Got a Question? Just ask…! If you would like to ask any queries on personal finance topics, kindly visit our newly launched Questions & Answers Forum. Kindly click here to Ask your Questions.. Cheers! – Sreekanth
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Dear Mr Shreekanth,
Good Day,
I am a 50 year old man. Below are my investment details and i want to continue investing for another eight to ten year.
Insurance policies for Rajendra Patil
PLAN NAME DOC SA PREMIUM MTY DATE
NEW MONEY BACK 01/03/92 25,000 1320 YLY 03/17
JEEVAN SARAL 28/12/11 15,00,000 18,375 QTY 12/13
JEEVAN ASTHA 21/01/09 1,50,000 25,425 ONE TIME 01/19
JEEVAN ANAND 05/06/02 1,00,000 7682 YLY 06/18
JEEVAN MITRA TRIPLE 05/06/02 50,000 3018 YLY 06/24
then i have following MF investments
SIP
FUND NAME SIP AMT ACCUMULATED TILL DATE
1) AXIS LONG TERM EQUITY -G 2000 1.05,000
2) BIRLA SUN LIFE FRONT LINE EQUITY – G 1500 43,000
3) BNP PARIBAS LONG TERM EQUITY – G 2000 63,000
4) HDFC BALANCED FUND -G 3000 1,15,000
5) HDFC TOP 200 – G 3000 1,04,000
6) ICICI PRU.VALUE DISCOVERY -G 2000 58,000
7) IDFC PREMIUM EQUITY – G 3000 1,22,000
8) RELIANCE BANKING -G 3000 3,90,000
ONE TIME INVESTMENT IN MF
1) HDFC CMF SAVING PALN -G – 2,60,000
2) HDFC CMF TRESURY ADVAT -G – 2,00,000
3) HDFC PRDUENCE -G -1,00,000
4) ICICI PRU.BALANCED ADV -G -1,00,000
5) RELIANCE GOLD SAVING FUND-G – 1,40,000 THIS WAS A SIP 3000/MONTH STOPPED LAST MONTH
Also i have a LIC policy Jeevan saral ditto same as mentioned above in the name of my wife age-41 years
I would like have your advise on the LIC investments also if you can let me know if my MF investments are ok
or you suggest some changes as well.
Awaiting your reply.
Best regards,
Rajendra Patil
Dear Rajendra,
May I know the total premium amount you pay on your Life insurance policies and total coverage you have (sum assured)?
You may share details about your income also. Do you have any financial liabilities/obligations?
All your life insurance policies are traditional plans which may at the best can give returns of around 5 to 6%. As most of your policies are old ones, suggest you to make them PAID-UP . Do you have any term insurance plan? (If you don’t have one, buy a term plan and then discontinue the existing ones)
Read:
How to get rid off unwanted life insurance policies?
Term insurance Vs traditional life insurance plans.
Best Term life insurance plans.
(You may kindly post your queries @ relakhs.com/forum )
Hi Shreekanth ,
I want to buy health insurance floater policy for myself and my wife. Should i buy a policy directly from the company’s website or should i buy from some health insurance comparison websites like coverfox , medimanage etc. Some of these also offer after sales service like during claim settlement etc. What is your opinion ?
Dear Anupam,
The referred aggregators are doing well and if you are comfortable buying through them, kindly go ahead. But suggest you to go through multiple plan features and then shortlist one plan based on your requirements. In case if they keep insisting you on any one company’s plan, suggest you to just ignore buying through them.
Read:
Best Family Floater medical insurance plans.
Best portals to compare health insurance plans.
Hi Sreekanth,
My father (retired govt employee) has got lumpsum amt of 2.5lacs from chit & willing to save this amt in FD for period of 1yr approx.
I’m suggesting for mutual fund (which I started SIP horizon of 10 yrs last month & happy with current performance, credit goes to U). Could you please suggest MF for lumpsum investments for period of 1yr & also confirm if this has to split.
Thank you.
Srikanth
Dear Srikanth,
Even if the performance of your Funds is not up to the mark in the last one month, you have to remain invested for long-term to get decent returns from equity funds.
If investment horizon is 1 year, suggest you not to invest in equity funds.
Kindly read:
Best Debt Funds.
Best MF MIPs.
List of best investment options.
Hi Sreekanth,
I am 54 years old and have Rs. 18 lakhs that I like to invest in MFs (my shortlist is provided below). My investment period will be 3 years from now and I can remain invested upto 5 years (additional investments will be made depending on spare funds). The purpose of this to build a retirement corpus from which I can make systematic withdrawals of about 50k monthly (?) from 2022 onwards.
MF Scheme Name Category SIP x 12 x 3 Lump Sum
Axis Long Term Equity Fund (G) ELSS 10,000 360,000
HDFC Balance Fund (G) Balanced 10,000 360,000
Birla Sunlife MIP Wealth 25 (G) MIP Aggressive 10,000 360,000
DSP Black Rock Micro Cap (G) Small & Mid Cap 10,000 360,000
ICICI Prudential Value Discovery (G) Diversified Equity 10,000 360,000
1,800,000 1,800,000
Kindly advise if the above selection of MF Scheme & investment pattern is okay or suggest something better if possible.
Regards
Dear Chander,
Considering your age profile and time-horizon, not advisable to invest in Small cap fund like DSP micro.
If your one of the investment objectives is not tax saving, kindly avoid Axis LTE (though its a good fund).
Consider HDFC balanced fund, Birla mip & icici discovery.
Read:
Retirement planning goal calculator.
Best Equity funds.
List of best investment options.
HOW TO PAY ONLINE THE TAX DEMAND UNDER SECTION IT-SECTION 220(2)
Dear Gupta,
The existing provision contained in sub-section (1) of section 220 provides that any amount specified as payable in a notice of demand under section 156 shall be paid within thirty days of the service of notice at the place and to the person mentioned in the notice.
Sub-section (2) states that if the amount specified in the notice is not paid within the period, the assessee shall be liable to pay simple interest at one per cent for every month.
If you have any outstanding tax dues, suggest you to clear them at the earliest (if you agree to the IT dept computation).
Read: How to pay outstanding taxes?
Hi shreekanth
My name is ranjeet,age 29.non smoker.
I am planning to purchase online pure term plan of pnbmetlife For sum assured 1 cr.
I checked on policy Bazar and found premium is comparatively low than others online term plan.
Kindly suggest pnbmetlife online term plan is good.As in your site I couldn’t find any comments or post regarding pnbmetlife online term plan.
Awaiting ur reply.
Thanks
ranjeet
Dear RANJEET,
Any term plan if it suits your requirements is good. Kindly disclose all the required information in the proposal form honestly.
Read:
Latest IRDA’s claim settlement ratio data.
I would like to know if i want to take policy for my daughter (9 years completed) for her future, which policy is the best for her? also for us we want pension policy. now my age is 45 years.
Dear S DS,
Kindly note that your child does not need any life insurance in her name.
As responsible parents, you should have sufficient life cover.
Kindly read this article to understand this : LIC new money back child policy – review.
Read:
Best term insurance plans.
Best personal accident insurance plans.
To plan your retirement goal, read;
Retirement planning goal calculator.
List of best investment options.
I have recieved 79000 Rs as arrears against salary this year,can u please tell me after calculation of 89 (1) I am getting a rebate of 2067 RS, I only have a doubt that do I need to show the total arrears in my this years gross salary for calculation of income tax
Dear ASHISHI..Yes you have to show it in your ITR and I believe that you also have to submit Form 10E to claim relief under section 89(1).
Hi Sreekanth;
You are doing an awesome job by counseling amateur investors like me thru your blogs. Only after reading your blogs and after getting clarity on what Mutual Fund is all about , I have started investing in Mutual Funds. In this month only I have invested in three mutual funds and all of them are direct plans.
Following are the mutual funds I am investing in. Pls review and let me know if I have to add / remove either of them OR I have to relook into the fund wise investment amount:-
1. ICICI Value discovery Fund Growth option (Diversified Equity)- Rs. 10,000/- per month.
2. Axis Long term Equity plan Growth Option (ELSS )- Rs. 10,000/- per month
3. SBI Pharma Fund Growth option (Sector fund) – Rs. 20,000/- per month.
Following are my personal details:-
1. I am the only earner in my family. 2. My take away Monthly salary is 90,000/-. 3. I am 32 years old. 4. I have taken term insurance plan from HDFC with death benefit of Rs. One crore. 5. Me and My family is covered with health insurance cover of Rs. 8 lakhs per annum and I have also taken medical insurance for my parents with a cover of Rs. 4 lakhs per annum. 6. I live in Bangalore in a rented house and I have not yet decided to buy the house for accommodation.
Dear Swikar,
Thank you for your appreciation and kind words.
You are investing relatively higher amount in a sector fund (pharma), may I know the reason for this selection? Also, may I know your investment horizon (timeframe)??
All the three funds are good ones.
Dear Sreekanth;
Thanks for the response. As of now I am not looking for the investment in real estate hence I am investing all the money I am able to save per month in Mutual Funds. Reason for investing higher amount in Pharma fund is the fund performance in last 3-5 years. The CAGR return is more than 20% and it is one of the top performing fund across sectors, fund categories.
My investment horizon is minimum 5 years depending on how the Fund Performs.
Pls enlighten me further on my investment portfolio.
Dear Swikar,
Kindly remain invested with your MF investments for longer period. Funds are good ones.
If you do not have Personal accident insurance plan, kindly buy one.
Read:
Best Personal Accident Insurance plans.
Thanks Sreekanth for the input.
One last question, do you recommend me to add Balanced fund (HDFC/TATA Capital) to my investment portfolio by reducing investment amount of Pharma Fund? If you suggest, I will reduce 5k per month from Pharma Fund and invest the same amount in Balanced Fund.
Dear Swikar,
You may consider a balanced fund as you are looking at 5 years time-horizon.
In case if your horizon is more than that you may consider HDFC Mid-cap opportunities fund / Franklin Smaller companies fund.
(You may kindly post your further queries @ relakhs.com/forum )
Dear Srikanth
Can I take exemption for amount gifted to my daughter (major). If yes then how.
Vijay kumar reddy.
Dear Vijay..Kindly read : Gifts & Tax implications.
Dear Sreekanth,
Greetings.
I am still waiting for your response to my earlier posted comments. Meanwhile, related to the same, I am providing below the shortlist of MFs that I would like to invest in. My investment duration is from 1 year to a maximum of 5 years:
Birla Sunlife Cash Plus (Lumpsum) 1,000,000 For 1 year
Birla Sunlife MIP II Wealth 25 (Per month) 25,000 Upto 3 years
Reliance MIP (Per month) 12,500 Upto 3 years
HDFC Balanced (per month) 12,500 Upto 5 years
Franklin India Smaller Companies Fund (per month) 50,000 Upto 5 years
UTI Mid-Cap Fund (per month) 50,000 Upto 5 years
Please advise if the selection of MFs is good or suggest alternatives that will be better than my selection.
Please respond to this as well as my earlier posted comments.
Best regards
Dear Belsucha,
I have already replied to your queries @ Best Mutual funds post.
Kindly do not post comments at multiple places.
Dear Sreekanth,
I could not find your response, can you post it again ?
Regards
Dear Belsucha..Kindly click here..
Dear Sir,
Please throw some light on “Term Insurance” Policies.
Concept-suitability-etc.,
S.Sasikumar- 42Yrs.
Dear Sasikumar,
Kindly read below articles;
If life is UNPREDICTABLE, insurance can’t be optional.
Best Term insurance plans.
Term insurance Vs Traditional life insurance plans.
Sir,
I am Sasikumar.S. aged 42.
As per your advice, I did portfolio overlap analysis with FUNTOO tool.
Based on it,
$ HDFC equity have 30% and 35% Portfolio OL with ICICI Value discovery and Franklin HG fund respectively.
$ Franklin HGCF and ICICI Value fund have 22% FOL
$ Remaining funds portfolio over lap % is around 10%.
If I need to trim off any fund/ increase SIP amount in any fund,
Pl offer your expert comment and suggestions for having a strong funds for my retirement life.
==================================================================
I am running SIP in the following funds from 2014 with an aim to continue for next 15 yrs for building my retirement corpus.
HDFC Equity – Rs 1500/-
HDFC Mid cap opportunity fund – Rs 3000/-
Franklin High growth companies fund – Rs 1500/-
ICICI Value discovery fund – Rs 1500/-
Birla MNC fund – Rs 1500/-
SBI Pharma fund – Rs 1500/-
Total SIP investment per month is Rs 10500/-
I request your valuable reply about my portfolio/ alternate fund suggestions to ensure my safe retirement life.
Dear Sasikumar..In that case, you may continue with your investments.
Read : Retirement planning goal & calculator.
Dear Sir ,
I am a 38 year old and my wife is 33 yrs old housewife.My mother who is 74 years old stays with me. I have already bought a 50 lakh life cover of HDFC Click to Protect Plus and a personal accident policy of Bajaj Allianz Health Guard of 10 lakhs. Now i wish to purchase a health insurance policy for my family. I have done some research from various portals and zeroed in on Star Health Family Optima Plan for myself and my wife.The only factor i am a bit doubt ful is that it has a room rent capping of Rs 7500. We stay in Kolkata.Is this room rent capping sufficient.What do you think about my choice ? Is there any better option ? What policy to take for my mother ?She does not have any health problems as of now .
Dear Anupam,
The room rent can vary depending on the hospital. So, you are the best person to decided this for yourself, based on your location.
If you can afford to pay higher premium, you may consider other plans where there are no sub-limits.
Read : Best Health insurance plans for Parents.
Can u suggest me some plans ?
Dear Sreekanth,
Thank you for your great effort to improve Financial literacy for public. I have taken a LIC Jeevan anurag policy in 2007 and till now 9 premiums paid.It is for 20 Year term and Rs 27,536 is premium and Sum assured is 5,00,000.Recently i have gone through your articles about not to involve in these kind of Money back policies and I have calculated all possibilities as below.
1. Surrender Value if I do it now is Rs.1,82,000
2. Paid-up Value is Rs.4,25,000 ( To be paid in 2027)
Now I have decided to surrender and to get Rs.1,82,000 to invest in Equity High risk fund which can return 24% CAGR till 2027( for rest of 11 Years) , which will give around Rs.19.40,000.
The reason to mentioned 24% is that I have crosschecked through Valueresearchonline, which provided topmost equity funds returns since their inception.
Kindly advise whether my decision is correct or any other steps to be taken.
With Best Regards,
Lakshmi Narayana.
Dear Lakshmi,
Expecting 24% can be abnormal but if it is achieve then well and good, suggest you to have reasonable expectation like say 12 to 15% from your portfolio and then re-work on your calculations.
But your decision to discontinue the unwanted life insurance policy is correct. Do you have sufficient life cover? Any existing life insurance plans other than this one?
Read: Best Term insurance plans.
Thank you Mr.Sreekanth. I do not have any life cover policy and now I am planning to take for Rs. One crore policy from HDFC Life Click2ProtectPlus.My age is now 38 Years and planning to take for 20 Year term.Could you please suggest the best among those 4 plan options in HFDC Life Click2ProtectPlus.
Mr.Srikanth , when I have searched in Valueresearchonline portal for Top 10 Equity performance since their launch around 10 to 15 Year period, the return column showing almost 25 to 30 %. Is this return is CAGR or absolute? Please help me to analyzing about this whether I am interpreting correctly or not.
With Best Regards,
Lakshmi Narayana.
Dear Lakshmi,
Kindly read : HDFC Click2Protect Plus – review.
It is CAGR. Your understanding is correct, but my suggestion is to have reasonable expectations 🙂
Past performances may or may not be repeated in future.
Dear Sreekanth,
Thank you for kind reply.Now I am happy that you passed my understandings.Actually the reason behind is that I would like to invest Lump sum Rs.20,00,000 now and I am in dilemma whether to invest in buying a plot or to invest in Equities for a longer period min 10 Years.
Your valuable suggestion is highly appreciable.
Best Regards,
Lakshmi Narayana.
Dear Lakshmi..To be frank it is very tough to compare Land Vs MF investments and provide you the advice. We need to look at other aspects of your profile too. Suggest you to take help of a Fee only financial planner (as you are looking at investing a hug sum of money).
Hi sir, I would like to invest an amount of 1 Lakh in mutual funds for long term of 20 years. It is basically for my child education. suggest me suitabe mutual funds to invest. Thank you…
Dear Siva..
Kindly read below articles:
Financial planning pyramid.
Kid’s education goal planning.
Best Mutual Funds for 2016.
List of best investment options.
Dear Srikanth,
I need a suggestion from u. I gave 2 lakhs to my relative. He is asking me to purchase his agricultural land worth 10 lakhs by paying balance 8 lakhs to him. He will earn 1 to 1.2 lakhs per year from this land after 2 years (because mango plantations crop will come after 2 years).
I am working in UAE since Dec 2013. Whether is it advisable to purchase agricultural land by investing another 8 lakhs. My intention is just leave 2 lakhs (Whether it come back or not), invest 8 lakhs into best mutual funds so that I can earn more compare to agricultural land income.
Pl. advice.
Thanks,
Harinath
Dear harinath,
Kindly note that there can be ‘state’ specific Terms & conditions to purchase agriculture land. So, suggest you to kindly first go through them.
The returns (income) from agri land can’t be compared with a financial security like Mutual fund.
May I know your investment horizon if you decide to invest in Equity mutual funds?
Dear Srikanth,
Thank you for your prompt Reply. Agricultural land is near Anantapur , Andhrapradesh. My father is having agricultural land long back. I am planning to purchase this land to get back my 2 lakhs which I gave to my relative. Again I have to invest 8 lakhs to own the land.
My investment horizon for MF is 10 years. Already I am having MF investments (followed your best MF 2015). Now I am thinking to diversify my asset allocation i.e. MF, Fixed assets like agricultural land. Also I am having Hosing [email protected]%pa interest (2 years loan payment completed. 8 Years payment balance. EMI is 35000/- ).
Pl. advice me whether I have to invest 8 lakhs in the following equally
1. I have to pay Housing loan prepayment – 4 lakhs or Total 8 laksh
2. MF investment – 4 lakhs or Total 8 Lakhs
or
Shall I purchase Agricultural land.
It is not a comparison between different assets, but If I get more returns in MF it is better to invest in them.
Thanks in advance for your co-operation.
Regards,
Harinath
Dear Srikanth,
Thank you for your prompt reply. The agricultural land is in Anantapur District , Andhara Pradesh. My father is having agricultural land. My time horizon for MF is 10 years. Also I am having a home loan with EMI 35000/- for 8 years. Already 2 years home loan repayment completed.
Could you suggest me best option among the following or You can suggest me a new plan
1. Shall I invest 4 lakhs in MF & 4 lakhs for home loan repayment
2. Shall I invest 8 lakhs completely in MF. I am having some investments in MF (best MF for 2015 suggested by you). Because I may get decent returns without any extra work)
3. Shall I purchase agricultural land by investing 8 lakhs (It costs 10 lakhs – already I gave 2 lakhs to him as a hand loan, he is insisting me to purchase land. I am thinking If I purchase this I will get back my 2 lakhs also). Though I am not particular / not interested about purchasing agricultural land.
Thanks,
Harinath
Dear harinath,
If you are not interested in buying Agri land then suggest you not to go ahead with that decision.
If your time-horizon is >10 years, kindly consider investing in Equity mutual funds.
Do share details about your existing MF portfolio. Have you allocated sufficient savings towards your other high priority goals (ex:retirement goal), if not, you may continue with your Home loan EMIs and invest in mutual funds instead of part-paying your home loan amount.
Thank you Srikanth. I will invest total in MF.
At present I am having investments in FT Smaller Companies Fund, FT Prima Plus, ICICI Value Discovery Fund. Not a regular sip. When I have amount I used to purchase. Total around 8 L investments in above funds as of now. I am having ICICI Direct 3 in 1 account. All investments are in that only. Charges of ICICI Direct are more. Do you suggest me to go for direct investments in above funds using MF Utility.
I Have Term plan, Health Insurance. I want to invest my savings into MFs only. Shall I continue above funds (also started SIP) investing for 10 or more years. I have 5 goals
1. Child 1 education after 6 years – Engineering or CA costs 10 Lakhs
2. Child 1 Marriage after 13 years costs 15 L
3. Child 2 education after 15 years – Costs Approx. 20 L
4. Child 2 Marriage after 20 years – Approx. 20 L
5. My retirement after 18 years – Need corpus approx. 50 L.
Except Child 1 education all other goals are long term (>10 years). Shall I continue with above funds (with a sip of 10000 in each fund for next 10 to 15 years) . Do you want me to add one MID Cap – HDFC Mid cap fund. For child 1 education I have to plan FD of 2 to 3 lakhs in 1 or 2 years which I can adjust from my savings.
As of now I need to make 1 crore corpus in between 13 years to 20 years from now to meet above goals.
Could you please suggest me on above goals & plans.
Thanks in advance for your kind suggestion.
Regards,
harinath
Dear harinath,
As your investment horizon is long-term, you may switch to direct funds.
Read :
Direct Mutual fund plans & their benefits.
MF Utility online MF platform..
MF Direct plans Vs Regular plans – Comparison of returns.
Read:
Kid’s Education goal planning calculator.
Retirement planning goal calculator.
Dear Sreekanth.,
Really u r helping all of people.,
Thanks for all your service., now really i am able to find out all my mistakes. Presently in the process of implementing all your suggestion;
As a part of that , i am in the process of acquiring HDFC Life’s Click2 Protect Plus term plan for 20 yrs ( my age is 36)for 50lakhs
1.Is this policy covers natural death and death due to accidents
2.Is that sufficient to take for 20 yrs term
regards
krishna
Dear Krishna,
1 – Yes.
2 – Depends on your expected retirement age & till the time you expect that you would have financial liabilities (if any) / fin commitments.
For AY 2017-18, am I eligible to give 15G and if so, what to write in col.16,17,18 for MOD/SWEEP A/C Interests, given the following conditions for AY 2016-17 :
income from sal.-280449
income from other sources-57098
net total income-243890
assuming that for AY 2017-18 those amounts will be 304392, 60000, 248000 and interest mod/sweep a/c be 20000.
Kind urgent reply is solicited for.
Dear ANINDYA..Kindly read : How to fill new Form 15G/H?
Dear Sir,
It is already with me ; but it will be kind enough to explain the fields 16,17,18,19 on the basis of my information.
Hi Sreekanth, I bought two plots in 2006 and from which one of them we sold in Dec2014 and the other one we sold in Feb2016. After indexation the capital gain tax is 21 lakh including both.
Meanwhile in May 2015 i have done an agreement for a under construction flat for 40lakh.
Need your help to understand if i can save capital gain tax arising from plots, by clubbing both the gains and buying one under construction flat.
Thanks in advance, will appreciate your kind help.
Dear Anand,
Kindly go through this article and you may leave your queries (if any) at the end of this article itself :
How to save LTCG taxes on sale of property?
Thank you so much Sreekanth for your quick reply and also time. Your article was helpful, Thanks again.
I keep following you blog and post from last couple of months. i am 32 yrs of age:
Below are my investments and request you to review:
1. Axis Long term equity – ELSS – SIP 2500 Rs from Oct 2015 (20 yrs)
2. UTI Mid cap fund – SIP 2000 Rs from Dec 2015 (15 yrs)
New funds I have selected for my Son (1 year old) future (12-15 yrs):
3. ICICI pru value discovery – want to start SIP 1500 Rs
4. Tata Balanced Fund – want to start SIP 1500 Rs
Queries:
A. Should I continue to UTI mid cap. Do you see any issue with this fund.
B. 1 and 3 are multi cap funds. Fund overlap <12%. Selection of ICICI valure discovery is appropriate or not.
c. Larger cap fund do I need to consider intead of 3.
D. In balanced fund I am little confused between Tata and HDFC. If you suggest both are okey then I will go for Tata.
Request you to review queries.
Dear Mukul,
A – As of now be with UTI mid-cap, the fund manager has changed but let’s track its performance for atleast 12 months from now. Personally, I too have investments in this fund.
B – That’s ok.
C – Its a good fund.
D – TATA fund is a bit aggressive one. But considering your investment horizon, investing in this fund makes more sense.
You may consider including a Small cap fund like Franklin Smaller cos fund or DSP micro cap fund for >15 year goals. But do check out for overlap and then take a decision.
Dear Mr Shreekanth,
Can I know about the interest rate of PPF account which is decreasing if we observe the past history of interest rates of PPF account from 12% in way back 1986 to present 2016 it’s 8.1% if I am not wrong.
I am 26years presently with annual income 4.5lakhs per annum planning to start the PPF account,but I am feeling a bit risk which lands me after 15years maturity period to present LIC endowemnet plans interest rates of interest if we compare endorsements vs PPF account presently.
Dear Raghuraj,
Kindly do not mix insurance with investment.
I believe that if one has investment horizon of say 15 years, he/she has to invest in equity oriented securities to get decent real rate of return.
I also believe that the govt is providing a level playing field for all the parties involved in the financial markets, hence they have linked the debt instruments to the markets. Let the markets decide the interest rates. We as an investor have to invest in all possible asset classes based on our financial goals.
Sir,
I am Sasikumar.S. aged 42.
I am running SIP in the following funds from 2014 with an aim to continue for next 15 yrs for building my retirement corpus.
HDFC Equity – Rs 1500/-
HDFC Mid cap opportunity fund – Rs 3000/-
Franklin High growth companies fund – Rs 1500/-
ICICI Value discovery fund – Rs 1500/-
Birla MNC fund – Rs 1500/-
SBI Pharma fund – Rs 1500/-
Total SIP investment per month is Rs 10500/-
I request your valuable reply about my portfolio/ alternate fund suggestions to ensure my safe retirement life.
Expecting your reply Sir.
Thanks &Regards
S.Sasikumar.
Dear SASIKUMAR,
Individually, the funds are fine. But suggest you to check for any high portfolio overlap, if so you may trim your portfolio by dropping one or two funds.
Read : MF portfolio overlap analysis tools.
For company registration and trademark registration, LLP registration you can visit or send query to us
Hai,
What’s your opinion about icici wealth builder 2 . I am planning to buy 30000/annum.
Dear Prakash..May I know the reason for shortlisting this option?? What’s your investment objective.
Objective : For 80cc exemption I am short of Rs.20000. From icici branch having a/c called and discussed the plan.
Dear Prakash..Kindly do not invest or shortlist a financial product just to save taxes.
Thanks for your reply.
Dear Sreekanth.,
Thanks from me for all your earlier advices to me.,
1. In our earlier discussions you advises me to make paid up all my endowment plans; I have registered my policies on LIC portal. My premium comes due on April 2015. If i skip all my up coming premiums whether it will reduced paid up automatically. Will i be subject to any penalty; Because my agent always convince me to continue the policy;
2. I have taken ” max life income advantage plan” -Money back for annual premium of 50,000 for 12 years and they will return annually 72000 for next 10 years at the end i will get maturity bonus of 5,75000. Presently i have paid First year premium.
Kindly advice my above concern.
Regards
Krishna
Dear krishna,
1 – Your agent has to do that, it is his business and if you make them PAID-UP, he/she won’t be receiving the future commissions.
Tks Sreekanth for your reply and sure i will ask insist my agent to do so ..
What is your opinion about my ” max life ” income advantage plan ….I paid my first premium during Jan 2016 …kindly advice me
Shall I continue with it ..is it a good money back scheme?
Regards
Krishna
Dear Krishna,
Its always better to stay away from ‘money-back’ plans.
Read:
Term plans Vs Money-back/Endowment plans.
Hi,
My age is 38, My annual salary is 2.5 lakhs, from two years i am saving in ppf 1st yaer 30k and second year 40 k,i want to invest in mutual funds for my retirement (as working with a small private farm i won’t get any pension). i want to do sip of 3000 per month,and a lum sum of 2 lakhs is been invested as fd ‘s they will meture this month sol giv some suggession how to reinvest them as bank fd rates are gone down.
Thank you.
klv
Dear lakshmi,
Kindly go through the below links, you may revert to me if you need any help’
Retirement planning goal & calculator.
Financial planning pyramid.
List of best investment options in India.
Best Equity funds.
Dear sreekanth
Presently I’m working as a consultant witha firm and my parents Is 15lk the same company is offering on roll for the same package. Presently the only deduction is the of 10 %, can u please guide me what could be the standard income tax deduction with below scenario.
Savings including insurance – 15000
Home loan interest paid in past to be claim – around 20 lk
Home used for own use.
Kid school fee around 24 k
Also please guide me about tax savings
Appreciate your help in advance
Dear Vipra,
Do you want to calculate your tax liability? If so, visit this link..
Also, read:
List of income tax deductions for FY 2015-16
List of income tax deductions for FY 2016-17.
List of best investment options in India.
Need Help
I have a flat in apartment complex in Bellandur and earlier in 2005, all of the apartment owners received B Khata, at the time the reason was it came under Bellandur Panjayat.
Around 2010, all of my neighboring flat owners converted to A khata, at that time i couldn’t and this got delayed until now.
How can i get a A khata now. I have paid tax receipts until last year, My Apartment complex has Occupancy Certificate, All Land documents – Sale Deed, Conversion Order, Encumbrance certificate etc.
Need your help to understand how i can get the khata issued.
Dear Joseph,
You can visit your respective BBMP ward office (mostly it should come under BBMP- CMC Bommanahalli limits) and submit the required documents and get A-Khata certificate.
Read : All about Khata Certificate..
Hello Mr. Shreekanth,
I have gone through many of your articles, its all worth reading and implementing.
Presently, I am 26 years of age having annual income of 4.5lakhs Rs.
I want to take up life term of ICICI prudential smart life along with LIC’s health insurance of myself and my wife,is it worth to take? I presently do not hold any of the other source of income/savings or funds.
I first made my decision to go for LIC’S Jeevan anand policy for myself of 5.0lakhs rupees, should i buy it? or ICICI term plan would be fine for me now?.
Further i am also planning to invest in SBI Bluechip or SBI Pharma mutual fund and UTI Midcap Fund with annually 30,000 investing in both the funds. Does these funds are good for decent return and tax saving if i start it for 2-3 years from now?
I will truly value your observations for the same.
Dear Raghuraj,
1- Read my review on : ICICI iProtect Smart term plan..
2 – Compare health insurance plans & you may shortlist the right plan as per your requirements, read : Best portals to compare health insurance plans.
3 – Suggest you not to buy traditional plan like jeevan anand.
Read : Term insurance Vs traditional plans.
If life is unpredictable, INSURANCE can’t be optional.
4 – Read :
Best Equity mutual funds
Best ELSS Tax saving funds.
Thank You Mr Shreekanth for prompt reply on my approaches.
I value your comments and definitely will re-plan my financial approaches.
Dear Sir,
I am planning for 3 year investment with decent return , kindly suggest the best possible option with tax benefit.
planning in invest 50k
Regards,
Praveen Rana
Dear Praveen..
Kindly go through : Best investment options list..
Sir
I have lic jeevan anand having premium 48500 yrly(3yrs complete d),
Deposited 5500 ppf,
Invested 25000 Axis lte and 25000 bnp paribas equity.
Now help invest remaining AMT for tax saving.
Dear Bhavesh,
Suggest you to buy a Term plan (if you have dependents). You can claim the premium u/s 80c.
Read :
Best term insurance plans.
Term insurance Vs traditional plans like Jeevan Anand.
List of Income tax deductions for FY 215-16.
i am 23 old , single,
thought for term insurance but my advisor is saying it is quiet complicated as i am overweight
Dear bhavesh,
I believe that your advisor is wrong..Term insurance is the simplest form of insurances.
If your parents are dependent on your or if you have any financial liabilities, suggest you to buy a term plan.
thanks sreekanth for ur prompt reply
he is saying proposal will be rejected for term insurance as i am overweight
is medical is necessary for term insurance ?
Dear bhavesh,
Yes it is mandatory if the Sum assured is >Rs 25 Lakh (applicable to most of the life insurance companies).
You can mention about your medical condition honestly in the proposal form, let the insurance company take the final call.
Hi ! I am 28 yrs old living with my parents. We have got 60-65 lakhs corpus on selling a property. Right now, no one is working, no house, no insurance nothing except the corpus amount. I have plans of buying a 2 bhk apartment (15-18lakhs,furnished) and my wedding (4-5lakhs) only after 1-2 years. I am now ready to invest 55 lakhs at the moment. Kindly suggest me to invest the money such that I can get monthly income of 25-30k regularly and some schemes for future. Detail me with an example placing u in my place and keep the numbers intact and suggest an excellent portfolio. Thanks a ton !!!
Dear Arjun,
Firstly, get the basic things done.
Get yourself & parents sufficient health insurance cover. You can buy a Personal accident insurance plan too.
You may invest the Rs 5 lakhs in FD for your marriage expenses purposes.
Instead of buying a new property, you may consider investing in different Asset classes for your retirement purposes/long-term goals.
Have sufficient corpus as emergency fund (can be in FDs).
Is the entire Rs 65 Lakhs white money?
Read:
Financial Planning Pyramid.
6 common personal finance mistakes
Best Portals to compare health insurance plans.
Best personal accidental insurance plans.
List of Best investment options.
Hi Srikanth,
Please advise if any Insuarnce company issues a Term insuarance plan on a housewife spouse(who used to work 6 years ago) , (now non earning, non taxpayer, no IT returns filed).
Is , being an earning member a criteria for Term insurance?…pls advise
Dear shivanandkumar,
Yes, it is a criteria. If she is not an earning member of the family, life insurance cover is not essential.
Read: Top term insurance plans.
Hi
Sir, as my friend’s PAN number has been entered wrongly and after 2 years the company is telling that they have sent for rectification for income tax dept. how many days it will take after sending the request for rectification and how we can make out that it has been corrected and can she get back her TDS ?
Regards,
Parveen
Dear Parveen..You can check your latest Form 26AS statement if the tax credit (or correction) has happened or not.
Kindly read: All about Form 16/Form 26AS…
hello sir,
i want to invest 45ooo/= in elss,
my basic purpose is tax saving and steady growth.
i am looking this investment for next 3=4 years
can u suggest me which funds are the best to invest now looking at the market conditions
Kindly reply asap as i am looking to invest before 31 march
Dear ANSHUL,
Suggest you to plan your taxes from the beginning of a FY itself.
Kindly read : Best ELSS funds.
Hi Sreekanth.,
I started following all your article, its all useful and interesting; I clarified many of my doubts;
Similar to above questions, mine is also related to LIC endowment policy; All the policy were taken by me during my initial stage of my career. I agree than i did not do much analysis; Now i could see there are other ways of financial planning to get a decent return more than offered by this traditional plans.
Presently I have these plans with me;
Jeevan Anand ( T.No 149) commencement date 28/10/2009 ; Taken 4 policies with term of yrs 21/20/19/18 all being SA for Rs 125,000; Qtr. pay being Rs 1,734/ Rs 1,836/ Rs 1,948/ Rs 2,073 ( premium mentioned for Qtr only) Accrued bonus each policy approx. Rs.33000(per policy)
Jeevan Chhaya (T.103) commencement date 28/10/2009; Policy taken for 25 yrs ,SA 400,000,Qtr payments Rs 4,520 (premium mentioned for Qtr. only) Accrued bonus Rs 115,200
My opinion is for paid up- reason being at least i could get all my premium paid & life cover for the paid up value at the end of policy term ( correct me if I am wrong)
Personally i have not taken Term insurance & Medical insurance ( present coverage by office policy)
Annual payments to these endowment plans approx. to RS 50,000; My plans would be to use this money towards medical insurance Rs17,000 ( 10 lakhs coverage) & Term insurance around 50 lakhs and balance would for other Equity investments
Kindly Suggest
Krishna
Dear Krishna,
Thank you for following relakhs.com
Suggest you to kindly make both the policies PAID-UP ones, but before doing so, buy term insurance plan.
Read:
Best Term insurance plans.
Term insurance Vs Traditional plans.
How to get rid off unwanted life insurance polices?
Also read:
Best websites to compare health insurance plans.
If life is UNPREDICTABLE, Insurance can’t be optional!
Financial planning pyramid..
Thanks Sreekanth.,
For your valuable reply on time.,
With regards
Krishna
Hi Srikanth,
I had filed my income tax returns for Assessment year 2014-15 & 2015-16 for the first time and initially the status was showing ‘Successfully E-verified’ and now status changed to ITR Processed and when I click on ITR-V Acknowledgement the status is showing as “ITR Processed no demand no refund”.
What does this Status mean as well Is this the last step from IT
Regards,
Habeeb
Dear Habeeb..It means your Tax Returns has been verified, processed & no discrepancies have been found. You are neither liable to pay and taxes (nor) you are eligible to receive any refund from the IT dept :). Yes, this is the last step.
Hi Sreekanth
Thanks a lot for you reply….
Regards,
Habeeb
Aribitrage Funds – Request you to advise [i] the pros & cons about these funds. [ii] How come these are not heard that much in investing arena. [iii] the best performing funds in this category [iv] your observations about these funds in the market.
Liquid funds – [i] Will you please highlight about the ‘Liquid’ part.
[ii] which are the funds faring well in this category.
[iii] whether the Arbitrage and Liquid funds are two identical type of funds or
meant for totally different goals.
Thank you very much for, the way your answers being drawn.
Dear David,
One needs to understand how Arbitrage funds work, it can be a challenging task to many of the investors.
But, yes these are good funds.
Will try to post an article on this…
S….s..please do POST a comprehensive article…. await eagerly.
Hi shree….have bought a flat in 2015….the date of agreement of flat is oct 15….whreas my loan has been sanctioned in Feb 16, EMI started in Mar 16.Property value less than 50 lacs n loan less than 35 lacs…am I eligible for additional 50 thousand rebate as per latest budget provisions??
Dear Shrikant..No. Kindly read: Income tax deductions list FY 2016-17
Hi Srikanth,
Even few chits (chit funds ) are giving better returns as equal to equity funds within short time period ( less than 3 years). What do you opine. When one has short term goals, chits comes in handy with better returns and liquidity in reach.
Thank s,
Rakesh
Dear Rakesh,
Most of the small-scale chit funds are not well regulated and we have seen in many cases how they just turn their boards and vanish.
Also, the challenge with chits is it is very tough to calculate returns as the returns are dependent on many factors and also the returns vary depending on the pool size/profile.
Whereas, mutual fund industry is very well regulated one and liquidity is also good.
Hello Sreekanth,
I’m 33yr old IT employee married, has 2yr old kid staying with parents at own house in Hyderabad. My wife insists on purchasing flat, but I’m interested in independent house or land with little high homeloan. Could you please let me know which has more appreciation in future. Is investment in mutual fund better than Real estate.
Regards,
Srikanth
Hi Srikanth,
Could you please help me with above query.
Thank you,
Srikanth
Personally I prefer to invest in an independent house to flat. But kindly do not acquire it by taking higher loan amount, as long as it is within your repayment capacity and provided you have made adequate allocation to other high priority goals like your retirement etc, it should be ok.
Please let me know that monthly income advantage plan offered by Max Life in which after paying 12 annual premiums will get a monthly income for next 10 years & get a lump sum amount (equal approximate the premiums paid in 12 years in the beginning) plus approx. 14.5 times death benefit for the entire policy term i.e.22 years. I want to know whether any other plan in other company offers as like this. Please suggest me. Thanks
Dear Rajpal,
Max life’s ‘monthly income advantage plan’ is a money-back traditional plan.
Suggest you not to mix life insurance and investment together.
If your objective is to get adequate life cover, you can buy a good term plan.
Kindly read:
Best term insurance plans.
Term insurance vs Traditional plans.
As I am 55 years smoker hence the term plan is so expensive. I want any wealth accumulation plan&if plan have life cover it is an extra benifit.
Dear Rajpal,
This plan can be even more expensive and can erode your wealth.
Read:
Best investment options in India.
Hi Srikanth,
What will be the impact with the new rules 2016 on Voluntary PF.
Thanks,
Murali.
Dear Murali..Same as applicable as on the mandatory PF contributions.
I believe that its better to invest in other equity oriented products (ELSS) or PPF instead of VPF, considering the fact that one can not withdraw full balance before 58 years.
Hi sree,
I already started SIP with hdfc via agent.now with same folio can I start new SIP direct growth plans.if yes thentell me procedure.
Thanks
Dear Vikrant,
Yes. You may do so through the fund house website or through online platform like MF Utility.
I HAVE NOT YET RECEIVED THE INTIMATION UNDER SEC 143(1) THOUGH I HAVE BEEN INFORMED FROM CPC BANGALORE THE PROCESSING IS OVER AND THE SAME WOULD BE SENT TOME THROUGH MY E MALI ADDRESS
MEANWHILE I RECEIVED REFUND WHICH IS VERY LEES AGAINST WHAT I HAVE FILLED IN MY RETURN IN AY 2015-16
I have tried may times to contact CPC Bangalore but could not have been successful.
KINDLY HELP
PRADIP KUMAR MAJUMDAR
PAN NO ****
Dear PRADIP,
Kindly do not share PAN number on public forums.
Without looking into the documents, it is very tough to assist you in this matter.
Kindly consult a CA.
Sir regards.I am investing in following funds for last 8 months.7000 icici blue chip,30000 icici value discovery,10000 hdfc mid cap,30000 Tata balance.my horizon is for 10 years.are funds ok.should I decrease my allocation in balance fund and increase in diversified or midcaps.Thanks for your help
Dear saurabh,
The invested funds are good ones. As you have a long-term view, you may reduce the allocation towards the balanced fund and can consider investing more in icici value & hdfc mid-cap fund for next few years (say 3 to 5 years).
Thanks for your prompt reply.regards
Dear Sreekanth,
We have been investing:
1. 1.5 L in ICICI Lifestage Pension per year since 2009.
2. 1 L in HDFC Savings Assurance Policy per year since 2009.
There are 3 more installments remaining for both. My husband and I are close to retirement. Is it better to close them now and redeem and invest in other mutual funds? Kindly advise.
Thanks,
Geeta
Dear Geeta Ji,
If the policies are nearing the maturity dates, you may hold on to them.
Have you accumulated sufficient corpus to lead comfortable retirement? Do you have adequate health insurance coverage? Do you have any family member(s) who are financially dependent on you?
I am a member of Central Govt housing society and allotted a plot for which i have been paying installments since 2004. Finally the property was registered in my name in June 2015, for which the amount paid is less than market value(govt guidance value). Stamp duty is paid as per market value. The difference between market value and actual amount paid to society is 1.8lakh. Do i need to pay tax for this amount as it is treated as income from other sources? This society launched this project 10 years back, i had paid more than 50% of the value 5 years back in installments and remaining 50% last year june 2015. My doubt is, if bank interest is calculated on the 50% paid 5 years back, it comes to more than 1.8 lakh. In that case i do not have to pay any tax?
Kindly advice whether i need to pay tax on this differential amount. Thanks in advance
Dear pandirivs..I am unable to understand your point. You have to pay capital gains tax (if any) only when you sell the property.
For taxation purposes, the registered value is considered as the purchase price.
Dear Sreekanth,
My point is if the property is purchased at a price less than market value/govt guidance value, the differential income i.e. the actual amount paid to the seller and the fair market value of the property is considered as “Income from Other Sources”.
I paid stamp duty and registration charges as per fair market value(govt guidance value), but the actual amount paid to the society is less as this project was launched 10 years back, and over a period of time i paid more tahn 50% of the amount, and remaining 50% before registration. i.e. last year June.
I read from income tax web-site that under the following headings
Incomes which are charged to tax under the head “Income from other sources”, one the points is
Immovable property received by an individual or
HUF for a consideration which is less then its fair market value
In my sale deed it is clearly written that the amount paid to seller(society) is 10 Lakhs(for example), whereas stamp duty and registration charges paid are for an amount of 11.8 Lakh.
Can you please clarify on this
Dear pandirivs,
In your case, you have paid the expenses, so how can it be ‘income’ to you.
Am I missing something here. You may kindly take help of a tax expert / CA.
Dear Srikanth,
I might not have put my issue clearly. Let me write it once again, so that you can understand my case better.
Income tax rule is “Immovable property received by an individual or
HUF for a consideration which is less then its fair market value are charged to tax under the head “Income from other sources”.
My case comes under this category as i paid only 10lakh to the society, whereas its market value is 11.8 lakh. Of course stamp duty and registration charges are paid for 11.8 lakhs only.
So this difference amount of 1.8 lakh is consideered as income from other sources.
I have to pay tax for for this as per my slab which is 30%. There is no ambiguity in this. The point which i am not able to make it clearly is, since this society launched this project in 2004, and i paid 50% of 10lakh before 2009(in installments, from my own sources), and if interest is calculated (as per RBI interest rates) on this 5 lakh from 2009 to till now, it comes to more than 1.8Lakh.
I ended up paying more than 11.8 lakh altogether to the society if you include interest portion on the payments made before 2009 plus actual amounts paid i.e. 5 lakh before 2009 and 5 lakh in 2015.
My question now is, as per Registered sale deed amount paid is mentioned as 10 lakh and market value is 11.8 lakh. Do i need to pay tax for this difference amount?
My claim is i ended up paying more than 11.8 lakh to society (if interests are also calculated). Is my claim a valid point for not paying tax for this difference amount of 1.8Lakh?
Thanks in advance
Dear pandirivs,
Apologies, I am not a tax expert. I am not very sure on this. Kindly consult a CA.
Hello,
I want to invest 25000 per month through SIP’s in mutual funds. After some research on net I have selected following funds:
Amount Fund
5500/- Axis Long Term Equity (For Tax saving)
4500/- Birla Sun life tax plan (For Tax saving)
4000/- SBI Bluechip
4000/- Mirae Emerging Bluechip
4000/- SBI Magnun balanced
4000/- DSP-BR Micro cap or Tata Dynamic bond (confused)
Please suggest me if above division of money and selection of fund is good enough or not. If not please suggest modifications. My age is 32 years and investment horizon is around 5 years.
Dear Nites,
If your investment horizon is around 5 years, suggest you to stick with diversified equity & balanced funds.
DSB micro cap fund is a small cap oriented fund and tata dynamic fund is a debt fund, so its not right to compare these funds.
Read:
Best Balanced funds
MF portfolio overlap analysis tools.
Thank you very much Sreekantji for your reply. After putting much thought and analyzing portfolio overlap I have decided to invest for 8-10 years (previously asked for 5 years). I reached for following funds as SIP’s:
1. 5000/- Mirae Emerging Bluechip
2. 5000/- HDFC balanced fund
3. 9000/- ELSS Fund (AXIS LTE/Franklin Tempelton Taxshield/Birla Sunlife Tax plan)
4. 6000/- Not decided; need help!
I have few questions to ask::
1. As I want to invest 9000/- in ELSS, should I invest in one ELSS fund (AXIS LTE or Franklin Tempelton Taxshield or Birla Sunlife Tax plan) or should I divide 9000 and invest in two/three funds. If one fund is sufficient then which is the best ELSS fund to start SIP for 2016-17.
2. In my planning I have included Large and Mid cap funds as well as one balanced fund. I want to invest 6000/- more with 8-10 time frame. In which additional fund (small cap or diversified or debt) should I invest for maximum benefit. Or should I distribute this 6000/- equally in above funds.
Dear Nites,
1 – If the overlap between Franklin Tax shield and Axis LTE is low (say less than 30% or so), you may invest in both.
2 – You may consider one equity diversified fund like Franklin Prima plus or ICICI Pru value discovery fund.
Hi, I have taken LIC Jeevan Saral A T M plan.
Its been 3 yrs now. I am paying 4000 Per months. Plan is for 35 years. After Maturity i will be getting 1.5Cr.
After going through various blogs i feel is not a good returns. Please let me know your views.
Dear Shailej,
Suggest you to kindly get adequate term insurance cover (if you do not have one) and you may surrender this policy.
Kindly read:
Term insurance Vs traditional plans.
Best online term insurance plans.
How to get rid off unwanted life insurance policy?
Hi Sreekanth ! Request u suggest or pave a way, for, I have a grand daughter who is born in US. I wish to open a suitable mutual fund with good performance. In as much the baby is US born, I can not open in her name directly, keeping myself being as ‘guardian’ . Hence,[i] request you to suggest a mutual fund which in turn shall be useful to her @ 18 yrs. age or so.
If no suitable fund available to do so, any other mutual fund, to serve MY PURPOSE.
[2] Also, request you to suggest a suitable method / fund / stock keeping the basic intention of investment in mind. Thank you.
Dear David Ji,
Where are you currently residing? Are you an NRI?
Kindly go through this article : MF investments & NRI – FATCA Compliance.
Hi Sreekanth ! I am not an NRI. Gone through the contents of your article as suggested. Got the point. Hence, a fund I intend to open for the sake of my gr.daughter. How shall I go about this and the method?
Thank you for the prompt reply.
Dear David Ji..Kindly go through this link..
Also read:
Child Gift Mutual fund plans.
Sir,
Is there any health insurance available in the market covering sibling, mother and myself
Manoj
Dear manoj..May I know the age group??
Read:
Best Family Floater health insurance plans.
Sir,
Myself 41
Sibling 48
Mother 70
Manoj
Dear Manoj,
Suggest you to take a separate mediclaim policies for three of you (if you can afford).
Read:
Best Health insurance plans for senior citizens.
Best Portals for comparing health insurance
Hi Srikanth. I am Dr.Kishore Gangineni. i spoke to you on whats app on the 5t of march for some advice. below are a set of mutual funds which i selected. i want to invest one lakh into each. Please let me know you opinion.
Tata Ethical, ICICI Pru Value Discovery ,Franklin India Prima Plus ,IDFC Premier Equity, Mirae Asset Emerging Bluechip
Dear Kishore,
May I know your investment horizon??
Kindly go through below articles:
Best Mutual Funds 2016,
MF Portfolio overlap analysis tools.
Hi srikanth
Many thanks for your reply. My investment horizon is between 5-10 years.
I have gone through the articles before. the reason i contacted you in the very first place being the way way you had analysed and came to the conclusions in the article. it was very impressive.
Dear kishore,
The selected funds are good ones.
I believe that the fund manager of IDFC premier has quit recently, so suggest you to keep an eye on its performance, else you may pick other mid-cap funds like HDFC Mid-cap opp fund or Franklin smaller cos fund.
In my home loan (taken 5 yrs back)my wife is coapplicant &coowner.Till now i m taking benefits of 80c and interest paid exsumtion as i m only paying total home loan.Now my wife is eligiblefor tax so we want to do prepayment (adiitional to regular EMI)for getting tax benefit under80c.Whether paying prepayment from her bank acoount will help her to get tax exsumtion.please suggest.Means Can we both benefit for sec 80c ‘EMI principal benefit to me and additional 1.5 lac repayment benefit to my wife?
Dear SHITAL,
Kindly note that the tax benefits have to be claimed in proportion to the share of ownership in the property.
Yes, in case say if you repay Rs 3 L worth of principal, both of you can claim Rs1.5 Lakh u/s 80c.
Dear Sreekanth,
Thanks for infirmation.From your mail it seems my wife can get benwfit of tax exsumption.In our case we have not decided proportion of ownership in property. I checked index 2 and no such proportion is found.So whether need to fix it before claiming tax benefit for wife?
also paying additional premium from my wife account will help her to claim tax benefit….
Dear Shital,
If the ratio of ownership has not been mentioned in the sale deed, considering it as 50:50 can be a better/logical thing.
Dear Sir, I am on higher bracket income tax slab. My wife was earning till last 2 year. since last 2 years i am transfering rs 50000/- to her account each month from my salary. i want her to continue her return filing. how to show the income for return purpose since that money is tax paid from my earnings. second she has lot of FD’s on her name & our children.
we want to transfer the Fd’s into some good mutual funds or tax bonds. i am new to investment line. all these years i have not planned any major investements.
pls guide some good schemes. i am 53 years & wife is 45 years.
Dear mukund,
Suggest you to read this article : Gifts & Tax implications.
Kindly let me know if you have adequate lief & health insurance coverage?
Read: Financial planning Pyramid..
I have good mediclaim policies for me & family & have pension fund insurance & for my doughters yearly return for higher education purchase.
every month i can park about 25000/- for next 2 to 3 years. i have 2 houses. but do not have any investements in shares/mutual funds now.
pls suggest good investments in my left our 3 years of services. i do not have pension after retirment.
Dear Mukund,
If you do not have pension after retirement, have you accumulated sufficient retirement corpus so that you can lead comfortable retirement life?
If your investment horizon is 3 years and can afford to take high risk, you may consider investing in balance fund + aggressive MF MIPs.
Read:
Top Balanced funds.
Top MIP funds.
hi Srikanth
Hope you are doing well.
As the repo rates may come down in short , when to invest in bebt funds, principally into income funds. Is it prudent to invest in income funds (debt funds) quarterly. Keeping current market condition please suggest when to invest as the repo rate may come down as per the news.
Thank you for your guidance.
Dear Rakesh,
You may consider investing in ‘Short-term debt funds’.
Kindly read:
Types of Debt funds.
Best Debt funds to invest in 2016.
Dear Sir, One small Query ! Can you suggest a formula to Calculate the monthly savings if one has to achieve a corpus of 600000/- @7.5%p.a Quarterly interest withing a period of 60 months..
Regards
Dear Venkat,
Read this article, can be useful to you : How to calculate Future value of investments?
Dear Sreekanth Reddy ! Thanks for the prompt reply to my Query .I got the formula which I needed from the links provided in your reply.. Moreover your Relakh site is full of exciting information..which is really worth reading..Thanks one again for your great effort in spreading knowledge to the needy..Bye..
Regards
Venkat
Hi Sreekanth,
I am Narasimhareddy planning to do CFP? I stay in Hyderabad. Could you lease provide any inputs or assistance for training any other information?
Dear NarasimhaReddy,
Kindly submit your request at ‘contact’ page, we will get back to you ASAP.
Hi Sreekanth,
I am a retired person from and with no pension. I have FDs which are getting matured in this month for about 10L. Pl suggest me good mutual funds for long term investment for 5/6 years.
Dear RAMAKRISHNA,
Do you depend on the income generated by these investments for your day-to-day expenses?
Kindly read:
Best Debt mutual funds
Best balanced mutual funds
Best MF MIPs
Best investment options.
Hi Sreekanth
Thank you for your reply.I have other deposits to give for monthly expenses.This amount being planned for long term investment 5/6 years.
Pl suggest.
Regards
Dear RAMAKRISHNA,
If so, you may consider one Balanced fund + one aggressive MIP fund + one short term debt fund.
You may allocate higher % for balanced fund.
Kindly go through the links as provided in my previous comment.
Hi Sreekanth
Thank you for your advise. Shall I invest all the FD amount of 10L by buying MF or shall I invest in SIP basis also for some amount for an year.
Pl advise
Regards
SRK
Dear RAMAKRISHNA,
You may do so. You can create STP (systematic transfer plan) from a debt fund to equity fund. Ex: HDFC liquid fund to HDFC balanced fund. Note that the two funds should be of the same fund house.
Read: Best debt funds.
But if you are investing for long-term, you may invest lump sum.
Hi Sreekanth
In mutual funds please brief me in Direct plan.. viz Birla Sun life Mid Cap Fund – Direct Plan (G) and Birla Sun Life Mid Cap Fund (G).
Pl clarify the difference and which is preferable.
Regards
RAMAKRISHNA
Dear RAMAKRISHNA..Kindly read my article on : ‘What are Direct plans of MFs & their benefits?’
Hello
I resigned my job in June 2014. My PF contribution was kept intact. I joined a new company in UAE.
With new law and amendments, should I keep the amount left in PF or should I take it out and invest it in some other format of saving like bond or share.
Regards
MP
My Personal Suggestion : Please withdraw the amount and invest in Shares or Mutual Funds periodically for god returns in longrun.
Dear Manoj,
You can now withdraw your share + interest thereon only. The employer portion can be withdrawn at the time of retirement age.
You may withdraw and reinvest the fund according to your financial goals.
I am a married guy aged 29 years. Me and my wife are working with combined income of 2 lacs. Our combined expenses are around 60k
We have the following long term and short term goals
Short Term
Annual Recurring Vacation – Budget 2 lacs each year
Long Term
House in 5 years – Required 75 lacs
Retirement in 26 years – Required corpus 10 crores
Investment Plan
For Retirement:
Trying to build 60:40 distribution like below:
Annual EPF (mandatory) – 1.04 lac
Annual ELSS – 32000
Annual NPS – 1.02 lac
Annual PPF – 48000
For House
Thinking of 40:60 Portfolio at 1 lac per month
Questions:
1. Can you suggest if my retirement portfolio looks ok ? Or do you suggest an alternate allocation ?
2. For retirement portfolio – which ELSS should I invest in ?
3. For House – Do you agree with the Equity:Debt allocation?
4. Can you suggest mutual fund categories and mutual funds to invest in for house goal?
Dear Saurabh,
Do you have adequate life & health insurance covers?
For short term goals – You can save in RDs/FDs+Short term debt fund.
Where do you want to invest for medium term goal (5 year)?
Retirement plan – Considering your age/profile, may be you can increase your equity allocation a bit more.
Read: Retirement plan calculator..
Best ELSS funds.
Best Mutual Funds.
Financial planning pyramid..
Hi Sreekanth
Thanks much for your reply ! Appreciate it 🙂
Yes, both me and my wife have a 3L health cover from the employer. Additionally, we purchased a separate Religare floater cover of 5L. I also have a term policy of ICICI for 1 cr
For short term – Yes I will invest in RDs/ FDs
Couple of questions for medium and long term goals
1. Medium Term Goal – House in 5 years – I plan to build a 40:60 equity: debt portfolio, by investing in one balance fund and one MIP
a. Do you think this equity:debt allocation looks good ?
b. Do you agree with the Balance fund, MIP approach ?
c. Am not very aware of the risks associated with MIPs. Do you suggest I use FDs for debt allocation
2. Long Term Goal – Retirement
a. I have a 60:40 portfolio for equity: debt currently. Do you think it will be prudent for higher equity at this stage
Finally, I really want to convey my gratitude for maintaining such an informative blog. I find the various resources really helpful.
Wish you best of luck for the future.
Thanks
Saurabh
Dear Saurabh,
As your wife is also an earning member of your family, she can also opt for a Term plan cover.
1 – Fine. (Read more one : MF MIPs). You may invest in balanced funds for say next 3 years and then switch to safe bets before the target year.
2 – Considering your profile, you may allocate a higher percentage for equity for next few years.
Hi,
What are the benefits will get for continuing PF account for 10 years?
from aug 2006 to july 2009 i was using one PF account no. and from aug 2009 to till date another pf account no. and i have transfer my PF amount from first account no. to current PF account no. which i am continuing, is it will be considered from aug 2006 or it will be considered from aug 2009 for calculation.
Dear Mohammed..will be considered from 2006..
Hi Sreekanth, This is Kaushik from kolkata.
Need your assistance & guidance.
Myself 32 years of age, haven’t invested in MF so far, Continuing saving through RD/PPF/FD with Banks.
Want to invest in MF from April’2016 initially with very less amount for a long term fund equity/diversified equity fund.
I have sorted out some Fund like I Pru Focused Blue Chip, Franklin Smaller Company .
please suggest me for investing just Rs 3000 /- monthly .
Dear kaushik,
Kindly read: Why one should avoid investing in FDs/RDs for long-term?
The shortlisted funds are good ones. Kindly go ahead!
You may also add one balanced fund.
Read: Best Equity mutual funds.
Dear Sir,
Today I read following from your blog
As per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 yrs old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them.
So it means if my policy survive for 3 years then company will have to pay claim. which partially mean claim settlement ratio is no more a criteria for selecting term plan
Dear Ashish..Claim settlement ratio is still important before buying a term plan. But once the policy period crosses 3 year, life insurance company has to honor the claims (if any).
Dear sir,
I have only this question or doubt. No more. By the way what do u mean by subscription. Sending u a question or asking to clarify ” is it priced one” or free?. Please do not think I am stingy.
Dear NARASIMHAN,
Are you referring to our ‘Newsletter subscription’? If so, it is absolutely free. You get latest blog updates as an email.
Dear Sreekanth,
In today’s budget announcement, the FM made the following statement:
___________
Pensions to be partially taxable
Under the National Pension Scheme, the government announced an exemption for withdrawal of up to 40% of the corpus at the time of retirement.
Meanwhile, in case of recognised provident funds, including the EPF, the same norm as NPS will be applied. It implies introduction of taxes on withdrawals from such instruments, which had a total tax-free withdrawal, will now come under the tax ambit.
____________
After retirement on 1/4/2013 at the age of 62 yrs, I left both employee & employer contributions in the EPF fund since I was informed that for upto 3 yrs the corpus will continue to accrue interest. Now, I wish to initiate the withdrawal by 31 March 2016 after the completion of 3 yrs of my retirement.
Will the above amendment (tax on EPF) impact my withdrawal amount.
Please let me know.
Regards
Prakash
Dear Prakash,
As per the budget, the 40:60 rule is applicable for the contributions made from 1st April 2016.
I believe that you can withdraw full EPF amount. Suggest you to kindly withdraw it and re-invest in other alternatives based on your requirements.
Dear Sreekanth,
Thanks for the clarification. This is a real big relief for me.
Linked to the same question, I have the following few more queries:
I joined an MNC at the age of 51 yrs and retired at the age of 62 yrs. That is, after completing 11 years of service. As far as PF is considered, following is my understanding:
1. Towards an individual’s PF account, every month the employer contributes 8.33 % of basic pay and the employee contributes an equal amount. This is a statutory requirement. Over and above this, the employee can volunteer to contribute a certain amount not exceeding a certain limit. These amounts are exempt from annual tax.
2. If the employee retires after superannuation after completing 58 of age and 10 yrs of continuous service, he/she is eligible to get employee contributions (both statutory and voluntary) and employer contribution. However, in my case, my services were extended till the age of 62 yrs on regular employment on the rolls of the company. Till superannuation my PF contributions were deducted on a regular basis.
3. I chose to leave the PF money in the fund for 3 yrs after superannuation as I would continue to get interest on the entire sum. This I thought was a decent enough investment by itself.
4. Now, after completion of 3 yrs after retirement I would wish to withdraw the entire money from the PF fund. I am told that following would be what I would be getting (a) About 4% of employers contribution and associted interest thereof, (b) 8.33 % of employers contribution and associated interest will be parked in a pension fund and I will get an annuity, and (c) My contribution (both statutory and voluntary) and associated interest thereof.
Is my above understanding correct? Please clarify.
Regards
Prakash
Dear Prakash..Looks correct. On the EPF new rules, let’s wait for some more time, to get more clarity.
Hi Sreekanth
I find your articles very useful, have one query I e-verified my returns on 13 feb 2016 and status is showing as ‘Successfully e-Verfied’ and I wanted to know what is the next process after this? and how much time it will take to complete whole process?
Kindly help me on this.
Regards,
Mukaram
Dear Mukaram..Which year’s ITR? The processing time of ITR depends on many factors. Generally you can expect the status update within 30 days.
Hi Sreekanth,
I have a nephew who is 4 years now. I am planning to invest ~60,000/- INR per annum in PPF for 15 years on his name. Per online PPF calculators, at the end of year 15 closing balance is coming to INR 1870367. Does this mean i will be able to withdraw whole amount(closing balance) end of year 15?
Let me know if this is a safe bet as i do not want to take any risk investing in MF’s or other form of investments. Are we able to open PPF account for minors? Otherwise i can open on my name(i do not have one).
Dear Meena,
I am not sure if you can open PPF A/c in your minor nephew’s name. I believe that it is not allowed. (in minor son’s name accepted).
Yes, you can withdraw the entire balance after 15 year lock-in period.
PPF is one of the best and safest debt instrument. As per the existing tax laws, the maturity amount is tax exempted.
Hi Sree,
I am planning to Open an Bank account for my Son (a month old).
1.Wanted to Know amount accumulated in this account will be taxable.
2.Will it be added to my income.
Currently I own two funds:
Axis long term equity and UTI mid cap – Direct plans – SIP 2500 Rs.
Now I want to add two more funds for my child educations and future> I have shortlisted two funds:
ICICI pru value discovery.
Tata Balanced fund.
Please suggest.
Dear Mukul,
Any income that arises to a minor child will be clubbed with the income of the parent whose total income is higher than the other parent subject to a deduction of Rs 1,500 per child.
Kindly read : Gifts & Income Tax implications.
Shortlisted funds are good ones.
Read : Kids’ education goal planning calculator..
After 28 years service company get my forcefully resignation for a reducing team can i get additional benefit?
pls reply fast
it is urgent
I have bought LIC bima bachat plan (Table 816), Money back policy for 9 years as term.
i have received 15% of Sum assured at the end of 3rd year.
will this amount be taxable or not?
Dear H K..If one surrenders life insurance policy before 5 years, the SV amount is taxable as per the income tax slab rate.
Dear Shreekanth Sir,
Thanks for your prompt reply
but sir, i am not surrendering policy policy will mature after 9 years only
only thing is i will get 15% S.A at the end of 3rd year, another 15% S.A at the end of 6th year and the maturity amount at the end of policy term i.e. at the end of 9th year.
my query is whether this 15% S.A which i have received at the end of third year and 15% SA which i will receive at the end of 6th year is taxable or not?
if taxable What amount will be taxable?
Dear H K,
Oh, you are referring to ‘money back’ payments.
Survival benefits or Interim benefits, i.e. money received during the term of a money back policy are tax-free.
yes i am referring to interim benefits.
Thanks for your guidance.
if it is tax free why LIC is deducting TDS on it?
Sir,
pls reply, i have to file return of income before March end
Dear H K,
TDS deduction shows that your policy is taxable. If it was purchased before April 2012, then its sum assured should have been atleast 5 times of annual premium and if purchased after April 2012 then the sum assured should have been 10 times of annual premium to make your policy non taxable.
Now deduction of this TDS is like an intimation to tax authorities and indication to you that you have taxable income from insurance policy too.
If the policy is pension plan then you have to add the complete surrender/maturity proceeds in your taxable income and calculate tax on total income. If your income is below the basic exemption limit then you can claim back 2% paid as TDS otherwise have to pay extra tax.
Hi Sreekanth,
On September 2015, I have registered for atal pension yoga scheme in SBI and received PRAN no through SMS. They are debiting rs. 922 every month. Below are the queries about it
1. Does they give PRAN ID card, when contacted the bank employee they don’t have a clear idea about it.
2.Does they provide portal to login and check the amount .
3. I am tax payer does it benefit to me
4. can I open one for NPS account from other POS ( for tax savings, currently atal pension yoga limits max of 922 for every month)
5. what are the procedure to cancel this scheme if required
thanks,
Vijay
Dear vijay,
1 – I dont think PRAN card is issued under APY Scheme. Only PRAN no is allocated i guess.
2 – As of now, no.
3 – Contributions to APY scheme can now be claimed u/s 80CCD.
4 – Read : All about e-NPS..
5 – You can contact your banker and apply for cancellation.
Iam investment plan 3000 per month icici pru value discovery fund and reliance small cap funds 5000per months plz suggest me
500 reliance small cap 20years
Dear Vasu..Kindly read : Best mutual funds 2016.
Hi Shree,
I am Krishna, I am purchasing house in my wife’s name. In loan application I am applicant and my wife is co-applicant. My wife is house wife, she don’t have any source of earning and I will pay total loan amount.
Please clarify can I get tax exemption and benefits or not. As I am not a co-owner.
Dear Krishna..You need to be a co-owner/owner of the property to claim income tax benefits.
Kindly read: Joint home loan & Income Tax implications.
I m planning to buy a term plan, i hv shorlisted SBI Life, Max New York and Bajaj Alianz, which u will suggest
Dear Rajesh,
Kindly go through below articles;
Top Online Term insurance plans.
Latest Claim Settlement Ratio Data..
Can NRIs invest In NHAI Capital Gains tax bonds to save capital gains from sale of property. The property sold in India
Dear Rajiv..Are you referring to NHAI Tax Free bonds?
Kindly read below articles;
New Tax free bonds 2015-16.
NHAI Tax Free bonds Feb-Mar 2016 Public issue.
How to save Capital Gains on sale of Property?
Dear Sir,
I am working in Central Public Sector Undertaking in the 1992 pay scale. The Govt. of India (CCEA) has approved the closure of this non-performing company by sanctioning VRS/VSS on 2007 notional pay scale and retrench the employees under Industrial Despute Act, 1947 those who do not opt this VRS/VSS. The CCEA has given approval to calculate VRS amount, Gratuity and leave Encasement on 2007 notional pay scale at par with the last pay scale revision of CPSU.
Sir, I wanted to know, whether the Gratuity paid (Rs. 10 L) to the employees under this case is taxable or not.
Hope I will get a solution at the earliest.
Thanks & Regards
Dear Mr Sharma..Kindly read my article on Gratuity benefit & Tax implications..
Hi shreekanth… My portfolio is as follows
Uti equity 2000
ICICI value discovery 2000
SBI small and mid cap 1000
….. Want to add couple of more funds… Pl suggest….BSL front line equity or ICICI pru focused equity, Franklin India smaller companies or TATA balanced
Dear Suchita,
Kindly let me know your investment horizon??
Invested funds are good ones. But I prefer Franklin Smaller cos fund to SBI small cap fund.
You may add TATA balanced fund to your portfolio.
Also, note that the fund manager of UTI Equity has been changed, so do track its performance for the next 12 to 18 months.
My horizon is about 20 years…..children education n retirement…n want to keep 3 funds for each of the goals
….hence want to add 3 more
Dear Suchita,
You may invest in the same set of funds for different goals if the time-frame is long-term (say >10 years).
You may add one Balanced fund and one more small cap fund.
Ex – TATA Balanced fund & Franklin Smaller cos fund.
Dear Sreekanth Garu. I am planning to Invest Rs.15Lakhs bulk amount in Birla Sunlife MNC Fund. After completion of exit load i.e after 1 year, i want to take profits for monthly expenses. I go through the past record 15 years record of Birla MNC, only 3 times it turns negative. And all the other 12times, returns is good. Please give your advise in this issue.
Dear LAKSHMI..What if markets fall drastically in the next 1 year?
Kindly do not invest in equity funds if your investment horizon is very short.
Kindly read: List of best investment options.
I have withdrawn my PF in Dec’15. Will I be eligible for interest in FY15-16.
Dear Shalini..Yes. Did you get the amount?
Yes I got the amount. But without Interest. The below is shown in the passbook but not paid
Int. Updated upto 31/03/2016 Employee share: 13,702 , Employer Share: 8,469
Dear Shalini..The remaining portion is your Pension amount (EPS) which you will get as a separate amount.
Read:
EPF a/c interest calculation.
Hi Srikanth,
I seriously don’t understand what u r talking abt.
I am asking u if I will get this Interest which is payable in Mar’16 even after I have withdrawn all the PF and pension amount in Dec’15. I understand the calculation. but will that be paid? Because I have withdrawn everything before Mar’16, but the interest from Apr’15 to Mar’16 is not paid. will the interest be paid after Mar’16 or will it not be paid since I did not keep the amount until Mar’16.
Dear Shalini,
The interest amount that is payable to you from Apr 2015 to Dec 2015 has to be paid to you by EPFO at the time of PF withdrawal only. Since you understand the calculation part, you may try to find out the exact interest amount.
Hi,
What is the procedure for name change, the PF no. which i was using from aug 2009 provided by my employer, it shows some other employee name of our company. This has happened after transition ( name of company changed) in feb 2013.
Dear Mohammed..Kindly go through my article : EPF UAN online helpdesk..
I have taken ICICI Lombard ihealthplus comprehensive cover of 10 lakhs along with critical illness. They are issuing policy only for 2 years. I paid premium for 2 years and they say no medicals upto 46 years. I got my policy issued. Does this mean once I cross 46, even though I have active policy, I have to do medicals?
Hi Shreekanth..kindly answer my query as soon as you find time.
Also I have another query..I already have a very high term life cover through my employee which has accidental benefit too. In addition I have good insurance through ULIP HDFC SL Crest (30 lakhs) as well as some policies through LIC (15 lakhs) . The issue is most of these end at 58(when I retire) or by 50-55 from other insurers.
Should I go for a term cover from an outside insurer ?
ICICI iprotectsmart term life has no medicals if you take insurance upto 49 lakhs. Is this correct?
Also ICICI icare term life has no medicals till 1 crore. Is this correct?
Dear Sanju,
1 – Medicals won’t be there on renewals. Generally Medical test is not mandatory for all cases below 45 years age.
2 – Suggest you to buy a Term plan from outsider too. You may share details about your LIC policies (Plan name, commencement date & tenure). Suggest you to buy a policy which has medical tests.
Kindly read:
Top online term insurance plans.
Term insurance Vs traditional plans.
Hi Sreekanth
I want to deposit Rs 10 lacs . I’m a NRI. Time period only 9 months. I need this money back January 2017. Mutual funds not possible because my KYC not completed. Fixed deposit less than 1 year they are telling no interest for NRI. So please suggest me the possible best way to deposit.
Thank You
Justin
Dear Justin,
If you require the money in less than 12 months from now, safety of capital & liquidity factors should be given more importance than returns.
You may consider investing in Short term debt funds + FDs.
Read:
List of best investment options in India.
Srikanth Ji.. I am planning to Invest a Lumpsum of Rs.10Lakhs in Birla Sunlife MNC Fund for a time horizon of 15 for my daughter Education and Marriage purpose. As of now, she is 2years old. Please advise can i invest the amount before budget session or after budget presentation. Please provide your suggestion.
Dear PRATAP,
For an investment horizon of 15 years or so, there is absolutely no need to postpone your investments. Kindly start investing ASAP.
Suggest you not to invest lump sum (Rs 10 L) in just one fund. Consider investing in different assets.
Ex: Sukanya Samriddhi Scheme/PPF, Balance fund,one Diversified equity fund & one mid-cap oriented fund.
Kindly read:
List of best investment options.
Sukanya Samriddhi Scheme review
Best Equity funds 2016
Hi Sreekanth,
Could be pls guide me, to meet the educational and marraige goals of my daughter, I should invest in Child plan / Sukanya Samridhhi / or Mutual fund through SIP, as my daughter is 4 years old now and I have a horizon of 15-20 years.
If child plans? Pls suggest which one.
For mutual funds, shall I go ahead with your recommended list for 2016.
I want to invest 10000-15000 per month.
Dear Balwinder,
You can consider investing in Sukanya Scheme & Equity mutual funds.
Ma I know if you have adequate life insurance & health insurance coverage?
Kindly read:
Kid’s Education Goal calculator.
Sukanya Samriddhi Scheme Review.
Best Equity mutual funds for 2016.
List of best investment options in India.
Thanx for replying
Yes, since i am servibg in defence, I have a sufficient insurance cover of 50 lakh from my dept, for which they are deducting monthly premium from my salary.
Can u please suggest me good investment options in equity. Can I go ahead with Uti midcap, inspite fund manager changed.
Hw is icici smart kid plan.
As on date my investment is only in Ppf.
Dear balwinder,
If you are making fresh investments, you may consider ‘ICICI Pru Focused bluechip’ or Birla SL Frontline Equity.
If you have sufficient life insurance cover, you may ignore other type of life insurance plans and invest as much as you can in Equity oriented products.
Dear Sreekanth,
I propose to let out my first floor in Bangalore suburb, The proposed tenant would wish to use it for commercial purpose (to open an office). In this regard I would wish to have your guidance & advise on the following queries:
1. Are draft rent agreement(s) for commercial purpose, that would be legally binding in Karnataka, available on the net.
2. Is it required to get the agreement executed on a stamp paper through the help of an advocate.
3. Will such an agreement stand good (valid) in a court of law.
4. The prospective tenant has agreed to bear additional expenses arising out of incremental increase in corporation tax, electricity & water charges.
5. Are there any other additional points that I need to take care while finalising the tenancy agreement.
I would greatly appreciate your response on the above.
Regards
Prakash
Dear Prakash,
1 – Is your property a commercial one or residential? Do you have the required approvals to rent it for commercials purposes?
2 – Stamp paper, Yes. Advocate’s help, optional.
3 – Duly signed agreements are legally binding on both the parties.
5 – Renewal clause – increase of rent, agreement duration, deposit/ advance refund clause, advance notice clause for vacating the premises, deduction of amount towards maintenance/painting charges while vacating the premises etc.,
Dear Sreekanth,
Thanks for your kind response. However, I still have a few couple of queries:
1. Mine is a residential property. Who will provide me with the relevant clearance for letting out the first floor of my property for commercial purpose.
2. Are templates of such draft agreements available on the net. If so, can you pls provide me the relevant links.
Regards
Prakash
Dear Prakash,
1 – If you have got Sanction plan approval for Residential use only then legally one should not let out the property for Commercial use. If they are going to display any Sign board (office name), revenue tax collector may ask you to pay property taxes accordingly. Because property taxes for commercial usage can be different and higher.
You may visit your local civic body and check about this. (But we all know that many owners do not follow most of these rules and just let out the properties for commercial offices too).
Kindly visit thise link..
Commercial Property Rental Agreement – Template
Hi Sreekanth,
This article and suggestions are really helpful. Thanks a lot for your valuable time to share your thoughts.
Could you please guide me are the following SIP are good?
SBI FMCG Regular Plan Growth – 5000
SBI Magnum MidCap Reg Fund-G – 5000
SBI Pharma Fund – Reg Plan – Growth – 5000
Thanks,
Lavanya Jayakumar
Dear Lavanya..Any specific reason for shortlisting SBI funds only? Kindly note that sector funds like FMCG/Pharma can have very high risk profile. If you understand their business cycles, you may invest in them.
Thanks Sreekanth for your reply. One of my friends who is certified financial planner has suggested to invest on these funds.
Though we have high risk profile, is it worth to continue in these funds as I started before 6 months?
Regards,
Lavanya
Dear Lavanya,
It is prudent to invest in funds from different fund category and across fund houses too.
FMCG & Pharma funds are sector oriented funds, kindly understand the risks associated with thematic funds and do track the industry news/cycles.
Kindly let me know your investment horizon.
Kindly read:
Best Equity mutual funds.
Dear Sreekanth,
Just now I came across the following news item:
EPFO raises rate marginally to 8.8% for FY16, leaving trade unions unhappy
If I am correct, this is only a proposal. When is it likely to be finalised by The Finance, Investment and Audit Committee?
Regards
Prakash
Dear Prakash,
It is a decision which is been taken by the Govt. This interest rate is applicable for fiscal year 2015-16.
Sreekanth,
I want to apply home loan in SBI in my Wife name as main Applicant and me as Co applicant. My wife is not working. Can i claim the tax exemption for the EMI I will pay. When i ask to my accounts dept in my company they are telling that I should be main applicant in the home loan for getting TAX exemption… but, SBI home loan executive is telling Co applicant an also get tax exemption.. Which is True ?… Please Clarify me at the earliest
Dear Raghavendra,
One needs to be a owner or co-owner of a property to claim tax benefits .
If you are a co-applicant but not a co-owner then you can not claim tax benefits on home loan.
Kindly read : Joint home loan – Eligibility rules & Tax implications.
sir,
I had made an sale agreement with the builder as follows . I told him to write the agreement as that my wife will be the first owner & myself second owner. But after seeing the agreement it seems it is written fully in the name of my wife only.. Pls clarify it.. pls find the agreement first page for reference
SALE AGREEMENT
*************
Dear Raghavendra,
Kindly do not share your personal details (Address/PAN no etc) in public forums. I have deleted a portion of your comment (but I have gone through the entire query).
Based on the info you have provided, the sale agreement is completely written in your wife’s name only (as the sole owner). So, kindly check with your builder about this and get it changed as per your requirements.
Can an employee generate more than one UAN? Is it OK to do so? Are there any penal provisions if done knowingly?
Dear Gaurang..UAN is an unique number. An employee can have only one UAN number.
HI Sree,
Review MF plans:
I have SIP 2500 Rs in UTI Mid cap fund Direct Growth from Nov 15. Should I continue this fund or not as fund manager has changed. I checked it on Value Research. I you advice to exit then please suggest other plan
Axis long Term Equity Fund Dirct Growth – Sip 2500 Rs.
Suggest one balanced fund for long term for wealth creation.
Typo – If you advice …
Dear Mukul,
Personally, I am continuing my investments in UTI mid-cap, will track it closely for next 12 to 18 months.
AXIS LET is a good fund. I too have investments in this fund.
You may consider TATA or hdfc balanced fund.
Read: Best balanced funds.
Thanks Sree.
Hi Srikanth,
I have been following the site and its very useful for any person for his financial planning.
I have 2 queries. Currently I am investing in SIP for ICICI focussed Blue chip Equity growth.
I am planning to go for another SIP as well into Balanced as the markets are also not performing well and also on long term basis for 10 years from now. Which one do you suggest and Equity or Debt oriented?
Secondly, regarding gold, did the new gold monetization scheme started by the govt and whats the best way to utilise the surplus gold which just lies in lockers?
Thanks in advance
Arun
Dear Arun,
These type of bad periods for equity markets are common. If you have 10 year investment horizon, do not worry too much about the volatility.
Keep your SIPs active.
You may consider investing in a balanced fund.
Kindly read :
Gold Monetization scheme – Review
Gold Bonds – Review.
Hii,We want to purchase a flat.we are already looking many flats.But all those are telling they don’t have cc and oc.They are also telling we can regularise it later. One of the land owner said that land is A khata so.don’t have any problems. Many of my friends they also bought flats without oc and cc. Plz suggest me what to do? We are in dilemma and scary abt future..
Dear Tapaswini,
CC is must. OC you can get it later also after regularization, but the structural deviations (if any) should be within allowable limits.
Sir
I want to know about which is best in between Franklin Prima plus and Icici pru value discovery as my aim is for 10 years through sip kindly provide your specific valable suggestions
thank’s
Dear Ramu,
Both are good ones. If you would like to take more risk, you may invest in Discovery fund.
Read:
Best Equity funds for 2016.
Dear Sreekanth,
As per The Hindu dated Jan 14, 2016 ,The Finance, Investment and Audit Committee (FIAC) of the EPFO was scheduled to meet on Monday Jan 18, 2016 to consider 8.9 per cent annual dividend on PF savings for 2015-16. Has this been announced?
Thanks
Prakash
Dear Prakash, It is not dividend but it is interest rate. We may expect the announcement on 16th Feb 2016.
Hi Sreekanth
I have a plot which I am planning to sell this year (2016), I have been owning it for more than 36 months and I understand that I am liable for 20% Capital Gains Tax. The question I have is, can I claim exemption of CGT on the below property. I came across a condition in your blog that if the sale proceeds was invested in the last 1 year or in next 3 years we can claim exemption. Does my below property investment qualify for CGT exemption ?
I recently purchased a flat thru a promoter, furnishing details below.
Agreement entered with Builder – July 2012
Sale Deed Registered (for Undivided share) – Jun’2015
The construction is still not complete and I am NOT in possession of the unit.
Please advise.
Thanks
Seetha
Dear Seetha..Based on the information provided by you, your investment (2015) qualifies for LTCG tax exemption.
You may also take the help of a CA.
hi,
This is Deepa.I have quitted job on Jan 2016.
pension query:To avail a pension benefits need to be in service for 10years.currently I have 7.5 years.please suggest wat to do with pension amount.I hope pension amount won’t yield interest.
Note:planned to join company after 2 years.
Dear Deepa,
You can withdraw your EPS monies, the amount is based on certain calculation.
Also read: EPF Withdrawals & new TDS rules.
Thanks Sreekanth.
If i get a pension scheme certificate. once i joined the company my previous experience will be calculated for pension.Please assist.
Dear Deepa..Yes it is counted.
Asking a question on behalf of my elder brother. He has been investing in Mutual Funds since many years but does not have same email address in every folio. In fact he does not know to use an email. Being a mandatory field I guess the distributor may have put some dummy email and processed transactions.
I have created an email address for him. Please suggest the shortest way by which I can get new email address updated in all the Folios online. It may help in getting consolidated statement of all funds from CAMS website.
Thanks in advance.
Dear Mayank,
You can submit written request for the updation of email-id to CAMS & Karvy.
To know the list of mutual funds serviced by these firms..Kindly read this article..
Hi Sreekanth,
I had resigned from Tech Mahindra the then Satyam Computers in October 2014. My service was 9 years, 9 months and 8 days. I had applied for PF withdrawal in form 10 c (pension Component) and 19 (employee provident fund). I got full amount pertaining to form 19 and unfortunately my pension amount is not released. I had raised a query regarding the same and the reply from them is as follows
“This is to inform you that as per our record your service is 9 years 9 months which is considered as 10 years in rounding up in system. So you are not eligible for withdrawal benefit only eligible at present for scheme certificate. You are requested to submit form no.10-c along with family details”.
Some how I don,t believe those government guys. Please guide me.
Please let me know if you require any other information on the same.
Thanks in advance,
Regards,
Y Sridhar Reddy
Dear Sridhar,
One can withdraw pension (EPS) if service is less than 10 years.
As your service is 10 years, you can withdraw pension amount after attaining 58 years of age.
Dear Sreekanth,
I had clearly mentioned that my service is 9 years, 9 months and 8 days only i.e. (from 10th January to 14th October 2015). I had not completed my full 10 years service. Does 9 years, 9 months and 8 days equal to 10 years?
Regards,
Y Sridhar Reddy.
Dear Sridhar,
As stated in the EPFO message, they would have rounded it off as 10 years, hence the decision.
Hi,
I want to invest my money in mutual funds.
Please help me
Dear John,
Kindly read below articles;
Best Equity mutual funds.
Best Debt Mutual Funds.
I hv invested 60 k p.a. In sbi pension fund for 4 yrs, for which I hv taken tax rebate under 80 c. Now , I wanted to surrender my policy and I am only getting 2.58 lakhs also they said I will b deducted 2% tds extra . After sirrendering my policy do I hv to show it in ITR returns and extra tax do I hv to pay. Thx .
Dear Ravi,
Surrendering the pension plan before maturity has serious tax implications. First of all, the premiums that you have claimed as part of deduction under section 80C will have to be reversed and you will have to pay tax on it. Secondly, the entire surrender value will be added to your income and you will have to pay tax on it according to your tax slab.
Also, the insurance regulator mandates that two-third of surrender value needs to be utilized to purchase annuity plan.
Should I wait till completion of 5 th year. The pension plan is for 20 yrs. The minimum lock In period is three yrs, which is completed. I find no use of this policy. Returns are less. Kindly help me out of this.
Dear Ravi..Even after the 5th year, the tax implications remain the same. Hence take your decision accordingly.
Can you explain us what is MSF and bank rates ..?
Dear Jallakarthik,
Marginal standing facility is a window for banks to borrow from Reserve Bank of India in emergency situation when inter-bank liquidity dries up completely. Banks borrow from the central bank by pledging government securities at a rate higher than the repo rate under liquidity adjustment facility or LAF in short.
About other bank rates, kindly read: ‘What is CRR/SLR/Repo rate?’
8 yrs I have work in a compny .i want to withdraw my pf approx 275000rs it is taxable or not
Dear Ratnakar..It is not taxable.
Dear Srikanth,
I am having 7.5 Lakhs with me and want to invest in Stocks & MF. Could you guide me 2 to 3 good stocks for long term investment more than 10 years for wealth creation. I choose 3 MF from your list suggested.
1. Franklin India Prima Plus Growth
2. ICICI Pru Balanced Fund
3. UTI Mid cap fund
I am planning to invest 4 lakhs in these MF and balance in stocks. Do you suggest me to invest lump sum or SIP. Provide me best strategic plan.
Dear Harinath,
Kindly note that I do not offer suggestions on direct equities (shares).
Selected funds are good ones. The fund manager of UTI midcap has quit UTI, so you may opt for Franklin Smaller companies fund or HDFC mid-cap opportunities fund.
You can invest lump sum considering the current market conditions & your investment horizon.
Thank you Srikanth. I will choose another Fund Company HDFC Mid cap opportunities instead of Franklin Smaller Companies as I am investing in Franklin Prima Plus. Also I will invest in ICICI Balanced Fund.
Thank you for your kind suggestion. So I will invest total 7.5 lakhs in lump sum in the said 3 funds.
Hi, I would like to know about superannuation , currently i work in a company were in i could make voluntary contribution to LIC group scheme towards superannuation. The same is not available in company i planned to join shortly.
1. Can i make my contribution to LIC Group scheme directly, since new company doesnt have that option?
2. Can i shift that to any other service provider other than LIC were in could continue my contribution directly?
3.Or can i withdraw that amount?
4, or hold on to it
please advise.
Raj
Dear Raj,
If your new company do not have approved Super annuation fund, you may apply for withdrawal, but do note that there will be tax implications. Kindly check with your current employer or LIC for more details.
Hi Srikanth ,
Let me take this opportunity to wish sucess in this great endeavour of en lighting all of us about financial intricacies .. Had a small query about how gratuaty is calculated in NGO , NPO or institutions
Dear Wajid..Thank you for your warm wishes.
Read : Gratuity benefit amount & Income Tax implications.
Hi sreekanth,
I have no words to thanks for doing such a non profitable job you done.I salute you from both hands for your passion and effort .
I am a salaried employees want to take a term plan please guide me. what are the points should i notice ?
Dear Anup,
I do get some payment from Google for displaying Ads on my blog.
Regarding term plans, suggest you to kindly read: Top Online term insurance plans & FAQs.
Hi Sreekanth,
I am new to investment; I am an NRI planning to return to India permanently after 2 months. aged 47 years, I currently saved about 50L INR, from this am looking for a monthly income of 20 to 25 thousand for house expenses and remaining I want to invest for 3 to 5 years. Currently I don’t have any financial goals. Kindly suggest me.
Thank you very much.
Dear Ravi,
You may consider below options for fixed monthly income;
1) Fixed Deposits
2) Post office Monthly Income Scheme
3) Mutual Fund Monthly Income – Dividend option
4) Tax free Bonds.
3 to 5 years horizon : You may invest 75% of amount in a balanced fund + 25% in Long term debt fund (or) MIP.
Read : Best Debt funds for 2016.
Thank you very much dear Sreekanth.
Sir, i have e-filed of a trust. Actually i supposed to file ITR-7. Instead, i have filed in ITR-5. I am very trouble. How to rectify this error. Pls guide me sir.
Dear Raghavendra..Don’t worry. Suggest you to kindly consult a CA and get this done.
Dear shreekant,
Kindly advise whether it is better to take a Critical illness policy separately or should it be taken alongwith a term insurance? From some basic research which i did, the coverage in case of latter is limited. Kindly advise.
Dear Rishi,
If ones family has a medical history of suffering from any major Critical Illnesses, it is advisable to take a Stand-alone CI plan.
Yes, stand alone ones are more comprehensive.
Kindly read : Best Portals to compare health insurance plans.
Dear Shreekanth,
Thank you for your insight. Much appreciated.
Hi Sree,
do u know Bharti Axa,AegonLife selling online term plans to both non-earning persons?
one of my friend(govt employe) purchased aegonlife,bharti axa joint life online term policy to him&to his wife(non-earning). company said to him that his income wil be shown to her wife and issued half of sum assur amount of him ex:50L to him 25L to his wife.
now my question is
it mis-seling of insurance against IRDA guidelines becaz basicaly term plan is for earning people to compensate financially his family in his absence?
shall i advise him to withdraw policy from company?
i’m very anxious to know? plz reply early
Dear naresh,
If they have issued policy in the name of non-earning member, it would have been surely based on their underwriting rules & as per IRDA regulations only.
Some Life insurance companies do issue term policies with low sum assured amount say less than Rs 25 Lakhs.
Also, there are few join-life Term plans now available in the market.
The point here is, insurance cover is not required for non-earning member. The husband can invest this premium in better investment avenues than buying a term plan in her name.
thnQ………………….4quick respons
but Sree,
my queries are
1. will husb get sum asur amount if his wif demis?
2. after mariage of women susb is legal heir without WILL . am i corect?
3.aegonlife issued policy sum asurd for nonearning member(wife) more than rs.25L that is rs.36L and husb got sum asurd rs.78L
4.and in the case of bharti axa policy sum asurd for nonearning member(wife) more than rs.25L that is rs.50L and husb got sum asurd rs.75L. morever it is offering accidental death benefit rider to no-earning person also.
u cant believ this just checkout bharti axa&aegonlife for e-quotes and enter ur mob no. anonymously they wil definitly cal back u. u just ask for joint life policy&tel them ur anual income 4L & ur wif is no-earning. i am sure u wil get above said e-quote in ur email id within 5min
Dear naresh,
1 – Yes. If the policy is issued, he will get the claim amount (based on claim settlement procedure/investigation)
2 – I did not understand your point??
Since they are join-life plans, I believe that they can issue policies.
hi sree,
once again thnQQ…
2. will husband be authorized person to receiv death benefits in case online term plans of her wife if her own mom&dad alive?
becaz in some i read articles saying that
can u coin this scenario nomination/legal heir in case of
a.unmarried women b.unmarried men c.married man d.married women e.married widow as per indian law
many people get confused “who wil be the owner of his/her assets after demise”
Can you please review whether Indiafirst Life guaranteedd pension plan is worth investing in? Secondly, if i am a self employed professional (Chartered Accountant) aged 42 and having other equity and debt investments…whether this producr shoukd form parr of my potfolio as part of strategic allocation of assets?
Dear Rishi,
It is prudent to invest as much as possible in equity oriented options than investing in pension plans.
The maturity proceeds are taxable & you have to compulsorily have to buy a annuity.
So, better to avoid pension plans.
Thanks for your response. At the outset, I congratulate you for having a great website and a discussion forum and thank you for freely disseminating your knowledge. I am a CA and in my advising clients regarding financial planning, i come across many misconceptions and wrong notions. So your attempt at financial literacy is a great service to the society. Importantly, I also find your advice and suggestions to be sound and prudent.
Regarding my query, I understand and agree that an equity based investment is good. However under the philosophy of strategic allocation of assets, it is advisable to have a judicious mix of various asset classes even if some asset classes give lesser returns than equity. In that context, this product appears to give a 9% guaranteed returns in the first few years. Do you think that it would be well to have such an asset in the portfolio alongwith other equity based instruments? Would appreciate your insight.
Dear Rishi,
Investing in varied asset classes is fine but may not be at the cost of taxes/liquidity/flexibility.
Kindly read my article;
HDFC Click2Retire pension plan review.
Reliance Retirement Mutual Fund plan review.
What is the way to take term insurance with HDFC. For the last two weeks I am behind HDFC personnel but they are not fast. Is there any other reliable sources to do.
Hi Sreekanth, need ur advice on a loan matter. I’m 42 years old who want to start a new business. I’m short of some money. My friend is willing to loan me the money. I’ve some queries: 1. Is it legal to borrow money through a PN.
2. I want to borrow 45 lakh with a condition to pay back in 5 years. Is it possible through PN ? I heard PN validity is only 3 years.
3. I want to pay some “courtesy amount” as interest though he is not demanding at all. Please advice.
Thanks.
Dear Vikas,
1 – Yes. Kindly read my article on ‘Promissory Note’
2 – PN has a validity period of 3 years but repayment can be done in 5 years. Your lender can renew the PNote before the expiry of 3 year period.
Thanks a ton dear Sreekanth.
Dear Suresh..Whom did you contact? HDFC Bank or HDFC Life? Online or offline?
Kindly read : Top online term insurance plans.
I checked the details in online and is in contact with HDFC life executive. Very slow in responding.
Can you suggest the correct way.
Excellant article. I have started doing SIP from 4 months.
1. MIRAE ASSET INDIA OPPORTUNITIES FUND –
2.SBI Magnum MidCap Fund
3.ICICI Prudential Focused Bluechip Equity Fund – G
4.Franklin India Balanced Fund-G
I am investing 5000/- in each monthly. want to invest for 15 yrs. What do you think. Should i change any fund.pls have a look and suggest
Dear Nakul,
You can continue with your investments.
Kindly read :
MF portfolio overlap analysis tools.
Best equity funds for 2016.
Thanks for the reply. I know there are overlap in my selected mutual fund. So should I change it
Dear Nakul..Slight % of overlap is ok and its almost impossible to have funds with zero overlap.
Mr.Sreekanth Reddy,
I have a plot on Mysore Road – Kengeri hobli Panchayat limits in Challagatta Village, Actually i bought it in 2006 it’s a Panchayat approved Layout. I have manual katha and paying tax also, but recently i heard that without e katha we cannot sell it. is it true, shall i do it now, when i contacted the panchayat people they said it can not, they are not giving the proper answer. what shall i do now, pl. advice me. email:[email protected] 95028833**.
Thank u
Dear Mr Reddy..Yes, it is now mandatory to have e-Khatha for plots which are in panchayat limits. Probably they are looking for bribe.
DEAR SREEKANTH,
EXCELLENT KNOWLEDGE, GOOD WAY OF EXPLAINING, BEST FREE SERVICE. HAPPY TO HAVE A YOUNG PERSON LIKE YOU. KEEP UP YOUR GOOD JOB. ALL OUR BEST WISHES TO YOU.
MY SON IS PLANNING TO INVEST IN DEMAT – AIMING TO USE RGESS FOR TAX – DO YOU HAVE SUGGESTIONS ON THIS
Dear SURESH,
Kindly do not invest in Direct Equity with the sole purpose of savings some taxes (if so).
Let me know your time-frame??
Read : Thinks beyond taxes when investing.
Thanks Sreekanth.
Anyhow my plan is to get in to Stocks. Initially if I enter thru RGESS i can get that exemption also. ( That was my thinking)
I am not able to fully understand the benefits in RGESS. Can u brief me and also suggest the initial invest of Rs.50000 can be invested in which shares ( safe for 3 years)
Dear Suresh,
Kindly read this article on RGESS.
Hello Srikanth,
Can you please explain in detail about the Exide Life Star Saver insurance plan? Is it good to invest in it?
Dear Nirosha,
Exide Life Star Saver is a limited payment savings cum insurance plan. Suggest you to avoid such plans.
Consider buying a Term insurance plan if your requirement is Protection cover.
Read:
Best Term insurance plans.
Dear Sreekanth,
I have been watching your articles for past 3 months, it is very informative & appreciate.
i have been investing SIP from last year in HDFC prudence, UTI midcap, Birla frontline equity,
Franklin high growth companies & Reliance top 200. All are growth option & long term 5~7years.
As we all aware, the market is going down now. in this juncture, which equity fund do you
recomment to purchase for lumpsum example rs.50,000.
Plz advice
Dear MURALI,
If your time-frame is around 7 years, invest in your existing funds like HDFC Prudence or Birla Frontline.
Kindly read:
MF portfolio overlap analysis tools.
Dear expert, I have purchased the bunglow in May, 2012 in the ongoing project from the builder at Malvan, Maharashtra.In the same month ie May 2012, with builder I have executed the sathe karar (Agreement to Sale) on my name (Sole Owner).
I have already paid complete stamp duty & registration during sathe karar (ie on May 2012)at malvan Tahasil Office.
Now the bunglow is ready and we are going for the sale deed.
Please help me clarify, can I include my Father & Mother as a co owners in the sale deed? (their names are not there in the agreement to sale).
Dear Sachin..Yes you can include their names in the ‘Sale Deed’. Let your builder also know about this.
Thanks Reddy sir, for your valued information & prompt reply.
Hi Srikanth,
Thanks ton for your valuable service!
This is Kathiravan from Chennai 37 years old, I am planning for Term policy for 39 years, here i shortlisted AEGON life iterm and HDFC Life (clik 2 protect) , My question is during my living period the companies has been closed in the sense what will be the process, IRDA will be transferred my policy to other companies or again i have to take the term policy fresh from other company.
2 question is if any risk after me, the company has been closed and nobody ready to take the company that time IRDA will come and pay the settlement amount?
For ex: natural disasters happen, 1000 peoples has been dead, that time the company does not have the amount to settle the amount and closed. what will be the next step IRDA will settle the amount to the policy holder?
Please help answer me what is the role of IRDA here.
I shortlisted AEGON life iterm and HDFC Life (clik 2 protect) , which one is your choice in term of care.
Dear Kathiravan..Given a choice my preference would be HDFC Click2Protect plus.
Kindly read: HDFC Click2Protect Plus – Review.
Dear Kathiravan,
Very good and valid question.
Insurance industry is a very well regulated one in India.
The solvency ratio or margin could ensure that the insurance company won’t go bankrupted. The solvency margin refers to the excess amount of assets that an insurance company must maintain over its liabilities. Also, Companies are required to keep the customers’ accumulated premiums very strictly separated from the company’s own assets, liabilities and expenses.
While forming an insurance company comes with numerous restrictions, winding it up is not an option. The Insurance Act states that in case an insurer cannot continue business sustainably, it must merge with another company. The insurer cannot hope to run away leaving its customers in the lurch.
Realistically, what all this means is that insurance companies never go bankrupt; if they do badly, they are typically bought up by a competitor long before things get that bad.
Thanks Sri!
My real concern is almost shorted out,
I need few more clarification :),
1) Since I planned for Ageon Life because of term annual premium is very low, your choice is HDFC Life. Here when we go for a Private insurance company what are all the things we have to look for choosing the company, Ageon for 7500000 Premium amount is 11643 when comparing HDFC around 15K Please advise how to chose the better one. Is that security wise Ageon is better company?
2) Why the premium is much lower in Ageon, can we trust for long term? :)
Dear Kathiravan,
As discussed, life insurance industry is a very well regulated one.
If you are comfortable with Aegon and if it meets your requirements/is affordable to you, kindly buy from them.
Thanks lot for your wonderful suggestion Sri 🙂 I am going with that …
Sir i have taken mediclaim policy from new india assurance on my family( self + wife + son ) since last 5 years. this policy is individual. now i want to convert this policy in to floater. but i m confused between individual and floater, so please send the comparison of above both option and which is better among them and why.
Dear dharmesh,
Kindly read: Best Family Floater Health Insurance plans.
Dear Mr. Reddy,
I have invested a lumpsum amount of Rs 5 lakh in HDFC Prudence Balance Fund, and there is is also a SWP of
Rs 5000 per month and from this amount I have invested in SIP in ELSS funds i.e.
Axis long term Equity – 2000p.m.
Birla 96 tax relief – 2000 p.m.
Sbi magnum Tax Gain- 1000p.m.
Is my portfolio is right or should I stop the SWP..?
Thanx in advance.
Dear abhinav,
What is the reason for having SWP from HDFC balanced fund to other listed funds?
Kindly read:
Best Equity mutual funds to invest in 2016.
Hi Sreekanth,
I am an NRI planning to return to india after few years. Currently saved about 1Cr INR and I am planning to FD this amount in NRE account for about 10years with monthly payout option. I am actually looking for a monthly income out of what i have saved till now. Is this a good idea to invest such huge amount in FD’s. Is there any better option which fetches me monthly income on this amount.
Dear Ranveer,
Why do you want to invest such a huge amount in FDs only? Let me know about your other financial goals?
Kindly read : Why you should avoid investing in FDs/RDs for long-term?
Thanks for your informative post Sreekanth. I have a special situation – I stay in an apartment which is solely owned by my wife. She is a working professional and she had purchased the property before our marriage. I had taken a housing loan in 2015 for an apartment which is under construction – since I don’t have a self occupied property at the moment, can I claim HRA benefits by paying rent to my wife? If this is possible, what are the tax implications on my wife? She is still servicing the home loan for her apartment.
Dear Som,
As per the IT law, it is assumed that husband & wife reside in a same house (unless they work in diff locations).
As both of you residing in your own house, I believe that you can not claim HRA.
Read: Under construction property home loan & Tax Implications.
Dear Sreekanth,
I have a house loan from 10 years and I am claiming tax deduction for the interest paid on the same each financial year.
2 months back I have started constructing another home and for which I have another home loan. In this case, Please clarify me whether I can opt for both the interest paid for tax deductions.
I understand that 2nd loan there will not be any limit on the interest part for claiming tax deduction, I mean I can claim more than 2 Lakhs? Is this correct? If correct, which should be self occupied.
The one which I cam staying can claim more interest than 2 lakhs, or the one which I have availed newly?
Please clarify.
Thanks & Regards,
Surya.
Dear Surya,
If you consider the second property (new one) as ‘Let-out’ one then you can claim full interest payments as tax deductions under section 24.
You have the option to select. Suggest you to select based on the home loan outstanding amount.
But if you are residing in the old property then you have to consider it as SOP, reason being if you let-out new one, the prospective tenants would be claiming HRAs.
Thanks Sreekanth.
Also, the new property land I have purchased land in 2011 Mar by taking plot loan during that time. It was fully closed in 2013 Dec.
Now, I wil be finishing my new house by June 2016, In this case can I claim interest I have paid for plot also starting next financial year? I think it can be claimed in 5 years after construction of the house… Is this correct?
Thanks & Regards,
Surya.
Dear Surya,
No you can not claim.
Tax deductions on Home loan taken for new property can be claimed.
If you have taken loan in nov 2015 then nov to mar 2016 is Prior Period for FY 2015-16.
If you complete the construction by Jun 2016, then you can claim fY 15-16 PPI starting from FY 2016-17 in addition to normal EMIs paid during FY 2016-17.
Kindly Read: Under Construction property – Home Loan – Tax implications.
Thanks Sreekanth
Hi sreekanth,
I m thinking about opening demat account.
I m not willing to intraday trading. I wish to stock investment for long duration.so what are the option.
Dear Vikrant..As you are planning to buy and hold shares for long-term, you can select any one of the top Dmat account providers.
Thanks
Can u tell me top dmat provider by your perspective top 3. Please.
Dear Vikrant..I have been utilizing ICICI Direct services for the last 12 years or so and I am satisfied with them.
Dear Srikanth,
My age at 42, I want to invest in mutual funds for 5years perspective
Right now I bought Axis Long Term ELSS Fund
what funds are too good for my portfolio please suggest me.
and also i bought
SBI-100……221.71
Bharti airtel-50……330.24
BHEL-100 ……..155.46
AXIS BANK-50 ……442.90
ICICI- 50 ……426.04
SUNPHARMA -20….805.45
TATA MOTARS-25….348.30
recently can average now or….
venkat
Dear venkat,
Kindly read : Best Equity mutual funds to invest in 2016.
I do not provide recommendations on direct equity.
HI SREEKANTH,
I am a student aged 24 years. I got 15 lacs from my father which he gave me after his retirement in 2014. My father was working in public sector bank. I invested the sum in bank FD, MF (equity and debt) and purchased share also. As of now i did not redeemed any MF neither I sold any share. As of now i am not earning by myself. Want to know that Do i have to pay tax and if yes how to calculate it. Please explain in detail.
THANKS IN ADVANCE 🙂
Dear MAAZ,
If you have not made any redemptions, no need to file any taxes.
Let me know the total expected interest amount that is received from your FD investment??
Click here to calculate your tax liability.
Dear sreekanth,
Total expected writtern from FD would be around 30000.
To save TDS i have submitted 15 g/h from to bank. I read In one of your article that if you have more than 2 lacs in mf or 1lac or above in share and if you don’t file ITR then You may get income tax notice. Due to this only I am little worried.
Dear MAAZ,
If your investments and your income do not match (not proportinate) you may get ‘compliance notice’ from the IT dept.
For example : If one invests Rs 2 Lakh in MFs then his/her total income can be easily more than Rs 2.5 Lakh p.a, hence he/she has to file ITR.
Dear Sreekanth,
You know the complete scenario now. So what should i do particular to my situation. If i am not liable to pay tax how can i file ITR to avoid the above situation.
hi sHREEKANTH,
when i am trying to transfer online with the procedure mentioned by you,i am getting the error as your request has already been taken,but when i wnat to check status there are no requestes there.what is the solution for this.
Also,if i want to transfer my pf throgh current employer attestation,do i need to first correct the information (father’s namein this case) with the previous EPFO office.
Regards,
Anupam
Dear anupam,
Did you previously submit any request?
You can submit ‘name correction request’ to your current employer and they will then forward the request to EPFO office.
You need to give ‘joint declaration by self & employer’. You need to give the copy of identity proof which has a correct name.
Dear Sir
I am planning for higher studies in 15 months.Which MF scheme suits my profile so that I have a decent return ?I can invest approx 10,000 per month.
Dear Cos,
Suggest you to put it in a safe investment avenue like Recurring Deposit.
(or) You may consider RD + Debt fund combo.
Read :
Best Debt funds.
MF taxation rules.
sir,
actualy i wish take term plan to me&my wife in this month
i consulted customer executive on phone of bharathi AXA for online term life “eprotect” plan
she said
company provide TERM PLAN WITH ACCIDENT DEATH to both me(salaried employe) & to my wife(housewif)
company provide this plan to my wife on my income proof for half of sum assurd saying that min sum assured is rs.50,00,000/-
suppose my policy 75L with accident death rider rs.20L then they offer my wife rs.50L with accident death rider rs.10L.
i verfid their company brochur “eprotect” in that anywhere it is not mentioned about accidental death rider but she said newly they launched rider to online term plan
shall i buy it becaz it’s all confused
as per IRDA guidlines every company whenver any changes made in plan they should update in brochur & take approval of IRDA . am i correct?
which policy is suitable to me & my wife?
plz suggest
thanQ
Dear Shivaraj,
If your spouse is not an earning member of your family, life cover is not essential.
Suggest you to buy a term plan for self with basic cover and also a stand-alone Personal Accident insurance plan.
Read:
Best Online Term insurance plans.
Best Personal Accident insurance plans.
Best Family floater health insurance plans.
hi Srikanth reddy
thanks for your all info. very much useful.
i m 30 yr old. i m already planned for elss.
also i would like to invest in tata balance fund. I cant afford much risk. can you suggest me which plan suits me .
Regular Plan (Routed through Distributor)
– Growth
– Dividend
– Monthly Dividend
Direct Plan (w.e.f. 1st Jan 2013)
– Growth
– Dividend
– Monthly Dividend
As there are this many options kindly let me know which is suitable for me
Thank you for your time and help.
Dear Rakesh,
Considering your age, for your long term goals you got to take risk 🙂
Not taking risk itself is the biggest RISK of all.
You can select ‘Growth’ option.
If you are comfortable in picking good MF schemes and invest in them by yourself then you can opt for ‘Direct plans’ of MF scheme. Else, choose ‘Regular plans’ through online platforms like fundsindia/Zipsip/ICICIdirect etc or through MF Advisors.
Read:
MFUtility online platform for MF investments.
Regular Plans Vs Direct plans of mutual funds.
Dear Srikanth
Thank you very much for your valuable inputs .
For my short term and medium term goals I want to invest in Birla sun life mip wealth 25, But i dont have corpus to invest in this as lumpsum amount. I can invest in this fund through sips.
What if invested in birla sunlife mip wealth 25 saving scheme by sips. Had it given better returns via sips in past?
Thank you for your time and help.
Regards,
Rakesh
Dear Rakesh,
Yes you may invest via SIPs. You can analyze its performance using SIP calculator which is available at moneycontrol/mutualfunds.
Hi Srikanth
Thank you very much.
I could see three options in money contol, birla sun life mip (g) 25 – .
Birla sun life mip growth 25 MD,
Birla sun life mip growth 25 mip, I could not get what is md and mip , can you please let me know.
which one is suitable for short term returns and tax
Thank you once again.
Regards,
Rakesh
Dear Rakesh..Kindly check out this link..
Hi Sreekanth m a student and just want to know what is the benefit on Term Plan
Hi..
Term plans help to ensure ones family’s financial independence in the event of unfortunate demise of the earning member or bread-winner of the family. There won’t any maturity benefit.
These are available at extremely competitive rates when compared to traditional plans like endowment or money-back plans.
Read:
Best Term plans.
Kindly note that if one has no dependents/financial obligations, life cover is not required.
Hi Sreekanth,
How are you…
This is Badria, from Nandyala (your school cricket mate).
I am very happy to see you are very helpful to so many people. Keep up your good work.
Thought of quick connect with you, can you drop me an email with your mobile number.
Thanks
Badria.
Dear Badria..Nice to catch up after a long-time. Sent you an email 🙂
I have purchased resale flat on 31 march 2015 with my and spouse name. I have taken Home loan from SBI and arranged some money to purchase it. This flat is originally constructed around 2005 . I want to know can i withdraw money from my PF account for Repairs/Alteration of Existing House. I want to alter my flat.So i need this money.And if yes what are documents required. I really appreciate your help in this forum.
Dear Jitendra,
Yes, you can make a partial withdrawal from your EPF a/c.
The amount admissible for withdrawal can be, least of the following;
i) 12 months basic salary + DA.
ii) Employee share with interest
iii) actual cost of alteration.
Kindly read: EPF Partial withdrawals – Guidelines & Rules.
Thanks Srikanth for your quick reply. I have gone through guidelines but have some confusion. Since my Deed executed on 30 March 2015. And as per provision House/Flat should be 5 year old. So do i also need any original document from builder when he has given possession originally to someone around for 2005.
Dear Jitendra,
This can be in previous Sale deed right? Isn’t that available with you?
Hi,
I have two properties and for both i have taken loans.so my queries are
1.Can i show both interest amount under section 24?
2.My one property suppose to get in Feb.2016, so can I show interest amount under section24?
Regards,
Bhushan
Dear Bhushan,
1 – Kindly read : Income from house property , home loan & tax benefits.
2 – Read : Under construction property & Tax benefits on home loan.
Dear shashidhar,
Insurance is required if one has dependents /financial obligations/financial liabilities to cover.
Kindly check again if your son/parents/wife really require life insurance?
Do you & your family have health insurance cover?
Kindly provide more details about yourself & your family members profiles?? (age/occupation/financial goals)
At the moment i’m only the person working.
My parents age falls in to 55-65(agriculture) , – retirement purpose
spouse -24, student. future security
son-1 yr education and settlement.
Dear shashidhar,
If you are the earning member of your family, you should have adequate life cover.
Read:
Best Term insurance plans.
Best Personal accident insurance plans.
Also, son/self/spouse can take a family floater health insurance plan and your parents can take separate health insurance plans.
Read:
Best Health insurance plans for parents.
Best Family floater medical insurance plans.
Kindly read:
Kid’s education goal planning.
Retirement goal calculator.
Dear Mr Reddy, I want to invest 1 lakh for 10 years in Mutual fund ,then I want to know which Mutual Fund scheme give me high returns and low risk ?
Dear abhinav..Kindly read my article ; Best Equity mutual funds to invest in 2016.
Dear Mr.Srikanth,
We are having a Private Limited Company with 4 directors. Due to non-cooperation from our other Directors, we had a tough situation to go for Private Finance. We borrowed unsecured business loan (short term 4 months with 8 installments) from the Private Finance . We issued Promissory note in Company’s name with 8 Company cheques for Installments, two guarantee cheques along with one my personal cheque.
We paid 50% of the loan. But now the company’s situation is financially not good incurred heavy lossess. Our other Directors also not supporting the Company. I am in the deep trouble. There is no other alternate for me. I am going to declare Insolvency.
Please let me know, there will be any legal issues will come to me personally.
Please keep this confidential and send your suggesstions to my email address.
Hello Mr.Sreekanth,
Thanks And appreciate for educating financial planning seekers.
Firstly, i’m planning to take three policies for my son, my parents and my wife.
What are the options available. which is gives good returns and life cover (death & accidental benefits.).
ready to buy worth of 1,00,000 a year.
looking for long term plans For my son education and his settlement. Minimum paying term, maturity term, returns.
THanks in Advance,
Regards,
Shashidhar Reddy.
Dear shashidhar,
Insurance is required if one has dependents /financial obligations/financial liabilities to cover.
Kindly check again if your son/parents/wife really require life insurance?
Do you & your family have health insurance cover?
Kindly provide more details about yourself & your family members profiles?? (age/occupation/financial goals)
Dear Sreekanth,
GREETINGS!
Yesterday, I did send you two queries for your comments. I am still waiting for your replies.
Dr. N. SESHADRI NATH
Dear SESHADRI..I have replied to your queries here..
hello sir, i had a query. my husband lives in a self occupied property in mumbai. he pays an annual emi of 27 lakhs of which he avails of a two lakh benefit. therefore he incurs a loss of benefit on the 25 lakhs per year. almost 62500 a month. can you kindly suggest some methods to reduce this figure?
Dear smita..Kindly refer to our conversation on FB chat.
Hi Sreekanth,
I have 4 LIC policies, (1:Endoenment & 3:Jeevan Anand), In year 2014 I took 1,75,000/- loan from all the 4 policies. I never repaid the principle nor the interest to LIC, I am thinking by the end of maturity They may deduct this amount and give the rest of the amount to me… So am I right? Or Do i need to repay the loan amount?
Regards,
Vinayak
Dear Vinayak,
I believe that all these policies are unwanted/bad ones.
Suggest you to repay the loan and get rid off them,if you can do so.
Buy a term plan for life cover.
Read:
Term insurance plans Vs moneyback/traditional plans.
Best online term insurance plans.
Dear srikanth
Is there any provision in this 2015-2016 FY to invest in tax savings bonds over and above 80c limit of 1,50,0 00.
Dear VIJAYA Kumar..No such provision for AY 2016-17 is available.
Hello Sreekanth,
Your blog is very informative. You are doing a really good job!!
Recently, I was converted from trainee to Engineer with a hike in my salary. Now I am a tax payable employee. I get 24000 in hand with TDS of approx 1200 per month. I have an RD for 15000 per month. I heard we can reduce TDS by investing Mutual funds/RDs/FDs. Is that true? Please tell me which is the best to way to reduce my TDS. Also please tell me, what Income tax returns should I file? Are there any other forms that I have to fill. For information, my salary is the only source of income.
Thanks in advance.
Dear Dhanyata,
Is RD meant for any specific purpose/goal?
RDs – no tax beneift available.
FDs – Yes, by investing in 5 year tax saving FDs.
But do not invest in FDs for long-term. Read : Why one should not invest in FDs/RDs for longterm.
Kindly let me know your financial goals.
Sometime in may/june, your employer will issue Form 16, based on which you can file your Income Tax Return before 31st july 2016.
Read:
All about Form 16.
Which ITR form to fill.
List of income tax deductions for 2015-16.
Investment proofs for tax saving.
If you have long-term goals, you may consider investing in ELSS Tax saving mutual funds.
Read :
Best ELSS funds for 2016.
Best Equity funds for 2016.
No, RD was not a specific purpose. and it is only for 9 months. As of now, I want to reduce my TDS as much as possible. I am supposed to submit investments proofs by this week so that my employer fixes the TDS for the next financial year. So please help me out regarding the investments I can make.
Dear Dhanyata,
I have already provided you links to the articles which have info about tax savings & benefits.
Kindly go through them and revert to me if you need more details.
Hello Sreekanth,
Please advise whether I should surrender or continue with these policies. At the time of purchasing the policies, of course the sales illustration had painted a rosy picture however
Policy 1
Jeevan Saral
Monthly Premium – Rs 2042/-
Tenure *25 Years
Sum Assured – Rs 500000/-
Policy Commencement Date – Sep 2009
End Goal – Child’s Education Expenses
Policy 2
Jeevan Saral
Monthly Premium – Rs 2042/-
Tenure **35 Years
Sum Assured – Rs 500000/-
Policy Commencement Date – Sep 2009
End Goal – Retirement Planning
My current Age is 33 Years.
Regards
Kairav
Also advise what should be the amount I should expect
1. 30% of Sum Assured (10 Lakhs)
OR
2. 30% of Premium Paid (Roughly Rs. 2,57,040)
Dear Kairav,
In case of regular premium policy generally Guaranteed Surrender value of Lic policy is 30% of the basic premiums paid. Also, the company excludes the first year’s premium while calculating surrender value. Kindly contact your agent for exact SV amounts.
Suggest you to surrender both the policies and re-invest the SV amount + premiums saved in equity mutual funds.
Also, if you do not have adequate life cover then buy a term plan.
Read : Best Term insurance plans.
What is the returns I should expect including Bonus from LIC policies vs returns from Equity Linked MFs?
Dear Kairav,
One should not invest in life insurance policies to get returns. Insurance is meant for protection / risk cover.
ELSS or equity oriented funds are for long-term goals. The returns are not guaranteed but they are one of the best investment avenues that we have to achieve long term goals / wealth accumulation.
Dear Sreekanth,
At this point of time what would you recommend investing in ?
around 60 lakhs in FD with interest monthly or buying a property and taking rent as the income ?
Dear Palak,
We need to have more details to discuss on this. It can be dependent on many other factors 🙂
Hi Sreekanth,
I have a general question on bonus addition in LIC policies. The bonus declaration from LIC was done in Aug 2015 for the previous year.
When (date) does the yearly bonus of Jeevan Anand gets added to the policyholder’s previously vested interest in a year?
Thanks,
Pradeep
Dear Pradeep..It gets added and paid after policy matures. Kindly note that these bonuses are just accrued and paid at the end, so we miss the ‘power of compounding’. So, it is prudent not to invest in conventional plans (moneyback/endowment).
Dear srikanth sir i had asked u a question sir but i didnt got any reply from u i had opened aa APY account recently for monthly can i convert it into halfyearly and is there any allowance to close the account after 10years ……………
thanking you
Dear Kranthi,
I have already replied to your query on the same day (31-dec).
Kindly check it here…APY – Details & Benefits.
thank you sir
dear sreekanth
plz tel solution for following
1.a person name “X” got term insurance rs.20lakh during policy tenure if he robbed&killed by thief, then will nominee get sum assured 25lak?
2.if “X” included his wife in joint life term insurance(eg.bajaj allianz offering inclusion of wife) then wife of “X” died during pregnancy due to some jaundice or any other disease(in policy tenure of his husband), will “X”get sum assured amount?
3.what r dif typs of accidental & other deaths included in term life insurence in order to claim death benefits to nominee without any hurdles?
it is important to know before taking policy becaz now a days after death of person so many life insurance companies rejecting death claim simply showing different logics/tactics which r not informed to life insured before taking policy not even mentioning in sales policy brochure & policy document which ultimately results
laments to nominee.
last but no least
4.where do we get case laws 0r judgements made by IRDA against rejected claims by insurance companies during 2011 to 2015 in detail?
ur answer wil be v helpful to all those people who are fooled by lif insur companies. please advise early….
Dear Naresh,
1 – Yes (but after thorough investigation).
2 – Yes.
3 – Generally claims arising out of terrorist attacks or earthquakes may not be covered by LI companies under term plans. But one needs to check with the company about this before taking a term plan. Besides this as long as the policyholder discloses complete information honestly in the proposal form, I believe there wont be any hurdles while claim settlement (if any).
4 – I do not have any such information as of now. We only have claim settlement ratio details.You may search for IRDA annual reports for more information.
Sir,
Financial Year 2015-2016 income up to Rs.2,50,000/- not taxable. savings under sect 80C is allowable up to Rs.150,000/- Pl suggest where can I invest remaining Rs.1,00,000/- to get the benefit of Rs.250,000/- slab.
m.gopi
Dear Gopi,
You may consider taking health insurance cover and claim tax benefit under section 80d.
Read :
List of tax deductions for FY 2015-16.
Income tax investment proofs for FY 2015-16.
Kindly think beyond taxes when investing!.
Hi Sreekanth,
I need your help in deciding what Tax Saving Scheme to take on to be exempted from taxes.
I am currently earning 5L p.a., and can put aside about 3k per month towards premiums, therefore, can you advice me to a good tax saving scheme that meets this? I am 34 yrs old, female.
What would you suggest?
Dear Lisa,
Do you have dependents? Let me know about your financial goal(s).
Kindly go through the below articles:
Income tax deductions list for FY 2015-16.
Income tax investment proofs.
Best ELSS tax saving mutual funds.
Medical insurance & Tax benefits.
If you have dependents then you can buy Term insurance and claim the premiums paid under section 80c.
Hi Sreekanth,
Thank you for your reply.
Yes, I do have dependants who are not working. Moreover, my company does provide for me insurance, so I’m looking more for a tax exemptive scheme that will also give me good returns but doesn’t have too high a premium each month.
Dear Lisa,
If you are earning member of your family and have dependents, suggest you to buy a term plan. It is a must.
You can claim premium paid on term plan u/s 80c. Also, do not depend on company provided group health insurance scheme alone.
You may consider investing in ELSS Tax saving funds for long-term goals.
Read :
Best Term plans.
Best family floater plans.
Best ELSS funds for 2016.
Dear Sir,
I should thank you for your guidance from time to time.
Please let me guide as under;
1.While making investment in ELSS in any of top six mutual funds as demarked by you which fund may give high return
(a) whose NAV is high (b) whose NAV is low
2.In postal deposit which term deposit other than NSC may give benefit under 80c
3.In which Bank higher interest rate in term deposit exclusively for taking benefit under 80c is available.
4.Is Bank may allow to open Tax Saving term deposit if there is no account is not existing in the said Bank but KYC formalities has
completed
Expecting your valuable guidance,
—
DEBASISH MITRA
14 NETAJI SUBHASH AVENUE
P O SERAMPORE PIN 7122
Dear DEBASISH,
1 – We can not predict the future performances. We can only expect decent returns from them in longer period. High & low NAV does not matter, it is the % of returns which matters. “Buying units of a low NAV fund can give better returns” – This is a myth and misconception.
2 – Post office term deposit 5 years one, Senior citizens Savings Scheme & PPF.
3 & 4 – It is advisable not to invest in Bank FDs for long-term and that too to just save some taxes.
Read : Why one should avoid long term FDs/RDs?
Thank you for your help!
Hi Sreekanth,
I am new to this side of investment. Now I have plan to start with SIP. Please advise me how to go about it. I have a plan to start with Rs. 5000
Thanks
Dear Kanwerlal..Let me know your investment time-frame??
Kindly read : Best Mutual funds for 2016.
Hi Sree,
Thanks. I looking ahead of 10 yrs or more.
Dear Kanwerlal,
You may consider investing in equity funds.
Kindly read:
Best Equity funds for SIPs in 2016.
How to invest in Direct mutual fund plans?
MF Utility platform for online MF investments.
Hi Sreekanth,
You are doing a splendid job by clarifying the doubts of a novice financial planner.
Have one question on will vs nomination, which one takes priority.
For example, if anybody mentions his wife as nominee for an investment or insurance policy, and would like the amount to be shared with his parents as well, in many cases we don’t have the facility to mention more than one nominee. in such case, how to specify it legally? though his wife is the nominee, if he wants some share of the amount to be paid to his parents as well.
Can we mention the nominee as wife and write a will as it to be shared between those couple of people?
please share your input on this.
Dear krishna,
You can have multiple or successive nominations.
While multiple nomination means that the sum assured will be divided among several nominees, successive nomination implies that the claim money will be first paid to NOMINEE A, failing him the insurer will pay to NOMINEE B and so on…
Hi Sreekanth,
Could you please suggest which is a good Term Insurance for Non-Working women? If there are not any (which is good) what is the work around to cover non-working women (housewives)? Please suggest. Thanks!
Dear Aman,
Life insurance may not be required for non-working individuals, moreover LI company may not issue a term plan (especially if sum assured is high value amount).
You may get them adequate health insurance coverage.
Hi Sree,
First of all wihsing you a very happy & successful new year..:-)
I have been following your Blogs from a long time and it has helped me a lot in understanding about investments and planning,..,
I have few doubt after reviewing your Blogs.
1-As per my understanding investing in MF through lumpsum is more profitable than investing through SIP, as you can put your money in market whenever market falls. This is also one of your thought i read in your blogs.
2-If your answer to the above question is NO, then please explain why?
Thanks in Advance..!
Prateek
Dear Prateek,
Happy New year 🙂
1 – Yes. But one needs to have time & interest to track the financial markets. Also, it is tough to time the markets. It is just a suggestion to invest lump sum amount whenever market falls. Say if market falls by 500 points today, I invest in MFs manually, but may not wait for tomorrow thinking that market may fall more tomorrow. If market falls more again tomorrow, if I have investible surplus then i do not mind investing again in the same funds.
Hi ,
I worked with my previous organisation during the period 3rd May 2010 – 10th April 2015 and joined another company without transferring the PF from previous company. I have to get almost 7 lakhs as my PF . If I withdraw the PF amount now , do i have to pay TDS? I had cmplated 5 years in the previous organisation. Please answer.
Thanks
Dear Liju..Suggest you to transfer your old EPF ac monies to your existing one.
Read :
Inoperative EPF Account.
EPF online transfer process.
Hi Sreekanth,
My name is Deepak aged 32 years, married with 1 daughter of age 3.5 years.
I want to save around Rs.10,000(+-2000) per month for my daughter’s future expenses.
I idea I have in mind is like this.
5k in Sukanya Samrudhi scheme
5k in SIP
Can you please help me in finding the best funds for SIP(my target is for a minimum of 10 years, if everything goes fine).
I have read your TOP 15 best equity mutual funds for 2015 and 2016.
I have confusion on which funds to select.
Do you think this will work out.
2 large cap + 2 diversified/multi cap + 2 small/mid cap for Rs.1000 each.
Please let me know.
Thanks,
Deepak
Dear Deepak,
My suggestion is PPF can be a better option than SSA.
Read my review : SSA Vs PPF.
But if you have not made any equity related investments towards your kid’s education goal then you may invest a higher portion of your investible surplus in mutual funds instead of PPF/SSA.
1 Large cap, one mid cap and one diversified can be more than enough. You may add one balanced fund instead of large cap.
Read : Kid’s education goal calcultor.
Hi Sreekanth,
Thanks for the reply.
I already have a PPF account, in which I save around 50k per year.
So, thinking of SSA and SIP for my daughter.
Thanks,
Deepak
Also, please let me know the income taxes on SIP, if any.
Dear Deepak,
Kindly read below articles and revert to me if you need more info:
Mutual fund taxation rules.
ELSS Tax saving funds.
Best equity funds for SIPs in 2016.
Dear Deepak,
If you have PPF savings, you may kindly consider investing in Equity funds instead of SSA.
Thanks Sreekanth for the info.
Very good informative articles.
Dear Sir,
I had filed ITR for AY 2014-15 for which I received a demand notice in July 2015. I filed a rectification request. But no reply for 5 months. Is there an address in Bengaluru to which I can go and explain my case to the authorities? So that the issue is clarified
Dear Kiran,
You may contact reach them through help desk.
Thank you. But isn’t there a physical address in Bangalore where I can go and show my papers to the officer to get the matter closed?
Dear Kiran,
You can meet your AO (Assessing officer). Click here to know your jurisdictional AO :
Dear Sreekanth,
I have the following investments. Can you please suggest me if I can continue the same or close it and shift it to some other good funds where I can get better return as there is no appreciation in this.
1) ICICI Prudential Life State Assure (Flexi Growth and Protector Fund) – Rs.20,000/- per year since 2009 – term period 10 years.
2) ICICI Prudential Wealth Sp. (Mc Growth Fund, Income Fund and Money Market Fund) – One time amount of Rs.50,000/- made during 2010 for 10 years).
Thanks
H.R. Krishnan
Dear KRISHNAN,
You may surrender both the policies and invest in mutual funds.
Hi Sree,
Under what type of category below funds falls. I was not able to classify them under debt ultra short/short/gilt..
Birla Sun Life Dynamic Bond Fund
SBI corporate bond
Some of my FDs (3L) are expiring . I am looking for funds where I can park this money. My requirement is full security of principal amount, time frame is 2-3 years and do not want hybrid debt fund. Please suggest me…
Dear Mukul,
1 – It is a dynamic debt fund /long term debt fund.
2 – This can also be classified as long term debt/dynamic/ income fund.
Though debt funds have low risk profile, kindly note that your principal is not fully safe.
Read : Best Debt funds for 2016.
Hi Sreekanth,
Good and useful posts from your blog. Good Work and continue the same.
I recently bought a BDA site (Property) with Bank (as Home loan), three months ago but have not started construction plans yet.
I received Interest Certificate from Bank for 80 C and 24 B sections for IT submission.
Please let me know whether I am eligible for claiming deductions under both sections [80 C and 24b], since it is still a plot with no construction.
If yes I think I can claim upto 1.5 lakhs in 80 C and what will be eligible limit for section 24b.
I am also staying in Rented home. Let me know if both HRA (13a) and Principle\Interest of Home loan (80C and 24b) can be claimed for deductions for a financial year.
Please help on these queries.
Regards,
Ashwini J
Dear Ashwini,
Kindly note that you can not claim tax benefits as the construction is not yet completed.
Hi,
Do yor provide space on your website for advertising?
Dear Saurav,
Yes, as long as your requirements & our principles match. Kindly contact me at sreekanth @ relakhs.com
Dear Sreekanth,
At the age of 52 I want to enter the world of mutual funds! What do you advice for SIP –
1) 5 or 10 years?
2) Amount?
3) No.s of MFs?
4) name of the MFs
Thanks & regards,
Dear Divyesh,
Suggest you to go through below articles and you may revert to me if you need more details;
Best Equity funds for 2016.
Best Balanced funds.
MY MF picks.
I have a doubt Investing in Mutual Fund.I had Purchased a Land for 2.5 Lakhs in the year 2007 and had sold in the year 2015 for 35 Lakhs.My Long term capital gain is around 30 Lakhs and after Indexation it is around 6 Lakhs ,which i had to Pay as Income tax.I require solutions for 3 Questions 1st question.Is it advisable to Purchase NHAI/REC Capital Bonds for 30 lakhs , hold it for 3 years and then invest in Mutual Funds for next 4 years . whether i had to pay the Income tax for the 6 % Interest. 2nd question .is it advisable to pay tax for 6 Lakhs ,then put all the 30 Lakhs in 5 or 6 Mutual funds (Equity Open Ended Fund) for 7 years.3 rd question.is it advisable to take the Interest from Capital Bond and pay the SIP for 15000/month for 7 years.Kindly advice me which is better at this Present Market Situation and which option will yield me good profit.
Dear Raj,
Did you receive Rs 35 Lakh as white money? What is the registered value of the transaction?
Yes, interest earned on the bonds is fully taxable under the head ‘income from other sources’.
Kindly read: How to save LTCG taxes on sale of property?
Yes Mr.Sreekanth,
I had received 35 Lakhs as White only.
regards,
Raj.
Yes Mr.Sreekanth,
I had received 30 Lakhs in White and 5 lakhs in Black and the registered value of the transaction is 35 lakhs(Including White & Black).
If the interest earned on the bonds is fully taxable under the head ‘income from other sources’, as the Property is sold in the name of my Wife and Moreover as she is House Wife shall i submit a Form -16 and exempt her from Paying Tax as the Total Income will come below 2.5 Lakhs(ie., Interest earned per Year 16000 * 12).
After sale,I had given the Brokerage of around 2 Lakhs in White(Cheque issued), but the Broker doesn’t have any office.Shall i include in expenses and take advantage in reducing capital gain.
regards,
Raj.
Dear Raj,
So, entire Rs 35 lakhs is considered as white transaction as the property is registered for Rs 35 lakh.
Yes, you can include the brokerage expenses while calculating the Capital gain Taxes.
Hi Sreekanth
What is your opinion about “Dematerialisation of Insurance Policy Documents”?
Thank you
Parag Dabir
Dear Parag,
Kindly read my article: E-insurance Account.
Sir
I am planning to invest 3000 / month in MF.Plz suggest me the funds.My age is 32 & time horizon is about 10-15 yrs.
Dear Sunil,
Kindly read;
Best Equity funds 2016.
Best Balanced funds.
Resp. Mr. Reddy,
I had bought a piece of land in Gurgaon in resale. The plot was purchased for rs. 10 lakhs and HUDA issued a transfer letter/re-allotment letter in my name. Since some future instalments were due at that time, I paid the balance amount of rs. 10 lakhs in 2014. r
I got the conveyance deed regd.in my name and constructed house on the plot in 2015 with an investment of Rs. 45 lakhs. I got completion certificate of completion in May 2015. I sold the house for Rs. 1.10 crore in 2015.
Pl. advise my tax liability. Will I have to pay short term capital gain, though I had purchased plot in 2010?
Also advise me as to how to save on capital gain.
regards,
P Shanker
Dear Shanker..When was the plot registered in your name?
Hi shree
I am planning to invest 30 lakhs in mutual fund (a lumsum amount) ,I also want to generate monthly income from it by opting for SWP.
My finacial adviser advised me
1.DSP BLACK ROCK MICRO CAP FUND
2.SUNDRAM SELECT MID CAP FUND
these two funds for 15 lakhs each, which will also give me a return of rs 30000 on montly basis.
I am willing to invest for long term ,lets say 5-8 years or even more. He told me doesn’t matter what ever up down the market will face my swp for rs 30000 is safe and I will get the same amount every month.
Is this investment safe and a good option. please hepl
Dear jasmeet,
Is your financial advisor informing you that these funds will surely generate Rs 30,000 pm return/income?
If your time-horizon is say 8 years, do not opt for SWP, instead just invest in Growth option and keep tracking your portfolio.
yes Sreekanth , He said that you can opt for a maximum of 10 to 12% annually of your investment . He also told me that if you will start the SWP instantly there will be a deduction of 1% i.e (3000 in case of 30k) and income generated from the first year will be taxable at a ratio of flat 15%.But if I start the SWP after one year there will be no deduction and income will be tax free.
I have already invested a toatal of about 10 lakhs in growth option in 2011 and some in 2013. Whoes current value as on date is 11.20 lacs.
I am intrested in generating a second income with this investment which will be tax free after One year.
He also explained me this with an example which is like , I are buying a propety for 30 laks which will give you a tax free rental income for Rs 30000 per month(after 1 year). And value of your property will also appericiate with time and you can keep a check on that by eyeing the portfolio.
Please suggest. Will my principle amount be safe, and what do you say from the funds he suggested me.
Thanks
jasmeet
Dear jasmeet,
I somehow sense that he may be mis-leading you. Kindly let me know what is ‘1 % deduction’?
That is a 1% exit load ,on the SWP if I start the SWP from the first month of my investment.
Dear Jasmeet,
As suggested earlier,
If your time-horizon is say 8 years, do not opt for SWP, instead just invest in Growth option and keep tracking your portfolio.
It is not advisable to invest in mid-cap funds and then have SWP, in case if you are looking for safe & periodic income/returns.
Hi Sreekanth, I find this site very useful. I want to seek your advise if any of the term insurances cover me, if I am staying in Africa (Kenya). Especially, if any mishap happens to me in Africa, do the insurance company pays fully? I am an Indian passport holder and currently on work permit staying since last four years.
Dear Sid,
You can apply for a term plan as an NRI (assuming you are an NRI) & risk cover is applicable even if you are in Kenya.
But life insurance company may or many not issue term plan based on their terms&conditions after going through your proposal form.
Sir,
Finding your answers very helpful for various IT related questions. Thank you and well appreciated.
Could you please advise if we still can e-file a zero-tax return for FY 2013-14 (AY 2014-15) as the Total (and only) Income earned from Bank deposits in that year was less than 2.5 lakhs, not in any employment and hence no Form-16? If we can efile, till when we can efile without any penalty?
Thank you,
-Venuscold
Dear Venuscold,
You can always file your income tax return (before receiving any notice from the department) within 2 years from the end of the financial year of which return is required to be filed by you.
You may be charged a penalty of Rs 5,000 if you file your income tax return after the expiry of one year of the financial year for which you are filing your income tax return. (No penalty charges till Mar 2015, in your case).
Thank you Mr.Sreekanth for your prompt reply.The money received by my wife is not donated by me but her share as per the family settlement.She also received Rs 1 lakh from daughter for meeting personal expenses.Since this will be treated as gift from close relation, hope this will not be liable for tax and interest earned on investing this amount will not be clubbed with my income but treated as my wife’s income.Shall be grateful, if these points also are clarified
Dear Varma,..Yes, the income will not be clubbed with your’s.
Dear Sreekanth sir
My name sombabu,3 months back my mother received income tax notice u/s 142(1) (CASS)submission of information called for during scrutiny proceeding for ass.year 2014-2015, my father with CA person attended infront of income tax officer. he told that we have received some amount from foreign 2013-14 for the act of 94A ,for that he asked all bank account statements,they are not shared bank details or account numbers, but we don’t have friends or relatives in foreign.we didn’t done any foreign transactions in our accounts.why they send that notice we don’t know.last hearing I also attended. we submitted all bank account statements of 2013-14. the officer and CA person are telling that there is a chance to some other people misused our pan card. in our knowledge didn’t give our pan no to any one. my father and mother both are worked as agents in agri gold ,for that only they taken pan card 8 years back.now the Agrigold in court case.
why they send the notice?
If somebody misused our pan card means what we do ?
When they will give clarification for issue?
We are lower middle class family.for this issue I was mentally disturbed.
Please give me your valuable advice sir.
Dear Sombabu,
I can understand your situation. Misuse of PAN numbers is rampant these days.
As the amount is not credited in your bank account, there wont be any issue. But unfortunately you have to go through this pain.
Kindly follow up this matter with your CA and get this sorted out at the earliest.
Also, in future whenever you have to quote your PAN, kindly mention ‘to whom and for what purpose’ you are submitting PAN card copy or PAN card details. For example – for applying HDFC bank credit card. You may quote specific entity name, purpose, date and then sign the PAN copy, to avoid any mis-use.
Dear sir,
we replied for that notice with help of CA person, we submitted all accounts statements and written submission of we are not done any international transaction in our account.
my question are
we are not done any transaction why the send the notice.
is there any possibility by mistakenly they gave the notice
what is the next step of IT Dept.if any mis use is there when they will call again.
if account number holder name is different pan holder name is different how they consider.
these questions are continuously circulating in my mind
plz tell me sir
Dear sombabu,
I believe that someone has quoted your PAN intentionally or unintentionally while making international transaction.
IT Dept can trace the account that has received the actual credit & has to resolve this issue.
You may have to wait for sometime.
You may also find the transaction details (if it is high value transaction) in your Form 26AS.
(Read : How IT Dept tracks high value financial transactions?)
Thank u very much sir, but
These kind of issues are very painful and one kind of harassment to us
Sir,
Sometime means how many days/ months? We replied for that notice 1.5 months back. Please tell me the approximate time duration sir
Dear sombabu..It can vary from case to case. Kindly follow it up with your CA.
Hi,
I would need money for my child’s education and marriage which is around 12 years from now. My current investments are following
1)HDFC Top 200 fund (will complete 5 years in 2016). Should I renew this fund or move to any other large cap as this fund performance not good for last 2 years ? If so, what would be my replacement fund?
2) ICICI prudential long term equity and AXIS long term equity (both ELSS) – 2000 rupees each for last 4 years
I want to invest in 2 more funds along with above. Should I invest in Multi-cap funds or mid cap funds or balanced funds to balance my portfolio?
Please advise.
Thanks and Regards
Ranga
Dear Rangarao,
1 – The standard deviation on this fund is pretty high now. You may hold the existing units & make fresh investments in some other large cap fund / diversified fund.
2 – Both are good. You may check their portfolio overlap.
As you have a long term view, you may add one mid-cap fund to your portfolio.
Kindly read: Best Mutual funds for 2016.
I am a retired senior citizen having an annual income of less than 3 lakhs from interest on deposits, EPF pension etc and hence not liable to pay income tax.Of late my wife who is not employed but a senior citizen got some amounts by way o f family settlements after her mother’s death which she deposited in her name and the total annual of interest comes to about Rs 1.5lakhs.According to her the income from her investments cannot be clubbed Will her income be added to my income for the purpose of ascertaining my income tax liability.She has a separate pan no.earlier taken as she had rental income .She was not filing return because the rental income was less than the taxable limit.At present she has no rental income .Will be thankful for early clarification
Dear Varma,
If you have gifted the monies to your spouse, then income generated from the gifted money can be clubbed to your income.
But in this case, the receipts are through her family.
Kindly read : Gifts & Income Tax implications.
dear srikanth,
superb!!!! u hav knowldge in differnt field
my query
1)can v get rejected & accepted claim details of individuals of term insur & PA policy from insurance companies?
becz at the time of unfortunat death/accident when v approach insur company behaves rudely & simply rejct claim.
in order to safegurad our claim not rejected by company v should know company claim details but not graph of claim ratio or excel sheet kept in their company websit. am i correct?
2)can v ask above said details by right to information act-2005?
thQ
Dear anand,
You can only get the no of claims accepted or rejected etc details in IRDA’s clam settlemnt report. Kindly note that this report will not give details as per type of insurance (ie money back / endowment / term insurance).
2 – I am not sure about this. Let me check and get back to you.
I started sip from previous five year, my schemes are as under,
Hdfc top 200, ICICI focused blue-chip equity, Birla sun life frontline equity, idfc premier equity,reliance equity opportunity.
From Jan 2016 I decide to stop all the above scheme and restructure my portfolio as under please suggest
Sbi blue chip direct plan Rs 4000/m
Dsp br microcap fund. Rs 4000/m
Sbi magnum multicap fund Rs 4000/m
Reliance small cap fund lump sum amount from old fund
Birla sun life frontline equity lump sum from old fund
I want to review from Jan 2016, so please reply me as early as possible
Thank you
Dear Dilip,
Suggest you to kindly go through my list of best funds for 2016 & revert to me.
Dear Sreekanth,
I wish to track on a day-to-day basis on the NSE website as to how many a times a specific IPO issue is subscribed. To be specific, I wish to track as to many times the NHAI bonds issue is subscribed in the retail category. Based on this information I will decide whether I should apply or not.
Would appreciate if you can provide the link to get this info on NSE website.
Thanks in advance for your help.
Regards
Prakash
Dear Prakash,
I guess subscription details are disclosed after the book closure only. Let me check this again & get back to you.
Dear Sreekanth,
As I understand, at the end of each business day, this information is provided on the NSE web page. I distinctly remember seeing such info in the case of some other issue. I do not recall the link now. Hence this query.
Regards
Dear Mr. Sreekanth,
I had taken VRS during April 2015 and my company had settled my VRS, Gratuity and Leave Encashment dues which I have invested in SSSC thru ICICI Bank and Post Office MIS. However, I have not applied for my EPF and EPS as I have been told that I will get only reduced pension if I apply before completion of 58 years. Since I will be completing 58 years only in Feb 2016 I want to apply for the same after February 2016 and I will be getting around 30 lacs. Can you please suggest me the good investment avenues where I can get best tax efficient return and also my principal amount will be safe.
Thanks and regards
H. R. Krishnan
Dear Mr. KRISHNAN,
Do you have any other source of income which can be used to meet your monthly living expenses?
May I know more about your financial goal(s) if any??
Do you have sufficient health cover?
Thanks for your reply. Yes I have health Insurance cover for myself, wife and daughter for Rs.3 lacs each in ICICI Lombard for the past 4 years. Apart from this I have a top up (not super top up as it is not available with them) for 8 lacs for myself and my wife. I have not taken the same for my daughter. Should I take one for her also. She is 19 years and is doing her graduation in Engineering. I can somehow manage my monthly living expenses. If I get some amount of monthly income additionally it will be better. My financial goal is to give education to my daughter and after that her marriage. Please give your suggestion.
Thanks and regards,
H. R. Krishnan
Dear Krishnan,
You may consider buying a super top up plan for your daughter.
Kindly read : Benefits of super top up plans.
If your daughter is planning for higher studies, you have 3 years of time only. So, it is better you invest in safe investment avenues only.
For her marriage expenses – You may invest in a balanced fund or aggressive MIP for say next 4 to 5 years.
Kindly read:
Best Balanced funds.
Best MIP Funds.
Best Debt funds.
If higher education costs are high, suggest you to not to withdraw your retirement savings fully, you can go for education loan.
Dear Mr. Sreekanth,
Can you please let me know if I can withdraw my EPF amount now and invest in MF or wait till the next financial year starts? Regarding EPS I think it is better to apply after completion of 58 years as only two months are left. Can you please suggest me the exact funds where I can invest my money and how much as you have more knowledge and I think it is better not to invest in Bank FD as the interest rate is less and also taxable. Please give your suggestions.
Thanks and regards
H.R. KRISHNAN
Dear KRISHNAN,
Anytime is good time to invest. Do not postpone. Kindly invest as per your financial goals & investment horizon.
You may consider investing in balanced funds if your time-frame is around 5 years.
Kindly read:
Best Equity funds for 2016.
Best Balanced funds.
Best MIP MFs.
Dear sir,
My spouse & me jointly own a house property which is given on rent, as one more house is owned by me alone n we are staying together there. In such situation :
1) Can we both avail tax benefit on rented house.
2) If yes, then what we need to do to to avail in 50:50 %.
Dear Jayesh,
1) & 2) Yes. Kindly read : Joint home loans & Tax implications. By default it is 50:50.
Hi ,
Thank u for the reply, but the bank says the enhancement of credit limit is possible only when my salary hike. So, can i take a add on card in my hubby’s name? am i going to get the same limit ? or what is the other option which i opt for?
Thanking you,
Parveen
Dear Parveen..Kindly check with your banker about the Credit limit eligibility on ADD-ON cards.
Hello Sreekanth,
Firstly, a wonderful help – Thanks:)
My questions-
-I was wondering even if an ewill is necessary. Can the will be on a plain white paper.
– You mentioned in your blog that we must review the Will when we buy /sell the assets. Cant the WILL be worded in a way that it is always valid for all assets. This can be done by NOT naming assets specifically and using generalized statements instead?
-How can we ensure that the WILL on the white paper is not null and void in the court of law?. Do you provide any help to review the WILL interms of its validity and language
Dear Sandeep,
1 – Ewill is a facility and it is optional one. Yes,it can be written on a plain white paper.
2 – Yes, Will can be generic in nature too (but it is better to list down all the existing assets / investments as much as possible).
3 – You can get it registered.
As of now, we do not render any paid services. You may take help from any online Will writing services company.
Kindly read : Online WILL writing options.
Hi Srikanth
Thank you very much for spreading the financial literacy. I want ot invest 25000/ per month through SIP in mutual funds expecting 15% returns. I need your help in identifying the right mutual funds around 3-4 for my financial goals..
Let me know how I can reach you.
Regards
Ram
Dear Ram,
Kindly note that there is no guarantee that MFs may generate 15% returns in short-term. Let me know your investment horizon?
Can i get my name deleted from a joint SB account i hold with a family member in a nationalised bank? i have included a name to an individual account and made it a joint account, but can i delete and make a joint account to an individual account without closing the account. It is a EOR type of account. just want to make the other person operate the account by herself. Appreciate your input. Thanks.
Dear Sonali,
Yes it is possible. Both the account holders have to visit the bank branch and submit the request.
Dear Shrikanth,
Thank you so much for your quick response. The problem is though, one party is abroad and the other is old and does not want to deal with money matters. We will talk to the BM as you said. Thanks for your great service.
Hi,
I have a credit card with 35000/- limit. Can i go for a additional card or apply a new card for enhancement of the credit limit?
Please answer my question, as my card is based on salary what shall i do?
Dear Parveen,
You may ask for enhancement of credit limit on the existing card itself. Kindly check with your banker.
and also i wish to take joint personal accident policy to me(earning) & my wife(house-no earning).
1. is there any company offer such policy?
thankx in advance
Dear Shivaraj,
I have already replied to your query, kindly check here : UAN – Generate & Activate UAN..
sir
i am state govt salaried employe 1.can i take online term joint insurance with no earning housewife as spouse ?
2.could u guide i wish to insur pnb metlife mera term plan? does it offer joint life term insuranc?
3.wat r diffrent online term insuran companies offer joint life online term?(wtih spouse as non earning member)
my annual income 4lac-5lac
my contact no 9032648110
i live telangana state ,mahabubnagar district
what is max sum asur limit
Hi Sreekanth,
I have been one of those enlightened by many of your valuable blogs. Keep up the good work.
I just want to know if its worthwhile to wait for new MCLR to come in April 2016 to take a home construction loan?
I have time to wait if it will reduce my interest rate and I have good credentials to get a loan in SBI or other big banks.
Kindly suggest.
Thanks,
Pradeep
Dear Pradeep,
If you are planning to go for home loan in near future, it is better to take it now (before 31-Mar-2016) under base rate system.
You can always have the option to switch to Marginal Cost of Lending Rate (MCLR) at a later point of time.
Kindly note that MCLR can be beneficial in a falling rate scenario, where as Base rate system can be advantageous in an increasing rate scenario.
Hi Sreekanth,
I understand the benefits of MCLR will be in falling rates scenario which we are in today.
But when they start with MCLR in April 2016, the interest rates are expected to be lower than current rates, am I right?
Also if I change from base rate to MCLR later, i may have to pay for it right?
What are your thoughts?
Dear Pradeep,
The key word is ‘expected’ here..RBI may not cut rates in near future considering current economic data.
Regarding ‘switch’ charges, we may have to wait for some more time to get complete and right picture.
I am having a housing loan along with my wife. As per the housing loan bank (income tac certificate) principal is 41K and Interest is 2.18L.
Can i declare ZERO for principal amount as it comes under 80C as I have already enough policies for 1.50 Lakh for 80C. So that my wife can declare it.
Coming to interest i m planning to declare 1.63K which is a 75% of 2.18L and remaining 25% my wife will declare under Section 24.
Please suggest.
Dear Sandeep,
The ratio of tax benefit claims should be based on the ownership ratio.
Kindly read : Joint home loans & tax implications.
I have gone through that article before i post my query. I contacted bank as well on ownership ratio. They said its by default 50:50 as we did not mention anywhere particularly about it.
I will change percentage for interest amount. But how about principal amount?
Dear Sandeep..Same is the case with the principal amount too..
Hmmm… Cant i declare ZERO ? as i have already enough policies for 1.5L so that my wife can declare 100% for Principal ?
Where should i declare about Registration & Tax fees that i paid to Govt?
Dear Sandeep..As mentioned earlier, tax benefits should be based on the share of ownership in the property. Registration & stamp duty expenses can be shown under Section 80c.
Hi Sreekanth,
Wanted to know a bit about PF. Do you think that having PF is a good investment for retirement ? I was planning to withdraw the PF amount. I have about 5+ years of experience. I was thinking to put the PF amount into stocks or mutual funds.
Your advice would be very helpful to me
Thanks!
Karthik
Dear Karthik..I believe that you are referring to EPF scheme.
Once you start making contributions, it is mandatory to keep contributing to EPF scheme.If you are currently employed, you can not withdraw the entire balance.
Kindly read : EPF partial withdrawals rules.
Kindly let me know your age & some details about your financial goals.
hi
greetings of the day.
dear sir which term end insurance plan is good and reliable.
38 yrs.married two kids.income 125000/month need at least one crore insurance.
Dear RAAJIV,
Kindly read;
Best Term insurance plans.
HDFC Click 2 protect plus review.
ICICI’s iprotect smart review.
Best Personal accident insurance plans.
SIR,
I AM B.N SARKAR,AGE 42 YEARS, SALARIED PERSON UNDER W.B GOVT.
LIVING RENTED FLAT @ 7500/MONTH
GROSS SALARY RS. 577840/ HRA- RS.42180/ AND BASIC+DA=RS.492404/ RENT PAID =RS.90000/
HOW MUCH WOULD BE EXEMPTION FOR IT.
PLEAS TELL ME.
Dear Baidya,
Kindly read :
List of all tax exemptions for FY 2015-16.
IT slabs & rates for AY 2016-17.
You can visit incometax govt webiste, to calculate your tax liability.
Dear sir
I am planning to invest monthly by sip for 2 years which scheme is better gilt fund or short fund please provide your valuable suggestion thanks
Dear Ramu,
You may consider MIP conservative fund (or) Dynamic debt fund.
Kindly read:
Best Debt funds.
Best MF MIPs.
Hye .I am an army officer… I am new to mutual funds.. Is myuniverse by birla group a good platform to start investing
Dear Maj..I do not have real time experience with myuniverse portal.
Thanks Sree for starting such a Informational blog and helping people reach financial goals. Appreciate the time and effort.
I had a question on lumpsum investing in mutual funds visa vis investing through SIP route.
For example, If I have 30 lakhs lumpsum money to invest, I have 2 options : One is open SIP in say large cap, midcap, diversified mutual funds and invest 50,000 monthly thru SIP…this will take me 5 years to invest my 30 lakhs into Equity mutual funds..
Other option is I invest say 5 lakhs in 6 mutual funds i.e. 30 lakhs upfront investment and forget about it for 10 years.
In both cases, money will be kept invested for say 10 years.
Which one is a better way of investing and why?
please suggest.
Thanks,
KR.
Dear KR,
Thank you for your appreciation!
If I have Rs 30 Lakhs, I will not wait for 5 years to get it invested completely. I will surely lose the power of compounding. Advisable to give as much time as possible for the money to grow. So, I prefer to choose second option considering the investment horizon.
Thanks for the response Sree.
In the secind option. What about Rupee cost averaging benefit that I shall get if I invested via SIP route…that is get more units when NAV is low …. ?
Also, do you have any comperative study which shows lumpsum investment will be better than SIP ?
Thanks,
KR.
Dear KR..NAV can also be higher. So, my view point is if you have long-term horizon, kindly go ahead and invest right now and keep tracking your portfolio.
I do not have any comparative study on this topic.
You find this article useful : freefincal.com
Sir,
At present I am working in Gulf. I am planning to move to India by 2016 may/june.
I have two queries, please suggest.
1) In India I took 3 lack medical insurance for my mother & father (age 47&59 yrs respectively) in star health in 2015 May @ 14000/- yearly premium. After moving to India I may get company medical insurance but, is it advisable to club with my parents insurance or should I go for a separate one ? kindly suggest a suitable plan. (We are three, myself, wife & 3.5 year son)
2) Right now I have two traditional policies in LIC; One is Jeevan Anand-5 lacks@ 38600/- per year since 2010, and the other is LIC jeevan Ankur money back policy for my son @ 35000/- per year since 2012. By reading your previous articles i came to understand that one should have a term insurance about 10 times of annual salary (in general, if I am right). My question is Can i get a term insurance online from here or it can be done only from India? because anyway I am planning to move, so I thought it would be better if I take it from Jan-16.
thanks & regards,
Dear Pavan,
1 – Kindly go through below articles, you may find answers, else revert to me :
Best Family floater plans.
Best Health insurance plans for parents.
Best portals to compare health insurance plans.
2 – Suggest you to apply for term plan as soon as you come to india in jan 2016. Once you get term policy, get rid off of the existing plans.
Read:
Term insurance Vs Traditional plans.
How to get rid off unwanted insurance policies?
Why insurance is important?
Dear sir,
My dad has got alloted one bda site 30 years back. I am staying independantly with my earning.i have already attempted 3 times for bda site.this is my fourth attempt will i be eligible for a bda site. Kindly sugest.
Dear Vinod..I believe that you are not eligible to apply..
Dear Sreekanth
Now banks have reduced the interest rates and senior citizens are the worst affected though they are given a paltry additional interest being senior citizens. Now the senior citizen savings scheme of Govt. is attractive with 9.3% p.a as interest.According to the scheme the deposit shall be for a period of 5 years renewable for a further period of 3 years at the prevailing rate of interest on the date of renewal as fixed by Govt.It will be a great service to the senior citizens if the renewals are for further periods of five years (auto renewals effected by bank)or the senior citizens otherwise decide or till the death of the senior citizen.For senior citizens it is painful to go to the post office/banks to fill up the long forms every 5years/8years.Will you kindly take up the issue with the FM on behalf of the millions of senior citizens of the country.As obvious the govt. will not loose anything by this arrangement.Every advanced countries in the world are making all arrangements to make the life of senior citizens comfortable and tension free.Thanks
Dear sir thanks for your prompt reply to my previous quarry sir my question to you is that as a first time investor in mutual funds is direct plan is not suitable to me as compared to regular plan? Kindly provide your valuable suggestion thanks
Dear Ramu..Yes, direct plans can give slightly better returns when compared to regular ones.
Kindly read: “Direct plans of MFs – Benefits”.
I was a pgt in a private school in 2010-2011. Due to personal reason I left the school in July 2011. I found from my epfo account that the deductions made after February 2011 have not been deposited in my account. On inquiring from the school they stated that they have updated my account till my leaving the school. The balance as shown accruing to my account is less than as stated by the school. Moreover a transfer from someone’s personal account was credited to my account whom I don’t know in 2012 when I was not in the service of the school. How can I get my due accrual? What r the remedies available to me now?
Dear Chanchal,
Suggest you to use ‘inoperative helpdesk of EPFO‘ and find out the details about your EPF account.
Hi Sreekanth I have opted for Pension maximiser fund (PGTH) from ICICI prulife. I am paying 10000 Rs annually as a premium from 2004 onwards. Premium paying term is till 20022. Web site is showing absolute return till date is 64 percent. Is it worth to continue or can I opt for surrendering the same.
when will be you top SIP picks for 2016 will be out?
Dear Sridhar,
May I know your age and other financial goals??
You have almost paid 2/3rd of the policy premiums. So, based on your goals we need to take a decision.
Kindly use XIRR Function and calculate the returns for last 11 years.
Let me try to post funds 2016 article sometime by end of this month or in Jan 🙂
But, if someone has invested in good performing funds, no need to change (switch) funds frequently.
Reddy garu,
Thanks for the reply. My Age is 44 and my earnings is one lakh /month. I don’t have own house and any financial goals till now. I did some company FD through bajaj capital (Unitch, plethico pharna, Helios & mathsone etc.,) and i lost those money.
Basically i did not have any financial discipline. When try to acquire one I landed on your site. I will try to use XIRR function and calculate the returns. I do have some mutual funds which i never revisited after the investment that also i will try to find out the returns then will ask your guidance. My intentions is to start serious mutual fund investments from now onward.f Kindly send me the funds 2016 based on which i am planning the start MF afresh. Kindly suggest some MF for lumpsum as of now. sI it good to use FundsIndia, Scripbox kind of online portal for mf investments.
Waiting in anticipation for your reply.
Dear Sridhar,
Kindly do not say that you do not have any financial goal. Retirement planning can be one of your top priority goals.
Do you have any family member(s) who are financially dependent on you?
Do you have health insurance cover?
I READ YOUR SITE TODAY AND I FIND IT INFORMATIVE AND CLEAR SUGGESTIONS . AS FOR MYSELF I AM 55 YEARS OLD IN A JOB AND DUE TO RETIRE IN 5 YEARS TIME. I HAVE A EPF ACCOUNT BESIDES SOME SAVINGS FOR RETIREMENT ALSO SOME SURPLUS AMOUNT FOR INVESTMENT . PL SUGGEST WHERE I SHOULD INVEST TO GET A SAFE CORPUS FOR RETIREMENT LIFE.
Dear Mr Sood,
Kindly read my article : Retirement Planning in 3 Easy steps and revert to me with your queries.
Do you & your family members have health insurance cover?
Hi, i just took Sip of Religare invesco Mid cap with 3k per month. Is thia good for investment. I will keep for 3-7 years .
Dear Ankush,
Any specific reason for selecting this fund? I believe that there are better options. Kindly read : Best Equity funds.
Dear mr shreekanth,
I m 32 yr old 40000 monthly income. I recently started with Hdfc equity and hdfc midcap opportunity with 1000 each is this selection ok.
My horizon is 10 plus year.
Please tell me any change if needed
Dear Vikrant..Continue your investments.
Thanks shreekanth .
I wish to add one More Mf
Will u recommends any one.
Dear Vikrat..Consider TATA balanced Fund. Read : Best Balanced funds.
i want to mutual fund transaction like buy,sale ,repurchase,redemption, through on line demat a/c. if it is possible then which will be doing follow the process of amc. any terminal is available from CDSL or NSDL for above transaction. ple advice me as early as possible. i m waiting your reply.
Very good site I have come across just today. I am 32yrs old and have a boy (4 yrs old). Earning about 10lakh p.a. I am very new to these investments. My father initiated 3 different LIC schemes about 8 yrs back without any idea and just for 80c with total of about 60k p.a. I recently opened demat a/c with the thinking of investments. I don’t even understand the financial words like MF Equity mid cap large cap etc., Can you give some idea to investments. I am interested towards retirement and child study plans.
Dear Siva..I have replied to your emails.Kindly check them.
Also kindly read:
Term insurance Vs traditional plans.
How to get rid off unwanted insurance plans.
Top Term insurance plans.
Dear sir
As I am following your blogs past six months which are proving precious for first time investor like me kindly suggest me best liquid fund for 2 year and best hybrid fund for period of 7 years looking for your prompt reply thank you sir
Why do you want to invest in liquid fund for two years ? For two years , ideally one must look at short term debt fund.
Dear Ramu,
Kindly go through the below articles and revert to me if you need more info;
Best Debt Mutual Funds.
Best Balanced Funds.
Best MIP MFs.
Dear sir.
I for the last 16 months had sip investment in bsltop 100 fund and icici pru top 100 fund total amounting 2500 p.m. recently I had to stop it as nav did not go up. .It was a loss for me. .mi want to know from you. .Sir. .I want to invest 5000.pm for 3 years. And how can I get the best return in which fund?
Thaking you
Atanu Pattanayak
Dear Atanu,
Do not switch funds based on short-term performances.
Do you need this money after 3 years?
Kindly read:
Best Balanced funds.
Best MF MIPs.
Have you researched – Is this a problem of your scheme or equity asset class? A scheme can only do well if the Asset class in which it invests does well. For example, many large cap schemes did not do well in 2015 because the whole market of large cap stocks did not do well.
Measurement of your funds performance is important but the benchmark has to be correct. Have you compared the performance of your scheme via a vis its benchmark , as well as with its peer funds. If you feel that your fund has not been performing well based on these parameters then you may think of selecting some other scheme.
I am a state government pensioner. I am staying in a rented house. I want to know whether I am eligible to claim some amount under HRA, if so how much or what percent I can claim. Please advice me. I get around fifty five thousand rupees as pension per month.
Dear Mr Kumar,
You can claim deduction under section 80GG.
Amount of deduction:Least of the following is deductible u/s 80GG
i) Rs 2000 per month for the Assessment year.
ii) 25 % of total income
iii) the excess of actual rent paid over 10 % of total income.
(Total Income means income excluding long term and short term gain & also before making any deduction under section 80C to 80U)
Hi, ur post r really helpful, thanks a ton.. I am a govt servant, my annual income is 7,60,000.. my nps contribution is Rs 60,000, to start investment i think i should invest 90,000 in ELSS category, as i am in 20% tax bracket? Am i taking right decision?
Dear Kunal,
Kindly think beyond taxes when you are planning your investments.
If your objective is long-term wealth accumulation + tax savings, you can surely invest in ELSS fund.
Read:
Think beyond taxes while investing!
Best ELSS funds.
Sir,
I have applied for online transferring of my past PF amount to my new PF account. Though I got approved from my CURRENT employer but my previous employer till not approved(status showing Claim Form Pending at Previous Employer ) What will be the next procedure I need to do?
Thanks a lot.. Thatvwas really helpful..
Mr Kunal,
Before you jump to invest 90000 in ELSS , here are few other points you may want to consider. If you have kids who are studying, then their Tution fees is covered under section 80 C. You must be having some sort of insurance plan – term or endowment ? If yes, then the premium is also covered under section 80C . Further repayment of housing loan is covered.
This means , if you are already making any of the above payment, you don’t need to invest 90000.
Dear Robin..Thank you for sharing your views. Keep visiting 🙂
Dear Sir,
I 38 year old having two children. I want to invest 50000 lumpsum. Last time you advice balance funds. I have already invest 100000/- in sbi blue chip and axis long term .
If we go for balance fund on money control it shows 80% growth. Is it possible. Is their any tax deduction in balance fund.
Dear Randeep..80% growth ? Let me know the name of the fund. Most probably it is absolute returns.
Kindly read : Best Balanced funds.
i want to invest 1 lakh for 3 years in mutual fund. higher returnwise which scheme is better for me.
Dear Dharmesh..Replied to your email. Kindly check it.
1. RPLI SA:2 lacs. in my wifes name at her 23 yrs of age.Date of commencement 20/12/10: 27 yrs
2. PLI: my own. SA 4lacs commencemnt:22/11/2011. 21 yrs.
3. LIC Jeewan ananad. in my wifes name. SA.2 lacs : date of commencemnt 30/09/13. 30yrs
4. LIC table no.089. SA.2.5 LACS .27 YRS. COMMENCEMNT 28/12/2013
5.LIC Table no.005 . SA 2 lacs. cmmencemnt 28/6/13. last premium 28/3/38. plz suggest. i dont have any knowledge abt these, just took the policirs as the agents advised.
Dear Diganta,
Suggest you to buy a pure term insurance plan and discontinue all these policies.
These do not give sufficient life cover and they are costly too.
Is your spouse an earning member of your family?
Do you and your family have health insurance?
Kindly read:
How to get rid off unwanted insurance?
Term insurance Vs Traditional plans.
Best Term insurance plans.
yes sir. she also earns. Sure sir, i ll discontinue all those. We dont have health insurance policy. After closing all these.,where to invest and how much..?
Dear Diganta,
Before discontinuing these plans, kindly buy a term insurance plan based on your future income potential, living expenses, financial obligations & financial liabilities (if any).
Also, consider buying a Personal accident policy and health insurance policy.
Kindly read:
Best Personal accident insurance plans.
Best Family floater health insurance plans.
Best portals for comparing health insurance plans.
I want to know about field no 7,10, 71,18,20 of form 15 g .what information I will fill?
Dear shareena..Kindly go through – ‘How to fill new Form 15G?‘
It is very helpful
Thanxs
sirji, i dont know anything share market. i m 33
yrs old male govt employee. I am paying almost
70000 /anum as LIC/PLI/RPLI Premium. i wanna
invest 1000-2000 pm for my 10 months baby. my
monthly income is arround 40000 . plz suggest d
best.
Dear diganta,
Kindly share more details about your LIC plans (plan names, term, Sum assured, commencement date..)
May I know the total sum assured that you currently have as life cover?
For kid’s education goal : Suggest you to start investing in Equity mutual funds. You may consider one balanced fund & one mid-cap fund. Ex : HDFC balanced fund & Franklin Smaller co’s fund.
Kindly read:
Best Equity funds.
Best Balanced funds.
Kid’s education goal calculator.
thanks a ton for ur valuable inputs.i have a query related to any alternative mf for rd or fd where we can get more than 10% returns for short duration like 1-3 years.also how safe is to park our money there instead of banks fd or rd
Dear Alok,
You may consider investing in Debt-oriented hybrid funds or MIPs. But be aware of the risks associated with them.
Suggest you to analyze MF MIP Aggressive plans.
Red : Best MF MIPs (Growth).
DEAR SIR I AM GOING TO RETAIR BY 31ST DECEMBER 2015.
I HAVE PLANNED TO KEEP MY SAVINGS LIKE THAT,
1. RS. 9 LAKHS IN POST OFFICE AS MIS WITH MY WIFE.
2.RS. 15 LAKHS IN POST OFFICE AS SRCTZN FOR 5YEARS FOR 9.3%
3.RS 20 LAKHS IN MUTUAL FUND IN MIP FOR 3YEARS IN 4/5 DIFFERENT COS. FUND.
4.REST 16 LAKHS I WILL KEEP AS FD IN BANK.
HOW MUCH SAFE WILL IT BE ?
I NEED YOUR SUGGESTION.
PL ALSO SUGGEST BEST 4/5 MIP FUNDS FOR INVESTING.
Dear SHYAMAL,
Looks fine. Do you have any other source of income? To meet your future living expenses, do you entirely depend on the income generated by these investments?
Regarding MIPs, kindly read : BEST MF MIPs. You may select Growth option (if you do not want periodic income).
Hi Sreekanth,
Your articles have been very informative. I read your posts regularly.
Confused with insurance and investment, I bought Bima Gold policy in 2005. The Sum assured is 4.5 lakhs and the term is 20 years. It’s a money back policy and I received the amounts of 45K twice in 2009 and 2013. The annual premium is INR 14,737. The last premium was paid in Oct 2015.
Apart from this, I’ve Amulya Jeevan term policies (took one 25L in 2007 and another 25L in 2013) and the sum assured is 50L for a period of 35 years. I’m considering buying another 50L term policy as I now feel that I’m under insured.
Would you advice discontinuing/surrender of Bima Gold? Is the agent informed about the policy surrender/discontinue? Does it impact their income? In my case, the agent is a relative.
Is it better to diversify and opt for another insurance provider for the new term policy that I’m planning (considering ICICI and HDFC Click2Protect from your earlier post)?
Please advice.
Thanks,
Avinash
Dear Avinash,
If you discontinue the policy, your agent will not get future commission(s) from that policy.
You may consider making it a PAID-UP policy as you have already paid premiums for 10 policy years. You may consider buying a term plan from the same agent.
You may buy new term plan from a company that you are comfortable with. Just disclose all the required information in the proposal form honestly.
Thanks Sreekanth for your advice. I’ll check with LIC about converting it into Paid-up policy.
I am new to investing.I am thinking of investing 5k per month sip in
ICICI pru blue chip -2k
And hdfc small and midcap -3k
Also I am thinking of investing 5k in axis elss funds..please let me know whether this is a good option or should I change it.I am investing for more than 5years and my target is wealth creation as my age is 27
Dear Alok,
ICICI pru blue chip, HDFC mid-cap opportunities fund & Axis Long-term equity fund (for tax saving) are good funds and can be considered for long-term.
Kindly read:
Best ELSS funds.
MY MF picks.
Best Equity funds.
Best Balanced funds.
Hi Sreekanth..should I invest in hdfc mid cap or hdfc midcap and small.I am looking for 10 yrs investment.I am confused as hdfc small and midcap is launched recently but hdfc mutual fund manager told me to opt for it as it will give higher returns in long term.please guide
Dear Alok..suggest you to consider HDFC Midcap opportunities fund. Better to avoid new funds.
Hi Sreekanth,
I am a regular reader of your articles and appreciate your tips on helping people make right financial choices.
I wanted your help in choosing right SIP plan. I am thinking of 3000-5000 monthly investment for long term duration of 10+ yrs. I am confused if I should choose Equity linked plan or ELSS ? Should I invest in multiple SIP plans for better returns ? What is the impact / returns variation and more importantly your advice ?
Also, It would be of great help – if you can recommend any bank for online SIP account based on their charges and services (I have account with Kotak and Axis bank but can get new account for SIP based on your suggestion).
I also have some direct investment in shares (equity) but I am not a regular trader. Please suggest. Looking forward to your comment.
Best Regards,
Tanveer
Dear Tanveer,
Besides 10 year horizon, is tax saving one of your investment objectives?
You may avoid ULIPs (unit linked insurance plans).
Kindly read:
Best equity funds.Best balanced funds.
MY MF picks.
Thanks for reply. I am not too focused on tax savings. I am planning SIP for good returns/wealth creation over 10 – 15 yrs horizon.
Dear Tanveer..You may select any 2 to 4 funds from the list provided in the article ‘best equity funds’. Try to select funds from different ‘fund category’.
Hi Sreekanth,
Thank you for suggestions. I have shortlisted some funds from “best equity funds” article below. Can you help me choose 3-4 funds (i am planning to start sip of 7-8k per month). Suggestion of amount breakup for recommended plan will also be helpful.
– UTI Equity Fund or ICICI Prudential Focused Bluechip fund (large cap)
– Franklin India Prima Plus (diversified)
– HDFC Prudence fund or HDFC balanced fund (balanced)
– UTI Mid-cap or Franklin India Smaller Companies Fund
– Axis long term equity fund (ELSS)
Also if for some reason I stop SIP after 2-3 yrs; is there any lock-in period or penalty in any of the plans ?
Thank you.
Best Regards,
Tanveer
Dear Tanveer,
Shortlisted funds are good ones. Remain invested in them for longer period.
Axis LTE is an ELSS fund. Only ELSS funds have a lock-in period of 3 years.
You may pause or stop SIPs on all funds. No penalty is levied.
Kindly read:
Best ELSS funds.
Hi Sreekanth,
I read your posts, Why do you suggest to consider only life term plans but not life cover + money back plans?
please provide clarity…
How about considering policies like … life cover + money back after survival, is there any such policies let me know..
Dear Vinayak,
Once you got sufficient life cover with term plan, why should one take a money back plan? Kindly share your perspective plz.
Hii, I am 29 years old, and presently investing in ICICI pru value discovery growth and axis mid cap of 1000 each.
I want to invest extra 5000 as Sip. My goals are long term that is more than 10 years..
I have shortlisted Franklin high growth companies, DSP black rock, Axis longterm equity. Can u please suggest me about my choices, are they good or else suggest me funds for medium term goal of 5 years and long term goals for 10 years
Dear Deepthi,
Which fund of DSP balcrock?
Is tax-saving one of your investment objectives, besides long-term accumulation?
Kindly read:
MF portfolio overlap analysis tools.
Best Equity funds.
Best Balanced funds.
My MF picks.
Wealth creation is my objective not tax saving.
Dear Deepthi,
5 year horizon : One balanced fund can be considered . Ex : HDFC Balanced fund / TATA balanced fund.
> 10 year horizon : invested funds + one balanced fund. You can allocate more monies towards mid-cap fund.
DEAR SIR
GREETINGS OF THE DAY
CAN I GO FOR MF INVESTMENT.. IN THESE NEW FUND OFFER?
A)TATA BANKING AND FINANCIAL SERVICE FUND
B) TATA DIGITAL INDIA FUND
C)TATA INDIA PHARMA AND HEALTHCARE FUND
REGARDS
RAJIV MAHAJAN
Dear Raajiv,
Advisable not to invest in NFOs. You may pick good existing funds based on their track record.
May I know your investment horizon.
Dear Mr. Sreekanth,
This is a query in respect of EPF.
For how many years one can leave the PF amount in the EPF account after retirement (super annuation) and continue to earn interest on the corpus amount?
Thanks # Regards
Prakash
Dear Prakash,
Interest is credited only for 36 months after that the account will be treated as In-operative account.
Thanks for the immediate response Sreekanth.
BTW, what is the Interest rate for 2015-16. If not yet announced, when is it likely to be.
Regards
Prakash
Dear Prakash,
EPFO was supposed to announce the interest rate during november month but did not..most probably we can expect the announcement this month.
May retain the interest rate at 8.75% for FY 2015-16. But remember that EPFO is investing a small portion of their corpus in equities.
Dear Sreekanth,
Is my understanding correct that the entire EPF amount withdrawn after retirement (superannuation) is tax-free?
Regards
Prakash
Dear Prakash,
Yes. In fact, EPF withdrawals after 5 years of service are tax-exempted.
Dear Sir,
I am 28 years old. Initially I though of taking term plan for 40 years but now I am thinking taking term plan for 32 years ( 28+32 = 60 ) and investing difference amount in equity SIP ( 500 rupee/month ) for 32 year.
Do you think this is good idea ? Also thinking of taking term plan from Max life.
Kindly provide your comment
Best regards,
Ashish
Dear Ashish,
The policy term can generally be till your retirement age. You can go ahead with your plans.
Read :
Best term insurance plans.
Best Personal Accident plans.
Hi,
I have a term insurance of 50 lakhs with HDFC life. i want to add another 50 lakhs to make it 1 Cr. Should i go with HDFC life or a new insurance company? as the current term insurance does not include permanent disability.
should i opt a cover that includes permanent disability?
my age is 25 yrs.
pls suggest.
Dear Mangesh,
I have already replied to your query. Kindly check in the comments section of ‘Best Term insurance plans’ article.
You may consider buying a stand-alone Personal accident plan.
Read : Best Personal accident insurance plans.
Sir I would like to purchase gold @ of 1 lakh in bullion india. because selling option is there. is it safe?
please guide me to online buying/selling of pure gold.
Dear Mohan,
How frequently would you like to trade?
Kindly note that Gold is not a great investment product.
If at all if you would like to invest some portion of your savings in Gold, You may also consider ‘Gold Bonds‘ now.
I do not have much info about bullionindia.
Dear Sreekanth,
Once a term insurance policy has been issued, is it necessary to keep the insurer informed whenever there is a change in health? Is it necessary to inform at the time of renewal?
Thank you
Dear bkmurthy,
It is not required. But go through the policy wordings carefully for any such clauses.
If you are enhancing your Sum Assured at the time of renewal, your insurance (non-life) company can ask for these details.
Is there any kind of FEE to be payable to the Kerala Government, when I take a loan from Kerala person via Promissory Note Please explain what kind of precautions should be followed in promissory note.
Dear Noorul..I am not aware of state specific guidelines. For general information on PNotes, kindly read my article -‘ Promissory Note : Details & Sample templates‘.
DEAR SIR
GREETINGS OF THE DAY
WHICH IS BEST MF INVESTMENT..?
A)MF GROWTH FOR LONG TIME
B) MF DIVIDEND FOR LONG TIME
C)MF DIVIDEND REINVESTMENT FOR LONG TIME
CLEAR WITH EXAMPLE PLZ
REGARDS
RAJIV MAHAJAN
Dear RAAJIV.. MF growth option. You money gets compounded.
Dear Srikanth,
You are really doing invaluable work for the hundreds who must be reading your blog.My query is for my mother of 79 years.She does not have any health cover.Can you suggest some suitable plans for her.She has hypertension problem.
Dear Sainath,
Kindly go through my article – Best health insurance plans for Parents / Sr citizens.
Hi,
I am 32 year old, I am planning to take Term Insuarance.. My question is Can I take Term Insurance covering my family (me, mywife and 2 yr old kid).
In one of the post you said to buy policies for each individual. Is there any possibilities?
Regards,
Vinayak
Dear Vinayak,
You can not take a term plan to cover entire family.
Also, if your spouse is not an earning member of your family , insurance coverage on her name is not required. Also, insurance on kid’s name is absolutely not required.
However, some term plans provide coverage for husband & wife together in the same policy. ex : Aegon Religare iSpouse Insurance Plan.
Instead you can consider buying a good Family Floater Health insurance plan (if you do not have).
Read : Best Family Floater health insurance plans.
Sir,
My girl DOB is 15.03.14. If I deposit Rs1000 per months (Rs12000.00 in a year) for 14 years. What amt. I will get after 21 years after the completion of yojna ? Please give me calculation details.
Dear Ashwini,
Kindly read below articles:
SSA review.
SSA calculator.
Dear Sreekanth,
1. Once an insurance policy has been issued, is it mandatory on the part of the insured to keep the insurer updated in case of a change of status of the insured, such as illness, accident, change of smoking or drinking habits and so on either during the tenure of the policy or during its renewal?
2. Considering the higher probability of accident than serious illness, very low premium of personal accident insurance, ease of applying online and simplicity of the policy conditions, why do you not advise people to first go for personal accident cover rather than health cover? Once they get the hang of applying for a simple policy, they may apply for a more complicated policy with greater confidence, don’t you think?
3. How is preexisting condition relevant in personal accident insurance?
Thank you
Dear bkmurthy,
1 – Let me know the type of insurance policy?
2 – I believe that PA & HI are both essential. I advise my blog readers to go for both simultaneously.
3 – Are you referring to pre-existing illnesses?
Sir,
Recently my father passed away. He had some investments in Alchemists infra realty as fixed deposit .
Now all of his Investments have matured. But none of the investors are getting the maturity amount. They had issued cheque but it has bounced. After reporting this they told us that SEBI has some issues with their company so the accounts are freezed and that is why they are unable to make our payments. After a few months they called every investor and took back all bounced cheques. This time they told us that they will transfer the maturity amount directly to our bank. And took all the details and given a receipt for the cheque deposit. But but since then 6 months have passed. Every time in the office they gave us Promises of payment within 2 to 3 weeks. I belong to a lower middle class family. I don’t have the power to file a court case against them. Those Investments of around 300000 rupees are 50% of our savings. As you a renowned financial advisor I feel you can guide me through this. I’ll be grateful to your efforts on this issue.
recently my friend had tried to register complaint in SEBI scores website. But he is unable as this company name is not coming on the website. Really in big trouble please help.
Regards Sourav
Dear Sourav,
It was a mistake to invest 50% of your savings (lump sum) in one Company’s FD. I believe that Alchemists had offered public deposits without registering the ISSUE with SEBI. Also, SEBI has now barred Alchemists from collecting such deposits.Did you register your complaint on SEBI’s site?
Read : List of companies barred by SEBI from raising money under ‘Collective Investment Schemes‘.
Hi All,
Thanks to Pattu & Ashal.
I am following this group from last 5 month & after few study/guides i have started my first investment in ICICI Prudential Focussed Bluechip Direct(Growth) for SIP of 3000/- per Month from November – 2015.
From next month , i want to invest following funds for SIP of 3k each.
1) HDFC Midcap opportunity Direct(Growth)
2) ICICI Prudential Value Discovery Direct(Growth)
Planning to invest for Minimum 10-15 years.
I have covered my Emergency fund(3 Month in SB Account) , Term Insurance(HDFC for 75 Lakhs) , Health Insurance (From employer as well as Family floter for personal).
Wants your advice am i on the right path or any changes required in it.
Dear Dinesh,
Appreciate your planning and analysis. I believe that you are on right track.
Yes, Pattu Sir & Ashal ji are doing great job. Hats off to them and to the group.
Kindly consider buying a Personal accident plan with disability risk cover.
Read : Best Personal Accident Plans.
If ok, kindly share your financial goal(s) details.
Hi Sree,
Thank you for nice articles and guidance.
Please Review my investments. Both Started using mutual fund utility:
1. Axis Long Term equity direct growth elss: 2500 per month sip for 15 yrs
2. UTI Mid cap direct growth : 2500 per month sip for 12 yrs
3. I am planning to invert 1 Lac in a lump sum into HDFC balanced fund. Investment time is 5 yrs. Do you suggest it or not or want to recommend some other fund for 5 years of time frame.
4. Also suggest me one more fund to diversify my portfolio considering a time frame of > 10 years. I will be starting another sip of 500 per month.
Dear Mukul,
1 & 2 ..Fine
3 – You may invest 75k in HDFC balanced fund and Rs 25k in MIP aggressive fund if you definitely require this money after 5 years.
Read : Best MIP Aggressive plans.
4 – You may pick one diversified equity fund like Franklin Prima plus.
Hello Sir, I follow your blogs and believe them to be one of the best and the most unbiased ones.
I am planning a trip to USA next year and wanted to know which is the best mode of investment for such short term (less than 1 yr). I am confused between Ultra short term/Liquid funds/Arbitrage funds. I understand I will have to put lumpsum in that.Please advise
Secondly, is there some way to invest every month some amount such that it earns interest and grows by next year September?
Thank you in advance
Dear Sameer,
For very short term goals, safety of capital shuould be given high priority and not for Returns.
Suggest you to invest a portion of your surplus money in short term bank FD and the remaining balance in a Liquid or short-term fund.
Kindly read my article on : Types of Debt Funds.
HELLO SIR,
I AM PLANNING TO START A SIP FOR RS. 4000/- PM FOR LONG TERM( 15 – 20 YEARS). FURTHER, I AM ALREADY INVESTING IN FOLLOWING SIPs:-
1) RELIANCE BANKING FUND- RS.1000/-PM (20 YEARS)
2) UTI MNC FUND- RS. 2000/- PM(15 YEARS)
3) AXIS ELSS FUND- RS. 3000/- PM(15 YEARS)
MY QUESTION IS WHICH FUND WOULD BE BEST FOR LONG TERM INVESTMENT ? IS CANARA ROBECO EMERGING EQUITIES FUND A GOOD OPTION FOR SUBJECT INVESTMENT OR DO YOU SUGGEST ME ANY OTHER BETTER FUND. I AM NOT ABLE TO DECIDE ON WHICH FUND TO SELECT.
ALSO PLEASE TELL ME IF I SHOULD CONTINUE MY INVESTMENT IN ABOVE MENTIONED FUNDS.
REGARDS.
Dear DWARKESH,
As your investment horizon is >15 years, you may add one mid-cap oriented fund to your portfolio.
Ex – HDFC Midcap opportunities / Franklin Smaller co’s / UTI mid cap fund.
Sector funds like banking fund are risky. Kindly understand the risks associated with them.
can you tell- when tax free bonds will be announced for investment
-one time investment in insurance for tax saving & how much interest will get
Dr.Piyush Jain
Dear Piyush,
Last issue was by REC.
As of now, no info is available about the next issue. You may follow our FB page to get alerts on the same.
Tax saving alone should be the criteria for taking insurance. Do you have any existing life insurance policies?
Kindly share details about your age, do you have dependents?
Sir, does the top 7 insurance schemes which you have advised come under tax benefit (80 c) further, i have baby girl of (04) Years me a state govt. employee (32 years) and request you to opt me better plan sir. Thank You
Dear Deepak,
Yes, the premiums paid for Term insurance plan can be claimed as tax deductions under section 80c.
Also consider buying a Health insurance plan too.
Read my articles:
Best Portals for comparing health plans.
Best Family floater plans.
Kid’s education goal planning.
Dear Sreekanth,
I was going through your website and I need some urgent advice from you. I am 31 yrs old living with wife and my 2 year old son in Kolkata. I work in a private firm. My father is retired and 75 yrs plus and mother about 65 years. Can I get a Mediclaim policy for my both my parents? If anyhow possible, then how can I go forward with it? Please advise…
Regards
Sumantra Das
Dear Sumantra,
You may consider buying Senior citizen plans offered by few health insurance companies.
Kindly read my articles:
“Best Health insurance Plans for Parents / Sr citizens.”
“Best Websites to compare health insurance plan”.
Hi sree. Greeting of the day
Few credit card companies are approaching . It is a good option to have credit card .
If yes then which one is best deal in credit card
Regards
Dear Namish,
Better to take a Credit card from a bank where you have savings or current account.
Having a cr card has some advantages, so you can have one. But, do remember to pay the entire due amount before the due dates. Never skip the credit card due payments. It will affect your Credit Score.
Thnks sree
Hi Sree,
After reading ur blog and some reasearch i hv finalised below MF, please let me know wether they are suitable for me or not to achive my long term goal and also let me know for how many years do i need to invest in all this schemes. i am ready to wait for next 10-20 yrs
1. icici pru focused bluechip equity-2000pm
2. franklin india prima plus-2000pm
3. HDFC mid cap-2000pm or uti midcap
4.HDFC children gift fund-2000pm
I also hv jivan anand policy for 20 yrs 3000pm. please let me know whch fund should i change or should i go for it?
thanks in advance.
Priyanka
Dear PRIYANKA,
Good ones. You can remain invested in these funds for long-term. Keep monitoring their performances once in a year.
Are you employed or self-employed? Do you have any other life insurance policy? What about health insurance?
Hi,
Kudos to you and your team for the best explanation on Insurance and all the topics!
Like to know few details?
Is the APY scheme is good or worth to invest for small pension amount of rs.5000?
I am IT employee having company insurance for 13lakhs and LIC for 3lakhs.Earning is 50K per month,
Advice whether term insurance is required? if so for how much?
Thanks
Mani
Dear Mani,
Thank you for the appreciation 🙂
You may ignore it. Instead, you can consider investing in Equity oriented mutual funds for accumulation of Retirement corpus.
Kindly share more details about your LIC plans (Plan names, commencement dates, sum assured, tenure etc).
Company provided insurance, is it on Life or Health?
Kindly read below articles;
If Life is unpredictable, INSURANCE can’t be optional.
Best term insurance plans.
Retirement planning calculator
Hi Sree, Thanks for the reply
LIC Plan ( Jeevan Anand, 3lakhs, for 20 years, enrolled on 2012)
Company provided insurance( New India Insurance – 12 lakhs(term), 1.2 lakhs each(health for me, wife and parents).
i have already enrolled in APY for me and my wife separately. Can you advised whether i can stop this, if so how to do that.
thanks
Mani
Dear Mani,
Suggest you to buy a Term & Personal accident covers ASAP. After that, you may discontinue Jeevan Anand policy.0
Kindly read;
Top Online Term insurance plans.
How to get rid off unwanted insurance?
Term insurance Vs Traditional plans.
You may buy a Family floater plan or Super Top up health insurance plan.
Read;
Best Family Floater plans.
Best Super Top up plans.
Best Portals for comparing health plans.
APY : You can contact your banker to discontinue the contributions.
I to have claim a refund relating to AY 2014-15. I have filed my return o 21-11-2015. Is there any penalty for delay in filing my return
Dear Sunny..Yes, you have to pay the penalty.
I am 52 years old unemployed guy..my income is under 200000 p.a. My friend in Singapore send me Flight ticket 4 times a year to me, will that be a issue with IT department,
Dear Manoj..Who has paid for the tickets? What is the total amount?
I believe that you need to report the foreign travel details when you file your ITR next time.
In case of foreign travel the taxpayer will have to provide the passport number, the country visited, number of foreign trips and the source of funding of the trip.
hello sir…………
greetings of the day
I am 39 yrs old in govt job as a lecturer.having 2 children 4 yr son 6 yr daughter
I invested in
1.Canara Robeco Emerging Equities Regular Growth Rs5000
2. ICICI PRUDENTIAL VALUE DISCOVERY FUND – REGULAR PLAN – GROWTH Rs5000
3.+ SBI BLUE CHIP FUND – REGULAR PLAN – GROWTHRs5000
4. SBI EMERGING BUSINESSES FUND – REGULAR PLAN – GROWTHRs 10000
5.SBI PHARMA FUND – REGULAR PLAN – GROWTH Rs 15000
is it the right to invest step. I have plan to 1nvest Rs 15000/ month .
in which ratio i should invest in the above or somewhere else……..? . my plan is long term investment.
Waiting……..
thanks and Regards
Rajiv mahajan
Dear RAAJIV,
Are these SIPs or one-time investments?
Do you have sufficient life insurance & health insurance cover?
Thanks for prompt answer
Greetings of the day
noSIP. i invest through dmat account.
I have two life insurance policies one 17000 per yr (lic) and other bajaj allianze ulip 15000/yr
regards
Rajiv Mahajan
Dear RAAJIV,
Kindly note that one can invest in SIPs through demat account too.
Let me know if you understand what is meant by MF SIP?
Kindly share more details about your life insurance policies? (Commencement date, sum assured, tenure etc)
Also, suggest you to check the portfolio overlap for the invested funds using MF Portfolio overlap checker tool.
Greetings of the day……..!
SIP IS OK….BUT THING IS THAT I DONT WANNA GET BOUNDED IN SIP …..I WANNA INVEST RATIO WISE AND AS PER MARKET . SOMETIME IT MAY HAPPEN THAT I MAY NOT BE ABLE TO GO FOR SIP (No Money …used somewhere else due to family reasons Sometimes i may invest more even .) THAT WOULD BE DEDUCTED FROM MY ACCOUNT…
THE INSURANCE I AM HAVING IS
1. BAJAJ ALLIANZ ASSURED PROTECTION INSURANCE PLAN. PREMIUM PAYING TERM 7 YEARS 15000-00 / YR
2. lic jeevan ankur 21000 opprox/yr upto 11/02/2027
can u tell me is there any porfolio overlap.in my MF?
Regards
Raajiv Mahajan
Dear RAAJIV,
You may go through my article – ‘MF portfolio overlap checker tools‘ .
LIC Jeevan Ankur is a traditional Endowment plan. It is better you either surrender the policy or make it PAID-UP one.
kindly read below articles;
How to get rid off unwanted insurance plans.
Term plan Vs traditional plans.
Top Online Term insurance plans.
When did you buy Bajaj plan?
IN FEB 2013
Dear Raajiv..It is an ULIP. You may have to remain invested in this plan till policy maturity to get decent fund value. My personal take – MFs are better than ULIPs.
Hi Sreekant
This is Liton a teacher in a govt. aided school in W.B.
Now I like to start a manufacturing business. Is it possible to make a trade license in my name or in a name of a trusty where I am the president.
Please reply.
Dear Liton..I am not sure if you are eligible (being a govt teacher) to get a trade license. Kindly consult a Chartered Accountant.
Hi shree,
I want to invest rs 5000 pm for five years to purchase a suv around 15 lakh, which is the best inveatment way to reach the same.
Dear Namish,
To accumulate Rs 15 lakh in 5 years by investing Rs 5k pm, you need to get returns of around 55% pa, which is very unrealistic.
You may have to increase the contribution amount or reduce the goal amount.
Hi Sreekanth,
Hope you are doing Good
Can you please share any article on
1) Debt Fund vs Liquid Funds vs Ultra short term period etc
2) Good Debt Funds and Good Liquid Funds
3) Duration in Months advisabel to remain invested in each cateogory of the above funds etc
4) Taxation related informations etc..
Thanks
Dinesh
Dear dinesh,
I will soon try to write on this subject..Thank you!
Thanks Sreekanth,
Meanwhile can you please suggest
1) can you please suggest some good liquid and debt fund in both HDFC and Frankin to be invested for a period more than 3 years
2) can you please suggest some good liquid and debt fund in both HDFC and Frankin to be invested for a period less than 3 years
Dear Dinesh,
Why do you want to invest in debt funds for a goal which is > 3 year from now?
For 1 to 3 year goals , you can consider either conservative or aggressive MIP funds.
Kindly read;
Best MF MIPs
Some of the good debt funds are : HDFC high interest dynamic/ Franklin india TMAF fund etc
For 1 – 3 years;
You can consider
HDFC High interest dynamic /
Hi Sreekanth,
I want to do a STP from a debt fund to the HDFC Balanced / Midcap Fund for a period greater than or around 3 years(Monthly) , so in this case will it be advisable to invest in the DEBT funds for period greater than or around 3 years or better to cut short the STP period to less than 2 years.. as i see the Balanced funds NAV quite fluctauting from past 6 months….
Regards
Dinesh
Dear Dinesh,
I remember you have asked for more info on Debt Funds..Kindly read my latest article on “Debt Funds : Types & Benefits”.
You can directly start SIPs in the shortlisted equity funds right?
If your investment objective is to accumulate long term wealth, kindly do not worry about short-term volatility w.r.t equity funds.
Thanks for the Article it is helpful..
well i am already doing SIP to the existing HDFC funds but i want to invest my Lump sum of 20L in DEBT fund and by STP want to invest in this 2 HDFC funds – so had the query .. But not sure if the STP should be done for a longer period of over 3 years and more or advisable to do STP for less than 2 years ..
STP To HDFC balanced and HDFC Midcap funds.
Dear Dinesh,
If you do for 3 years, you may lose the TIME to remain in the equity markets.
If you are investing this Rs 20L for a longer period, Consider STP for 6 months to 12 months.
SIR WHAT BOOKS SHOULD I STUDY FOR PICKING UP INDIAN MARKET STOCKS PERFECTLY …..
and tell me on what factors should i invest ?
PLEASE SELECT ME THE BEST BOOK..in a step by step process
hi shree,
thnx ur serioulsy doing a grt job.
Im 29 yrs old and i want to invest 10k to 15k per month for next 10 to 15yrs for appreciation in amt. im confused in equity and mutual fund and also in pension fund investment, also sometimes i find that investing some amount in gold will give high returns. can you please suggest me some good plans for growth in my investments which will also beat the inflation rate. please give a good suggesion for SIP, pension funds, and equity funds. or if any other things whch will fulfill my goal.
Thank you,
Priyanka
Dear Priyanka,
Gold is not a great investment for long-term. Investing in gold is riskier than investing in Equities.
Kindly read : Gold, is it still the safest investment of all?
For goals >10 years, equity oriented mutual funds can be considered.
Kindly go through my articles;
Best Equity funds.
Best Balanced funds.
Cn u also plz suggest me some good pension plan… and also in whch balanced or equity fund should i invest and how.. i mean amt denomination
Dear Priyanka,
It is advisable to avoid pension plans.
You can create your own portfolio with suitable options like equity mutual funds schemes to build your retirement corpus.
Kindly read;
Retirement planning goal calculator
Why you should avoid pension plans like HDFC Click 2 Retire?
Hi
I have FD in Canara Bank. I am a senior citizen. I submitted form 15H little bit late in the year 2014. In form 26AS(financial year 2013-14, assessment year 2014-15) I found the bank has deducted TDS of Rs.16-00. Txn date is shown as 31-3-2014 and ammount paid/credited is Rs159.17. Now I have received E-mail notice from incometax dept. to file return for the year 2014-2015. I s it required to file return even if I dont want to claim refund else what should I do please suggest.
Regards
Basavaraju
Dear Basavaraju,
Under which section did u receive the notice? Or is it just a ‘compliance response’ notice?
May I know the FD deposit amount?
It is compliance of non-filers monitoring system(NMS)
Hi
Is it necessary to file return for the assessment year 2014-15 onwards even if it is nill tax.
Regards
Basavaraju
Dear Basavaraju,
You have to submit ‘compliance response’. You can do it online too.
Else, suggest you to take help of a CA.
I want invest the capital gain on a old property .Is it possible.
If I want to construct can I buy a site and construct on the capital gain money.
regards
Dear CHANDRASEKHAR,
Kindly go thoruigh my article – “How to save Long term capital gains on property sale?”
Hi.
Sree
Gone through ur blog. Found vry informative.
Do let me know about armed forces provident fund vs public provident fund difference.
Is there any difference between two.
Dear Namish..Do you mean by Employees PF Vs PPF?
armed forces personnel provident fund vs public provident fund yup
Dear Namish..Kindly read my article on ‘Types of Provident funds“. I am not sure if there is separate PF for armed forces.
What are the causes of the china market crash? sir I wanted a simple explanation
Dear delilah,
Two main reasons;
1 – US economy is strengthening. Markets expecting a rate hike in US. Tighter monetary conditions in America have led to reduced capital flows to big emerging economies.
2 – China’s economy growth is slowing down (more than & faster than expected).
Dear Sree,
please share the details about salary employees tax deductions details .
for getting those benefits which proofs are they need to submit to employer .
thanks for your help
Dear Kiran,
Kindly read my article – ‘Income Tax deductions list – FY 2015-16’.
Dear Sir,want to ask a question: In the deductions section of Income tax, the amount that I will be paying as EMI against home loan (including interest as well as principal amount) is said to be exempted from tax. But for this the property has to be on my own name or I can claim if the property is in my father’s name but I am paying the EMI
Dear ABHISHEK,
To claim tax benefits you need to be the owner or co-owner of the property.
Kindly read – Joint home loan & Tax benefits.
hi sreekant
i am following your blogs recently and i followed your replies are very fruitful. I have some query aa below:
1. i like to invest rs.2000per month for a long term plane for 10 years. please suggest me whee to invest and why.
2. i like to invest rs. 2000 per month for 20 years. please suggest me where to invest and why?
please suggest me asap.
my personal details are as:
age 33
GOVT. JOB
family members
father has own business.
wife. h/w
savings. epf rs.2000 per month.
term insurance coverage rs.20 lacs.
please suggest me at you earliest.
মিঠুন সরকার
Dear MITHUN,
1 & 2 – Suggest you to kindly go through my articles ‘Best equity funds’ & ‘Best balanced funds’ and revert to me.
Do you and your family members have health insurance cover?
from your article best 15 mutual fund i found that in 3 years term it is giving high return in every case . so what should i do….for long term or short ….. and also you please specify only 2 name please for the two term one for 10 yr and next for 20yr.
please specify.
মিঠুন সরকার
Dear mithun,
Past performances may or may not be repeated.
For 10 year goal – You can consider HDFC Balanced fund & Franklin Prima Plus.
For 20 year goal – You can consider Franklin Smaller companies fund / UTI Midcap & Franklin Prima Plus.
Hi Sir,
First of all thank you very much for your reply an suggestion.
I have a question here suppose today I’ll buy duplex of cost 50 lac and later I’ll resale same duplex at cost 75 lac will whole 75 lac will be taxed ? if not how tax will apply on selling residential property.
Thanks
Ashish
Dear Ashish,
Suggest you to read below articles;
Reselling property in 3 years, watch out for tax liability.How to compute capital gains? How to save long term capital gains tax on sale of property?
Thanks sir. I got an idea what if I sell property within 3 year of purchase but not getting what will happen if I sell property after 3 years. Any example on this will highly appreciated
Thanks
Ashish
Dear Ashish,
Did you go through the second article?
If you sell the property after 3 years and make a gain on it, it is considered as Long Term Capital Gains. You need to pay tax only on Gains ie Rs 25 Lakh. The calculation of LTCG has been explained in the second article. Also, the options to save LTCG taxes has also been discussed in that article.
I have 2 BHK flat in Mumbai and I am 78 years old. I have two children and I want to buy two flats of 1 BHK and give one each to my children. What will be the tax liability if I buy two separate flats instead of one. thanks.
Dear Mohan,
Are you planning to sell your 2BHK property and buy two separate 1 BHK flats?
Sir please tell me about the best plan for rs 1000 investment monthly with high returns for 5 years long term.i am a student thinking of best benefit for my masters……
I was planning for Franklin India and SBI Bluechip and focus is made on small cap companies and equity diversified… and planning for average return of 18% for 5years..
Dear Jayacharan,
Consider investing in a balanced fund. Ex – TATA Balanced fund or HDFC Balanced fund.
Dear Sreekanth ,
you are doing a fantastic work !
I have 3 different question
1) if I want to invest 10,000 every month and expecting high returns in 5 years , what would be your suggestion ?
where and what form I can split the money ?
2) if I have 3 Lakhs , where can I invest for high returns in 5 years ? or if I need to invest more then 5 years what would be a good option ?
3) is there a place in outskirts of Bangalore I can invest this 3 lakhs on a property for 10 years and is that safe ?
Regards
Sathish
Dear Sathish,
1 – It is better not to expect high return in 5 years. May I know the returns that you are expecting (in % terms)?? Is this for any specific financial goal(s)?
2 – More than 5 years then you can consider investing in Equity oriented funds, especially in a balanced fund.
3 – What is the property dimension ?
Kindly list out your other financial goal(s) if any??
Hello Sreekanth ,
1) I am thinking of doubling the investment in 5 years ,
2) Equity oriented funds, especially in a balanced fund. nay good plans you suggest ? how do I split the calculation ?
3) I have not found any property ..
Regards
Sathish
Dear Sathish,
1 – Consider investing in a Balanced fund. But kindly understand the risks associated with equity funds.
2 – HDFC Balanced fund / TATA Balanced fund. Read my article on ‘Best Balanced funds’.
I’d like to know whether any interest received from bank against gratuity account can be treated as staff benefit or it should be adjusted with donor’s fund? Policy of my office is to allow gratuity to staff equal to his/her last drawn basis multiply by no. of years. But there is no policy about treatment of interest. What is standard rule? please let me know with reference.
Dear Faruk,
I believe that the interest received is treated as staff benefit only. Interest received on gratuity is taxable and subject to TDS .
Kindly read : Gratuity benefit & Tax implications.
HUF property also part of will
Dear Mr. Sreekanth,
I have posted the following queries last week for which I am yet to get a reply from you. I shall be thankful if you kindly clarify the same.
I understand that in a single account of Post Office MIS Scheme the maximum amount of deposit is Rs.4,50,000/- and in Joint Account it is Rs.9,00,000/-. Suppose A & B have a joint account in the post office MIS schemes. They are having a total deposit of Rs.9,00.000/- @ 8.4% p.a. as interest. One deposit for Rs.7,00,000/- in which A is first named depositor and B as second named depositor and another deposit for Rs.2,00,000/- in which B is first named depositor and A is second named depositor. While filing Income Tax return if A has to take the interest from Rs.7,00,000/- and B to take interest from Rs.2,00,000/- OR they should take interest from Rs.4,50,000/- each?
Regards
Dear Krishnan,
I have already replied to your query. Kindly check it in the comments section of ‘Direct MF plans’ article.
Dear Sreekanth,
I need a suggestion from you. I am working in Dubai. I will continue here for couple of years here and want to come back to India. Here my monthly income is 2 L. At present I am having a housing loan of 25 L (15 L Down payment made by my savings) started in June 2015. EMI is 35000 pm.
I have some investments in MF, Gold. I want to invest my balance amount around 1 L per month in MF / Shares for my retirement / children education (more than 10 years period i have for this) for next 2 years. Then I will come back to India where I will get may be 50000 pm salary. So I may not be in a position to continue the same investment.
Do you want me to repay completely Housing loan 25 L with this year (2016) savings. I have 25 lakhs term insurance plan from AVIA, 3 L LIC, 18000 pa contribution for ULIP ICICI Pru life from 2009 to 2020 and also company will provide me 25 L if any risk happens at present.
I want to save for my retirement and children education (2 daughters age 12 years & 5 years). My spouse is home maker. I am having parents but they did have finance source for their needs.
At present I am having monthly expenditure 15000 for me in Dubai & 20000 for my family in Hyderabad.
Could you guide me for a better financial plan.
Thanks,
Harinath
Dear harinath,
As you are not sure about your job or future income potential (in India), suggest you not to repay your home loan as of now. Let it continue.
You have to enhance your life insurance cover, also suggest you to buy a stand-alone Personal Accident insurance plan.
Kindly read – Best Term insurance plans & Best Personal Accident Plans.
Do you & your family have any kind of health insurance cover?
Share more details about your LIC policies.
Are you happy with ICICI ULIP’s performance?
Suggest you to go through below articles and revert to me;
Kid’s education planning goal.
Retirement planning goal.
Financial Planning Pyramid.
Hi,
I want to save for my child’s education who is 1 year old now. So I have around 15 years window for me to save. I have used the planned as available in your site for arriving at the monthly total figure. Can you please have a look at my investment portfolio and suggest me any necessary changes.
Note : I do not have any term insurance nor do my wife. Do you think we need to consider this as a part of child’s education planning?
Total Amount 20000 pm
UTI Equity (LC) -5000
ICICI Pru BC Equity(LC) -5000
HDFC Balanced (HY -Eq) -3000
HDFC Mid cap(mid Cap) -1500
ICICI Pru Value Discovery Fund(small and Mid cap) – 1500
Recurring Deposit /Minor PPF-4000
Thanks in advance.
Dear Avik,
Ofcourse, having a sufficient life insurance cover is more important than your investment planning. Protection planning should be given the top most priority.
Get yourself covered with adequate life insurance, personal accident cover and health insurance.
You may consider UTI equity or ICICI Bluechip.
May I know the reason for choosing RD? Tenure??
Kindly go through below articles;
Best Term insurance plans.
Best Personal Accident Plans.
Best health insurance comparison websites.
MF portfolio overlap analysis tools.
I’d like to buy a flat in Bangalore.whether OC and CC is 100% important to book a flat.without CC and OC flat are book means what’s the problem.bcoz 90% building are not OC and CC property.plz help me and and send mail to me
Dear Abdul,
As per law, they are a must have documents and very important. If you think its ok to buy then you may do so after clearly understanding the risks associated with your decision.
Dear Abdul,
As per law, they are a must have documents and very important. If you think its ok to buy then you may do so after clearly understanding the risks associated with your decision.
Hi srikanth,
Finding your articles very interesting and informative. i m having below query
i have a aviva sachin century plan dated may 2010 for 10 yrs, now locking period is over, monthly installment of premium is rs 2000/-.
i want to know is it advisable to surrender the policy now in middle and invest that money somewhere else,
if so what are the other option to invest money,
Kindly suggest.
Dear manjul,
It is an Unit Linked Plan. To get decent returns from ULIPs, you have to remain invested till policy maturity.
Are you satisfied with its performance? Do you have any other life insurance policies?
Hi Sreekanth,
I am a center govt employee, had postal life insurance policy along with aviva till 2023 with monthly premium of Rs 1048 for rs 02 lakh sum assured , moreover i have Rs 6000 monthly premium on recurring deposit for five years.
i have a healthy deduction towards ppf as well, jus wanna know what are the other best option to channelize investment benefit towards best deals in terms of returns.
regards
Dear Manjul,
I could see that you are under-insured. More than investment planning, you need to plan for sufficient life insurance cover. Also, it is better if you do not invest in RDs for long-term.
Kindly read below articles;
Why you should avoid RDs / FDs as long-term investments?
Best Term insurance policies.
Financial Planning Pyramid.
Best Equity funds.
Best Personal Accident policy.
I happened to go through your website while finding answer for the demand notice under section 143(1) . I found it is more descriptive and helpful. I am a senior citizen and I have retired from the company I was working. Now I have received demand notice from incometax department for Rs. 673 under section 143(1) for the assessment year 2006-2007. I had filed returns along with form 16. The date of demand raised is on 27/02/2007. I have received on 05/11/2015. Now to cross verify the calculation the filed return form is not displayed in the notice for the year 2006-2007. Please guide me what to do.
Regards
Basavaraju
Dear Basavaraju,
Suggest you to pay the demand due and get this sorted out. Else, you can consult a CA.
Thanks for the suggestion.
Regards
Basavaraju
Hi Sreekanth,
I am a 25 year old working with the software industry.
Currently, I have 3 MFs as below:
1. HDFC top 200 — Invested 5000 pm from 2008 to 2011 — No activity after that . And I have not redeemed the amount.
2. HDFC Balanced Fund — Started 2 months back using STP from HDFC Top 200 of 1500 every month.
3. Axis Long term equity MF — 5000 pm from June 2015
I have my other investments in PPF around 50000 every year and FDs of small amount .
Also, 3 LICs I have which I consider of no use but pay around 33000 every year as premium. Started way back by my parents and near maturity.
Right now, I am looking for investment avenues and would like your suggestions.
I have around 10000 surplus every month that I can invest.
what should I do with my HDFC top 200 fund..keep it as it is or withdraw and invest elsewhere?
My goal currently is short term around 2 years from now.
Longer term goals are 10 years down the line. Let me know your views.
Regards,
Deep
Dear Deep,
If I understand you correctly, you have already initiated STP from Top 200 fund to Balanced fund right?
HDFC Balanced fund is a good one.
For short-term goals (2 to 3 years. Suggest you remain invested for 3 years) – You may consider investing in MF monthly income plans. Read : Best MF MIPs.
> 10 year goals : You may add one diversified equity fund and one Mid-cap fund. Ex- Franklin Prima plus & UTI mid-cap.
If your parents are dependent on you, buy a Term insurance & Personal Accident plan. Do you & your parents have health insurance cover?
Kindly read below articles;
Best Term insurance plan.
Best Equity funds.
Best Personal Accident policy.
Retirement planning goal calculator.
hi Sreekanth
m 25 yr old and employed in defence.
I have invested in sbi taxgain and holding lic jeevan anand. now I want to invest more in 5-10yr sip. kindly suggest me the best in the field. also I will b retiring after 17yrs, so wish to invest in retirement plan sip.
Please. I wish to invest 3-4k each. Please suggest me .
with regard
Mahendra
Dear Mahendra,
Do you have any family member(s) who are dependent on you?
Suggest you to go through below articles;
Term insurance Vs traditional policies like Jeevan Anand.
Retirement plannning goal.
Best Equity funds.
I have extended my PPF account beyond 15 years in April 2015. Now I want to withdraw some money from the account. What will be the eligibility amount? will it have any tax implication.
Will be thankful for an early reply
Dear Goutam,
Did you just extend the tenure? Or extended the tenure and also making fresh contributions??
PPF withdrawal rules during extension period.
If extended without contribution, any amount can be withdrawn subject to one withdrawal per year. The balance will continue to earn interest till it is completely withdrawn.
If extended with contribution, withdrawal up to 60% of the balance at the beginning of each extended period (block of five years) is permitted.
hi…sree….i want to invest in dsp contra fund is it good…..or suggest any good midcap funds….
Dear shanmukh ..suggest you to read my article on ‘Best equity funds’.
Want to apply for BDA Kempegwda site. Which bank will fund me for 12.11 lacs for a 50 x 80 site.Please advise.
Dear CHANDRAMAULiI,
If you get the allotment, mostly any bank would like to fund. Also, the approval of home loan is also based on the income criteria too.
Hi ,Firstly thank you for the wonderful and informative blog..I came across a few days back and it opened a new window for me! Thanks again..pls keep this good work!
I have a question : My husband and I both combined current MF folio is as below.I have a 1 year old kid. Planning to invest in some SIP for his education purpose for next 15 years window.
Current Folio( all investments are via SIP and direct growth Plan:
HDFC Prudence: 4000 pm
HDFC Top 200 :7500 pm
ICICI Focussed Blue Chip – 7000/-
ICICI Value Discovery – 3500/-
UTI equity fund – 3000/-
UTI opportunities) -4000/-
Can you please let me know how my SIP MF profile looks?
I am planning to invest some more 10K -12 K more SIP( for child’s education/retirement etc) . any alteration is needed?
Along with this we invest in PPF. Apart from that I am looking for a term insurance to buy and family floater Health insurance. Any suggestions? Thanks in advance.
Dear Tina,
Thank you for the appreciation 🙂
The invested funds are good ones. But i could see multiple funds from same fund category. You may use ‘Portfolio overlap tools‘ and try to compare
hdfc top 200 Vs ICICI bluechip fund Vs UTI equity Vs uti opp funds. If the portfolio overlap is on higher side, you may drop of couple of them and consider investing in a Mid-cap fund like UTI mid-cap or HDFC mid cap opp fund or Franklin smaller cos fund.
Dear Brother thanks for providing us a very informative details abt new schemes and plans.
Now i myself thomas staying in foreign country from last 7years. The place where im staying tht place a civil war has happened and i have invested some money. Now i want to buy some insurance policy which can help to my family if by chance i get uncertainly death. Plz suggest me which plan will be the best for me.
I am very thankful of ur answer…..
Thomas
Dear Thomas,
Try to buy a Term insurance plan at the earliest.
Inform Life insurance company (in proposal form) that you are an NRI, about the place of your work and other required details as accurately as possible.
Kindly go through my article : Best Term insurance plans.
Hello Sreekanth,
First of all I would like to mention that i am pretty impressed the way you are managing Relakhs and responding to people. It is indeed informative and really helpful. So thank you for that.
My query is as below:
Target: Is to have a balance of approx. 2 Crores at the end of 10 years from now, so thats my horizon
Investment Capacity: Have an investment capacity of 50k per month starting today and i plan to invest in SIPs, primarily due to the reason of flexibility that it offers.
I have discussed this with banker friends and near ones and got a few suggestions as below. However, i would like to have an expert’s advise before moving forward as it is a big amount that i am targeting.
Request you to please suggest (in as much detail as possible) as to in which funds (both funds name and type of funds) that i should invest this 50k/month over a period of 10 years to achieve my target stated above.
Suggested funds for SIPs:
1) HDFC Top 200
2) ICICI blue chip
3) HDFC Mid Cap Opportunity fund
4) DSP Income opportunities fund
5) HDFC Prudence
6) Sundaram Select Mid Cap
Additional information: I already have sufficient life insurance cover with multiple policies and have medical cover as well.
Appreciate your prompt response. Thanks once again.
Regards,
Arun
Dear Arun,
Thank you for your appreciation 🙂
Use the calculator available in my article ‘Kid’s education goal planning’ to have a rough idea about your required savings (to achieve Rs 2 cr target).
Reason for shortlisting DSP fund?
Instead of 6) you can invest in Franklin Prima Plus fund. Suggest you to check the Portfolio overlap between 1) & 2).
Kindly read:
Best Equity funds.
MF portfolio overlap analysis tools .
My MF Portfolio.
Thanks Sreekanth for your response.
1) Could you please share a link of the calculator that you were referring to (Kids education goal planning)? Moreover, it’s not specific to kid’s education that i need 2 cr. It’s a corpus that i have in mind to be maintained for future needs. So I am still considering SIPs as mentioned above.
2) No specific reason for selecting DSP fund, just looking at it’s performance on ROI, that was one of the choices
3) Thanks for your guidance on over lap, will keep that in mind.
Any additional suggestion for me to achieve my target, would be highly appreciated.
Thanks again.
Regards,
Arun
Dear Arun,
Though the title of the article is ‘kid’s edcuation goal planning ‘, the calculator available in the article can be used to plan for other goals too.
Click here to download..
You may ignore DSP fund.
Dear Sreekanth
I am just going through new investment plans and found your readings very informative and really Appreciate your each and every responses. With this i would like to take your advice. Presently I am 40 yr (family wife, 2 girl childs 12y/9 yr) and I am paying traditional LIC life policies 50k per year, ICICI Guaranteed wealth protector Ulip plan started last year for 40K/year, PPF (~25k/year) , have Post office RD on kids for 2L. Home loan EMI 16K/month near to close 3 L.
I am looking for an investment plan for 5 – 10 yrs period 10 k per month, which i can utilize in Kids Education and other expenses. Could you suggest good financial Investment plans at this time for me ? Any Equity funds (SIPs), Term plans etc..?
Regards
Satya
Dear Satya,
Kindly share the LIC policy names too..What is the total sum assured that you have as Life insurance cover? Do you have personal accident plan & health insurance cover?
Tenure of RD ?
Kindly read:
Best Term insurance plans.
Best Personal Accident Plans.
Retirement Planning goal.
Kid’s education goal planning.
Thanks for quick reply. Ihave Jeevan Anand, Jeevan Subrabhi, Bima Ac – Sum assured 5L
It is Postal RD for 5 yrs, completed 2 yrs. Having company paid health coverage, I don’t have other separate plans.
Regards
Dear Satya,
Your first priority is to buy a Term insurance plan.
Once you get the term policy, consider surrendering or making the LIC policies as PAID-UP. You can divert the saved premiums for paying term insurance premium and also towards your other financial goals.
Kindly read:
Term insurance Vs Traditional Plans.
How to get rid off unwanted life insurance.
Top term insurance plans.
Also, do not invest in RDs/ FDs for long-term. Use them to meet your short-term goals or for accumulation of emergency fund only.
Kindly read : Why you should avoid FDs/RDs as long-term investments?
Thanks much for the guidance, your articles are very helpful to a common investor. Appreciate your dedication in educating the lives. Thanks dude.
Today i got registered for HDFC C2P plus term plan. I came up with some research with SIP of 10K for 6 to 10 yrs..Kindly suggest if these are Ok to go with.
Franklin India Smaller Companies Fund – 2ooo
DSP Blackrock Microcap Fund – 2000
Franklin India Highgrowth Oppertunities Fund – 3000
Birla Sunlife Front line Equity – 3000
Regards
Satya
Dear Satya,
Suggest you to check the portfolio overlap for Franklin Smaller & Dsp micro cap fund. It can be a case of unnecessary diversification as both of them are from Mid-cap category.
Kindly read – MF portfolio overlap analysis tools.
I want to keampeagowda layout sites allartmeant
Kindly read my article on BDA allotment KG Layout, Bangalore.
if u own a flat of ur own can u apply for bda site?
Dear rameej,
I believe this is regarding ‘Kempegowda BDA site allotment‘..
If that flat is not allotted by BDA or any govt authority then you are eligible to apply.
Can mudra loan be availed for tupperware, amway for expanding any other MLM business? Secondly, also can it be availed for existing business of artificial jewellery or for party dress on hire?
Dear Rakesh,
I believe that loan can be availed. Suggest you to visit nearest bank and get more details.
Kindly read : How to apply for a business loan under PMMY?
Hi Sreekanth, I am an avid follower of your blog and website and can’t thank you enough. Yours is the most bias-free website and I trust it blindly.
I wanted to know whether one can invest in Mutual Funds as and when required, meaning can I invest say Rs 10,000 on a given day when markets fall and then not invest till next fall. I already have three SIPs going on and wanted to know if this manual or adhoc basis of investment is possible. If so, how and would you recommend the same?
Thanks in advance.
Dear Sameer,
Thank you for your appreciation.
Yes, you can do so. It is allowed.
Infact, I too make additional investments whenever market falls. Besides this keep SIPs active..
Kindly read :
MY MF picks.
MF Portfolio overlap analysis tools.
Hello Sreekanth. My son is four months old and I want to go invest Rs. 1 lakh for his future. Please suggest some good funds which will give maximum return over a period of 15-20 years.
Dear Aparna,
Kindly go through below articles and revert to me;
Best Equity funds
Best Balanced funds
MF portfolio overlap analysis tools
My MF Picks.
Hi srikanth,
Finding your articles very interesting and informative. i m having below query
When is the ideal time to pre close home loan. I have taken home loan for Rs.20 Lacs for 20 yrs from sbi maxgain in 2010. Even after 5 yrs of repayment (EMI -Rs. 17000 per month), I am surprised to see that principal amount now reamains only at 18.6 Lacs and only a meagre amount of Rs.1.5 lacs reduced in principal. So far i paid more than Rs.10 Lac as EMI in these 5 yrs (17000 per month for 5 yrs). Now i am thinking that to prepayment Rs.10 Lacs to reduce interest outgo.( I have 20 Lacs saving which is right now invested in Land).Is it a wise decision..If i have not paid and serve contunuing EMI for 20 yrs, Interest paid will be around Rs.26Lacs. I have not invested in retirement plan. Have one child at 1 yr age. No other investment.
Kindly suggest.
Dear Karthikeyan,
During the initial period of your home loan tenure, a higher portion of your EMI goes towards interest payments and only a small part of it goes towards the Principal repayments.
Suggest you to keep your home loan active as of now and start prioritizing your other financial goals.
Do you have sufficient life insurance and health insurance?
Kindly read:
The 6 most common personal finance mistakes..
Best Term insurance plans.
Kid’s education goal planning.
Retirement planning goal.
Financial Planning Pyramid.
If I have to quit my first job after ten years due to some reasons, what would be the procedure to withdraw in FULL amount for my EPF & VPF as soon as possible..
Dear Mitra..You have to submit withdrawal forms, PAN details & bank account details to your employer.
Kindly read : EPF withdrawal new rules.
Hi, Sreekenath,
Hope you are doing great. I needed your immediate help on my ULIP query below.
I was missold by the Bank Manager and went ahead investing in SBI Life ULIP Plan-SBI LIFE Smart Performer 3 years back. I have already paid 3 yearly premiums of 85000. The current fund value is 3Lakhs (I have paid R2.55 lakh i.e 85*3). I come under 20 % tax slab and has claimed tax deductions under 80C for all the last 3 FY years. I know that if i surrender the policy before 5 policy years, all previous 80C deductions will be taxed. My question is if i surrender the policy now, how much money will be deducted. I will plan my investments accordingly.
Thanks in Advance.
Hrushikesh
Dear Hrushikesh,
If you surrender now, your fund value will be moved to ‘discontinued fund a/c’ of your life insurance co. You may earn 4% on your fund value and you can withdraw your fund after 5 policy years only.
Do you have term insurance cover?
Thanks for the reply Sereekanth…
I know that if I discontinue the ULIP it will sit in discontinue fund and earn 4%. But as I have mentioned before, I will be heavily taxed since I have claimed 80c for all the last 3 years. What would you suggest in this case. Is it wise to stay invested for 2 more years or should I stop paying premiums. Current fund value is 3Lakhs, I have paid 2.55 lakhs so far. Is it ok to pay rest 2 premiums?? I know I have done a mistake in choosing ULIP.
I do not have a term insurance. Though this is taken care by my company, I am serious about opting one. Also I have invested around 20k in Equity.
Dear Hrushikesh,
Kindly first buy a term plan.
Calculate your tax liability. If you are not convinced about this plan, suggest you to get rid off it.
Invest in better investment avenues like Equity mutual funds.
Dear Sreekanth
I would like to request you to please cover an article about “Critical Illness Polices” or “riders”.
Thank you in advance,
Krishna KP
Dear Krishna,
I will surely try to write about the points to keep in mind while buying CI plans.
But it is very difficult to write about ‘best CI plans’as the requirements and terms & conditions vary from plan to plan (or person to person).
Kindly read: Best health insurance plans comparison websites. Suggest you to visit these portals and shortlist the CI plans.
Dear Sir,
Your Website is very helpful to the new People in investments. I am 34 year old & I have two kids 5yrs & 3yrs. old. I am planning some investments for my kids future (higher education & marriage ).I am working in gulf . Pls guide me.
I have already following Sips.started just before 3 months.(total Sip amount-10000/month)
1)BSL 95 fund growthPlan-1000
2) HDFC Midcap opp.fund-Growth-2000
3) HDFC top-200-Growth-2000
4) ICICI pru.Discovery Fund-Growth-2000
5) ICICI Pru.Dynemic plan-Growth-1000
6) Reliance capital builder fund II-series B regular Growth Plan-70000(one time)
7) BSL capital fund -(newly launch in Jan-15.)-70000(one time)
8) Reliance Small Cap Fund-Growth-2000
I am planing to invest for other 15000/month in SIPs for the the period of 10 – 15 years.Suggest me best MFs for my kids future.
I don’t have any term insurance plan.-Please suggest.
I have madiclam (300000/year) for my family.(is it ok??)
my additional income from office rent-30000/month.
Sir kindly suggest finanace planning for better future.
Dear Manish,
1) Your first priority should be to buy a Term plan at the earliest.
Kindly read : Best Term insurance plans.
You may also look at buying a stand-alone Personal Accident policy.
Kindly read : Best PA plans.
2) Consider enhancing your health insurance cover through Super top up health insurance plans.
Read : Best Super Top up plans.
3) Read : Kids’ Education Planning goal
4) Also, start planning for your retirement. Read : Retirement planning in 3 simple steps.
5) Regarding MF SIPs. I believe you can trim down your portfolio a bit. Go through below articles and revert to me;
Top Equity funds.
MF portfolio overlap analysis tools.
MY MF Picks.
Hi Sreekanth ,
Had a query .. Is it wise to invest in SIP – MF for 3 year as i understand most of the Mutual funds gives close to 30% returns for a 3 year term while when invest for long term more than 10 years the returns are close to 15-18% for most of them — so is it beeetr to invest for 3 years and redeem and then put in some other mutual funds for 3 years again ..
Thanks ,
Dear Dinesh,
May be you are looking at recent performance (last 3 years). However things may not be the same in next 3 years right?
So, it is prudent to invest for long-term to get 12%+ returns than losing all the money if invested for short-term.
Let me know your views.
Hi Sreekanth,
Good information on the website!
I have a query. I have Rs. 5 Lakhs that I would like to invest in ELSS. My time horizon is 10-15 years. Can you suggest some good mutual funds?
I already have a term life insurance and good medical insurance. I want to invest this amount for daughter’s higher education.
Thanks in advance.
-Kumar
Dear Kumar,
So your investment objectives are both long-term wealth creating & tax saving??
Kindly read below articles :
Best ELSS funds.
Kid’s Education Goal planning.
Best Super-top-up health insurance plans.
Thanks for the response.
My objective is wealth creation. I already have one tax planning fund invested in (Axis long term equity) which takes care of my 80(C) as well.
I am trying to find out another fund that I can use for my daughter’s education in about 10-15 years.
I will look through the links you provided.
Also, for the chart you posted in the ELSS fund article, did you do that manually or did you use any software (to see if I can use as well)? Thank you.
Dear Kumar,
Then you may consider investing in one equity diversified fund like Franklin Prima plus and one Mid-cap fund like UTI mid-cap or HDFC midcap opp fund.
I created that chart manually. You may visit moneycontrol.com or valueresearchonline and you too can find all the required details on Fund performances.
Thanks Sreekanth.
While filing ITR-4 for the assessment year 2014-15 I wrongly mention one of TDS in Self Assessment Tax and claimed refund as per my return.
Now I have received one Notice u/s 143(1) of ITAct In which neither my TDS deducted by the bank is not appearing and nor the TDS mentioned in Self Assessment Tax, and therefore I have been asked to pay tax of Rs402 along with interest of Rs. 32. But have been asked to pay Rs. 430.
Now what should I do?
Dear Ratinder,
Without looking into the docs, it is very tough to advice you on this issue.
You may consult a CA or contact IT dept helpline .
Kindly read:
How to pay outstanding tax demand u/s 143?
IT Dept helpline numbers.
I WANT TO INVEST RS. 15 LAC LUMPSUM IN DEBT FUND AND STP IN EQUITY BALANCED FUNDS. I WANT TO INVEST WITHING 20 MONTHS BY STP FROM DEBT FUND.
PLEASE SUGGEST COMBO (DEBT TO BALANCE EQUITY FUND) TO INVEST WITHING 20 MONTHS (20 MONTHS STP) FOR REMAIN INVESTED FOR 12 YEARS.
THANKS & BEST REGARDS
Dear Vijay,
You may consider HDFC Short term opportunities fund to HDFC balanced fund.
Hi Shrikant,
I want to invest 5k every month in SIP mutual fund.please help in choosing the fund with high returns after 3 years.
Dear Shivadutt..consider investing in a balanced fund. Try to stay invested for 5 years.
Kindly read : Top Balanced funds – Top MIP funds.
Dear Mr.Sreekanth,
I want to buy a 2 BHK flat which is under construction in Bangalore. It is a Brigade property and the builder has mentioned that the construction will be completed by December 2017. The property is worth Rs 57 Lakhs and I want to take a home loan for 35 Lakhs. I have some queries regarding this:
1. As it is an under construction property, I want to opt for a tranche EMI. Which is the best bank that offers this facility ?
2. As the builder will hand over the property to me only in the the early months of 2018, I will not be able to show the principal paid part of my EMIs as tax deductible in FY 2015, 2016 and maybe even in 2017. Say if I pay back a cumulative principal of Rs 4.5 Lakh by March 2018, ( 2 Lakhs in 2015, 1.5 lakh in 2017 and 1 lakh in 2018 ). Can I show this entire amount in FY 2018 as a tax deductible or do I need to stagger it as Rs 1.5 Lakh for each year over 2018,2019 and 2020. As there is a limit of Rs 1.5 Lakh as tax deductible on principal paid per year, can I show Rs 1.5 lakh of the Rs 2 lakh paid in 2015 in the year 2018 and the rest 0.5 lakh in 2020 ?
3. Coming to the interest part: I plan to let out the property from March 2018 after doing some furnishing. If I let out the property, will it be automatically considered as non-self occupied ? Or will it be considered as self-occupied as I am the owner as well as the tax payer ?
Second, for properties under construction, tax rules allow for deductions of the interest paid on the loan during the construction period in 5 annual installments post construction. The rule says that if the property is self occupied, then there is a max limit of Rs 2 Lakh on the interest paid component and in case if the builder does not complete the construction within the end of the third financial year from the financial year in which the loan was availed, then only Rs 30,000 will be tax deductible for the interest part. In my case, I will be taking the loan in FY 2015. So will the third financial year from now be FY 2017 or will it be FY 2018 ? If it is going to be FY 2017, then in case if the builder does not complete the construction by March 2018, then will I be eligible for only Rs 30,000 deduction every year during the construction period or only for the third year ?
4. I plan to move to Canada for work in 2018. Should I file IT returns in India even if I will not be working here ? In case if I have to file returns, then can I claim the payments made for interest and principal for my home loan as deferred tax assets that I will not be using immediately as I have no income in India to set it off against but may use them in the future ( say in 2025 ) to reduce my tax out-go at that point if I am in India then ?
Sorry for posting such long questions, this is the first time that I am purchasing a property and hence had a lot of queries. I read your replies to other posts and wanted to get these cleared from a knowledgeable person like you.
Thank you,
With best regards,
Bharat
Dear Bharat,
1 – Check out options with SBI / HDFC / LIC HFL.
2 – Kindly read my article : Under construction property & Tax benefits.
3 – Kindly read my article : ‘Income from house property & tax implications’.
4 – If you have any income here in India, you may have to file IT returns. You can not defer the tax exemptions. Kindly read my article : NRI Taxation rules.
Thank you very much sir !
Hi Sree,
Below are the questions. Please help me to understand them:
1. What is the difference between Large Cap and Multi cap fund.
2. Recently I started investing in Axis Long term Equity direct plan – G. 2500 per month. From balanced fund category, I choose HDFC Balanced Fund to start sip but now want to know the feasibility of below funds.
a) Canara Robeco Balance Direct-G
b) Edelweiss Absolute Return Direct-Gs
c) HDFC Balaned Fund Direct-G
Any other balanced fund which you can suggest. I need one fund with a time frame of 15 years..
Dear Mukul,
1 – Kindly note that FUNDS are often grouped by the size of the companies they invest in — big, small or tiny. By size we mean a company’s value on the stock market: the number of shares it has outstanding multiplied by the share price. This is known as market capitalization, or cap size.So, ‘Large Cap Funds’ Funds which invest a larger proportion of their corpus in companies with large market capitalization are called large cap funds. Whereas, Multicap Funds are diversified mutual funds which can invest in stocks across market capitalization.
2 – Axis fund & HDFC fund are good ones. You may consider to invest in any of these funds itself. Else you may consider adding one mid-cap fund to your portfolio as your investment horizon is 15 years. Ex : UTI midcap fund / HDFC Midcap opp fund.
Read : Top Equity funds.
Thanks Sree.. You are always helpful and all articles are very informative.
Sir
I have few fds in the joint names with my wife as second name on either or survivor basis.intt is credited to her (second named)SB ac
Can my wife (second named person) claim income tax relief on interest earned and credited to her Ac by bank?
She is a housewife and the sums were given by her father
With regards
P k dutta
Dear Pradip,
Yes, she can file income tax return and claim refund if bank has deducted TDS (assuming the income is below the basic exemption limit).
Dear sir
I am 64 years old retired individual having an income of Rs 4.1 lakhs per year from interest from Fixed deposit in bank.I intend to deposit 1.5 lakhs next year in PPF. Am i eligible to submit Form 15 H next year( march 2016) so that tax is not deducted by the bank in 2016-2016?
Dear Mr Pandey,
Would like to know your investment objective for choosing PPF now? I am sure you must be aware that PPF has a 15 year lock-in period.
Have you thought about other options available with Post office?
Are your living expenses taken care of? Do you have sufficient health insurance cover?
Kindly share the details.
Hi,
I’m looking for purchasing 2/3 bhk in Koramanagala Bangalore? My budget is 40-60lk. Do you have any leads on the same?
Also, what is the appreciation I can expect in 5yrs time?
Dear vasudha,
Kindly contact me at Sreekanth @ relakhs.com
I am 34 year old. I want to start sip of 20000 per month and 10% increase every year .I want start sip in January 2016 & end in December 2025 .For 10 years. My goal is 1.25 crores. Suggests me in which equity & balanced equity mutual fund I invest and how many I investment?
Dear Ashish,
Kindly go through below articles and revert to me;
Best Equity funds
Best Balanced funds
MF portfolio overlap analysis tools.
Hi Srikanth,
Greetings – I have invested below. and my all investments are for long term
Axis long term equity plan – ELss lamp sum – 550000 – 10 year minimum
HDFC Equity fund – Growth – 10000 per month SIP
HDFC – Children’s gift fund – 300000 – for 18 years lock
HDFC focused equity fund plan growth – 300000 – 10 years minimum
Icici prudential bluechip growth – 10000 per month SIP
Relience equity fund growth – 10000 per month SIP
UTI – Focused equity fund series 2- 1102 days – regular plan growth – 10,00000 – 3 year locking
with other name : UTI – Focused equity fund series 2- 1102 days – regular plan growth – 50000 – 3 year locking
UTI Opportunity fund growth – 50000 – lampsump for 10 years
Are these looks good? I am looking for some long term investment on equity through mutual fund. So want to start two or three more SIP each of 10000 per month. Any idea which fund i should invest?
I already have term plan for 1 crore and my company gives good health insurance for my family.
Your site is great and this just give us right direction to go for …
Thanks,
Rohan
Dear Rohan,
I appreciate your long-term view.
I believe you have invested in too many funds. Consider trimming it.
Kindly go through my article MF portfolio overlap analysis tools. Do not invest in too many funds which are from the same fund category.
Any specific reason for choosing Close ended equity funds? (UTI funds)
Consider taking an independent Health insurance cover. Read my article on ‘Best Health insurance plans comparison portals‘
Thanks for reply..
For closed ended equity fund – was misguided initially and now can’t help. Also could you please suggest if we have some lamp sum amount how to invest those in mutual fund?
Also for mid cap and small cap which mutual fund would be good for SIP?
Dear Rohan,
Sometimes close ended equity funds do perform better as they give freedom to Fund manager to manage the portfolio well without any redemption pressure. But it is better to stick to regular open-ended funds.
Lump sum – What is the investment time frame?
Mid-cap picks – UTI Midcap / Franklin Smaller cos fund/ HDFC Midcap opp fund / DSP Microcap etc
Hi Srikanth
I have Atal Pension account with NPS and received below email from, What does it mean?
Regards
Anoop
We would like to bring to your kind attention that NPS Trust will start recovering fee/charge @ 0.01% of the AUM on daily accrual basis to meet its expenditure, with effect from 1st November, 2015 which has been approved by Pension Fund Regulatory and Development Authority.
Warm Regards,
Dy. General Manager
NPS Trust
Dear Anoop..Are you investing in NPS? or both in APY & NPS?
Only APY
Dear Anoop,
Looks like this is the fund management charges levied by NPS trust for managing the pension corpus.
I have started a new SIP for 15 years details are below
SBI Pharma – 4000
ICICI Pru Discovery 3000
HDFC Top 200 – 3000
could you please suggest is it Good
Now i am looking for bulk purchase yearly Lakh rupees in December and April 50 K Each Please suggest should buying in Bulk is a good option or Not if yes please suggest some funds
mean while i have below LIC policy –
Jeevan saral – 36030 yearly premium for 15 years started in 2009
Jeevan Anand – 21614 yearly premium for 16 years started in 2009
Bjaja Allianze – 19900 Silver endowment policy – In this policy i have to pay only for 7 years already paid two years premium .
Jeevan anand for wife 16500 for 35 years started in 2013 –
I am planning to surrender all policy but for jeevan saral policy bonus will be start in 2018
Please suggest what to Do .
My Financial Goal from 2030 i should get 10L each for my children education .
Appreciate your article very informative really its is helping to create financial awareness among all working people , A big Thank you for this
-Thanks
Dear Sidhartha,
ICICI & HDFC’s funds are good.
Hope you are aware of the risks associated with the sector funds.
Your decision to get rid off unwanted life insurance policies is a good one. Why do you want to continue with Jeevan Saral?
Do you have term plan? If you do not have sufficient insurance cover, buy a term plan first and then surrender the existing insurance policies.
What about your health insurance cover?
Kindly read my article : Kid’s education goal planning.
Hi srikanth,
I have invested as below on week back amd will wait for 10 yeras to get decent returns,kindly suggest if any modification required.(funds needs to add /removed)
HDFC balance – 5 laksh
Tata balance – 5 laksh
UTI midcap – 5 laksh
Axis long-term – 5 lakhs
HDFC equity – 5 laksh
Dear Vennela,
Suggestion : You can consider holding one balance fund and distribute Rs 5 Lakh in UTI mid-cap and HDFC Equity.
Read my article:
Mutual fund portfolio overlap analysis tools
Are the employees of jodhpur discoms in rajasthan are eligible to get leave encashment benefit at the time of retirement equal to state govt employees as the jodhpur discoms is a 100% state govt owned undertaking
Dear Purohit,
I am not sure about this one. Kindly check with your employer. I believe that LE benefit should be available.
I further clarify that jodhpur discom I.e. jodhpur vidyut vitaran nigam Ltd CIN – U40109RJ2000SGCO 16480 is one of five companies of erstwhile Rajasthan state electricity board, which was unbundled and incorporated on 19.7.2000. Plz give your comments on leave encashment benefit at the time of retirement as stated earlier on 20.10.15.
B. D. Purohit
Dear Purohit,
I have already replied to your query.
I am not sure about this one. Kindly check with your employer. I believe that LE benefit should be available.
Kindly read :Leave encashment & tax impilcations.
Dear Sir. I am 37years old and advocate by profession. I blessed with one boy aged 7 years and 1year daughter. I am doing SIP of Rs.10000 from 2010 ( ICICI Prudential Tax Plan (G)- 5000 and ICICI Pru Child Care (Gift)- Rs.2000 and Rs.3000 (Birla Sunlife-95 Fund). And i opted Dividend Options to pay the school fees and insurance and put Rs.15,00,000 in ICICI Pru Bal.Adv.Fund( 2Lakhs)- Motilal Oswal Most Focused 25 (2 Lakhs) and Franklin Templeton ( Rs.7.5 Lakhs and Rs.3.5 Lakhs in Motilal Most Focussed 30, 35 and 25 Funds) and getting Rs.1,25,000 (Approx) dividend per year. And I put 3 Lakhs Lumpsum for my 1 year daughter to overcome her education and marriage in the long tenure of 17 and 24 years. And in the next step, I opted Lumpsum of Rs.25 Lakhs in Motilal Oswal MF Longterm Fund for a time horizon of 15 years. And I opted other lumpsum amount of RS.25 Lakhs in Birla Sunlife MNC Fund (Growth) in Sep’2015. My intention is to take the profit amount monthly after 1 year from Birla Sunlife MNC. I am having Family Floater Health Policy for Rs.10 Lakhs in Star Health. Plz advise and provide your marks in my plan.
Dear Pratap,
I can observe that you are withdrawing dividends and meeting your financial goals. This can be a very risky strategy if things go wrong.
It is better to opt for GROWTH option and reap the benefits of COMPOUNDING.
Kindly list out your financial goals time-wise, we can try to plan in a better way.
Dear Sreekanth. Kindly provide your address and contact number. I am planning to come to Kadapa in the next month. I will meet you in person. Kindly let me know your service charges?
Dear PRATAP..Kindly reach me at sreekanth @ relakhs.com
Dear Sir,
I want to invest in ELSS that is HDFC tax saver growth. I want to invest monthly 2200 and want to invest around 17 years. Is this a good investment and how much returns can I get after 17 year.. pls give suggestion … thank you
Dear Kiran,
Kindly read my article on ‘Best ELSS funds‘ and revert to me.
Sir, I know that HDFC tax saver growth is not in top 5 ELSS. But in future it may come to top 5 know. I want to invest in this with monthly 2k to 2.5k SIP for 17year..i think hdfc is good one..whether my chosen ELSS will give better return or not? Or may I choose some other. Pls Give ur suggestion sir..
Thank you
Dear Kiran,
Kindly go ahead and invest in HDFC fund. Remain invested for long-term.
Hi shreekanth,
I like it tips and article which are very very relevant to financial planning as well as easily understandable.
I have a question regarding elss scheme.
As I m paying arround 25k tax and I have no investment under 80c.
I m planning to use 80c. In that I m thinking to invest small amount arround 30k in ELSS scheme every year. If my first investment is starts from this year then I cal withdraw that amount in 2018. In the year 2018 I withdrawal this amount from elss and again invest it in elss then can it consider as fresh investment? Whether this withdrawal in counted in my income for year 2018. Kindly guide me.
Dear Hitesh,
It is not advisable not to implement this strategy. Consider investing in ELSS funds for long-term and take the benefit of compounding. Withdrawing the profits and reinvesting can be very risk and will not be beneficial to you.
In case if you wish to withdraw the fund value after 3 years, the gains (if any) are tax exempted.
You may read my article on : MF Taxation rules.
Hi skanth,I am 33 years old and there are no family member financial dependent and I have 50lakhs lumpsum amount want to invest for 15 time frame…and also I want tax free returns.. Pls suggest the funds to invest.
Dear Gangadhara,
Kindly go through below articles and revert to me;
Best equity funds
Best balanced funds
Best ELSS funds
MF portfolio overlap comparison tools
MY MF portfolio picks
I worked in Gurgaon based private co from Sept 12 to Mar 15. In now need to withdraw my PF amount. Co is refusing to cooperate on getting my forms 19 & 10C attested for on ward submission to PF office. What is the other option of getting my PF refund? shall appreciate a response from your end.
Dear Naresh,
Suggest you to go through this article…
Dear srikanth,
Please suggest me a good Mutual Fund for Tax saving having good returns, I am planning to do a long term Investment to achieve financial security .
I am 35 years old, I do not have any Investment apart from Flat that i have taken on loan , We r family of 3 members with monthly earning of 55000 month. I have 3 year old daughter . i can save Rs 2500 – 3000 every month but i would request you to suggest me the amount also .
Regards
Ghansham Wagh
Dear Shyam,
Do you have sufficient life insurance & health cover? Have you taken Home loan insurance (Mortgage insurance)?
For Tax saving mutual fund – kindly read my article : Best ELSS funds.
Thank for replying, I ave medical insurance for me and my family from Max Bupa, for 5 lacs. I do not have term insurance as of now, But i will take it please suggest me should i wit for 2/3 months and do a lum sum investment or SIP. also the amount
regards
Ghansham Wagh
Dear Shyam,
Kindly buy term plan at the earliest. Treat it as a very high priority action item.
Also read about ‘Super top up plans‘ if you wish to enhance your health insurance cover.
You can buy Franklin Taxshield fund for long-term as well as tax saving.
Hello Sir,
I am planning to start SIP of 5000 rupee for 15 years. Kindly suggest me which fund is best for my need also risk factor involve in it. Also please suggest if you have any better option to long time investment
Regards,
Ashish
Dear Ashish,
Investing in Equity oriented funds can be one of the best options for long-term wealth accumulation 🙂
Consider one balanced fund and one Mid-cap oriented fund (Ex : HDFC balanced fund & Franklin Smaller co’s fund).
Mutual Fund Amount Sector
1 Axis Long Term Equity Fund – Direct – Growth 5000 ELSS
2 SBI Blue chip Fund – Direct – Growth 3000 Large cap
3 Canara Robeco Emerging Equities – Direct – Growth 3000 Small & Mid cap
4 Franklin India High growth companies Fund – Growth 3000 Diversified Equity
5 IDBI India Top 100 Euity Fund – G 2000 Diversified Equity
6 UTI Transport & Logistics Fund – Dir -G 3000 Auto & Logistics
7 SBI Pharma Fund – Dir – G 3000 Pharma
22000
Dear srikanth,
started SIP in the above mentioned schemes for 15 to 20 years of span.
Kindly suggest me if any corrections needed.
Dear RAMA,
I believe that you are aware of the high risks associated with Thematic or Sector oriented funds (UTI & SBI funds)??
You may consider investing in a balanced fund instead of IDBI fund.
Also read my article : Check MF portfolio overlap.
Thank you sreekanth.
Hi! As suggested by our conversation on Twitter. I’d like to know how much and how exactly can I save tax on 10,00,000 take away salary. What are the most profitable among the options I’ve and where all can I invest. I do not have a loan on me as of now. Can you please help?
Dear Pramathesh,
Apart from tax saving as an investment objective, kindly let me know about your financial goal(s).
Do you have any family member(s) who are financially dependent on you? Do you have health insurance cover?
My son-in-law (NRI) has purchased a Flat in SEP 2013 thru ICICI Bank and the RATE OF Floating Interest was
10.75 and repayment period is 116 months. Now the Bank has reduced the Interest rate to 9.65%. .What is the
procedure for getting the benefit of obtaining the reduced of rate of interest.
We are informed in order to get the benefit oIs this correctf reduced rate of interest from the Banks, we have to make a lump amount to the Bank. Is this correct? Kindly clarify.
sum amount to the Bank as per RBI Guide lines.
Dear Jayaraman,
If ICICI bank reduces the homeloan rates, it impacts all the existing customers too.
However, if you want to opt for new Lending rate then you may have to negotiate with your banker. If you find that despite a reduction in rate, you are paying a higher rate than the current prevailing rates, you can move to the lower rate band after paying a certain fee to your bank. Usually, banks charge 0.5 per cent of the outstanding principal amount for moving to a lower interest rate band.
Hello sir
I am 25 years old and wants to invest in mutual fund through sip. What is the procedure to invest in mutual funds. Can i start it with zipsip or fundsindia ? Kindly suggest
Dear Abhishek,
You can invest through either of them.
Kindly note that you can also invest in Direct plans online through respective Mutual Fund house websites.
“Hi,
Greetings from Airpush India Pvt Ltd
I am writing to you in regards with your website, I was going through the same felt that you have an excellent site with quality content.I also see that you have healthy traffic and was wondering if you would like to monetize this traffic in a productive/non-disruptive way. We have various types of ad formats aimed at apps and mobile websites that might interest you.
It would really be helpful if you could provide me the contact details of the concerned person handling advertising activities.”
Dear Rohit,
You may kindly contact me through my email id: sreekanth @ relakhs.com
Dear Mr Kartik,
My cousin had attained the age of 60 years. He worked for a private company after it revived from a sick industry status. 1 month pripor to his superannuation age he was given notice for superannuation.
However he was not allowed to retire and his services continued without break for a period of 6 years 3 months from his date of appintment till my cousin finally resigned.
During his entire period he continued to receive salary in his bank account. in fact after his age of superannuation his salary was enhanced.
Please clarify the following>
Whether he will receive GRATUITY?(Company says as his service prior to superannuation was less than 5 years so no gratuity is payable) We say as he was not superannuated and retired and had no break in service so gratuity is payable for the entire period)
Thanks
Rajesh
Dear Rajesh,
If he has not resigned and continued his service, I believe that he is eligible for Gratuity benefit payment.
Hi Sreekanth,
Can you please let me know what all health and life coverage a common man should be covered in? I mean what and which term plan, insurances, mediclaim etc should be covered with to make up for any unfortunate incident. My age is 26 yrs old and unmarried.
Dear Piyush,
Do you have any family member(s) who are financially dependent on you? Do you have any financial obligations/liabilities?
Hi Sreekanth,
None of my family member is dependent on me. And as of now i do not have any financial obligations/liabilities. Though i’ll be planning to purchase a home for myself 3-4 years down the line.
Dear Piyush,
Get yourself covered with Health insurance plan and you can also enhance it by purchasing a Super-Top up plan.
Also, consider buying a Personal Accident plan with has Permanent Disability benefit. Go through my article : Best Personal Accident Plan.
Hi Sreekanth,
Thanks as always. These articles were extremely useful.
One more thing, apart from these two should I also cover myself through Term Plan in case of unfortunate death?
Dear Piyush,
Since you do not have any dependent family member/financial liability (as of now), you can ignore buying Term plan.
Thanks Sreekanth 🙂
Dear Sreekanth. What about your opinion in concern with Birla Sunlife MNC Fund (Growth) in the time horizon of 10-15 years to put lumpsum investment in concern with children education and marriage.
Dear Pratap,
It is a good fund. But we can identify better than this one under Small/Mid-cap fund category.
Kindly go through my article : Best Equity funds.
Sir,
Is it wise to invest in NPS?
Thanks
Manoj
Dear Manoj,
Why do you want to invest in NPS? What is your investment objective? Kindly share your perspective.
Sir,
I have invested in many MFs and in direct equities. If i get monthly pension it may be useful in day today future expenditures and more over government is giving additional tax benefits. Is it still a wise investment or shall go ahead with MFs and equities?
Thanks
Manoj.
Dear Manoj,
May I know your age?
NPS is tax-friendly, the maturity proceedings are taxable as per current tax laws. I believe that it is better to invest in mutual funds/equities as per your financial goals and time-frame.
Hello Sree..
Your articles are very informative.
I am new to MF. Please suggest me good funds. I want to sip of Rs 5000.
Recently I have got CAN no from mutual fund utility. Below are my selection:
1. Axis long term equity -growth-2500 Rs. ELSS
2. HDFC balanced fund – growth – 2500 Rs
Plz suggest if I need to do any changes. Investment origin in 12 to 15 yrs.
Dear Mukul,
Kindly go ahead with your proposed investments 🙂
I wish to know the tax implications and how to save the tax on the land property (Plot sold in residential area). The property was purchased in Indore in 1994 and sold in the year 2015. Please give your advice and suggestions. To save the tax on the sale proceeds, Is to be reinvested in what form? in how much time? Looking forward to hear from you. Regards
Dear Mohan,
Long Term Capital Gains (if any) is applicable on this transaction.
Since this is a Long Term Capital Asset, you are allowed to deduct Indexed Cost of Acquisition/Indexed Cost of Improvements from the sale price. Indexation is done by applying CII (cost inflation index). This increases your cost base (and lowers your gains) since the purchase price is adjusted for the impact of inflation.
LTCG are taxed at 20%.
Tax exemptions;
1 ) You can deposit your capital gains in Capital Gains Account Scheme until the date of filing of return (usually 31st July) of the financial year in which you have sold your property.
2) You can purchase Capital Gains Bonds under Section 54EC. You are allowed to invest a maximum of Rs 50lakhs in a financial year in these bonds.
3) You can purchase ONE house within 1 yr before date of transfer or 2 yrs after, or construct ONE house within 3 yrs after date the transfer. Do note that you should not own more than 1 residential house (other than the new one) on the date of transfer.
Thank you for the detailed information
Hi,
I would like to know the best health insurance plan for my parents (dad is 61 & mom is 58 yrs old). Also for me & my wife (32 yrs old) which is the most health insurance suitable plan? How does the critical illness cover work in a health insurance
Dear Rushab,
Kindly go through my article : Best health insurance plans for Parents/Senior citizens.
For self & spouse, consider buying a stand-alone medclaim policies and also buy a Super Top-up plan to enhance the sum assured of base policy.
Critical illness insurance pays a lump-sum and cash payment if you are diagnosed with and satisfy the survival period for any one of the critical illnesses covered by your policy.
I am NRI and want to invest lump sum amount for long term (more than 3 years). Now interest rate is going down for bank FD. There is no tax on NRE FD and long term capital gain tax is applicable for debt fund. I think TDS is deducted while redeeming mutual fund.
Please inform which option is good for better post tax return? Should I invest in debt fund (growth option) or NRE FD?
Dear Ketan,
For better post-tax return, consider investing in a balanced mutual fund and remain invested for 3 to 5 years.
Hello Sir,
I am 32 year female. Looking for health insurance plan for my family. My husband age is 39y and I have 2 children 6 and 1 year of age. Kindly suggest me best policy for my need and how much sum assured would be enough ?
Thanks
Arti
Dear Arti,
You can consider opting for a Family Floater plan offered by Maxbupa/Star health. On quantum of sum assured – You need to take the decision.
You may also considering enhancing the sum assured of this policy after one year or so by buying a Super Top up plan.
Read my article on ” Best Super Top Up Plans“.
Dear Sreekanth. I am investing 25 Lakhs lumpsum investment in Birla sunlife MNC Fund (Growth). After 1 year, I want to draw every month by seeing NAV status . Is the draw able amount is taxable or not. Already i invested another 25 Lakhs in Motilal Oswal MF Long Term Fund and 15 Lakhs in Franklin Templeton. and 5Lakhs in ICICI Pru Bal.Adv.Fund. And i am paying Rs.10000 SIP Every month. Now i am 37 years old blessed with 7 years boy and 1 year girl. My Main aim is to become Tension-Free in my profession i.e in Advocacy..
Dear Pratap,
If you want to accumulate long-term wealth do not withdraw the profits, remain invested for few more years.
Dear Sreekanth. I already invested 25Lakhs Lumpsum in Motilal. I never touch that amount with a time horizon of 10+years. I already investing 10000 per month through SIP for the last 5 years and going to continue for another 10 years of my son education. In concern with my daughter education, i invested lumpsum of Rs. 1 Lakh for 17years and for marriage another Rs.l Lakh for marriage with a time span of 23 years. I am planning to withdraw monthly profits from BIRLA MNC Fund Growth for my running life. Plz advise and provide your contact number..
Dear Pratap,
Appreciate your long-term view.
Kindly let me know if are you are totally dependent on the fund withdrawals alone to meet your living expenses?
Also, kindly go through below articles;
Retirement goal planning
Top Online term insurance plans
Kid’s Education / Marriage goals planning
Dear Sreekanth. I am 37years old advocate by profession. Now i am getting Rs.50000 (Approx) per month. My Professional income is flexible. With that reason only, i am thinking to lead my life with fund withdrawals without any hurdles.
Dear Pratap,
If you want to have periodic income, you may consider investing in Mutual fund Monthly Income Plans.
If company takes group mediclaim policy for his employees and deducted some money from them. Shall we show the deducted amount for Tax exemption under Sec 80D
Yes dear Jwannes..
I am NRI and want to invest lump sum amount for long term (more than 3 years). Now interest rate going down for bank FD. There is no tax on NRE FD and long term capital gain tax is applicable for debt fund. I think TDS is deducted while redeeming mutual fund. Please inform which option is good for better post tax return? Should I invest in debt fund (growth option) or NRE FD?
Dear Ketan,
For better post-tax return, consider investing in a balanced mutual fund and remain invested for 3 to 5 years.
Hi Sreekanth,
My father has just retired from Railways and he is planning to invest his retirement corpus. He would be drawing monthly pension and is also covered for medical/hospitalization expenses. He owns a house, doesn’t have any major responsibilities and is debt free.
He’s considering investing in Senior Citizen Savings Scheme, Post Office MIS. Is investing in debt/MIP mutual funds recommended? Could you please suggest a good portfolio and also recommend some good MFs that he can invest in?
Thanks,
Avinash
Dear Avinash,
1 – Build some ‘Emergency fund’ by investing in Bank Fixed deposit.
2 – He can invest in Sr.C.S.S and also consider investing atleast in Aggressive MIP fund and a small portion of retirement corpus in a balanced fund (remain invested for atleast for 5 years). This kind of portfolio can generate positive inflation adjusted returns.
Kindly go through my articles;
Top Balanced funds
Top MIP Mutual funds.
Hello sir,
Which term plan is better HDFC , KOTAK or Aegon reliagare ?
Thanks
Hi Sir,
I took a policy of HDFC click2protect plus but I withdraw policy for some reason ( looking for better option ). At that time I was taking pills for some issue and regarding same I dropped mail to hdfc. Suppose I’ll again take policy of hdfc click2protect plus so my old cancelled policy or mail communication regarding pills can impact my new policy or can this impact my new policy claim settlement ?
Dear,
If you are applying for new term plan (with hdfc or any other co), suggest you mention about your medication details clearly in the proposal form. Disclose all the required information honestly in proposal form.
Read my article : Top 7 best online term insurance plans.
Thank you sir for your reply.
But currently I am not taking any pills do I still need to mention about old medication details ?
Also I checked your link for best term plan. 40 year term plan offered by HDFC , KOTAK and AGEON. Ageon claim ratio is lowest among three ? so kindly suggest which option to go ?
Dear.. It is better to disclose the medical history. To be frank, any company’s term plan is ok. If you insist me to pick one, my vote is for hdfc/kotak.
Hi, I have a residential vacant plot of 2500 sft in HSR Layout in a wide road. It’s both sides adjacent plots got converted to commercial usage and having commercial buildings now. Now when I am approaching authorities they say minimum area for commercial purpose is 3000 sft. Could you help or offer your service for this purpose?
Thanks.
Dear Sreekanth. I am investing 20Lakhs lumpsum investment in Birla sunlife MNC Fund (Growth). By seeing NAV status every month, can i draw the growth amount from that fund. Is the draw amount taxable or non-taxable?
Dear Srikanth
My friend bought a plot from one of the developers in North Bangalore.Though the registration ofthe site got over couple of years back,the developer has furnished the khata. is there any way outforobtaining kahat/
Hi Sreekanth,
I am a 25 year old working with the software industry.
Currently, I have 3 MFs as below:
1. HDFC top 200 — Invested 5000 pm from 2008 to 2011 — No activity after that . And I have not redeemed the amount.
2. HDFC Balanced Fund — Started 2 months back using STP from HDFC Top 200 of 1500 every month.
3. Axis Long term equity MF — 5000 pm from June 2015
I have my other investments in PPF around 50000 every year and FDs of small amount .
Also, 3 LICs I have which I consider of no use but pay around 33000 every year as premium. Started way back by my parents and near maturity.
Right now, I am looking for investment avenues and would like your suggestions.
I have around 10000 surplus every month that I can invest.
what should I do with my HDFC top 200 fund..keep it as it is or withdraw and invest elsewhere?
My goal currently is short term around 2 years from now.
Longer term goals are 10 years down the line. Let me know your views.
Regards,
Deep
Sir,
i have jeevan anand endowment polciy (149) SA – 100000/- premium Qly-1322/-, polciy term 21 years. premium paid from 2003 – now 52 premium paid (68700/-) bonus accrued is 51900/-
when i contacted lic branch to surrender my policy they told me that if i surrender now its just 60000/- only. but as per the calculation if i surrender it should be 120000/-. why they were telling like this? what will be my surrender value? please reply sir.
what is mudra loan and what is its formality
Hi Sreekanth,
I have been following your blog posts over the past few months and I appreciate your simplified style of conveying financial stuff so that it is understood even by laymen. Please continue to do so :).
I would like to create a financial plan for myself and I need your help in doing it. I’m based in Hyderabad. Do you visit Hyderabad? Can I get your time for consultation? Please let me know.
Thanks,
Avinash
I have successful e-verified when will my refund expected?
Would like to know the best investment schemes in the market with low risk for a child of 6 yrs age. I can invest 50k per year for a tenure of 10 years.
would like to know best returns schemes in the market.
We have a house built on a land in our native place bihar, There is sufficient space to get the another house built as well as the new construction on top of existing ground floor house. The land is in my mother’s name. I am working in bangalore. I want to take home loan for IT exemption purpose. is it possible to get home loan and to get the house built on the same land ? Without getting the land transferred in my name, is it possible to get the home loan ?
Dear Sir,
home loan will be taken only after the deed transfer to your name
Sir, I have a small grocery shop, I want to devolope my shop through PM Mudra Yujana. How can I get loan from Mudra Yujana & what are the necessary documents that to be submit for this loan.
I am currently investing in mutual funds as follows:(SIP mode)
HDFC Balanced (G)- Rs 4000 per month
HDFC Midcap Opportunities Fund (G) – Rs 3000 per month
ICICI Pru focussed bluechip fund(G) – Rs 3000 per month
Are the above funds good for wealth creation over 5 year time horizon(esp ICICI Pru focussed bluechip fund)??
Suggest more funds as i have some more income to spare for mutual fund investments!
Hi Sreekanth,
I have invested in the below MF’s by SIP.
BIRLA SUN LIFE TOP 100 FUND – GROWTH (Rs 5000, Started 6 months back for a period of 5 years)
Franklin India Smaller Companies Fund GROWTH (Rs 3000, Started this month after your recommendation for a period of 5 years)
ICICI PRUDENTIAL VALUE DISCOVERY FUND – REGULAR PLAN – GROWTH (Rs 2000, Going to expire next month which is 5 years tenure)
HDFC Equity Fund – Growth (Rs 3200, Expired this month which is 5 years)
Can I continue to invest in HDFC Equity for next 10 years by SIP?
Can you suggest one good pic in Large cap fund, one in Diversified and one in small& Mid cap category?
Thanks & Regards,
Chandrashekhar
Hi Sreekanth,
I am an NRI, 35 yrs old and have a flat in Bangalore for last 6 years (currently rented out at INR 28,000 pm). The maintenance of the flat is a headache trying to manage from outside India. Is it a wise decision to sell the house (shd get 1Cr) and use the money to invest in other portfolios? I dont plan to return in the near future.
Thanks,
Jam
Hi Sreekanth
My friend is suggesting me to invest in HDFC Progrowth Plus. Will it be advisable or Progrowth Super II ?
Hi Sreekanth,
Is it ok to start SIP now in HDFC mid cap opportunities ? (for 3 years).
Sir,
Pls suggest me 3 mf’s in each catogory for invest 10-15 years
1.large cap
2. Multi cap/divesified
3′ mid/small cap
I am new to mgs,imaay invest 15000/month
Thank u sir
Hi Sreekanth,
I am a 25 year old working with the software industry.
Currently, I have 3 MFs as below:
1. HDFC top 200 — Invested 5000 pm from 2008 to 2011 — No activity after that . And I have not redeemed the amount.
2. HDFC Balanced Fund — Started 2 months back using STP from HDFC Top 200 of 1500 every month.
3. Axis Long term equity MF — 5000 pm from June 2015
I have my other investments in PPF around 50000 every year and FDs of small amount .
Also, 3 LICs I have which I consider of no use but pay around 33000 every year as premium. Started way back by my parents and near maturity.
Right now, I am looking for investment avenues and would like your suggestions.
I have around 10000 surplus every month that I can invest.
what should I do with my HDFC top 200 fund..keep it as it is or withdraw and invest elsewhere?
My goal currently is short term around 2 years from now.
Longer term goals are 10 years down the line. Let me know your views.
Regards,
Deep
Sir is happy to see your article.am 28 now.have started 3 sip plan recently.sundaram select mid,frank prima plus..l and t india fund..each 1k..will increase then ..planning to invest around ten thousand randomly around 3 monthly interval haveselected axis long term equity fund.time beyond ten years..is it ok to proceed..also planning to take a term insurance in hdfc click to protect..i need to alter or its ok.have idea for hdfc balanced fund also.pls help
My age now 29 and half years
I want to invest for 20yrs
I want to invest Rs5000/- monthly. please suggest me some mutual fund through sip and how to invest in equity and date fund through sip
Hello sir,
My age is 30 and my husband is 35. we have two kids 5 and 1 . we would like to invest in mutual funds of amount 25000 per month for retirement and children needs . Please suggest good funds .
thanks.
Ramya
Hi,
The blog is full of financial information. Great. The beauty is it is easily understandable. Kudos for your effort and service.
I would like to invest in mutual funds SIP with less NAV value for long term say Rs.10000p.m. Can you suggest few good funds with very less NAV please.
Thanks
Sankar
I want to invest some money in ELSS .
I’m a new investor in MF. should I do?
how long should i invest?
Please suggest me.
Thank you!
Could you please share your analysis on Wealth Insurance instruments from company, like, IDBI-Federal?
Regards,
Mrinal
Dear Sir,
Your Website is very helpful to the new People in investments. I am 34 year old & I have two kids 5yrs & 3yrs. old. I am planning some investments for my kids future (higher education & marriage ).I am working in gulf . Pls guide me.
I have already following Sips.started just before 3 months.(total Sip amount-10000/month)
1)BSL 95 fund growthPlan-1000
2) HDFC Midcap opp.fund-Growth-2000
3) HDFC top-200-Growth-2000
4) ICICI pru.Discovery Fund-Growth-2000
5) ICICI Pru.Dynemic plan-Growth-1000
6) Reliance capital builder fund II-series B regular Growth Plan-70000
7) BSL capital fund -(newly launch in Jan-15.)-70000
7) Reliance Small Cap Fund-Growth-2000
I am planing to invest for other 15000/month in SIPs for the the period of 10 – 15 years.Suggest me best MFs for my kids future.
I don’t have any term insurance plan.-Please suggest.
I have madiclam (300000/year) for my family.(is it ok??)
my additional income from office rent-30000/month.
Sir kindly suggest finanace planning for better future.
HI shreekanth.
1.Want to start3-4 SIPs with an aim of long term wealth creation(more than 15 years).
2.Initially want to start 1000 each,can increase subsequently.
3.Have homed on to following funds-UTI equity fund,ICICI Pru focussed blue chip fund,Franklin India High growth companies fund and SBI small N midcap fund.
4.Please suggest suitability.(80C is well covered hence did not any tax saver)
Dear Shrikant,
3 – Opt for either uti equity/ICICI focused. Instead of SBI Small, consider HDFC Mid-cap opportunities or Franklin Smaller co’s fund.
Thanks…In that case can you suggest a couple of large cap funds.Regards
For financial year 2014-15 I invested in ELSS funds. Received total dividend around Rs.20000/-.
While filing return I missed to enter those details.
How important is it to include ELSS dividend amount in Income tax return filing.
Should I fill revised returns? If yes then please guide me where I need to adjust this amount while efiling and in under which section will I get dividend exemption from tax?
Thanks in Advance.
Dear Mayank,
It should be ok. Ideally it should be reported as an ‘Exempted income’ under ‘taxes paid & verification’ section.
Hi Sreekanth,
I have been frequent reader of your blog. The success behind your blog is you give details in such a way a layman can understand and the responses you provide. Keep up the same.
I have below two queries.
1. I have a land taken in bank loan. Can I build home in the land without informing bank?
2. Do bank give us loan in case we are planning build an apartment of approx 5 homes.
Thanks in advance,
Vinoth S
Dear Vinoth,
Thank you for following my blogs.
1 – I believe that you may have to inform your banker.
2 – Eligibility to get a loan depends on various factors, kindly check with your banker.
Hi Sreekanth, I am 25 years old and willing to invest Rs.5,000 per month for a span of say 5 years. Could you kindly recommend the best investment plan for tax saving and better returns among ULIP and Mutual Funds. Do you think HDFC ULIP is a good option to invest in?
Any suggestions on which is the good mutual fund to invest in for a span of 5 years or more?
Dear Sravan,
If 5 years is your investment horizon, consider investing in a Balanced fund.
If > 5 years + for tax saving, opt for ELSS mutual fund. (Kindly read my article : Best ELSS Funds)
Hi Sreekanth Garu,
I am Private employee with annual income of 8 Lakhs /Annum, I am paying 15000/ month for loans ( HOME + Personal Loan). I would like to invest in SIPs for long term as well as short term.
Could please suggest what is the ideal amount to invest in SIP , Good returns SIP plans?
Thank you
Vasu
Dear Vasu,
The ‘ideal amount’ is based on your Financial goals & disposable income. Kindly let me know about your goals.Do you have sufficient life and health insurance coverage?
1)FD & RD interest is taxable. Ok. Are they comes under exemption of Rs. 10000 if total interest from saving A/c+FD+RD is less than rs 10000; or FD & RD is not covered under this exemption limit.
2) House rent rebate & medical expenses is rebate able for retired employee?
Pl. clarify it.
Thanks
Dear Kumar,
1 – Interest income from RD/FD is taxable and TDS is also applicable. Kindly read my article : RD & FD : Tax implications.. However, interest income on Saving a/c is tax exempted up to Rs 10,000 under section 80TTA.
2 – If not employed (salaried), one can not claim these.
hi…sreekanth….i am investing in ELSS in the form of sip of 1000/-…..wat is the exemption for this financial year…..is it 12000/- or 36000/-…….
or 12000/- for every financial year……
Dear shanmukh,
The maximum limit u/s is Rs1.5 Lakh. If you are investing Rs 1,000 p.m then you can claim Rs 12,000 as tax deduction u/s 80c.
Hi Sreekanth ,
Could you please suggest a Mutual fund for lump Sum investment of 50,000 .. This is for long term investment .
Regards,
Rati
Dear Rati..Kindly let me know me know the time-frame, no of years??
This will be saving for my kids aged 4 and 2. will not need this money at least for the next 10 years.
Dear Rati,
Consider 2 funds – one balanced fund and one mid-cap fund.
Hi,
I always appreciate the help provided here.
I have a query regarding the income from other sources(bank FDs).
I have a salary account with a private bank.
I gave my PAN number while opening the account but somehow bank has updated it incorrectly. There is a one letter mismatch in the PAN number.
1. I want to ask, what will happen to the TDS which is deducted by bank for the interest on FDs(FDs which I have made in the bank) ?
2. Am I right in saying that this TDS will not be reflected in my “Form 26AS” ?
3. Is it also true that income tax deptt will NOT come to know about the income by these FDs and also the TDS that is deducted by the bank on the interest earned on these FDs?
4. In my case, bank is deducting 10% TDS on the interest earned on FDs. I come in 30% tax bracket. As my PAN is wrong with bank, the income and TDS, both are not shown in Form26AS. I do not have to pay extra 20% tax on this interest income because it is not updated in form26AS.
If I update the PAN in my bank account, both income and TDS will start showing in Form26AS correctly. And then I have to pay extra 20% tax on this income earned by interest. So, won’t it will be a loss of 20% tax for me ?
Awaiting your valuable response.
Thanks very much.
Saurabh
Dear saurabh,
1 & 2 – Yes, TDS amounts (if any) will not be reflected in your Form 26AS.
3 – Provided that the incorrect PAN does not exist.
4 – Ideally you have to pay 20% differential taxes. It is a loss but it is law of the land. Suggest you to get your PAN details corrected at the earliest and ask your banker to rectify the TDS details.
Hello,
I have invested in Axis Long Term Equity Fund Growth as a SIP amounting to Rs 5000 per month. now i also want to invest same amount as SIP in Franklin India Taxshield growth.
But the problem is , there are about 21% Portfolio overlap between the two funds and there are 11 Common Stocks.
Is this overlap okay? Should i Go for the investment? If no, Please do suggest another Fund . thanks in advance.
Tarun
Dear Tarun,
If your investment objective is for tax saving and long-term wealth accumulation then invest in Axis itself.
If your investment objective is just long-term wealth accumulation (>10 years), go for a mid-cap oriented fund.
Hi sreekanth,
Your blogs are really very useful . I am following them since a month and I have recommended this to my friends .
I did sip 5000 each in hdfc equity and hdfc prudence growth funds 3 years back for 24 months for purchasing a car. By the end of this month my last sip will complete it’s 1 year tenure to avoid short term capital gain tax.
Due to some reason my plan to purchase the car has been postponed indefinitely. I want to invest this money for long term say more than 5-7 years. Should I continue with same funds? If I switch funds then how I.e. gradually over a period of 3-6 months or in a single stroke? What are your recommended funds?
Regards
Chandra sekhar
Dear chandra,
It can be very risky to invest in Equity oriented funds for short-term goals (like 24 months).
Markets are too volatile now, right now or in near future , may be a very good time to invest your monies. Suggest you to switch from HDFC Equity to HDFC prudence only and stay invested for atleast 5 years.
Thank you for your valuable suggestion. Should I switch the fund over a period of 3-6 months or in a single transaction?
Try to invest in the next couple of months..good time to invest 🙂
Hi Sreekanth,
I had filed my ITR-1 on 28/07/2015 and had an X amount refundable to me.
Later I realized that I had filed it wrongly and that I had missed to fill in the details about my income from FDs.
I filed a revised return on 14/08/2015 and had a Y amount as tax payable.
On 18/08/2015 I received the refund of amount X in my bank account.
Now I am actually supposed to pay amount X+Y to the income tax department.
Please suggest how to proceed.
Thanks and regards,
Udit
Dear Udit,
Very tricky one. Kindly consult a CA.
I have filled IT return but while filing return only one bank account detail was filled whether it is correct or not ? then what shall I do now ?
Dear Shivani..It’s fine. But did you consider the cash flows of other bank accounts while calculating the Tax return?
Dear Sir,
Your Website is very helpful to the new People in investments. I am 33 year old & My son is 2.4 Years old. I am planning some investments for my sons future.Pls guide me.
I heared Tamil nadu Power finance Corporation FD ROI is 10% – 10.50%. We can invest in this? The FD is guaranteed?
I am planing to invest for Rs.3000 to Rs.5000 in SIPs for the the period of 10 – 15 years for my childs Education.Suggest me best ELSS & other regular MFs.
Kindly sent a reply through Email.
Warm Regards
Subramanian
97907 81245
Dear subramanian,
If your investment horizon is >10 years, opt for equity mutual funds instead of corporate FDs. Do you have sufficient life insurance cover?
Kindly go through the below articles;
Kid’s Education Goal
Top Equity Funds
Top Balanced funds
Top ELSS Funds
Dear Sir.
Thanks for imediate reply. Iwant diversify my investments.FD is for liquidity purpose.Pls guide me Tamil nadu power finance FD is good one.ROI is 10% to 10.50%..Your reply is highly appreciated by undersigned.
Hi,
My last year Gross salary per annum was Rs.799487 and paid Tax Rs.45360. And this year Gross salary per annum is Rs. 1002375 and payable tax is Rs. 86654. My questions are below for clarifications.
– The Gross salary has increased just Rs.202888 from last to present year, but the Tax has been gone more than proportion (close to double tax), what are the reasons
– Are there any ways to get exempted of the above Tax to be payable (as my saving already reached Rs.1.50 laks)
Thank you in advance.
Dear Sarivesh..Was there any changes to your salary structure (perks, allowances etc.,). Need to look at your Form 15 or payslip to advise you further. Change of slab could be a possible factor.
Kindly go through the list of available ‘Tax exemptions for AY 2016-17‘.
Dear Mr. Reddy,
In last FY I bought an apartment by availing home loan. The new apartment is handed over to me by builder. I claim Rs. 200000/- as interest subsidy from my taxable income. Due to my profession I didn’t stay at my self occupied house property location and separately claim HRA exemption from my taxable income.
My question is if in near future or from beginning of next next FY I rented my newly purchase apartment, in that case i will be eligible to claim interest subsidy amount ? Suppose my annual rent earning is Rs. 1,20,000/- in that case ( Rs.2,00,000 – Rs. 1,20,000) – Rs. 80,000 will be interest subsidy or not?
Or my entire home loan interest Rs. 2,00,000/- will not be exempted from taxable income and in addition to that the annual rent Rs.1,20,000 will be my additional taxable income ?
Dear Manojit,
Yes, Rs 80k is treated as ‘Income from your house property’.
Kindly read my article on ‘Income from house property & Tax implications‘.
Hi,
Your website has benefited me a lot and made me wiser about managing personal finances.
I have a regular term plan but now want to shift to online plan from some other company. My regular term plan yearly premium becomes due on 3rd October and I want to buy another plan before that. My Questions are as under:
1. While applying for new online plan do I need to mention this regular plan (that I will be discontinuing).
2. Do I have to submit a form surrender for my regular term plan or Could I just let it lapse.
Regards
Jagdeep Singh
Dear Jagdeep,
Why do you want to shift? What is the reason behind it? (high premium??)
1- You can mention the plan details , no need to mention about ‘your future decision’.
2 – You can just discontinue it by not paying the premium when it is due.
Dear Sir,
I am 36 years old working professional relatively new in investment. I want to start SIP of 20000/- per month for 5 to 10 years. My investment goals are Child’s education and corpus for any emergency. Please suggest me suitable funds as per my investment goal. I initially have thought to invest 70% in balance fund and 30% in equity diversified fund.
Please advice me and let me know any other information you may require.
For your further information I have already invested following two MF for tax saving scheme.
Name of Fund / Amount
1. Axis Long Term Equity Direct Plan-Growth. Rs 3000
2. Reliance Tax Saver FUND Direct – Growth. Rs 2000
Thanks & Regards,
Mahendra
Dear Mahendra,
For Emergency fund – You can consider Cash + RD/FD + Debt mutual fund / Conservative MIP.
For 5 to 10 year period – You may consider a balanced fund & a Diversified Equity fund.
Kindly read my articles;
Top Balanced funds
Top Equity funds
Mutual fund portfolio overlap checker
Kid’s education planning.
Dear Srikant,Recenly it is a hot topic-Is your debt mutual fund exposed to high credit risk?Kindly elaborate.
Dear Mr Bansal – My debt mutual fund? What is your query?
Dear Sreekanth,
Please check my mf portfolio and give me advice. Monthly sip Reliance opportunity growth 1000, Hdfc top 200 Growth 1000,Hdfc mid opportunities 1000, Icici pruning focused bluechip 1000,this all now 2 years already. and I would like to invest fraglin smaller companies also around monthly sip 2000. Please give me your advice. Thank you.
Dear Salim,
Kindly share more info about your financial goals and investment time-frame.
You may go through the article on ‘Mutual Fund Portfolio overlap tools’.
Dear Sir,
Pls give ur advice on following portfolio.
6500 ICICI Prudential Focused Bluechip EquityFund – Regular Plan >10Yrs
4000 HDFC TOP 200 >10Yrs
5000 HDFC Mid-Cap Opportunities Fund >10Yrs
4000 HDFC BALANCED FUND >10Yrs
3500 ICICI Prudential Banking and Financial Services Fund – Regular Plan >10Yrs
2000 SBI Pharma Fund >10Yrs
50000 ICICI Pru MIP 25-Regular (Emergency Fund) upto 1Yr
Dear Arun,
Shortlisted funds are good. Kindly check ‘Mutual fund portfolio overlap‘ . You can choose either ICICI Focused fund or HDFC to 200 fund.
Also, understand the risks associated with Sector or thematic funds.
I had taken a home loan from my father-in-law some time back, in addition to the loans taken from bank. I was paying the interest every year to both the bank and to my father-in-law and availing the tax rebate as per income tax rules. My father-in-law demised suddenly a few days back. He is survived of his wife (my mother-in-law) and two daughters (my wife and my sister-in-law), who are married what is remedy for me in paying the interest on the loan taken from father-in-law? That is, whom should I pay the interest on the home loan taken from my father-in-law and claim the rebate as per income tax rules?
Dear CHANDRA,
I believe that you can pay the interest amount to your Mother-in-law. Kindly check this with a CA too.
Hi Srikanth,
I would like to update my communication address in form16 & form16A. Can you please provide me a link or an URL through which I can do so and send my address proof as a scanned copy by online.
Regards,
Hemant Sethia.
Dear Hemant,
You have to contact your Employer (for Form 16 update) and respective financial institutions (for Form 16A udpate).
Dear Sreekant,
I am 27 years old working as manager in a nationalized bank. I have started working in Jan’11 and started investing Rs 11000 in mutual funds ie. rs 2500 in hdfc mid cap, rs 2500 in hdfc top 200, rs 2500 in dsp blacrock top 100, rs 2500 in reliance growth and rs 1000 in icici focussed blue chip funds for 25 years i was not aware of exit load that time i also have fixed deposits and recurring deposits of rs 450000 and mutual funds value approx 835000 should i continue investing in mf/rd/fd or now i should use this money for buying some plot.
PS My monthly income in hand is rs 48000 approx. Please guide me.
Thanks
Dear shadma,
Kindly list out your financial goal(s).
Suggest you to read my articles;
The 6 most common personal finance mistakes
Why you should not invest in FDs/RDs for long-term?
Mutual fund portfolio overlap
Top Term insurance plans.
Dear srikanth. Iam investing monthly 1000/ for last 3 years in the following M F Reliance Tax saver Reliance pharma growth plan icici Tax Growth plan icici value discovery growth Birla sunlife Dividend yield(G) BirlaManufacturing (G)from 2/15) Plz Sugest to continue or withdraw i can invest xtra 10000/ PM for 10 Years can i invest abow funds or others plz Reply
Dear shahamuddin,
Kindly read my articles;
Top Equity funds
Top balanced funds
Top ELSS funds
Mutual fund portfolio overlap tools.
Hi ….please suggest about CHILD CAREER PLAN TABLE NO 184 & CHILD FUTURE PLANT TABLE NO 185 (LIC). Also what else can be better options.
Dear Harshita,
Why do you want to invest in these plans?
Dear Sir,
I went through your article on Under Construction House : How to claim tax deduction on Home Loan Interest payments?
However, my question is that where in ITR 2 this pre-emi interest is to be shown, as to claim the same in five instalments in subsequent years.
Please reply
Dear KASHYAP, You can show it under the head ‘Income from house property’.
Sir,
If I give Rs.One lac as gift to my wife & daughter each and if they in turn make FD in bank then the interest income on FD will belong to whome. Annual income of my wife is less tan mine and my daughter in not earning at present . This I want to do to save my tax as part of tax planning . Is my approach is justified .
Dinesh
Dear Dinesh..Kindly read my article on Gifts & Tax implications. You may revert to me if you need more info.
Sir
Can NRI buy tax free bond On line from ICICI DIRECT to save capital gain TAX . Which tax free bond one can buy to save capi gain tax .
Dear Dinesh..Kindly go through this article :’Tax-free-bonds-issue-fy-2015-2016‘
Kindly note that Capital gains taxes (if any) are applicable on Tax free bonds.
Dear Sir,
With the followup of my previous 2 mails,I sending you this mail. Can we invest in mutual funds thru online via Scripbox.com, Zipsip.com or any other best online portal. Also I kindly request you suggest me best Term insurance company and best plan which would suit my needs. I am having monthly income of around 50000/-. As I have already mentioned , I am 41 years of age and ready to take high risk in my investment. Awaiting your reply for all my mails including this as early as possible.
Thanking you.
Dear Chokkalingam,
You can invest. Also check out Fundsindia.com
Kindly read my article on Top Online term insurance plans.
Dear sir,
I have invested in these following funds. I kindly request you to help me to make any alterations in these following funds or to continue. I am also planning to invest Rs5000/- p.m as SIP, so I kindly request you suggest some of the best funds for SIP and the number of funds I need to invest, also I have already gone thru article on Top 15 Best mutual funds for SIP. So suggest specific funds for me with high risk and returns.
HDFC mid cap oppurtunities Growth 1000/-p.m SIP
SUNDARAM select mid cap Growth 5000/- one time
SUNDARAM world brand fund 3-5yrs 10000/- one time
UTI equity fund Growth 10000/- one time
UTI Focussed equity fund series II 30000/- one time
UTI mastershare unit sheme Dividend 10000/- one time
UTI MNC fund Dividend 10000/- one time
UTI oppurtunities fund Dividend 10000/- one time
UTI pharma and healthcare Dividend 10000/- one time
UTI Spread fund Growth 50000/= one time
UTI Transportation and Logistics 5000/- one time
UTI Wealth builder Dividend 10000/- one time.
ICICI Prudential value Discovery fund 1000/- p.m SIP
ICICI focussed bluechip equity fund Growth 1000/- one time
SBI Magnum Global fund Growth 20000/- one time
Dear Chokkalingam,
What is the reason behind investing in so many funds? What are your financial goals? What is your investment time-frame?
Why is UTI AMC your favorite pick?
Dear Sir,
I am kindly awaiting your reply for my previous mails. Please help me sir. I regret the inconvenience.
Thanking you.
Dear Chokkalingam,
I have checked all your comments, and I have already replied to all your queries.
Kindly let me know if you are unable to find my replies or else you may post your queries again.
Dear Sir,
Thank you. I have the following funds in my portfolio. I kindly request to help me in rebalancing my portfolio,which to hold and which to redeem. Apart from that,I planning to invest minimum of Rs 5000/- per month as SIP for at least for 5 years,so I kindly request to suggest me one or many funds specifically naming the funds which is suitable for high risk and would be helpful for me. I have already read article about Top SIP plans. I regret the inconvenience.
My Portfolio:
HDFC Mid Cap oppurtunities growth SIP 1000/- p.m
Sundaram Select Mid cap growth one time 10000/-
Sundaram World brand 3-5 yrs one time 10000/-
UTI equity Growth one time 35000/-
UTI focussed Equity series II one time 30000/-
UTI Master Share Unit Scheme Dividend one time 11000/-
UTI MNC Fund Dividend one time 13000/-
UTI oppurtunities Fund Dividend one time 11000/-
UTI Pharma and healthcare Dividend one time 12000/-
UTI Spread Fund Growth one time 63000/-
UTI Transportation and Logistics one time 8000/-
UTI Wealth Builder Series II Dividend one time 8000/-
ICICI Pru Value Discovery Growth SIP 1000/- p.m
ICICI Pru Focussed Bluechip Equity Growth one time 5000/-
SBI Magnum Global Fund Growth one time 20000/-.
Thanking you and waiting for your reply.
Dear Chokkalingam,
What is the reason behind investing in so many funds? What are your financial goals? What is your investment time-frame?
Why is UTI AMC your favorite pick?
Dear Sir,
The reason behind investing in so many funds, to my knowledge is diversification,but still I am a beginner,may be misguided by some friends,but past is past. Now as a Guru, I kindly request to help me in building a new portfolio with medium to high risk. Also I have DP account,but I have not purchased funds online. So please kindly help in rebalancing my portfolio,also my previous query of starting a new SIP of Rs 5000/- p.m for minimum of 5 years. My financial goals are my childrens marriage which would be around 10 years from now,so I would like to hold funds for atleast 10 to 15 years long term. I have more UTI funds I was advised that UTI is pure Govt sector mutual fund company which is very safe. So I kindly request to help me and regret my inconvenience.
Thanking you.
Dear Chokkalingam,
Kindly go through this article “Mutual Fund portfolio Overlap“, use the tools to trim your portfolio size (no of funds).
You may keep the below funds;
HDFC Mid-cap
UTI Equity / ICICI Focused
UTI Opportunities
ICICI Value.
For 5 years investment horizon, you may consider investing in a balanced fund like HDFC Balanced or TATA Balanced fund.
Dear Sir,
Thank you for suggesting me few funds for my portfolio. Also I kindly request you to suggest me best Term insurance company and best plan specifically which would suit my needs. I am having monthly income of around 50000/- per month, with 30 years cover or whole life. I am aged 41 years.
Dear Sir,
I have not received any reply for my query dated September 17,2015. Expecting the reply at the earliest. Regret the inconvenience.
Dear Chokkalingam,
You can take Term insurance with tenure up to your expected retirement age, whole life may not be required.
Besides term insurance, consider buying a stand-alone Personal Accident policy too.
Kindly go through my articles :
Top & Best online term insurance plans
Best personal accident policies.
I want to.build a portfolio with gud return at medium to high risk . I plan to invest around 50k every month for the next 3 to 5 yrs kindly advise.
I am now 30 years old .
Regards
Manisha
Dear Manisha..Consider investing in a Balanced fund. Kindly go through my article on Top Balanced funds.
sir my father is retired from bank on 31 july 2014.now his pension is 30000 pm.in income tax file return form .is his pension also included as taxable income .
Dear Poonam..Yes, pension is a taxable income.
Hi Sree,
I did e-filed my ITR-1 but now I want to change some TDS details in my ITR and then again submit it. But I see that I cannot change details once form is uploaded in govt tax site. I can only change address or contact details.How can I modify TDS details?
Dear Sandee..you may have to file ‘Revised return’.
I have to take a tax saving tool (ELSS) of upto Rs 1.1 Lacs in current fin yr. I already have Rs 72K with me for ready investment. Please advice which ELSS should I take for lumpsum investment and which one for SIP.
Dear Marwaha,
For lump sum or SIP, you can opt for same fund.
Kindly go through my article on Best ELSS Funds.
Dear Sir,
I am a part time job holder(no form 16). I do correspondence work for my client.Also I have income from my fixed deposits. I also give tuitions to children.
All my incomes crosses Rs 2.5 lakhs PA. which for I should fill for the financial 2014-2015.
Dear Krishna Kumari,
You can consider filing your taxes through ITR 4S or ITR 4.
Hi
May I know the formalities to fulfill by NRI to invest in Indian investments such as equity and debt funds, insurance policies etc.,
Incase to buy ,then how to buy it ??directly from the fund or policy companies or through consultancy or through agent?
Dear Venky,
It is always better and advisable to go invest directly online through the respective company websites.
If you are comfortable doing it by yourself, you can consider online platforms like icicidirect or fundsindia.com etc.,
Do inform them about your Residential Status and they shall guide you accordingly.
Which of the ones below is the good option for a corporate employee for pension?
a) NPS Tier 1 Account
b) NPS Tier 2 Account
c) Swavalamban scheme
Dear Parth,
Personally, I do not like all three of them. Suggest you to create your own MF portfolio for building retirement corpus, depending on your age and expected retirement age.
Which of the ones below is the good option for a corporate employee for pension?
a) NPS Tier 1 Account
b) NPS Tier 2 Account
c) Swavalamban scheme
1) Personally, I do not like all three of them. may i know why? (reasons that it is not good).
2) age 21, working in IT…can you suggest some good MF portfolios which will give me good return for short term and long term?
I have one suggestion for you, when you will reply to our question, can you notify in our mail inbox with link to see the answer.
Dear Parth,
1 – Taxation structure is not favorable. Maturity proceeds are taxed in case of NPS. You may have to buy Annuity plan at the time of maturity. No transparency in terms of portfolio tracking. Defined portfolio allocation etc.,
2 – Kindly go through the below articles and revert to me;
Top equity funds
Top ELSS funds
Top Balanced funds
Top MIPs.
Regarding notification, yes I will try to get this done. Have been thinking of this..Thank you for the suggestion.
hi sreekanth….i want to file income tax returns to know how to file it online….i m not in the tax slab…. i need to show the interest on fixed deposits..&..saving account interest in the returns,…….if so under which head i need to show it…which ITR i need to use for filing it……no tds is deducted on the fixed deposits…..
kindly elaborate….
Dear Shanmukh,
Interest earned on FDs / Savings a/c can be shown under the head ‘income from other sources’.
Interest income on savings a/c is exempted up to Rs 10,000 under section 80TTA. Kindly note that this is not applicable for FD interest.
The selection of ITR depends on your sources of income.
Kindly go through the below articles,
Income Tax Slabs & deductions
ITR : Which form to file?
Hi ,
Can you please answer my query regarding term plan
My form 16 shows my saving details as Rs 1,50,000, which was submitted to account department as undertaking as me earlier in the Fy 2014-2015.
But due to some reasons i could save only Rs. 1,31,000. So what is the procedure to file correct tax returns. Kindly suggest.
Dear Ashwini ,
When your filing the return you show your savings as 1,31,000 . If your in 10% Slab then u have to pay (150000-131000)*10% = 1900
Dear Ashwini,
Kindly enter the tax deductions (correct amounts) under various sections and re-calculate your Tax liability. You can then pay Taxes and file your ITR.
i have two houses one is occupied by my family and one by myself due to transfer. i have taken a home loan for the house where my family stays and i stay in the other house. have i to show notional rent income of the house where my family stays ? and which it return i have yo file ITR-1, ITR-2 or ITR-2A. i have no capital gains. income from salary and FD only. form 16 given by employer and TDS has been deducted by bank on FD.
Dear Sarkar,
You can file ITR2A.
Dear Sreekant Reddy,
My form 16 is incorrect for 80c deduction. If i update the correct value in ITR, which is not in form 16. Whether i need to provide any evidence. Please suggest?
Dear Rakesh,
No need to provide evidence when ur filing the return . if any Scrutiny comes means then you should provide the details for that year.
Thank you Revanth for sharing your views.
Thanks for the info Revanth.
Hi Sree,
I am Aditya 30 years of age.
Planning for term plan. Already have AVIVA’s return of premium plan for 1500000 SA. Now I want to increase life cover due to responsibility.
I was looking again for AVIVA but as per your blog AVIVA has CSR ratio about 84% .
I am a smoker and drinker .
Can you please suggest if I go with AVIVA as I have one term plan with them or else go for other company.
Also my father is diabetic so should I mention this at the time of application.
Dear Aditya,
It is advisable to mention the family members’ health details in the proposal form (if it has been asked so).
You can go ahead with Aviva itself. Do disclose about your habits in the proposal form honestly.
Dear Sreekanth,
I parked some funds in Birla sunlife Top 100 Fund & Birla sunlife Frontline equity Fund. On checking overlap I find that there is a 73% overlap however looking at returns
Birla SL Frontline Equity (G) -0.4 3.8 -0.4 18.1 36.4 24.5 13.9
Birla Sun Life Top 100 (G) -0.1 4.4 0.3 18.1 38.8 24.8 15.0
My 1 lakh in Top 100 gives me 1.07
But my frontline equity 40,000 has grown to 1.38L
I suppose the period is longer in frontline but still shouldn’t we get around the same returns ?
Dear Mohan,
Portfolios may be same as of now. They could have been very different in the past. Hence varying returns.
I forget my UAN Number .any body know abt recovery process?
Dear Rishabh..You may contact your Employer.
Hi sir…i have to pay 15,000 rs tax for fy 2014-15…my chartered account has asked to transfer this amount to his escrow account and then he will pay it online…is this practise safe of paying tax through my c.a’s account or i should opt for the traditional method of writing a cheque to sbi a/c income tax…please help as this is urgent
Dear Ansh,
I am not very sure about this. If you trust your CA and if you have been following this method, you may do so.
Dear Ansh,
you can ask your CA to send the paper challan , once u receive the paper challan you can pay it in online through the following link
https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Hi Sree,
I switched from employer A to Employer B in last financial year. Emp A gave me Rs 16139 in lieu of my leaves. This amount has been put in my taxable income, and earning shown in Form 26AS is reflecting this. However, as I understand, this amount should be fully exempted. When I try to subtract this amount from taxable income which is filled in ITR, I get a warning that income being shown is less than 90% of net income as in Form 26AS. Though there is an option to edit the fields in Form 26as section of ITR, is it advisable? Should I still submit ITR overriding the warning? I am confused and thinking of forgetting the refund 🙁 as there are so much complications.
Dear Raj..i believe we have already discussed on this. Kindly go through the article : Leave encashment & Tax implications.
We din’t talk about 90% warning 😐
Dear Raj..It is just a ‘caution’ message. You may ignore it.
Dear Sreekanth,
My Mother had Rs 50,000 . She need to deposit this amount in FD or etc for 10 Years. Please suggest me which is the best one to invest this amount. Her age is 64. I know about Fixed deposit and Recurring Deposit only.
If you choose FD then which bank give high interest rate. Tell me about other options also.
Thanks & Regards,
Ram Kumar
Dear Ram,
Kindly go through these links : Top Monthly Income Plans of Mutual Funds. & Top Balanced funds.
Hi Sreekanth,
I have Jeevan Anand Policy from LIC and paying rs.12300 as premium yearly from 2006. is there any chance to cancel this policy and get my amount refunded ?
Plan :Jeevan Anand (T.No: 149)
Policy Term: 75
Premium: 12,300
Commencement Date : 16-Jan-2006
thanks
Dear Dinesh,
You may make it a PAID-UP policy but before that buy a term plan.
Kindly go through these articles;
Term insurance Vs endowment insurance
How to get rid off bad insurance?
Best online Term insurance plans.
Hi Shreekanth,
Need a bit of advise. I bought a term plan from Kotak. However now after 1.5 months from making payment,sharing all docs and after multiple follow ups, I have been advised that due to my “medical history” I need to pay additional premium (1.5 times the initial agreed amount). I do not want to go ahead but I am told that they would deduct medical charges if I cancel it from my side. I think its unfair as they have disclosed no other reasons and all my medical history is clean.
I even bought another policy (same time,same amount,same information shared) from MAX, which they issued to me withing 15 working days with no hassles. I believe if Kotak cannot share further details and have deviated from the agreed premium,they should return back the same in full. I have even made payment to Kotak for a term plan for my wife as well ,which is currently under process. However I have lost faith in them,given the poor service, slack responses, lack of transparency etc but I guess they would again deduct the medical test cost if I do not want to carry it forward.
Please suggest.
Dear Ankit,
The policy bond is not issued right?
You may check with them the exact details and reasons for ‘Loading of Premium’. This can be a genuine hike.
The deductions happen as per their company’s policies. And it is same with almost all the companies.
Dear Sreekanth..
I am 37 years old and doing advocate by profession and blessed with 1 Male aged about 7 years and 1 female child aged about 1 year. I am now investing Rs.10000 SIP in ICICI Prudential Tax Plan-4000 (from 5 years), ICICI Pru Child Care-Gift Rs.1000 ( From 5 years), Motilal Oswal Most Focussed Long Term Fund-Rs.2000 ( From 8 Months) and Birla 95 Fund – Rs.3000 ( From 3 Months). I am planning to take retirement at the age of 50 years ( 13 years balance), in this view i am planning to Invest Lump sum Amount of Rs.30Lakhs. Plz advise how much i will get returns at my age 50 years to overcome smooth life..
Dear Pratap,
We can not expect the exact returns from mutual funds. But we can get decent inflation adjusted returns over a long-term.
Suggest you to go through my article : Retirement planing goal and calculate the required amount of savings.
Hi, Sreekanth,
What is the maximum ceiling limit to invest in mutual funds?
Dear Ram..ceiling limit of what?
Maximum amount that an individual can invest in mutual funds per year.
Dear Rama..There is no maximum limit as such. (MF advisors would feel very happy reading your comment)
DEAR SIR
IN JANUARY 2015, I REDEEMED ALL THE UNITS OF EQUITY MUTUAL FUND SCHEME PURCHASED BY ME IN JANUARY 2012. I HAD PURCHASED WITH OPTION OF DIVIDEND REINVESTMENT. THE REDEMPTION VALUE INCLUDES THE CURRENT VALUE OF THOSE UNITS ALSO, WHICH WERE ALLOTTED TO ME IN JUNE 2014 AND NOV 2014 AS A RESULT OF DIVIDEND DECLARATION.
SIR, NOW I AM PLANNING TO FILE IT RETURN FOR ASSESSMENT YEAR 2015-16. PLEASE LET ME KNOW WHETHER THE ENTIRE CAPITAL GAIN HAS TO BE SHOWN AS LONG TERM CAPITAL GAIN IN RESPECT OF ABOVE REDEMPTION.IF THERE IS SHORT TERM CAPITAL GAIN UNDER THE ABOVE TRANSACTION THEN HOW THE SAME HAS TO BE CALCULATED?
THANKING YOU
YOURS SINCERELY
A.A. RAWANI
[email protected]
Dear RAWANI,
Are you using services of any online investment platform?
DEAR SHREEKANTH
NO. I DO NOT USE ANY ON LINE PLATFORM FOR ANY INVESTMENT. BUT I DONT UNDERSTAND WHAT IS THE RELATION BETWEEN ON LINE PLATFORM AND MY QUERY FOR INCOME TAX TREATMENT?
Dear RAWANI,
I just wanted to make your life easy…most of the online platforms provide ready-to-use Capital gains statement, which you can just use it while filing ITR.
In your case, suggest you to consult a CA and get this done.
Hi Sreekamth,
Can you tell me, which ITR form should be filled by a practising Advocate whose total income from all sources is around Rs. 9 Lakhs. Is it ITR 4S or some other form?
Dear Subha,
ITR-4S is a presumptive income tax return form used for businesses covered u/s 44AD/44AE. .
Presumptive income scheme is not applicable to specified professionals as covered u/s 44AA(1). Hence, only ITR-4 is applicable for them, whatever may be the income.
You can file ITR form no.4
Hi Sreekanth,
I had opened NPS account approx 3 years back to plan for my post retirement. At that time I had opened Tier 1 and Tier 2 accounts as Tier 2 made more sense as it had more flexibility in terms of taking the funds out. But now since to avail tax rebate I invest 50K in Tier 1 account I feel that there is no need to invest in Tier 2 account and as such would like to close the same.
Could you please help me what is the process to close the Tier 2 account as I have not been able to find the process to close the Tier 2 account. I have only got a form how to take the money out from Tier 2 account but not how to close it.
Thanks
Sunil
Dear Sunil,
Kindly be clear with your investment objectives. You have invested in Tier 2 considering your long-term goal, now just because you have invested in Tier 1 to save some taxes, you are planning to close it. Kindly THINK beyond taxes when you are investing.
I personally do not like NPS (considering the maturity proceeds are taxable as per the current tax laws).
You may have to contact POP (Points of Presence) centres for withdrawal. Click here for list of POP contact details.
Hi Mr.Reddy,
I am Kamal, Age 46. MyAnnual CTC is 10 Lacs. I would like to know how can I reduce the tax by proper savings. My monthly TDS was 6000, annually comes to 72000.
I have shown the below mentioned thing for Tax Benefit in my company.
1. LiC – 60000
2. HOUSE loan repayment – 72000
3. My son tuition fee – 75000
4. Provident Fund – 42000.
Only this 4, and nothing else.
My questions are,
1. Pls advise where I can save further more tax, Which are all the instruments will support?
2. Since I haven’t planned for my retirement, i am planning to purchase a Pension plan from a private insurance, Will this bean effective instrument to support my tax savings? If so, this private insurance pension plan covers under which section….
Looking forward for your support and guidance on this at the earliest possible time. YHANKS
Dear Kamal,
Kindly list out LIC plan names.
(The aggregate limit for tax deductions is up to Rs 1.5Lakh u/s 80c.)
1 – Kindly go through my article on ‘List of Income Tax deductions‘.
2 – Kindly read my article on ‘Retirement Planning‘. You may start investing in Top balanced funds for next 5 to 7 years and accumulate your retirement corpus.
Lic details –
Jeevan Anand (SA – 3 Lacs) Annual Premium of 25 K,
Endowment Assurance (SA – 7 Lace) Annual Premium of 35000.
Dear Kamal,
Kindly buy a term plan at the earliest and discontinue the existing plans.
Go through the below articles;
Term insurance Vs Traditional insurance plans
How to get rid off bad insurance plan?
Best term insurance plans.
Hi Sreekanth,
I am in doing Pvt. job and also an Insurance agent, which ITR form to be used ITR-1 or ITR-4s.
Regards
Dear Nagyan,
Suggest you to file ITR4.
I m 39 yrs old is varishtha pension yogana also applicable for me
Dear Shikha..Minimum age limit is 60 years. You are not eligible to apply.
Hello Sreekanth ,
My relationship manager has suggested Reliance Dual Advantage Fixed Tenure Fund VIII – Plan B – 1099 Days for a lumpsum amount investment instead of bank FD. The NFO Period is August 14, 2015 – August 28, 2015. Do you think it will be a wise decision to invest in this fund instead of FD?Thank you,
Parag Dabir
Dear Parag,
Why do you want to invest in this fund? Do you require these monies in 3 years from now?
May or may not require but instead of keeping it in savings account would go in for a FD.
Dear Parag,
If you do not require money in next 3 years, consider investing in Birla Sunlife MIP Wealth 25 plan.
In case if your investment horizon is around 5 years, consider a balanced fund.
I invest in icici long term fund but its no performed well I want switch in icici balance find it is good idea?
Dear Mr Patel..let me know your investment horizon (time-frame)??
I am an individual woman, 59 years old and am having income from bank FD interest. One of the banks have deducted TDS and they have issued for 16A. since i do have any other income and my income falls below 2 lakhs, I would like to claim refund from IT. To claim the tds , which form I should
use to file returns and claim refund.Secondly, my address is not updated in PAN. Can I file and returns
in this month and apply for change of address lated. Will the authorities agree for this? Please reply.
Dear PADMA,
You can file ITR1 and claim the refund amount.
Yes you can file your ITR now and get the address updated later. But do note that any information / notices from IT department are sent to the address that is linked with your PAN. So, get it updated at the earliest.
Hi Sreekanth,
Good Morning. I am new to Mutual Funds. Till now, i haven’t invested anything in this area. Can you suggest some funds where i can invest ? My time horizon is 5 years.
My investment per month is 40,000
Appreciate your quick response
Thanks
Satish
Dear Satish,
Consider investing in balanced fund.
Kindly review your portfolio performance in 3rd or 4th year and may move to a safer investment avenue, as you require money in the 5th year.
Hi,
Thanks for the reply. Can you please suggest which company’s fund to chose under balanced funds ? Also, can you please let me know in which company should i invest in case i plan for SIP s?
I want to distribute 40k/pm under various funds with the max period lock being 5 Years. Request your suggestions on the same.
Thanks,
Satish
Dear Satish,
You may consider couple of balanced funds like HDFC balanced fund & TATA Balanced fund.
Dear Satish,
You may consider hdfc balanced fund & tata balanced fund.
Hi
I read your article on LIC’s new child plan. It is disappointing to see the industry leader introducing such a terrible plan.
However, I would like you to have an independent review of IDBI Federal Life Insurance Company’s Wealthsurance Future Star Plan. I have invested Rs. 25,000/- p.a. for a period of 22 years for my 6 months old baby. (It is a ULIP Plan). S.A. is Rs. 2.75 Lacs. Have I made a correct decision? Please help.
Similarly, my husband has also bought “Care” health insurance plan for our family of 3 from Religare Health Insurance. S.A. is Rs. 10 Lacs and premium is Rs. 16,359/- I would also request you to have an independent review of this policy.
Thanks for helping.
Dear Rupali,
Yes, it is very disappointing indeed.
Who is the insured person under this plan? Have you gone through the charges section of this plan?
Any particular reason for investing in this plan?
Do both of you have term insurance cover?
Health insurance plan is fine.
Hi Sreekanth,
Thanks for quick reply!!!
And thanks for assuring that at least my husband made right decision about health insurance.
Now about child plan – I was approached simultaneously both by LIC and IDBI Fed agents.
When I went through details of LIC’s new child plan, I was shocked to see that person to be insured is child. (I was planning to generate decent corpus for education of my only child and not planning his death!!!). Also, it was a traditional plan which meant I can only expect a meager return of 4 to 5% over a period of 22 long years which can’t even beat inflation rate!! Similarly, premium waiver benefit was not in-built into the policy and one needs to pay extra.
Whereas, IDBI Federal Future Star has in-built premium waiver benefit in case of unfortunate event. I am (as mother) is the insured person under this plan. It is ULIP Plan.
Charges are as follows
Year 1 Years 2-5 After 5 Years
Policy Allocation Charges 3.15% 0 0
Administration Charges 6.30% 6.30% 3.15%
Fund Management Charges 1.35% 1.35% 1.35%
Mortality Charges As per mortality table (Similar to other insurers)
Prima-facie, I thought, the product is transparent as far as charges is concerned. Also, I thought rather than investing in traditional plan, it would make sense to invest in ULIP as my investment horizon is 22 years.(My exposure is 50% in Large Cap & 50% in Mid Cap funds) I expect to get at least long term inflation beating return since investment plans from IDBI Federal have given good returns in the past (though I know that past performance is not the sole criterion for investment). Hence, I preferred IBDI Federal over LIC and bought this plan.
Besides that we are also planning to start SIP with mutual funds in order to supplement the shortfall in corpus if any.
And yes, We both will buy Term Plans at the earliest as suggested by you.
Thanks for help.
Hi Sreekanth,
I am waiting for your reply on above-mentioned scenario about Child Insurance Plan. Is my understanding correct about inflation beating (or inflation matching ) returns from IDBI Fed Future Star plan?
Please help
Thanks.
Dear Rupali,
I personally believe that child plans be it a traditional one or an ULIP are not worth to be invested.
Suggest you to buy a Term plan with sufficient cover + one Personal Accident cover + Few good Equity mutual funds .
Kindly go through below articles;
Best term plans
Best Personal Accident insurance plans
Top Equity funds
Top balanced funds.
Hi Sreekanth,
Sorry for late reply.
We both do have a personal accident policy of Rs. 10 Lacs each from Religare Healthcare apart from basic health floater policy.
We intend to buy term plans by surrendering our Traditional policies from LIC and also start investing in SIP for any shortfall in educational corpus of our child.
However, I would beg to differ on your opinion that ULIPS are not worth to be invested. I believe ULIP gives inflation beating returns over a long period of time. In our case, its 22 years. Also, if I were to die after some years, guardian gets lump sum SA, plan has in-built rider of premium waiver. IDBI Federal will pay all the future premiums, policy continues and fund value on maturity can be used for the education needs of my child as desired.
Our entire discussion is based on the assumption that we won’t die till maturity of policy. However, if I only follow Term plan and Mutual Fund strategy, no doubt corpus would be higher as compared to ULIP. However, if I die after some years (suppose 5 years), nominee will only get Death Sum Assured and policy ends. Also, he / she will get Mutual Fund Value up to death and further investment stops.
In such case, there is a possibility that these amounts may not be used for the purpose for which I started investing ( child education) and his/her education will be hampered adversely since my child is my responsibility and I can’t expect my relatives to look after him/her if I were to die.
Hence, we have decided to buy a term plan and to start sip in mutual fund in addition to ULIP so that our child’s future education needs are fulfilled.
What’s your take?
Pls let me know.
Dear Rupali,
If you believe that ULIPs are right choice as per your requirement, it is fine. It is PERSONAL finance.
Instead of ULIPs which have high charge structure, I would go for high (more) sum assured (term plan) and plan accordingly. This is my opinion.
But I agree with your point that ULIPs can perform better over a long-period of time. But the question is if we compare ULIPs vs MFs in terms of cost structure/ transparency/flexibility/liquidity etc., I prefer MFs to ULIPs.
Hi Sreekanth,
Thanks for your reply. Sorry, there was no intent to argue with you. You are doing a great job of educating common man about financial planning.
However, the point I was referring to is one can invest in ULIPs and expect to generate good returns if one has a specific long term goal (such as education or marriage of children) and he/she has selected proper fund as per his / her risk appetite.
I am not here to promote ULIPs. However, Most of the financial planners blatantly discard ULIPS because of experience of last decade. There is no chart available to compare performance of mutual fund vis-a -vis Ulip over a 20 years period since Ulips were introduced in 2003. In fact I was also a victim of mis-sold ULIPs.
One HDFC Life Agent sold me ULIP in 2009 giving me a rosy picture of doubling the money in 5 years. 5 years later in 2014 stock market indeed doubled as compared to 2009 giving a CAGR of 15% or thereabout.
However, my monthly accumulated investment of Rs. 1.80 Lacs (Rs. 3,000 * 60 months) resulted in fund value of Rs. 2.03 Lacs only. My HDFC Life Ulip gave me pathetic return of 4.8%. This was due to exorbitant policy allocation and administration charges, agents getting hefty commission of 40% for first 2 years and hence less amount available for investment. Hence, I surrendered that policy last year.
However, new ULIPs are much more customer friendly. For e.g. My IDBI Federal Future Star ULIP has Policy allocation charges of only 3.15% for first year. Policy Administration charges of 6.3% for first 5 years and 3.15% thereafter, mortality charges and 1.35% fund management charges. Also, agent’s commission is capped at 10% of premium in 1st years and thereafter a meager 0.5% every year. Hence, more amount is available for investment.
When we consider a long term (more than 15 years) horizon, major expense / cost to be considered is Fund management charges. In case of Mutual Fund it is around 2% to 2.25% on an average. Whereas, there are many ulips in the market wherein the overall expense ratio is below 2%. (Since, Policy allocation charges are applied only in first year, and Policy administration charges are percentage of premium not fund value. Similarly, mortality charges are applied on Sum at Risk and not on fund value). Hence, I believe ULIPs can give competition to Mutual Funds in the years to come provided your fund performs well.
Let us wait on watch.
This is my personal opinion. Pls share your thoughts.
Thanks.
i invest birla sl top 100 funds for sip six years for my son education pls advice me.
Dear Krishna,
Continue with your investment.
Sir I want to know that as I am already investing in SBI MF from last 2-3 months and once kyc procedure has been done there.now can I invest in hdfc balanced MF and axis long term equity directly online.or I will have to visit hdfc and axis AMC for first time investment.
Dear CHAUDHARY,
KYC is a one-time procedure.
If you would like to invest directly online through respective companies, then there can be one-time paper work to create login-credentials. Kindly visit the respective fundhouse websites for more information.
Hi Sreekanth,
I stumbled across your blogpost while researching about Super top up plans for medical insurance and much admit its a very well written and crisp piece.
I consider my self uneducated when it comes to managing my hard earned money primarily attributing to the fact of “analysis paralysis”. I do lot of research and end up doing nothing.
But your piece for super top up helped me and I have decided to go for 5L SA, family floater policy (Optima restore) ( already have 5l SA family floater from employer).
And then my be in a year or two (hopefully when the SA reaches to 7.5 or 10L accordingly) i plan to go for a super top up.
May i request you to do a piece on Car lease policy offered by Employer ( primarily to save tax) and if possible do a scenario thing to at least weigh out the best and the worst cases.
/Pankaj
Dear Pankaj,
Thank you for your appreciation and suggestion, will surely try to publish an article on the suggested topic.
Dear Sreekanth,
Thanks for your valuable suggestions as the financial planning is very important for everyone to secure their and their loved one’s life.
We are three members in our family as of now. Myself, wife and 3 years old son. Here is my investments and Insurance policies I have so far and just taken home loan of 500000 lacks for 15 years tenure.
1) I have LIC Jeevan Anand life insurance for SA 800000 for 20 years with 40500 premium per annum which I have started in 2006 and paid all Premiums without fail until now.
2) My wife has same policy for SA 500000 for 20 years with 25000 Premium per annum and it was started in 2008 paid all premium paid so far without fail.
Can I continue with the above two policies or suggest me if any other better option?
3) BIRLA SUN LIFE TOP 100 FUND for 5 years stared in Mar 2015 with SIP 5000
4) HDFC Equity Fund – Growth for 5 year started in Oct 2010 with SIP 3200 and going to end in Sep 2015
5) ICICI Pru VAlue Discovery Regular Plan for 5 years stared in Oct 2010 with SIP 2000 and going to end in Sep 2015
Can I extend HDFC Equity and ICICI Pru value discovery MF’s SIP for few more years or redeem them and invest in better funds? HDFC Equity is not really profitable from few years I feel.
And want to invest 10000 in MF’s with SIP for next 10 years. Can you suggest me good funds for me.
Thanks & Regards,
Chandrashekhar Machineni
Dear Chandrashekhar,
1 – You may make this plan a PAID-UP one. Kindly go through these articles :
How to get rid off bad insurance policy?
Term insurance Vs Endowment insurance plan?
Suggest you to take term plan.
2 – Is your spouse an earning member of the family?
3 /4/5 – Stay invested with the funds. You may add one mid-cap fund to your portfolio.
Hi Sreekanth,
Thanks for you reply and suggestions!
My wife is working currently but may quit the job after 5 years to look after the kids.
I am thinking to continue my wife’s Jeevan anand policy and make my policy Paid up. I will buy a term plan for whole family. What’s you comment on this?
Which Midcap funds do you suggest from the below list?
Canara Robeco Emerging Equities (G)
Birla Sun Life MNC Fund (G)
Franklin (I) Smaller Cos (G)
UTI Mid Cap (G)
Thanks & Regards,
Chandrashekhar
Dear Chandrashekhar,
‘Term plan for whole family’? May I know what do you mean by this?
All are good ones. But I prefer to invest in Franklin Smaller cos fund or UTI mid-cap fund for long-term (>10years).
Hi Sreekanth,
I am thinking that we can buy a single term policy for whole family. But after reading about term policy, I got to know that we can only increase term policy coverage by paying more premium if you want to secure all members of family right (Example: We can increase the coverage amount when new baby born)?
And I am doing SIP next 5 years in the below funds, are they good one? please suggest me if need to change.
BIRLA SUN LIFE TOP 100 FUND – GROWTH
Franklin India Smaller Companies Fund GROWTH
And I have completed 5 years SIP in the below funds. Is it good to continue investing in this funds for 5 more years? But HDFC Equity is not doing good. Can you suggest me one good diversified fund?
HDFC Equity Fund – Growth
ICICI PRUDENTIAL VALUE DISCOVERY FUND – REGULAR PLAN – GROWTH
And I invested 50000 lump sum in Franklin India Smaller Companies Fund GROWTH. Is it good investment?
Thanks in advance for your suggestions.
Regards,
Chandrashekhar
Hi,
Already i have a Jeeven Anand Policy 25 years SA 300000 From 2009. I want to invest for my one year old girl baby. Which is the best plan for me? I can invest yearly 12000 Rs. Pls suggest me.
Dear Raja,
Kindly go through the below articles;
Term insurance Vs Traditional insurance plans
Top Term insurance plans
How to get rid off bad insurance plans?
Hi Sreekanth,
I have been admirer of your efforts in financial literacy for quite some time now
Need few inputs from you on investment in MF:
1. Retirement & Children education Plan : Seeing your blog and from your suggestions, I have started investing for my retirement and Children education and have been investing for last 2 months through FundsIndia. My age is 33 years and I am investing 20000 rs. per month. My goal to invest for long term.
My Portfolio consists of the following:
Franklin India High Growth Companies Fund (G) Diversified Equity (6000 Rs.)
UTI Mid Cap (G Small & Mid Cap (4000 Rs.)
SBI Small & Midcap Fund (G) Small & Mid Cap (3000 Rs.)
Birla SL MNC Fund(G) Small & Mid Cap (3000 Rs.)
SBI Pharma Fund-Reg(G) Sector – Pharma & Healthcare (4000 Rs.)
Please suggest is it correct portfolio or need to change.
Thanks,
Ravi Purohit
Dear Ravi,
Any specific reason for investing in 3 mid-cap funds.
Sector fund has high risk profile, invest in it only if you understand the business cycle of that sector and also about sector specific risks.
Do you have adequate life insurance cover?
Hi shreekanth
1. I read somewhere in your blog that direct plans are cheaper than the regular ones in mutual funds.
2.However the NAVs of direct plans is higher than regular plans,why is it so ??
Regards
Dear Shrikant,
Example : Revenues – Expenses = NAV
In direct plans the expenses (commissions are nil) so Rs 100 – 0 = Rs 100
where as in Regular plans it can be say Rs 100 – 1 = Rs 90.
Dear Sreekanth, I am planning to prepare for CFP . Could you please recommend me on the good study material that I can follow for this?
Dear Rupa,
Contact me at Sreekanth [at] relakhs.com, will try to forward few study materials that I have 🙂
Dear Srikanth
I have a query on superannuation. I have resigned from a company and I sued to save every month some certain amount as superannuation optional scheme from the salary in my company. I used to file tax every year with out any deviation. During my resignation time, when I withdraw the superannuaion, they deducted 30.9% for TDS which was a shock for me. Can you please clarify why such a huge deduction on this case. How will I get the details about this
Thanks
Rgds
Ajay
Dear Ajay,
Employer’s contribution to an approved superannuation fund in excess of Rs. 1,00,000 is charged to tax as perquisite.Employee’s contribution will qualify for deduction under section 80C and interest on accumulated balance is not liable to tax.
Payments in following cases will be exempt from tax under section 10(13):
Payment on death of beneficiary; or
Payment to an employee in lieu of, or in commutation of an annuity on his retirement at or after the specified age or on his becoming incapable prior to such retirement; or
By way of refund of contributions on the death of a beneficiary or
Refund of contribution to an employee on leaving the service .
You can claim refund if your superannuation fund is tax exempted by filing ITR.
hi shreekanth
1.Im buying a house n taking loan for the same.For home loan I have made my wife(housewife) as the co applicant as there is less interest for women.
2.In the flat agreement, do i need to make her co owner??
3.Are there any income tax benefits of making her co owner??
Dear Shrikant,
2 – It is better to have you as 100% owner if you alone want to claim tax benefits.
3 – If she does not have any income then there won’t be any privilege to claim tax benefits .
Hi Sreekanth,
I am 51, want to file ITR a.y. 2015-16 in paper form. I am totaly confused which form i should use, pls guide me.
1.I get salary of Rs under 2 lakhs p.a. from a private job.
2 No TDS by employer.
3. Bank interest for my saving a/c is under 500.
4. Have home loan on my only one property.
5. My son aged 17 is a blogger and use my PAN & bank a/c. His total earning for 2014-15 was 2 lakhs 30 thousands paid by PayPal. But he also paid Rs 33 thosands to other bloggers as their share. And expenses on blogging are Broadband bills & hosting fees. Can we calculate net earning by blogging in this manner: Net earning= Total Earning – Share to Other Bloggers – Bills & Hosting Pymts.
6. Can I deduct the school tuition , exam & admission fees from my total income.
Kimdly tell me soon how to compute my income and which paper form should be used.
Manjeev Kachheda
Dear Manjeev,
Since income from blogging is also on your name, suggest you to file ITR 4. Suggest you to consult a CA and get this done.
Dear Sir,
My name is Rustam Ali and I am 36 years old.
I have never invested in Mutual Funds but, now I am really interested to invest in Mutual Funds through SIP.
I am ready to invest 30,000 per month through SIP for 15 years and my goal is to make 1 crore for my one year son education and my retirement 50 lakhs each. I will be very thankful if you could help me to make my portfolios to achieve my goal. Will 20,000 SIP will be enough or do I need to increase my monthly investment
I have chosen some funds and wants to invent 5000 at each funds which are mentioned mentioned below. I want to know how good these funds are?
1. ICICI Prudential valu discovery fund (G)
2. Birla Sunlife Equity Fund (G)
3. Tata Balance Fund (G)
4. Axis Longterm equity fund (G)
5. franklin India high growth companies fund (G)
6. Franklin India smaller companies Fund (G)
Hoping for the reply as earliest as possible.
Dear Ali,
Kindly go through the below articles and revert to me;
Calculate future value of investments
Kids education goal planning
Retirement planning
Top Equity funds
Top Term insurance plans.
How can we get reissue of notice u/s 143(3)
Dear Anuj..You may login to IT e-filing website and get it re-issued.
Under ‘My Account’ menu, click on ‘request for intimation u/s 143(1).
My wife has earned money in Section 192,194 J,194 H.Which ITR form to be used-please inform
Dear Siddiqui,
You can file ITR form 4.
Thanks
Hi
I would like to know couple of tax implecation as below :
1) I had done SIP of UTI Retirement benefit plan in 2010 and it is continue till date. Now i am planning to withdraw entire SIP and want to stop the same. I want to know what will be tax implecation on this. I am in 30% tax paying bucket
2) I had invested thru ULIP – Birla Sunlife insurance 7 years back… As on date value of fund and my investment are morally same. I am planning to withdraw that amount and would deposit in my Housing Loan as Principal payment. I want to know what will be tax implecation on this. I am in 30% tax paying bucket
Dear Nishant,
Kindly read below articles;
Mutual fund taxation rules
Reliance retirement plan review
Tax benefits can be revoked.
I had invested in Reliance Tax Saver Fund in 2010 and would like to switch to Franklin India Tax shield fund or ICICI Pru Tax Plan. Now, My doubt is if I switch to new ELSS MF, what happens to this? Is it considered as New Investment?
Dear Balaji..Why do you want to switch?
Yes it is considered as a new investment.
hi……..sree…..i got my form 16…B.. particulars and i am not in the tax slab for last year ….
can i file tax returns to know how file tax ……..
if yes
kindly tell me how to file the tax….please…..
i have the user id and password which i created recently….
Dear Shanmukh,
Yes, you can file your taxes. Suggest you to visit IT e-filing website and click on Quick e-file ITR-1, the entire process is simple. You can also find tutorials & FAQs on IT wesbite. Kindly go through them.
Hi Sreekanth,
I am getting the same error message “for the amount of salary disclosed in “Income details/Part BTI” is less than 90% of Salary reported in Schedule TDS1.”while filing IT.
It was because that the i updated gross total income as the Income chargeable under the Head salaries, is it correct or not.
In the TDS we have the different amount and there was mismatch coming, what i did is i changed the TDS amount to the one which i have updated as gross total income then i was able t file the IT.
What i have done is correct or do i need to revise the IT what i have filed, still i havn’t done EVC.
Please guide, Thanks in advance.
Dear Tejraj,
Kindly visit this link, may be useful.
I retired during August 2014. I received Gratuity ; Accrued PF and PL Encashment. Though I understood that they are exempt from tax, I think I should provide those details also in Return form. But I could not find relevant columns in ITR -1.
Please let me know under which head those details are to be shown and then claimed exemptions in ITR-1
muralidharacm
Dear murlidhara,
Kindly go through my articles;
Gratuity & Tax Implications
Leave encashment & Tax implications.
You need to show Exempted income (if any) in ITR1 under ‘Taxes paid & verification’ sheet , row no 26.
Thanks Sreekanth Reddyji for your immediately reply to my quiry. I will show Gratuity and PL encashment amounts along with Salary/Pension income under the head “salary”. But what about PF amount received at the time of retirement. I do not think it will find a place under the head ‘Salary”
mualidhara c m
This is in continuation of my earlier message
Under ‘Tax paid and Verification’ (in online ITR-1) there is no row no.26. Besides the entire IT Return form does not contain any seperate column / rows for providing details of exempted amounts.
Dear muralidhara,
PF amount is tax exempted. It should be shown as ‘exempted income’ in ITR.
Hi,
I have 2 form 16’s from different employers from the last financial year so request to you please suggest which ITR form should I use and if it is ITR 1 where can I enter HRA & Conveyance allowances?
Please inform
Thanks .
Dear Nizam,
The type of ITR depends on your other sources of income.
If you have only ‘salary income’, file ITR1.
Kindly read my articles;
Which ITR form to file?
Multiple Form 16 & ITR.
Hi Srikanth,
I have fully paid the tax for my primary income.
Also i have earned a total of 4000/- from other business for the year. No TDS has been deducted for the same.
Is this 4000/- taxable? Do i need to show the above 4000/- while efiling ?
Thanks,Naresh
Dear Naresh..Yes, you need to include all types of income in your ITR.
Hello Srikanth,
I wish to invest rs.2/- lakhs.Which is the best option available in the market.Came to knwo that now a days gold is not much attractive.Shares , which all? Mutual fund .. which all fund? Im aware of the risk associated with the two
Thank you
Sam
Dear Sam..Let me know the time-frame & your investment objective(s)??
Hi, I am also in the same boat buts would like to start a SIPs. I am looking for overall investment of around 5K on monthly basis.
Looking for :
1. SIP for shot term for around 1 to 2 years. Willing to raise some risk
2. SIP for medium term 2 to 4 years. Willing to take some moderate risk
3. SIP for Long term 5 to 7 years. Not willing to take risk.
Also can you suggest me the ratio in which I should be investing 5 K.
As of now this is what I have looked into:
Shot Term:
Birla SL MIP II-Wealth 25(G)
Mid Term:
Franklin India Flexi Cap Fund(G)
Long Term:
SBI Magnum Gilt-LTP-Reg(G
Please suggest if you have something else in mind also suggest if I should further diversify and invest in some Hybrid Fund as well.
Looking for a response.
Dear Sunil,
Ideally, your willingness to take risk should increase as the time-horizon increases.Do you agree with me?
Hi Sreekanth, Ideally yes provided I am able to make some profit. On the other hand if I am in loss the probability/courage to take risk would decline.
So my plans were to take risk in Short term but try to be stable in Long Term investment.
Dear Sunil,
I disagree with your views.
Over a long period of time, there is a chance of averaging the risk of volatility but not in a short-term.
I think I should have been more clear in what I had written. I was looking for Equity MF investments in Short term. Balanced Funds for Medium term and Govt. Bonds MF for long term.
What would you suggest. Actually this is the first time that I am actaully thinking of Investing in MF. Till date it has only been FD and nothing else.
Dear Sunil,
Kindly go through my articles;
Top Equity funds
Top Balanced funds
Top MIP funds.
I have invested in ICICI Pru Tax saver plan and Reliance Retirement Fund.
Please suggest whether these are good or not
Dear Asim,
Let me know about your financial goal(s). ICICI Tax plan is a good one.
Kindly read my review on Reliance Retirement fund.
Hi Sree,
I want to have 5 crore at the age of 50 ,Please let me know how to invest
Dear Asim..Suggest you go through the below articles; (you may use the calculators available in these articles)
Calculate future value of your investments.
Retirement planning goal
Top & Best equity funds.
Sir,
I have started 3 sips in 2010 @ 2,500 ₹ each
1) hdfc top 200 g
2) icici Pru. Focussed blue chip
3) idfc premier equity plan A g
I redeemed all those units in 2014 when I purchased a flat. Since then my SIP continuing again. Now I want to increase my total SIP investment at about 12-15000 (my current investment is 2500*3=7500)
So, kindly advice me,
Whether to add a new fund or increase the SIP amount in the existing funds. Also suggest should I continue in these funds or change to others?
My age is 32 now. I can invest for another 10 years
Regards,
Pavan
Dear Pavan,
The fund manager of IDFC premier equity has changed, so keep an eye on it for next 6 months or so. If you see a dip in its performance (comapred to market or category or benchamarks’ performance) then switch to HDFC Midcap opportunities fund. The other two are fine. You may add one balanced fund to your portfolio (ex- hdfc balanced or tata balanced fund).
Hello sir,
I am planing to invest in SIP Rs 4000 pm for 15 years, for my son, I have taken Term plan for 5000000, health insurance for Rs 400000.
Kindly advise me which funds are better for my investments.
Dear Mr Reddy,
Kindly go through the below articles;
Top Equity funds
Top Balanced funds.
Hi Sree,
I have been admirer of your efforts in financial literacy for quite sometime now 🙂
Need few inputs from you on investment in MF:
1. Retirement Plan: Seeing ur blog and from your suggestions, I have started investing for my retirement and have been investing for last 6 months through FundsIndia. My Portfolio consists of the following:
> Axis Long term (ELSS) – 2K pm
> Franklin India (ELSS) – 1K pm
>HDFC midcap opp fund – 1K pm
>ICICI Pru focused bluechip – 1K pm
> Tata Balanced fund – 1.5K pm
What I feel is the funds are not distributed in a good way. Need your inputs on this. Also, ideally I have read that large cap funds should be for medium term goals and not lonterm goals.. So, shall I remove ICICI pru focused bluechip from this portfolio and move to another and increase midcap investment instead? Also, I need to increase the total amount from 6.5K present to 8-10K.
2. Suggest me if FundsIndia smart solution is good for Kid’s education? Or shall I build my own portfolio? I can invest 5K for this. I have no kids as of now, so I have 17 yrs 🙂
Many Thanks,
Vee Kay
Dear Vee Kay,
Thank you for your appreciation 🙂
The additional funds (10k – 6.5k = 3.5 k & 5k) invest in HDFC midcap opp fund & TATA balanced fund. You may allocate more (say 5k) to mid cap fund. Review your portfolio once you have a kid. You can then maintain a separate MF portfolio.
Hi Srikath,
Thank you for educating all on the financial options available in making safe returns.
I am 34 Years old and want to invest Rs 20000 every month for next 5-7 years. My goal is to make a corpus of Rs 2 crore in next 12-15 Years for retirement. Please advise how I can achieve my goal.
Thanks,
Jayashree
Dear Jayashree,
Suggest you to kindly go through the below links and then revert to me;
Retirement planning made easy
Calculate Future value of investments
Top Balanced funds.
Hello Sir,
I want to invest nearly 8 lakh in next month. I want my money to be secure as much as possible with decent return. Initially I thought to invest in FD but due to tax I need to think twice before investing. I don’t want my money to chock in market like I should get money whenever I need.
Also I want to invest 30K monthly ( as long as possible ) , Will RD be safe option to invest money or is there any good option like RD.
Please suggest me risk free investment option.
Thank you
Dear Ashish,
It is quite impossible to get decent return without taking few risks.
Instead of thinking about the products first, let us start identifying your financial goal(s) first..
Let me know what are your financial commitments??
Dear Sir,
I want to buy home after 3 years and want to save money for that ( home would cost nearly 50 lac ). Also I want to do saving for my retirement and future need like children eduction and marriage. Currently I’m 28y single and can invest 10K montly.
My total saving till now is nearly 15 lac.
Please advise.
Dear Ashish,
What is the mode of funding your property purchase? (partly through home loan ??)
If yes, retirement planning & kid’s education goals should be your top priority. Once you allocate sufficient savings towards these goals, then it is advisable to allocate the remaining portion of your disposable income towards home loan EMI.
Since you are single, invest as much as possible in Equity funds and remain invested for long term.
Do you have health insurance cover?
Dear sir,
I have company provided health insurance but till now no term insurance. For home property my father has some saving and he’ll get nearly 15 lac when he’ll be retire. So I’ll be taking home loan of nearly 20 lac so 20K for home loan would be fine.
Kindly advise me
–Term plan and Personal accidental plan and should I take any critical illness plan
–Should I open SIP for next 5 year and how much should I invest.
–Where should I invest lump sum money of 8 lac for short period of time
Dear Ashish,
Kindly take health insurance plan, do not depend on employer’s mediclaim policy alone.
It is not advisable to use your father’s retirement funds to fund a property. Has he got any other funds/sources of income to lead comfortable retirement life?
Is he going to depend on you, financially?
Your first priority is to buy health insurance for self & parents.
For 5 year time horizon – Consider investing in a balanced fund.
Let me know the time-frame regarding short-term goal? (for investing Rs 8 Lakh)
Hi Sir,
My father is govt employee. He’ll be having good pension post retirement.
For 8 lakh, I want to invest money maximum for 3 year.
Also for per month 30 K investment , which option is best.
Please advise me any good health insurance policy.
Dear Ashish,
8 Lakh investment – Kindly read this article : Top MIP mutual funds.
For monthly SIP (assuming this is for long-term wealth creation), invest in Equity oriented funds.
Check out health insurance covers offered by Max bupa / Apollo munich /Star health.
Hello Sreekanth,
We (3 brothers) are selling an ancestral property and getting some money. please guide,
1. What is the best way to get this money from the buyer? – cheque or fund transfer and so on
2. Which is the best way to save tax? For e.g,. my wife is a homemaker and has bank accounts / PAN
3. Which are the safe options to invest this money – around 20 lakhs. (I do not do or want to do share trading)
Thanks a lot for your help in advance
Raman.
Dear Raman,
1 – It is completely your choice. (It is better to accept cheque but do watch out for tax implications & registration expenses).
2 – Kindly let me know , what is your plan of action after selling this property? What are your options to invest the sale proceeds?
3 – It is collectively owned right? So do you want re-invest the proceeds collectively (on joint-names)?
Dear Mr.Sreekanth, Nice blog Informative and Educative.Now my Query :- Having Uploaded my ITR-1 for the AY-2015-16 is it mandatory to everify the return or Can the old procedure of sending the signed copy to BLR CPC can be availed off….
Dear Venkat,
It is an optional facility. Kindly read my article : Electronic Verification & ITR 2014-16.
Hello Sir, I have Form 16 against PF withdraw and Form 16A against salary as a contractual employee in the FY 2014-15. After go through your reply on dated 25th july’15 at 10.46Pm, i could not understand which ITR file to be filled up. as my Form 16 and Form 16A both are having different deductor name,PAN, TAN and also different commissioner of income tax(TDS). If i filled ITR-1, can only put one commissioner of income tax(TDS) in the Income tax ward/circle coloum. please suggest which ITR form i should fill.
My another query is that – i have a personal loan of 70 thousand through HDFC and i am paying 2539 EMI, can i get any advantage for tax saving?
Dear Madhusudan,
If you are receiving income as contractual employee or as a consultant, i believe it is better to file ITR 4.
There are no tax benefits available on personal loans.
Hi Sreekanth,
I have invested in one Large Cap and one multi-cap fund through SIP route. I want to invest Rs.1000 in mid & small fund though SIP for 20years, Could you please tell me which one is good for long term wealth creation,
Mirae Asset Emerging Bluechip Fund – G
Franklin India Prima fund- G
Thanks,
Krishna.
Dear Krishna,
Both are good ones.
I prefer HDFC midcap opp fund / UTI midcap.
Hi Sir, I have an query regarding Form 15 G .
I worked previous company for 4 years . While applying the PF form 10 c & 19 EPFO officer said 15 G also to be submitted . I filled 15 G and submitted along with 10 C & 19 in PF office. But previous company didn’t paid my TDS for 4 years and form 16 also not issued the same . MY question is weather EPFO will deduct TDS in my pf amount ? I hope replay will come fast. Thank you in advance
Dear Vinod,
If you have submitted pan & Form 15G then TDS is not applicable. But, you have to show this amount in your ITR.
Thank you sir for replaying ,
I don’t have form 16 to show ITR , since previous company hasn’t paid tax during my 4 yrs service . And they deducted TDS every year . In this case what will happen ? Please suggest me what to do .
Regards
Vinodh kumar
Dear Vinodh..
I am unable to understand your query. You are saying that your company hasn’t paid tax and you are also pointing that TDS has been deducted.
Dear sir,
My company deducted TDS in my salary for 4 years . But they didn’t paid to income tax. and due this Form 16 not issued to me. Without from 16 I am unable to file income tax returns. So i didn’t file income tax returs for last 4 years. My point is From 15 G will they deduct TDS in my PF amount
Dear Vinod,
You mean to say that though your company deducted TDS, it has not deposited it to IT department?
You may check this by accessing your Form 26AS. Kindly read my article : Form 16,Form 26AS and Form 16A details.
Is your income above the basic exemption limit for the last four years? If so, kindly consult a Chartered Accountant at the earliest and file your taxes.
Hi Sreekanth,
I am 39 years old working in UAE. married and have 2 kids. i have a own house and recently bought a flat for INR 4 million as an investment (receiving rent INR 13,000 PM). . also i have inevested INR 1Million in a plot.
now i am planning to save for my kids education and marriage etc. my elder kid is 4 years and daughter is 1.5 years.
1) what is the amount required for my elder kids education after 13 years, and what is the amount should i invest on monthly basis.
2) I am considering PPF as a safe investment for my daughter, i.e. would like to invest INR120,000 PA coz it will accumulate an amount at the end of 15 years isnt it? is chit fund a good option? (my wife and kids are not NRI)
3) also i want to have a good amount after 10 years when i return to home country (like retirement). monthly i can invest INR 40K.
could you please suggest me, what would be the right way to invest in order to fulfill my requirements?
Thank you
Basha.
Dear Basha,
Do you have sufficient life insurance coverage? Are your dependents covered with any medical insurance? Do you have health insurance cover?
Do you have any financial liabilities? (Home loan etc.,)
Suggest you to kindly go through the below articles and revert to me;
Top 7 best online term insurance plans
Retirement planning made easy
Kids’ education planning goal
Calculate future value of your investments or expenses.
Dear Sreekanth,
I am glad to see your prompt response. Much appreciated.
yes i have taken a policy of INR 20 lakhs (jeevan Anand – 16 years – already paid 5 premiums)
health insurance is provided by my current employer. do i need to take another health insurance in India as well?
No, i dont have any liabilities (home loan / debts ets)
is it better to invest in mutual funds or in real estate (plots)??
Dear Basha,
Suggest you to take term plan.
Did you go through the suggested articles?
Also read below articles;
Term insurance vs Endowment insurance plans
How to get rid off bad insurance policies?
Sir,
I have e-filed my returns for AY 2015-16 (FY 2014-15) through my CA. I want to verify the ack. online. Is there need for the TRP’s signature if verified online?
Further, now I am abroad and would like to get OPT through email and not on my mobile. The income limit is 5 lakhs and below. The “total income” referred is “gross income” before deductions under 80C etc. or the “taxable income” after deductions. Pl clarify. Thanks.
Dear Rangarajan,
As per the IT dept notification, it is ‘total income’ and does not clearly specify if it is net taxable income or gross income.
Suggest you to generate EVC through ‘E-filing website’ option. Generate EVC and use it for e-verification. If it goes through then fine.
Kindly note that EVC can be generated multiple times.
Read my article on EVC & ITR 2015-16.
Dear Shrikanth, im 30 yr old,has a 10 month old son, government servant.Details are as under:
1.Income – 10 lac per annum.
2.Dept insurance – 50 lac,LIC – 02 policies amounting to 70,000/per yr.(sum assured 10 lac & 2.5 lac)
3.Home loan EMI – 30000/per month.
4. Medical – Full departmental cover including for dependants.
4.EPF – 2500/month.
5. Aim- a.To generate a corpus of 3 lacs for car in next 3 yrs.
b.To generate a corpus of 1 cr for child education after 20 years.
6.Advice sought –
(a) Should i go cease one of the LIC policies & go for a term plan,even if it means incurring loss as surrender value of my policy is only 30%??
(b) Pl suggest 4-5 funds for SIP for creating a corpus of 1 cr.
Regards.
Dear shrikant,
2 – Let me know the LIC plan names, commencement date and tenure.
4 – Will this health insurance benefit be available even after your retirement?
5 a – Kindly go through my artilces : Top MIP mutual funds & Calculate future value of your investments.
5 b – Kindly read my artilce : Kid’s education goal planning
Also, visit this articles : Top Equity funds & Top balanced funds.
1.LIC Jeevan Saral Plan no 165 -Yearly premium 12010/,8 instalments paid(tenure 25 years).
2.LIC New Money Back Plan (Plan/Table no 820) ,Yearly premium 52107/,3 instalments paid(tenure 25 years).
3.Departmental health Insurance cover available till death.
Thanxx n regards.
Dear shrikant,
1 – You make it paid-up policy
2 – You may make it paid up or surrender it.
But before that, buy a term plan with sufficient cover.
Thanxx
An employee who is working in an Indian company has been given an Health Insurance benefit by the Parent Company of other country.
Please clarify would there be any perquisite value applicable on this benefit at the hands of the employee.
Dear Srikanth,
What exactly is the health insurance benefit?
Is it an allowance or is it a mediclaim related?
It is towards medical Insurance
I want to start investing in Mutual Funds but i see that these also give returns around 10 -15 % over e period of 10 yrs or so. Hence, will it not be a good idea to invest in Shares, FDs or Property, which can give better returns over the same period.
Look forward to your answer/suggestions to proceed further.
Thanks
rajiv saxena
Dear Rajiv,
How can FDs give better returns? Kindly share your views..
Ofcourse, an investor has to diversify across asset categories and spread the risk,depending on his/her financial goal(s).
Need ur suggestion.
My lic jeevan mitra policy is from November 2001 to October 2021.
Am going to stop this policy in August 2015. How much money I get.
Its premium is 530 per month. Sum assured is 1 lakh.
Its surrender value is written as “This policy can be surrender for cash after the premiums have been paid for at least 3 years. The minimum surrendered value allowable under this policy is equal to 30% of the total amount of the within mentioned premiums paid excluding the premium for the 1st
year and all extra premiums ,the cash value of any existing vested bonus additions will also be allowed.”
1)Is there any scope to stop this policy because its a salary saving scheme and deducted at salary itself and take money instantly or any disclosed conditions will be there?
2) I have calculated like this. Is this correct?
November 2001 to Aug 2015= 165 months – 1year
So 153 months .
153*530=81090+ 30% of 81090= 81090+24327=105417
105417 is final amount I get.
Thank you