Investment, Financial Planning, Mutual Fund & Income Tax Queries

Should I start the SWP after one year of investment in a hybrid fund to earn tax free income

Dwaipayan, I have been reading, with interest, your recent articles on using SWP as an efficient means of income for retired persons. I have one specific question in this regard - I want to invest a portion of my retirement corpus in a good Hybrid Fund and begin a SWP to fund my monthly expenses. Since the SWP from an Equity oriented Hybrid Fund is tax free after a holding period of 1 year, would it be beneficial for me to deduct my first year's income requirement from the corpus and invest the balance in the Hybrid fund and then start the SWP after the completion of 1 year? Please give your suggestion?

Apr 6, 2016 by Harish Sadasivan, Bangalore | Mutual Fund

Yes, you are right. The amount equivalent to first year withdrawal can be parked into a liquid fund and rest can be invested in a hybrid equity fund. For the first year, you should withdraw monthly from the liquid... Read More

Please advise correct proportion as I am planning to invest 5 Lacs in debt and equity mutual funds

Would appreciate your advise on investment, as I planning to invest around five lacs, half in debt and half in equity. Can you please advise the correct proportion considering it as a long term investment?

Apr 5, 2016 by Ashley Fernandes, Mumbai | Mutual Fund

Good to hear that you are planning to invest in Mutual Funds. It would have been better had we known your age. You have mentioned investing 50% each between equity and debt. However, one of the common... Read More

Is it at par to compare debt fund returns with Reliance increasing income insurance plan

I have come across Reliance increasing income insurance plan. Is it at par as compare to income funds or debt mutual funds? Since returns are assured after 6th year it looks attractive for me at first?

Apr 5, 2016 by Sspadmin, Pune | Mutual Fund

Please do not confuse yourself by comparing the returns of Life Insurance with that of Mutual Funds. The key benefits and terms of the Reliance increasing income insurance plan can be found in this link... Read More

Please guide me if funds selected by me is alright and should I increase my SIP amount

I have the following MF SIPs (1000/- p.m.) at present. My age is 43 years, am a salaried employee with CTC 7 lakhs per annum. Please guide me whether to add some more or to quit or to replace. HDFC - Equity Growth, Balanced Fund. SBI - Magnum Mid Cap, Blue Chip, Banking and Finance. Franklin - Prima Plus, High Growth, Small Cap. IDFC - Prem Equity, DSP - Micro Cap. I can another 5000 pm in my portfolio. Please guide me?

Apr 5, 2016 by Susanta Sathua, | Mutual Fund

The funds you have selected is good but they are too many : ) Since you are aged 43, it is high time for planning for your retirement and other long term goals, if you have not done already. Therefore, your SIP... Read More

What are the recommended Debt Funds for investment horizon of 3+ years that can provide better than FD returns

What are the recommended Debt Funds with an investment horizon of 3+ years that can provide better than FD returns based on current economic situation?

Apr 4, 2016 by Raman, Bangalore | Mutual Fund

There is an RBI monetary policy review meeting on April 5. It is widely anticipated that, RBI will cut repo rate by 25 basis points. With reduction in repo rates, there will be pressure on the banks to reduce fixed... Read More

For TDS from my salary I have given PAN number of my father instead of mine and my employer has deducted Tax in his name

I work for a MNC in Bangalore, and joined the company in August 2015. While giving the PAN number to the company, by mistake I have given my father's pan card number. The salary for the past 8 months has been credited to me with this PAN number, and not with my own PAN. While filing my income tax returns, is there any way that the salary credited is shown against my PAN number only?

Apr 4, 2016 by Abhay Sibal, Bangalore | Taxation

Firstly, your company should have verified the PAN provided by you for TDS purposes. It is the responsibility of your company to ensure proper tax deduction at source. Usually companies ask their employees... Read More

I am 27 Yrs Old and want to start investment through SIP to get a corpus of almost 1 Crore after 15 yrs

I am 27 Yrs Old and want to start investment through SIP. I need a Corpus of almost 1 Crore after 15 yrs. I want to add Midcap and Balanced Fund in my Portfolio. Please Suggest whether Mirae Asset Emerging Blue Chip Fund and L&T Balanced Fund would be better?

Apr 4, 2016 by Gaurav Kumar, Balasore | Mutual Fund

Assuming you get 15 – 20% annualized returns from mutual fund investments over the next 15 years, you need to save and invest Rs 9,000 – 15,000 on a monthly basis, to accumulate a corpus of Rs 1 crore in... Read More

I have 2 Lacs in Kotak Sweep in Account as Emergency Fund. Should I keep it as it is or should I invest it in some debt or liquid fund

I have 2L in my SB Acct (Kotak Sweep-in) as Emergency Fund. Should I keep it as it is or should I invest it in some debt/liquid fund? Please suggest?

Apr 4, 2016 by Riya, Kolkata | Mutual Fund

Even though Kotak Mahindra Bank gives higher savings bank interest compared to other banks, liquid / debt funds can give much better returns. So unless you need the entire money overnight, why should you... Read More

Can I open a New PPF Account in April 2016. I have been living in US and also in India for last few years

Could you please suggest me can I open New PPF Account in April 2016 for me for below case and continue till 15 years. Note: Till today Only I spent time in US. Case: As per My Passport Details My US Spent Time: 30Jun/2014 - 08Sept/2014, 23Nov/2014 - 08Nov/2015, 08Dec/2015 - 13Feb/2016. Again I have plan to go US end of April 2016 for few years with my entire family but would keep on visiting India for 1 or 2 month once in a year. And after few years like 3 or 4 years I will permanently come to India?

Apr 4, 2016 by Bhagwati, Bhilwara | General

Firstly, to open a PPF account you need to be a resident Indian. Non resident Indians cannot open PPF accounts. The question therefore, is whether you are a resident Indian? Under Section 6 of Income Tax Act... Read More

Clarification regarding Equity SIP mutual fund for a period of 5 year

My mother is drawing karnataka state government family pension from state bank of india, muddebihal-586212 she is willing to give a gift for my son who is studying IInd standard in future for which she is willing to save the money of Rs.5,000/- every month in equity mutual fund for a period of 5 year. Please suggest me whether we can expect a return of 20% to 25% on equity for a period of 5 year whether we can withdraw from the scheme after completion of 3 year is permissible. Which is your good mutual fund performing consistently and yielding a good return to the investors and in which your mutual fund we have to invest the money whether nomination facility is there and how we have to pay the money on monthly basis. Which company mutual funds do you suggest. At the time of withdrawal any income tax is deducted. Whether you will assure us a minimum return of 20% to 25% is possible mutual fund. Whether any charges in this amount of Rs.5,000/- will be deducted on monthly basis or on yearly basis. Please clarify our doubt that will help us to take the decision immediately?

Apr 4, 2016 by Chandrashekhar Rathod, Hyderabad | Mutual Fund

You should understand that, mutual funds are subject to market risks. Returns are not assured in mutual funds. Though equity mutual funds have given 20 – 25% annualized returns in the past, historical returns... Read More