Queries
Arun
I am 34 years old . I ’ ve been investing in monthly SIPs for the past one-and-a-half years in the following funds : Reliance Tax Saver ( ELSS ) Fund-Growth ( `4,000 ), Reliance Vision Fund-Growth Plan ( `5,000 ), SBI Magnum Tax Gain Scheme-Direct Plan ( `2,000 ). I plan to create some funds for my six-month-old child ’ s future education ( `50 lakh ), retirement ( no figure in mind yet ) and home loan ( to repay the ongoing `65 lakh loan , for which I ’ m paying `57,000 EMI ). I can increase my investments from the current `11,000 to `20,000- `25,000 . Please advice on existing and new MFs to achieve my goals . Out of the three funds you are investing in , two are ELSS funds , which you may continue with to exhaust your Section 80C limit of `1.5 lakh . The third fund , Reliance Vision Fund- Growth Plan , is a large-cap fund . For the additional SIP of `14,000 per month , you can consider mid-cap or multicap funds , balanced / hybrid funds , diversified funds , etc to balance the risk and maximise returns over the years . Further , as the investment horizon is long term , you may consider investing in closed-ended funds that give capital appreciation . Budget 2018 proposes to levy taxes on longterm capital gains on sale of equity-oriented mutual funds from financial year 2018-19 . It is now proposed to tax longterm capital gains exceeding `1 lakh at the rate of 10 per cent . A list of mutual funds ranked by rating agencies can be obtained from various websites . You can select the funds for your SIP based on the rankings , past performance of the funds , fund manager ’ s tenure , asset under management ( AUM ), investment strategy of the funds , volatility versus performance , and other ratios .
Suresh Surana Founder , RSM Astute Consulting
Pavithran
I have an ICICI Prudential Health Saver family floater for `5 lakh ( ULIP part is about `75,000 ). I ’ m paying `15,000 as EMI . I am 39 years old , my wife is 33 and our child is six . Should I take another family policy ? Or , should I opt for a super top up plan like HDFC ERGO ’ s Medisure Classic Insurance ? I would suggest that you buy standalone health insurance from a general insurance company or health insurance company . Choose a product that suits your need . I would also advise you to consider your health and insurability before surrendering your existing cover . If your health is perfect , then go and change the insurer . But be cautious and consider super top up only if your health is not fine .
Neeraj Chauhan , CEO , The Financial Mall
Hitesh Chetabdas Thakkar
I want to start an additional SIP of `10,000 . I am now investing in ICICI Prudential Value Discovery Fund ( `3,000 ), ICICI Prudential Focused Blue Chip ( `3,000 ), DSP BlackRock Microcap ( `3,000 ), HDFC Mid-cap Opportunity Fund ( `1,500 ) and Axis Long Term Plan ( `6,500 ) thorugh SIP . I want to invest for 20 years . All your existing mutual funds are equity-oriented funds , which invest 95-97 per cent in equity securities . For the additional `10,000 SIP , you may consider any of the top rated mutual funds and its past performance before making an informed decision . As you propose to hold on to it for a longer term , you can opt for closed-ended funds , which you can renew on maturity for the projected period of 20 years .
Shweta Jain , CFP Founder , Investography Pvt . Ltd .
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Outlook Money March 2018 www . outlookmoney . com