Hi!
Thank you for all your previous suggestions!
I have surrendered all my traditional Insurance policy and bought an online Term Insurance poilicy.
I invest Rs 18000/m through Sip in MF. Beside MF the only investment I have is PPF.
As MF returns are not guaranteed, a friend of mine has suggested me to invest in SBI ULIP plan, where I have to pay premium for 5 years and return can be withdrawn any time from 6th to 15 year. I have no idea regarding ULIP. Please give your valuable suggestion.
I was actually looking for a investment where I can get handsome guaranteed return
kindly suggest
Regards
D sharma
10 Answers
Dear Mr Sharma,
Glad to know that you have taken a term plan and discontinued unwanted life insurance policies.
Kindly note that ULIPs also work like Mutual Funds and returns from ULIPs are also not guaranteed. Not sure, why has friend suggested ULIPs??
PPF is a good long term savings product.
Suggest you to kindly go through below articles and you may revert to me with more queries (if any);
Dear Sreekanth
Thank you fro your reply and those links. It cleared all my doubts regarding ULIP.
Both the link were quite informative.
In one of the link you have mentioned about TAX FREE bonds. I have come across 7.75 % interest GOI Taxable bond.
Please suggest few tax free bonds that I can inves in July.
Are GOI taxable bonds good for investment.
Regards
D Sharma
Dear Mr Sharma,
7.75% GoI bonds are taxable ones and are different from Tax-Free Bonds.
As of now, there are TFB IPOs being scheduled in this Financial year. You have to buy them from Secondary market (stock exchanges).
In a rising interest rate scenario like now, a rate of 7.75% can be on the lower side.
You can have a look at secured NCDs. But, kindly understand the risks associated with NCDs.
Kindly read :
Dear Mr Sharma,
7.75% GoI bonds are taxable ones and are different from Tax-Free Bonds.
As of now, there are TFB IPOs being scheduled in this Financial year. You have to buy them from Secondary market (stock exchanges).
In a rising interest rate scenario like now, a rate of 7.75% can be on the lower side.
You can have a look at secured NCDs. But, kindly understand the risks associated with NCDs.
Kindly read :
Dear Sreekanth,
I have gone through the link you have provided.
- Would you suggest investing in GOI taxable bond over FD as a source of Guaranteed savings?
Dear Mr Sharma,
1 - It depends on your investment objective, return expectation and investment time-frame.
Kindly read :
List of Best Investment Options in India
2 - Shriram NCD issue has been closed for subscription.
3 - Have you invested in any other MF schemes?
Dear Sreekanth
- My investment time frame is 5-7 years and objective is guaranteed wealth accumulation. So please suggest accordingly FD or Govt of India 7.75% taxable bonds? or any other
- Ok I missed it
- My MF portfolio is as below SBI Blue Chips Rs 3000
Mirae Asset Emmerging Blue chip fund Rs 5000
L&T Emmerging blue chip fund Rs 3000
DSPBR Micro cap fund Rs 500
ICICI PRU Value Discovery fund Rs 2500
Reliance Small cap fund Rs 1500
Kotak Select focus fund Rs 1500
All these are for 10 years time frame as of now. I want to invest Rs 5000/month more. Kindly suggest whether MOF35 Fund or any other. Also kindly guide me if any changes to be made in my portfolio.
Dear Mr Sharma,
1 - The interest rates in the economy are slowly showing signs of up-tick. The current FD rates of popular banks are in the range of 6 to 7.% for 1 to 2 year tenure. We may see some hike in these rates in this FY.
So, you may be better of investing in bank FDs for short term say 1 year or so and then review your decision. Meanwhile, if there are upcoming Secured NCDs in the near future, you can consider them for an investment horizon of 3 to 5 years.
2 - The funds' portfolio overlap between Kotak Standard Mutlicap (Focused fund) and Motilal 35 is around 35%. So, you may avoid investing in Motilal fund.
Also, kindly check overlap among the already invested mid-cap and small cap funds and you may revert to me with your analysis.
Kindly read :
Mutual Fund Portfolio Overlap Comparison Tools
Dear Sreekanth
- Thank you for the advice. Presently I shall take FD for 1 year as suggested and decide accordingly.
- Yes overlap between Kotak Standard Mutlicap (Focused fund) and Motilal 35 is around 35%. I have an SIP of 1500 in Kotak Stand Multicap. I actually want to invest 2000 more as SIP in Multicap fund. Since MO 35 is doing slightly better than Kotak Stand MC, will it not be a good idea to invest 1500 in K Stand MC and 2000 in MO 35? I have read much about portfolio overlap, but one thing is not clear to me, that when we are investing in say Multicap and if the SIP amount is large will it not be good to divide the amount and invest in two funds of the same category. Please give your valuable comment on this.
Dear Mr Sharma,
2 - Diversification is fine. But, what is the point in investing in two funds with higher overlap. (Here % of overlap can be subjective). Note that the funds' portfolios keep changing and overlap can be become even higher or may come down. Also, given the reclassification norms by SEBI, the overlap among the same fund category funds may bound to increase. Hence, it is advisable to keep the portfolio short and simple.
Please login or Register to submit your answer