Investment, Financial Planning, Mutual Fund & Income Tax Queries

Is my fund selection for long term planning right

All are Growth Funds and investing Rs 2000 SIP in following funds - Birla Sun Life Frontline Equity Fund, Mirae Asset Emerging Bluechip Fund, Motilal Oswal MOSt Focused Multicap 35 Fund, Reliance Regular Savings Fund Equity Plan, Franklin India Smaller Companies, HDFC Balanced Fund. All are Growth Funds and investing Rs 5000 SIP in following funds for Tax Saving - Axis Long Term Equity Fund and Reliance Tax Saver Fund. Queries : 1) I am planning the above SIP investments for Long Term Goals : Child Higher Education, Child Marriage and Self Retirement Planning? 2) Can I used the HDFC Balanced Fund for medium term goals i.e. 4-6 years? 3) Your advise on my mutual fund portfolio and kindly suggest if any fine tuning is required?

Mar 28, 2017 by Dishant Dhokia, | Financial Planning

The funds you have selected for your monthly SIPs are good. You have selected good schemes from large cap, diversified, mid & small cap and balanced fund categories and could be a good fit for your long... Read More

Which category of funds I am investing in

I have been making a regular SIP per month for following of the Funds, I seek your advise on following - Birla Sun Life MNC Fund 15000pm, Birla Sun Life Advantage Fund 5000pm, IDFC Premier Equity Fund Growth 2000pm, Tata Balanc Fund Growth 2000pm, Franklin Templeton: Prima Growth Plan: 5000pm, Franklin Templeton: Prima Plus Growth: 5000pm. 1) I am not aware of which category the fund fall in? 2) Also Please advise weather the mix is proper or not & should I continue? 3) If you feel any changes are to be made Please also advise in which Category / Company I would get associated with?

Mar 28, 2017 by Yogesh Shirole, Mumbai | Mutual Fund

Following are the fund categories that you have invested in... Read More

As a beginner am I investing in the right funds

I am a beginner in investing and I was planning to invest in SIP (around 4000 pm) through Aditya Birla my universe. After analyzing my risk profile, they suggested the following funds: Franklin India Bluechip Fund, Kotak Select Focus Fund, Canara Robeco Emerging Equities Fund, UTI Mid Cap Fund Are these good funds to invest? My investment period will be 15+ years. And will these investments help in tax saving? Please advice?

Mar 28, 2017 by Karol, Chennai | Mutual Fund

Aditya Birla My Universe has selected good funds for you and you may invest in them for your long term investment needs. However, these are open ended funds from large cap and diversified equity... Read More

Can you suggest funds for withdrawing through monthly SWP

Want to invest about 50 lacs and wants a withdrawal of 1% every month from next year. Can you suggest me the funds?

Mar 28, 2017 by Dilip Shindolkar, | Mutual Fund

Yes, you can invest Rs 50 Lakhs and withdraw a fixed amount on a fixed date every month through SWP route. However, withdrawing Rs 50,000 from an investment of Rs 50 Lakhs is bit high! Though the AMC... Read More

How to invest my life insurance maturity proceeds

I am Prabhakar, aged 33 years, working in a software company drawing take home pay of Rs. 86000 pm and I live in Pune with my parents, wife and 6 years old son. My financial particulars are as following: Bank FD Rs. 2200000, MFs: Rs. 850000, MF SIPs: 12000 pm, Life Insurance: Rs. 5000000 in my name. Health Insurance: Rs. 2500000 for our entire family. Own flat purchased with loan of Rs. 5000000 present outstandings Rs. 1850000 (apprx) with EMI of Rs. 20500. Now my question: I have, last month, received an amount of Rs. 1287000 as LIC maturity amount which my father bought in my name when I was 17 years old. I propose to invest in good performing MFs with SWP so that the SWP amount will partially take care of my existing HL EMI. Kindly advise me if my proposal is a good idea if so please suggest me 2/3 MF schemes where I can expect a reasonable returns of between 10 to 12 CAGR. I am not averse to moderate risk?

Mar 28, 2017 by Prabhakar Yeditha, | Mutual Fund

Glad to hear that you received a good amount from LIC of India against maturity of your policy which your father took when you were young. The idea that you have sounded – investing the money in mutual... Read More

What is the optimum time horizon if I invest in balanced fund SWP

I would like to invest 50 lakh of my retirement fund in equity oriented hybrid MFs basically to save on tax. Can you please suggest some high yielding funds. Also please suggest optimum time horizon. Is it a good idea to withdraw after every 12 months and reinvest? How do returns from this compare to returns from gold emfs?

Mar 27, 2017 by Genesis, Hyderabad | Mutual Fund

Yes, you can invest in hybrid equity oriented funds (balanced funds) for withdrawing by way of monthly SWPs. Capital gains arising out of each SWP withdrawal after 12 months will be tax fee under long term... Read More

How to invest my lump sum amount

I am a senior. I wish to reinvest my maturing FDs to balanced funds with SWP option. I am told it is best to reinvest not in lump sum but over a year or more to avoid in SIP to take care of market fluctuations and to avoid buying at peak. it is difficult to do so as I will have loss of income in the interim. which is the best way to do this? invest in liquid fund and STP to target fund with SWP from both funds. is it possible?

Mar 27, 2017 by Subbarao M.N, Bengalore | Mutual Fund

There is bit of confusion in your query. Lump sum and STP are different ways of investing in mutual funds and SWP is all about withdrawing a fixed amount regularly (say monthly) from mutual funds... Read More

Should I pay back my car loan or invest somewhere else

I have a car loan of 550000, 9.75% rate for 84 months. It is a diminishing one. I have started the loan in 2016 Aug. My doubt is, if I get some big amount like one lakh or something, what would you advice me? To invest somewhere or Pay for loan? I want to reduce my burden in fact. As my loan is in initial stage will the bulk amount go to the principle amount or to the interest?

Mar 27, 2017 by Sree, Kerala | Financial Planning

It is always advisable to reduce your liabilities as much as you can. In fact you should first limit or pay off your liabilities and then start saving. In case you repay a lump sum amount of your car loan... Read More

Am I going in right direction for achieving my financial goals

Need your advise, I'm 39, just started investing in NPS for overall 2 Lacs Per Annum for my retirement purpose. Scheme Preference - Moderate Auto Choice SBI Pension Fund Scheme C - Tier I (Corporate Bonds) - (27.00%), SBI Pension Fund Scheme E - Tier I (Equity) - (44.00%), SBI Pension Fund Scheme G - Tier I (Government Securities) - (29.00%); and I have other long term goals like kids, marriage, education coming up in 10-20 years. So I decided to do some SIP around 10k for the below categories funds like Balanced - 60%, 10% Large Cap , 20% Diversified, 10% Mid and Small Cap. Please suggest whether I'm going head for right direction?

Mar 27, 2017 by Syed, Bangalore | Financial Planning

By investing in NPS, you have opted for a safer and low cost retirement planning instrument. With regards to your other goals, you have mentioned doing Rs 10,000 SIP per month. But have you figured out if this... Read More

Is SWP withdrawal from balanced funds taxable

Is SWP amount is taxable on balance funds for every month withdrawal? Will AMC Deducts the TDS? or shall I need to show in the IT returns? Please clarify?

Mar 27, 2017 by Syed, Bangalore | Mutual Fund

Please note the following in context to your query about SWP withdrawals from balanced funds... Read More