Investment, Financial Planning, Mutual Fund & Income Tax Queries

As a moderate risk taker which SIPs I should invest in

Want to invest Rs 15,000 per month. Moderate risk taker for 10 years. Please give the fund names, amount of investment in each fund, got maximum return, how much?

May 5, 2017 by Bhawani, Howrah | Mutual Fund

As a moderate risk taker, you can invest in balanced funds. You can choose any two funds from ICICI Prudential Balanced Fund, HDFC Balanced Fund, SBI Magnum Balanced Fund, DSP BlackRock Balanced... Read More

Should I invest bank OD amount into mutual funds

I have OverDraft (OD) based home loan (9.5%), I have excess money (40 Lakhs) in that account. As per my calculation, if I keep 40 Lakhs in OD for 10 years I will be saving 22.1 Lakhs, if I invest 40 Lakhs in mutual funds then I can earn compounding interest rate. so now I have questions: 1. Is my above understanding is correct? If yes then? 2. Since the market is at its peak so rather than doing lump sum investment in MF, I think to start putting 40 Lakhs in a good liquid fund and start STP / SIP from that to put into Equity Oriented Balanced Fund. I will plan STP/SIP in such a way that I flush up my liquid fund within 1.5 years. Is this a correct approach? 3. Even if I consider 11% CAGR return from above exercise with 10 years horizon then I would be making 73.57 Lakhs interest which is more than what I would be saving by paying OD account? 4. I have the adequate term plan to cover up the risk in case of death? 5. My age is 41, I have twins kid (11 years old), 11 Lakhs in PPF, already investing in MF (Monthly SIP of Rs 60,000), LIC policies (I am planning to close down as I am not getting good returns), I will invest LIC money into good balance fund. Not yet planned anything for retirement. This is to give you an idea about my risk apatite. I hope my question is clear enough. I would appreciate for an expert comment on this strategy?

May 5, 2017 by Jay, India | Financial Planning

Theoretically, your plan sounds good as you have compared the OD interest rates which may be lower compared to the future gain that you could make by investing in equity mutual funds. But coming to the... Read More

Which ELSS fund to invest in

I find tools and articles from Advisorkhoj to be highly asset to investors like me. I would like your advice on investing in ELSS via SIP as per points below: My risk profile: Moderately high; Age: 26 years; Investment Tenure: 20+ years with 5% annual increase; SIP Amount: 5,000-10,000. I am planning to split the SIP amount into 2 ELSS funds. Please advice?

May 4, 2017 by Ashwin, Mumbai | Mutual Fund

Thanks for the kind words about Advisorkhoj! Glad to note that you liked our tools and articles and found that it is helping investors like you. You can spilt the SIP funds between two ELSS schemes - DSP... Read More

Shall I stay invested in ICICI Prudential Multiple Yield Series 9 Fund

I have invested one time lump sum in ICICI Prudential multiple yield series 9 plan A dividend fund in April 2015 and since then the fund has given only 3% return. Shall I stay invested or try to get my money back to reinvest some where else? Please suggest?

May 4, 2017 by Vikram, Singapore | Mutual Fund

Launched in April 2015, ICICI Prudential Multiple Yield Series 9 plan A is a close ended hybrid debt oriented fund. The maturity date is May 22, 2018. The fund has given 1.62% annual return (as on today) since... Read More

Should I consider change in schemes due to portfolio overlap

I have SIP of Rs. 5000 each in the following funds: 1) DSP BlackRock Micro Cap Fund 2) Franklin India Prima Fund 3) Franklin India Smaller Companies Fund 4) Mirae Asset Emerging Bluechip Fund 5) Reliance Small Cap Fund. I also invest in 2 Large Cap & 1 in Diversified funds. I am 29 years, want to invest for 15 years. I am investing in these funds since 6 months. I am concerned about portfolio overlapping as all the above funds are in small & mid cap segment. Should I make any changes in the above funds? Also I am willing to take risk for better returns?

May 4, 2017 by Rohit Jain, Mumbai | Mutual Fund

You have selected very good funds from mid/small cap category - Congratulations! We think, you can continue with your selection without worrying too much about portfolio overlap etc. Though there could be a... Read More

Will the equity market fluctuations affect the debt funds too

As we see the market is high. I wanted to know does this market affects the investment of mutual fund? If yes, is it affect all types of mutual funds or just equity mutual funds only? In my previous question you advice me to go with STP route for lump sum investments (mostly liquid to equity). If we invest lump sum in debt should we follow the same STP (if market affects debt fund too) or we can invest in debt fund in one shot?

May 4, 2017 by Dipa A, Gujarat | Mutual Fund

The fluctuations in stock market have a direct co-relation to equity Mutual Funds as these funds invest in equities traded in the stock market. Therefore, it will affect your mutual fund investments. However, it will... Read More

Are dividends received rom SBI Magnum MIP taxable

I have invested ten lacks in the sbi magnum mip regular growth. I have recieved 8300Rs/-per month. Please tell me this amount which is deposited in my saving account it is taxable or non taxable. Please explain in detail?

May 3, 2017 by Ramdas Mahadeo Gaydhane, | Mutual Fund

Please note that dividends received from any mutual fund scheme in the hands of the investors is totally tax free! Therefore, the dividend amounts credited in your bank account from your investments in SBI... Read More

Should I rebalance my mutual fund portfolio as the market is high

I have almost 11 different mutual funds, I think this is the right time for me to consolidate them into few funds in each type (Small / Mid / Large / Balance) when the market is at its peak. Sometimes when the market is at peak, bad funds also shows results so can book the profit into a liquid fund. What do you suggest? Is this the right time to rebalance the portfolio?

May 3, 2017 by Jay, India | Mutual Fund

As we do not know what are the schemes you are holding, we would not like to comment on this. We think, mutual fund investments should be done based on your risk appetite and investment objective. If you have... Read More

Can co-applicants avail home loan tax benefits separately

This is Bala from Chennai. I have a plot in my father's name. Decided to build individual house. Since we are going to avail home loan, myself and my brother is co-applicant and EMI payers. Is there is any possibility for avail tax benefits for both EMI payers?

May 3, 2017 by Bala Subramaniam, | Taxation

Yes, as co-applicants you can avail tax benefits on the EMIs payable, provided you are co-owners too! For example - you are the owner and your brother is the co-applicant. In this case your brother cannot... Read More

Is SIP in L&T Emerging business fund suitable

I planned to start SIP for 15-20 years 5000Rs for L&T Emerging Business Fund, is this good for long time. What is your advice?

May 3, 2017 by Mohamed Bysal, | Mutual Fund

For long term SIPs, diversified equity funds are the best! L&T Emerging business fund belongs to small cap fund category which is the most risky. Also, L&T Emerging business fund does not have any long term... Read More