb, 2017. Is it advisable to continue till it turns positive or shift to any other suitable fund? Appreciate your advice on this. Thanks?

Mar 27, 2017 by Srikanth, Kuwait | Mutual Fund

Thanks for the kind words about our website which we truly appreciate. Please note that investing in mutual funds should be based on your risk taking ability and investment horizon. We do not know why you have... Read More