Investment, Financial Planning, Mutual Fund & Income Tax Queries

How to draw regular income as I am going to retire

I am going to retire in the month of August 2017. I would like to invest around Rs. 25 Lakhs in 5 different funds and would like to draw Rs. 25,000 per month through SWP. My risk apetite is low being a retired employee with no other source of income?

May 6, 2017 by Sankarankutty P V, Trichur | Mutual Fund

As you are retired and your risk profile is also low, you should ideally invest in debt funds or MIPs which pays monthly dividend as you want regular income. However, desiring to get Rs 25,000 by investing... Read More

Should my mother invest her money in debt or MIP

Should my mother invest a lump sum amount (received after retirement) directly in Long Term Debt Fund/MIP/Combination of both at one go, or should she do an SIP. If SIP, what would be the ideal duration for investing the whole amount? Also for SIP, should she put all the money in Liquid Fund and do an STP from Liquid to Debt Fund? She has steady rental income, so there is not much need of monthly withdrawals currently and on investing in FDs she would fall in 30% tax bracket, investment horizon is 5+years. As the risk appetite is low, we are not considering pure Equity or Balanced Funds?

May 6, 2017 by Mohit, Ghaziabad | Mutual Fund

Considering that her risk appetite is low, investing in debt funds makes sense. However, hybrid debt funds are also a good option as her investment horizon is 5 years. If you are investing in debt Funds then there... Read More

What about capital protection in STP

An investor invested Rs. 100,000 in BSL Dynamic Bond Fund, in Jan 2017, opted for SWP of Rs. 2,000 in quarterly mode. Time horizon is 10 years. Is the decision right? What about the projection of capital appreciation?

May 6, 2017 by Kalyan Som, Burdwan | Mutual Fund

We think, investing in a dynamic bond fund to do STP is not the right way for two reasons - 1) you are incurring exit load 2)for dynamic bond funds investment horizon should be 2-3 years. Liquid fund or ultra... Read More

How much future corpus is expected from my mutual fund investments

Thanks for a very Informative site. My MF investments are as following: 1) 2500 INR each in HDFC equity fund (Regular-Growth) (the 2500 SIP was increased to 3500 from April 2017), ICICI Value Discovery Fund, IDFC Equity Fund, Franklin Templeton Prima Fund Growth (the 2500 SIP was increased to 5000 in July 2015) and started in July 2014. 2) ELSS: 5000 each in Franklin India TaxShield and Reliance Tax Saver started in April 2015. The Reliance SIP amount was increased to 6000 INR from April 2017. 3) Additional SIPs started in April/May 2017: 1500 in ICICI Banking & Financial Services GRowth, 1000 in Canara Robeco Emerging Equities Regular Growth, 1000 in Mirae Asset Emerging Bluechip Fund Regular Growth. 4) Also, have made lump sum investment of 30,000 in ICICI Banking and Fianncial Services and 20,000 in Canara Robeco Emerging Equities Regular Growth. My goal is long term wealth creation. Have I selected the right MFs, also, I intend to increase the SIP amount/ do lump sum investment as and when available. Considering the existing portfolio, how much capital can be generated after 10-15 years? I understand that the returns are not certain/fixed. but would like to get a fair idea regarding my investments?

May 5, 2017 by MGD, Mumbai | Mutual Fund

You have selected good funds for your SIPs excepting IDFC Equity Fund and HDFC Equity Fund. We think you should invest in better diversified or midcap equity funds. As you are investing only Rs 1,000 each... Read More

Which ELSS scheme should I choose to invest in

Thanks for your timely response earlier for my query on "which elss fund to invest in". As per the advice and some research of my own I have short listed Axis Long Term Equity, Reliance Tax Saver and DSPBR Tax Saver. I also found Franklin India Tax Shield to be quite good and consistent. I would like to go with Axis as my First choice and one out of the other 3. Any suggestions?

May 5, 2017 by Ashwin, Mumbai | Mutual Fund

You have selected the right ELSS schemes to invest. Your first choice is AXIS Long Term Equity and for the second choice, you can invest in any one out of the two top performers - Reliance Tax Saver Fund... Read More

What is the taxation when we do STP to equity fund

When we do STP from MIP mutual fund to equity fund what is taxation? In which mutual funds it is allowed to do STP to equity funds?

May 5, 2017 by Rekha, Mumbai | Mutual Fund

When you do STP from MIP Mutual Fund scheme or any other debt scheme, and if the such STPs are within three years from the date of investment, then short term capital gains tax would be payable on the... Read More

Has UTI Mastergain unit scheme been discontinued

My Dad had purchased units in UTI Master Gain for Rs. 2,000 INR in 1992. However, the scheme has been discontinued some time back. Is it possible to know the value of these units as on today, approx what will they be equivalent to? Also, how can we redeem these units (we have the necessary certificates with us)?

May 5, 2017 by MGD, Mumbai | Mutual Fund

UTI Mastergain scheme has not been discontinued rather the name of the scheme has been changed to UTI Equity Fund effective August 01, 2005. All the unit holders of UTI Mastergain scheme now hold... Read More

How can I see the correct return of Birla Sun Life Wealth

I went into Mutual fund lump sum return calculator and entered the following details: fund 1 - Birla Sun Life MIP Wealth 25 Plan - Monthly Growth - Payment Enter amount - 100,000 start date - 02-05-2013 End date-02-05-2017 and submitted. Results that got displayed are incorrect (CAGR was showing as 10.0. in the "profit" column the value is blank. Fixed deposit, Gold Silver Values were also incorrectly displayed. Kindly request look into them? Wish there is an option for the user to attach a doc while posting a query. It would have been helpful for everyone to see what I was seeing?

May 5, 2017 by Vikram, Hyderbad | Mutual Fund

We must say, this is an excellent feedback, thank you! The problem we found that there are two schemes with almost the same name and options. you had chosen Birla Sun life MIP wealth 25 Plan - Monthly... Read More

Should I invest through regular or direct plan of mutual funds

While selecting dividend pay out option in equity based MF schemes, whether I should go for Direct Plan or Regular Plan. Because NAV is less in regular plant and I will get more number of units. In regular plan dividend amount would be more since it is paid on the basis of Rs. per unit. Please advise?

May 5, 2017 by Mohammad Wasim, Burdwan | Mutual Fund

If you have sufficient knowledge about mutual funds and you are confident that you can manage and service your mutual funds without the help of a mutual fund advisor, then you can invest in the direct plan... Read More

Should I invest in ICICI Prudential Value Fund Series 13

How about investing in ICICI Prudential Value fund Series - 13?

May 5, 2017 by Varsha, New Delhi | Mutual Fund

ICICI Prudential Value fund Series is a popular series of funds launched by ICICI Prudential Mutual Fund since 2013. These series of funds have delivered returns between 24 - 44% in the last one year. If you... Read More