Dear Sreekanth,
Greeting! I am 60 years old and retired from employment. I have invested some funds in mutual funds over the years and the details are as follows with their current market value in brakets: Birla SL MNC Dividend (Rs 2,96,670), Franklin India High Grth Companies Growth (Rs 2,05,160), Kotak Emerging Equity Reg Growth (Rs 3,10,189), Reliance Diversified Power Sector Growth (Rs 42,708) and Reliance Tax Saver Growth (Rs 3,15,173). Since i am now retired and have some funds in the savings account (say 3 lacs), I would like to invest them in mutual funds by purchasing either new funds and/or buying additional units from the existing funds. Please advise me the right funds to invest the additional amount and advising me on my current funds whether I should hold them or otherwise. I can hold the investment for longer term. Please note that I was an NRI until October 2016, however I will be in the tax bracket from this year due to interest income from Fixed deposits. Your valuable advise would be highly appreciated.
Regards; Gilbert
2 Answers
Dear Gilbert ji,
May I know your investment objective(s)? What is your investment time-frame?
Do you require Dividend payments? Are your living expenses been taken care of? How much risk can you afford to take?
Dear Sreekanth,
Thank you for your prompt response. In reply, please note that:
1) Time frame for my investment would be 5-10 years
2) I am in no need of dividend payment out
3) Right now, my living expenses are taken care by rental payment/interest
4) risk affordability: Moderate
Appreciate and look forward to your valuble guidance.
Best Regards,
Gilbert
Sorry sir, forgot to mention about the objective/goal. It would be capital appreciation/build up to meet living expenses in 5-10 years
Hi,
Kindly go through below article and you may use available calculator to estimate required Corpus to meet your living expenses after 5 to 10 years from now.
https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/
1 - You may consider investing 2 to 4 installments in your existing ELSS fund (Reliance fund) for tax saving cum wealth creation purposes.
2 - You may consider redeeming Birla fund with Dividend option and switch to HDFC Balanced fund - growth for next 3 to 5 years duration.
3 - Consider switching from Reliance power sector fund to large cap oriented funds like SBI bluechip.
4 - You may redeem Kotak fund units and allocate major portion of corpus to hdfc balanced fund and small part of it to Franklin High growth fund.
Suggest you to keep monitoring your portfolio Vs expected goal amount, and you may switch to debt funds or debt based securities as you near your Goal year.
Kindly read:
https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/
https://www.relakhs.com/best-mutual-fund-schemes-2017/
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