Queries
Satya Ranjan Biswas , Noida
I ’ d like to invest a lumpsum amount of `10 lakh in mutual funds for a five-year time horizon . Please suggest some good mutual funds .
Rajnath BIRAJ , Noida
I am a retired person from the defence service . I work as an engineering consultant . I sold my property at another station . I get pension . What should be my financial plan ? This is a very subjective question . I suggest you consult a financial planner locally and share with him your assets , cost of living , expenses and insurance details . The financial planner would be able to examine your situation based on the submitted facts and recommend a plan of action that works for you and meets all your financial requirements .
Amit Kukreja Founder , WealthBeing Advisors
There is no data about you . Normally , we need to look at your risk profile , goals , liquidity requirements , past investments , asset allocations etc . before suggesting anything . Assuming that you have the risk appetite to invest in equity , your asset allocations allow you to invest in it provided you don ’ t need this money and have a time horizon of over five years . You may look at a large-cap fund like Aditya Birla Frontline Equity Fund and a multi-cap fund like ICICI Pru Nifty Next Fifty Fund . You can invest in them in equal proportion .
Suresh Sadagopan Founder , Ladder7 Financial Advisories
Manoj Dutta , Jalpaiguri
I invested a lumpsum `60,000 in UTI Mid Cap Fund in January 2017 and in February 2018 . Its valuation is `65,000 and I want to invest for 18 years . Can I continue the plan ? Which is the best alternative fund ? UTI Mid Cap Fund was launched in April 2004 . Since its inception , it has been delivering over 19 per cent compounded annual growth . Since the fund is performing well , you can continue your SIP .
Pankaj Mathpal Founder , Optima Money Managers
B Srinivas , Nizamabad
I am a 42-year-old central government railway employee . I have taken a `35 lakh home loan from State Bank of India for 30 years . I am going to get `5 lakh from Sri Ram Chit Fund , which is in my mother ’ s name . Shall I repay the loan or invest this amount ? Home loan generally comes at a low interest rate . Currently , it would be about 8.5 per cent . Over this , you also get deductions on interest upto `2 lakh . This makes the effective interest rate even lower . Hence , it is a good idea to keep the home loan intact and invest the `5 lakh which you are getting back . Where to invest is something that you can decide based on your risk appetite and goals .
Suresh Sadagopan Founder , Ladder7 Financial Advisories
Vijay S Desai , Bangalore
How is LTCG taxed on GOI / RBI gold bonds and gold ETFs . Should my broker deduct the Securities Transaction Tax ( STT )? What are the holding periods and LTCG taxes for gold bonds and ETFs ? Capital gains tax is calculated based on the holding period for the capital asset sold . In case of gold ETF , a holding period of less than three years is considered as short-term . More than three years is considered as longterm . Short-term capital gains tax on gold ETF is based on the slab rates applicable to individuals and long-term capital gains is taxable at 20 per cent with the benefit of cost inflation index . STT is not applicable for trading in gold ETF . The capital gains tax arising on redemption of Sovereign Gold Bond at the time of maturity has been exempted . The indexation benefits will be provided to LTGC on transfer of such bonds before maturity .
Pankaj Mathpal Founder , Optima Money Managers
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Outlook Money May 2018 www . outlookmoney . com