Hello,
I am a 36 year old NRI. I have done limited investments in date and currently have a small foreign currency fixed deposit and a house in India purchased under mortgage.
I am keen on moving back to India in some years, I am planning to avail different investment options for preparing for future contingencies and post retirement life. I propose to invest around INR 3 Lacs – 5 Lacs per annum in a combination of investment plans. Please suggest on the following:
Suitability of NPS – I understand that the Government has allowed for the scheme to now be open for NRIs. Please suggest suitability of the scheme for me and the quantum I should invest in the same.
Suitability of other Products: The investment horizon is medium to long term. I am keen on having an option for partial withdrawal after around 5 years. I am looking at wealth accumulation plan (Equity/ Debt or combination thereof) which provide flexibility of receiving maturity amount in comparison to receiving fixed annuity post maturity. Would you recommend any monthly investment plans?
Please suggest Asset allocation and the specific products, etc. which you deem fit for my requirement
4 Answers
Hi,
1 - Could you please break up your Financial goals as short term - medium - long term ones (if possible). Based on time frame say 1 to >10 years.
2 - NPS , Read :
http://www.relakhs.com/national-pension-scheme-nps-drawbacks/
3 - Need more clarity on your goals and time-frame so that we can analyze and plan your investments.
To begin with, you can set up SIPs in Balanced fund like HDFC balanced fund & Large cap fund like ICICI Pru Focused bluechip for next 4 years or so.
Kindly go through below articles;
http://www.relakhs.com/personal-financial-planning-articles-list/
http://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
http://www.relakhs.com/my-mutual-fund-portfolio-mf-picks/
http://www.relakhs.com/list-of-best-investment-options-schemes-in-india/
Also, kindly note that there are certain restrictions to invest in MFs for NRIs.
Read:
http://www.relakhs.com/fatca-compliance-requirements-impact-mutual-fund-investments/
I have gone through the various links.
I am sure I do not want a Life Cover. Also considering the current Market levels I am convinced as to whether I should make lumpsum annual payments for the mutual fund schemes.
I am going through the HDFC AMC website and I am inclined to look at HDFC Equity Fund, HDFC Balanced Fund and HDFC Mid Cap opportunities fund.
I am keen on the following investment plan:
1. NRE Indian Currency Fixed Deposit of INR 20,00,000 for 1 year and 16 days - I am verifying if there is a monthly interest rate option FD from HDFC Bank? Considering current rate of 9.00% - I understand that I will receive 15,000 every month - I would like to put the amount in an SIP of 15000 per month in HDFC Equity Fund.
2. I also have a monthly rental income of INR 20,000 - which I am starting to get from End of September in my NRO account. I would like to have an NRO monthly SIP of INR 10,000 in the HDFC Mid Cap Opportunities fund and NRO SIP of INR 10,000 in the HDFC Balanced fund.
Please suggest if you think this is a good strategy?
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