Investment, Financial Planning, Mutual Fund & Income Tax Queries

How to get monthly dividend from my lump sum investments

I am 60 year old. I have invested in lump sum and SIP till 65 age. In lump sum I want dividend every month. The following investment are: 1. HDFC Prudence Fund MD 1700000, 2. HDFC Top 200 Dividend: 128000, 3. HDFC MIP Long Term: 600000, 4. ICICI Prudential Balance Fund (MD): 1000000, 5. ICICI Prudential Balance Advantage Fund MD: 200000, 6. Franklin India Balanced Fund MD: 200000, 7. Canara Robeco Balance Fund MD: 800000, 8. SBI Magnum Balance Fund QD: 500000, 9. BSL Balance 95 Fund QD: 400000, SIP: 1. Axis Mid Cap Fund, 2. DSPBR Micro Cap Fund, 3. BSL Pure Value Fund, 4. SBI Blue Chip, 5. Motilal Most Focussed Dynamic Equity Fund, 6. Franklin India Smaller Companies Fund, 7. ICICI Pru Value Discovery Reg Growth, 8. Reliance Pharma Fund each SIP 5000 per month for 3 years, please advice if any change is required or not? I can take risk?

Jun 17, 2017 by Ravinder Kumar Kathuria, Pune | Mutual Fund

You mentioned you want monthly dividends from all your lump sum investments. We would like to bring to your notice that, HDFC Top 200 Fund does not pay monthly dividends. That aside, most of the funds... Read More

Is it wise to invest my mothers money in debt and balanced funds

My mother age is 72 years but she is healthy and also gets regular pension. Her FD worth of Rs. 10 lakh is getting mature. She do not require money. I want to invest in MF. Sir, I am planning to invest half amount in Debt MF to get about 9 to 10% returns and remaining in some good balance fund. Please guide is it a right strategy or should I invest in Debt only and once there will be berrish phase some portion should shift in Equity? I don't want to take much risk?

Jun 17, 2017 by Ashish Dave, Ahmedabad | Mutual Fund

It is a wise decision to invest in debt funds and balanced funds. But you need to note that the risk profile of your mother should match with that of the risk associated with these two categories of funds. The other... Read More

Will it be wise to invest in HDFC Prudence Fund

Will it be wise to invest in HDFC Prudence Fund (Monthly Dividend) Plan. This fund is giving almost 1% monthly dividend. As the dividends are tax free I want to invest Rs. 10 lakhs. Kindly advice?

Jun 17, 2017 by Ashok Sahoo, Angul | Mutual Fund

HDFC Prudence Fund is one of the top performing funds in the balanced fund category and has a consistent track record of paying monthly dividends. You can consider investing in this fund. However, you must... Read More

Have I started well for achieving my financial goals

I am 28 years, single, and have recently (2 months) started investing in mutual funds through SIP. My goals are at different stages of my life. In the next 4-5 years. I wish to buy a house worth 40 lacs (current price). I want to build a handsome corpus for my retirement and children education. My mother will be retiring in the next 5 years so after 5 years I wish to support my parents too. I currently have INR 7 lacs towards my education loan which I can pay in the next 4-5 years in instalment, no other loans. I have term insurance of 1 cr and health insurance too. I seek your advise in building my portfolio and check if my start is good and what all funds do I need to add in order to achieve my goal. House is my first preference in the next 5-6 years. My current investments are: Franklin India Smaller Companies Fund: INR 2500, Mirae Asset Emerging Bluechip Fund: INR 10000, L&T India Value Fund: INR 7500, ICICI Value Discovery Fund: INR 5000. I can invest INR 30-40 thousand more per month. Please advise me if my fund selection is good or not. Also, advise if more funds are needed to achieve my goal and further investment or I should just increase the amount of investment in the existing funds than adding more funds? Many thanks for all your help. I look forward to your reply?

Jun 15, 2017 by Neeraj Singh, Delhi | Financial Planning

We think you have made a good start by selecting top performing funds for your SIPs. You have two goals to meet after 5 years – 1) House worth Rs 40 Lakhs and 2) Support your parents financially. But you have... Read More

How to reach my various financial goals

I am 28 years of old and got married 6 months ago. Current financial status 1) Monthly Salary 43k, 2) Monthly Expenditure 20k, 3) Wife searching job, 4) I am alone child and parents still earning (will retire in 5-7yrs) Mother eligible for govt. pension, 5) no home loan currently, 6) Family health cover of 10lac (apart from my company's), 7) All my LIC and other insurance have cover of 15 lac. My SIP's 1) 1k UTI Retirement Benefit Pension Plan (since Dec. 2010), 2) 1k UTI ULIP (since Dec. 2010), 3) 2k ICICI Prudential Blue Chip (since Apr. 14) 4) 5k Reliance ELSS (5k Since Jan. 15), 5) 7k Reliance Money Manager (5k since Dec. 12, incremented by 2k from Sep 15), 6) 2k LIC Saving Fund (since Sep. 13), LIC insurance premium auto deducted from here, 7) Lump sum 1.15 lac in DSP Money Manager STP 2k weekly to DSP Micro cap (Will increase amount annually as I earn more and my wife starts job) Apart from this: 1) EPF As part of salary, 2. PPF 1 lac current total (I add as per tax needs) Old stopped SIP' (no redemption yet). 1) 1k L&T Opportunity Fund (Dec. 10 - Jan 14), 2) 1k HDFC Top 200 (May 11 - May 15). I have no urgent need of these yet and return is on 15+ side Goals 1) Early Retirement at 56 years (required 3cr.), 2. A car in 1yr (required 5-6lac.), 3. Child education after 25-27 years (required 40lac), 4) A small investment home in 5yrs (7-10lac for down payment) to help tax and earn rent, 5) A big fat family vacation (once every 3yrs. required 2 lac), 6) A STP to my parents monthly 10k after 11 years, 7) 1k charity per month after 1yr Questions Are my SIP' good and enough to full fill my goals? What to do with stopped SIP' amount. Should I transfer them or let be as is?

Jun 14, 2017 by Kanad Arvind Mehta, Pune | Financial Planning

You have a long list of goals, but we find that your investments are not well organised and invested in schemes/ products not performing well. But first let us see how much you need to save per month to reach... Read More

Have I selected the right funds after review of my Mutual Fund portfolio

I have good amount invested to HDFC TOP 200, HDFC Equity and HDFC Prudence over last 10 years. Would like to change this investment to following funds and remain invested for next 7 to 8 years. 1) change HDFC Top 200 to Birla Top 100, 2) HDFC Equity to Birla Equity Fund & Motilal Oswal Long Term Equity Fund, 3) HDFC Prudence to ICICI Balanced Fund and HDFC Balanced. Advise whether this is right move keeping in mind next 7 year investment. I am high risk investor and this is surplus amount?

Jun 12, 2017 by Rama, Vadodara | Mutual Fund

You have really done a good job in selecting new funds for replacing the old ones. The funds selected by you are among the top performing in their respective categories. You should go ahead with your action... Read More

Whether to invest in SIP or lump sum

My age is 49 and I have a cash of Rs 10 lakhs, which I want to invest in MF for 5 - 7 years. I think 65 (equity) & 35 (debt) asset allocation will be better for me. In which MF, should I invest? Looking at market all time high, whether to invest lump sum or by SIP/STP? Please guide me?

Jun 12, 2017 by Anil Madhav Parate, Nashik | Mutual Fund

Since you do not know sufficient details of your total assets / liabilities and your risk appetite, we will not be able to comment on the asset allocation of your planned investment. For the equity portion of investment... Read More

Which ELSS Mutual Funds are good out of the selected ones

My client wishes to invest 150000 to save tax u/s 80c by investing Rs. 30000 each in 1. DSP BlackRock Tax Saver Fund, 2. Birla Sun Life Tax Relief 96, 3. Axis Long Term Equity Fund, 4. Reliance Tax Saver Fund, 5. Kotak Tax Saver Fund, all funds with dividend option. Kindly approve the amount distributed & selection of funds or suggest changes in amount & funds be made to avail liquidity & maximum gain to be invested at your earliest please?

Jun 12, 2017 by Ashok Goyal, Punjab | Mutual Fund

You have selected too many ELSS funds for investing Rs 150,000. We think, you should not invest in more than 3 schemes. You can check top consistent ELSS funds from this link... Read More

Have I invested in too many funds and how to reduce it

I want to invest using SIP and lumpsum method and below are my chosen funds. Note: I started investing in the DSPBR Micro and then it stopped taking lumpsum amounts so I am inclining towards L&T Emerging and Franklin Smaller Companies. Same with Mirae. Tell me if this portfolio is too risky! Portfolio 1 (Only SIP) - 1) ICICI Value Discovery, 2) DSPBR Micro Cap, 3) Mirae Asset Emerging Bluechip. Portfolio 2 (SIP and lumpsum) - 1) SBI Bluechip, 2) Franklin Smaller Companies, 3) DSP Focus 25, 4) Franklin High Growth Portfolio. 3 (Only lumpsum in random intervals) - 1) L&T Emerging Business, 2) Canara Robeco Emerging Equities, 3) ICICI Banking and Financial, 4) DSP Natural Resources, 5) SBI Gilt Roughly, if all portfolios combined it stands 75% Equity and 25% Debt. My age is 27. Horizon is more than 10 years. I know it seems there are too many funds and will try to reduce them in up coming year. So is it more risky?

Jun 10, 2017 by Samarjit, Kolkata | Mutual Fund

Either you invest through SIP or lump sum, the fund names can remain same excepting where the fund is not taking lump sum or not taking any subscription at all. In your case, Mirae Asset Emerging Bluechip... Read More

Can you answer one query about mutual funds

I am trying to understand Mutual funds and many of my questions are answered in your web site. Thank you. Still I have one question before investment; i.e., Few Mutual funds after 1 year returns are very good after or at least good increase till 1 year. Latter 2nd year returns reduces. How is it possible (I do understand markets risks are always their). Is their any info I am missing?

Jun 10, 2017 by Reddy, Bangalore | Mutual Fund

Glad that you wrote to us and found that our website could answer many of your questions. To... Read More