Investment, Financial Planning, Mutual Fund & Income Tax Queries

How does interest in mutual fund lump sum investment works

I would be most obliged if you could explain in brief about how interest to the principal amount works in a lump sum mutual fund investment works. Let me give you a scenario, say I have a lump sum investment of 6 lakhs in a Mutual fund. This has been started on 15th November 2016. The NAV at that moment was 18. Now my question is, does my investment solely depend on the NAV in about 15 years or is there some kind of interest compounded annually. More specifically, would my units purchased initially remain the same over 15 years or will there be an automated purchase done?

Jun 8, 2017 by Ke Chi, | Mutual Fund

Please note that there are no assured returns in mutual funds and therefore no interest is payable to you. Since no interest is payable, there is no way to that we can explain as to how the interest works in case... Read More

Which funds are best for retirees to draw SWP

I am a retired person, as because I need some money monthly basis. Please advice which funds are best for SWP?

Jun 8, 2017 by Sankha Dip Bagchi, | Mutual Fund

For retirees, balanced funds could be ideal investment option provided you have an investment horizon of 5 years or more. You can invest a lump sum amount in balanced funds and withdraw a fixed amount on... Read More

Can I expect 14 to 15 percent return from my mutual fund investments

I am a 40 year old individual I am investing INR 76,500 every month in SIP's in the below fund. My investment horizon is 5-10 years and am looking at generating a CAGR of around 14-15%. Does the fund selection look right? Request your suggestions scheme name SIP amount Mirae Asset India Opportunities Fund - Regular Growth Plan 10000, HDFC Balanced Fund - Regular Plan - Growth 10000, L&T Midcap Fund - Growth 7500, Mirae Asset Emerging Bluechip Fund - Regular Plan Growth Option 9000, Motilal Oswal Most Focused Multicap 35 Fund Regular Growth 10000, Tata Equity P/E Fund Regular Plan - Growth 10000, Sundaram Rural India Fund - Regular Plan - Growth 10000, DSP BlackRock Micro Cap Fund - Regular Plan - Growth 10000. Further I have some corpus which I intend to invest in a Debt Fund/MIP which will generate around 12% CAGR post tax for the next 5-7 years. I will be funneling these returns in the above/similar funds after the 3 year period to take benefit of LTCG tax?

Jun 7, 2017 by Sameer, Mumbai | Mutual Fund

Your fund selection for SIPs are good excepting TATA Equity PE Fund. You have selected mostly mid cap funds and there is one from balanced and two from diversified equity fund category. Therefore, overall... Read More

Have I approached the right way of investing for achieving my goals

I have recently started investing in mutual funds and I selected the top performing funds for my long term investments. I am moving all my maturing FD's amount to these funds. By the year end I will be investing around 30 lakhs in the selected funds. I am investing these amount for buying home after 5 years, child's education after 15 years and retirement. I am 32 years old and I can stay invested for 10-15 years. I can take high risk. Presently I am investing 50% in mid and small cap, 15% in large cap, 15% in multi cap, 10% in banking and 10% in infrastructure funds. From next year I will doing SIP's for the selected funds. I have 10 funds in my portfolio. Is this the right approach for my goals?

Jun 7, 2017 by Shiva, Hyderabad | Mutual Fund

Good financial planning practices suggest that, you should have separate investments for separate goals. Though all your goals are long term in nature, it will be helpful for you (in the long term) to segregate... Read More

Can you suggest funds for aggressive risk profile

Thank you so much for your prompt response. You may take my risk profile to be growth oriented and aggressive. The time frame is 3 - 5 years, or more if necessary. Time is not a particularly limiting factor. In accordance with this, please advise me the names of specific Equity funds, for lump sum investment, in which I can invest in at present?

Jun 7, 2017 by D Kamat, | Mutual Fund

For aggressive risk profile and wanting to invest in equity oriented funds, your investment horizon should be at least 5 years. You can invest in diversified equity funds and mid & small cap funds considering... Read More

How I can plan my various investments

My queries: Actually my age right now is 45 years. I am planning for next 10 years for accumulate corpus money for retirement as my others obligation (house, flat, car every think) done but 2022 to 2023 a money will be require max 2 to 3 lacs for son's engineering one time course fees. I want to invest 1 lacs in 2 part 50K+50K in different scheme of MF in Lump sump on time for min 10 years. Give me best multiple options of schemes. Tentative date of start end of June-2017, and another start to SIP @ 15000/pm for 10 years tenure. Please give me best options from where I accumulate a healthy corpus after 10yrs. I have a 5 lacs fund for invest. My planning are as follows= MF (in balanced diversified fund)= 1 lacs. KVP= 3 Lacs & PPF= 1 lac (it will be half for tax deduction purpose U/S 80c) give your best suggestion to me?

Jun 7, 2017 by Raja Dasgupta, | Mutual Fund

You need 2-3 lakhs in the year 2022-2023 for your son’s engineering studies therefore, you have 5 years in hand for saving for this gaol. You can easily achieve this goal by investing Rs 3,500 through monthly... Read More

Am I investing in good mutual fund SIPs

I have started my SIP from last month and invested 1000 SIP in 1) Kotak Select Focus Fund - Regular Plan (G), 2) DSP BlackRock Opportunities Fund - Regular Plan (G) and 3) Mirae Asset Emerging Bluechip Fund (G) and invested Rs 2,000 in each MF so far. Please let me know whether I have invested in good Mutual Funds or not and should I continue to invest on it or not. I am 28 year old and have a plan of investing for atleast 60 months?

Jun 7, 2017 by Parikshit Banerjee, Burdwan | Mutual Fund

Congratulations! You have selected good mutual fund schemes for your SIPs. Therefore, you should continue to invest in it for the long term. Your investment horizon of minimum 60 months is also fine as we... Read More

Why mutual fund ask for cancelled cheque while changing bank details

Whenever the bank mandate is to be changed MF's are asking for one of these. 1) Cancelled cheque leaves of the registered Account and the new account or, 2) A letter from the bank manager certifying that an account is held by the depositor or, 3) Copies of bank pass book. In my opinion Mutual funds have no business to ask for such details. All they require is the address of investor. They should sent interest/ redemption warrants to the address given. Where the investor wants to deposit these is his business. Companies do not ask for such details when money is invested in equity, fixed deposits or debentures?

Jun 7, 2017 by S. Govindaswamy, Madurai | Mutual Fund

This is a normal practice and a standard guideline for changing bank details in mutual funds. This has been implemented so that your redemption and dividends are seamlessly credited in your designated... Read More

How is my mutual fund scheme selection

You are doing a wonderful inspiring job by helping there's with their queries. I have read almost all near recent answers given by you. I too want to hear from you about my scenario. Here are my questions. 1) I am 28. I need to grow financially. I started SIP in SBI Blue Chip, Mirae Asset India Opportunities, DSPBR Mid Cap, Mirae Blue Chip, HDFC Balanced, Franklin High Growth. Is this portfolio good for 15-20 years. I can review and rebalance as and when needed? 2) Is L&T Emerging Business Fund is good for long term? 3) I have seen from your MF research tools, even worst performing fund in mid, multi cap and small cap space delivered decent returns in last 10-15 years. If a fund delivered 30% returns with 15 standard deviation, definitely it will deliver 15-45 % returns. Some of your articles also showed that Reliance Growth, Franklin Prima etc has given 45-100 times returns in 20+ years time. Still is it risky to believe mid and small cap? Thanks much for helping people like us with your answers with a great commitment?

Jun 7, 2017 by Pavan, Hyderabad | Mutual Fund

Thank you very much for the kind words and we truly appreciate that. You have selected good schemes for your ongoing SIPs and given each fund's consistent performance track record these are good for your... Read More

With current investments can I retire at age 45

With great hope my questions are below. 1) My age is 28, started SIP from this year March in below scheme - SBI Blue Chip - 3000, HDFC Balanced Fund - 2000, Birla Sun Life Tax Relief 96 Plan - 2000. Q. 1) How you see my portfolio is? Q. 2) Other recommend fund to do 4,000 SIP more? My aim is to take retirement at 45 then put whole corpus in SWP Scheme and earn money?

Jun 6, 2017 by Sleep Singh Bisht, Ahmedabad | Retirement Planning

The 3 mutual fund schemes that you have selected are all good performing in their respective categories. Your current SIP is Rs 7,000 per month and assuming you will continue this till 45 years of your age... Read More