Good evening Sreekhanth!
We are an NRI couple in our late 50s and have retired this month, and are interested in investing in mutual funds. Our financial position is as below:
1. We are invested in mutual funds since 2005 and current value is about 40 lacs (CAGR 8% as on date)
2. We intend to invest our retirement benefits and savings in proper funds so as to generate income for our retirement (as we don't have any pension).
3. I have 5 lacs coverage medical insurance but my wife does not.
4. We have a house for living (present value Rs 65 lacs)
5. I have set aside Rs 6 lacs for expenses for the next one year.
5. We have about 2.2 crores which are in fixed deposits currently. 50% of these deposits will mature by March 2017.
Kindly advise, keeping in mind our retiree status, which funds would be best for us and in what proportion.
We look forward to your kind advice.
Thanks & best regards,
4 Answers
Good Morning Ji,
1 - Are you existing MF schemes are primarily Equity oriented or mix of Equity & Debt? Did you opt for Growth or Dividend option? Are you receiving any income from these investments?
2 - Do you have any other sources of income besides MF corpus & retirement corpus?
3 - Do you have dependents and/or any financial liabilities?
4 - Kindly consider taking Health insurance cover for your spouse too.
5 - Any specific reason for maintaining high value corpus in FDs?
Suggest you to kindly go through below articles;
http://www.relakhs.com/retirement-planning-calculator-3-easy-steps/
http://www.relakhs.com/best-health-insurance-comparison-websites-portals/
http://www.relakhs.com/factors-tips-best-health-insurance-plan-india/
http://www.relakhs.com/health-insurance-parents-senior-citizens/
Hi Sir,
Suggest you to post the related queries in this thread itself instead of starting new one.
Dear Shreekanth,
Thank you for your very prompt response.
1 – Are you existing MF schemes are primarily Equity oriented or mix of Equity & Debt? Did you opt for Growth or Dividend option? Are you receiving any income from these investments? -
Our mutual funds are mostly equity oriented growth schemes; no dividend income. Our mutual fund broad portfolio is as below:
Axis Hybrid - Sr 13 (1275D) RP (G)
Axis Long Term Equity Fund (G)
Birla SL Advantage Fund (G)
Birla SL Tax Relief 96 (G)
Can Robeco Emerg-Equities (G)
Can Robeco Eqty TaxSaver (G)
Franklin India Tax Shield (G)
HDFC Balanced Fund (G)
ICICI Pru Value Discovery Fund (G)
Mirae Emerging Bluechip Fund (G)
Quantum Long-Term Equity (G)
Reliance RSF - Equity (G)
Reliance Tax Saver (ELSS) (G)
SBI Blue Chip Fund (G)
SBI Contra Fund (G)
SBI Magnum Balanced Fund (G)
SBI Magnum Global Fund (G)
Sundaram Select Midcap -RP (G)
Tata Equity Opp. Fund - Regular (D)
Taurus Star Share (G)
UTI India Lifestyle Fund(G)
UTI Infrastructure Fund (G)
UTI Mastershare (D)
2 – Do you have any other sources of income besides MF corpus & retirement corpus? No other income. 3 – Do you have dependents and/or any financial liabilities? Yes, my son is still studying and has about 4 years college education to complete. I have an ICICI Prulife education policy which is financing his education. Daughter is working and financially independent but cannot support us financially. 4 – Kindly consider taking Health insurance cover for your spouse too. Yes, we are planning to and will go through the articles you recommended. 5 – Any specific reason for maintaining high value corpus in FDs? No reason as such except that we lost a lot of money during 2008-10 in equity market as well as mutual funds and we wanted to to generate income for our retirement years. We intend to keep about 10 lacs for settling down in India. Kindly advise how best to shift our funds from Fixed Deposits to Mutual Funds in a systematic manner so that we can live comfortably. Please specify which funds would be good for us. Your kind advice also requested about our current mutual fund investments. Your kind advice regarding our current portfolio is also requested. Thanks & best regards, Bhas P.S. Earlier, we couldn't make out how to continue in the same thread.
2 – Do you have any other sources of income besides MF corpus & retirement corpus? No other income. 3 – Do you have dependents and/or any financial liabilities? Yes, my son is still studying and has about 4 years college education to complete. I have an ICICI Prulife education policy which is financing his education. Daughter is working and financially independent but cannot support us financially. 4 – Kindly consider taking Health insurance cover for your spouse too. Yes, we are planning to and will go through the articles you recommended. 5 – Any specific reason for maintaining high value corpus in FDs? No reason as such except that we lost a lot of money during 2008-10 in equity market as well as mutual funds and we wanted to to generate income for our retirement years. We intend to keep about 10 lacs for settling down in India. Kindly advise how best to shift our funds from Fixed Deposits to Mutual Funds in a systematic manner so that we can live comfortably. Please specify which funds would be good for us. Your kind advice also requested about our current mutual fund investments. Your kind advice regarding our current portfolio is also requested. Thanks & best regards, Bhas P.S. Earlier, we couldn't make out how to continue in the same thread.
Hi Ji,
Oops! You have invested in way too many Schemes. Over diversification may not be beneficial.
You may consider trimming down your existing portfolio.
Kindly go through below articles;
http://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/
http://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
Kindly use the calculator available in the below article and calculate the required avg amount to meet your living expenses during your retirement period.
http://www.relakhs.com/retirement-planning-calculator-3-easy-steps/
Please login or Register to submit your answer