The Times of India (New Delhi edition) : 2019-02-11



16 TIMES PERSONAL FINANCE THE TIMES OF INDIA, NEW DELHI MONDAY, FEBRUARY 11, 2019 FUND RAISER Equity: Large Cap 1 Year 3 Year 5 Year Equity: Multi Cap 1 Year 3 Year 5 Year Hybrid: Equity-Oriented 1 Year 3 Year 5 Year BEST FUNDS TO BUY 3.61 17.58 19.63 Reliance ETF NV20 15.31 18.97 — Mirae Asset India Equity Fund Principal Hybrid Equity Fund 1.5 16.54 16.05 7,000cr Mirae Asset Hybrid Equity Fund 3.81 13.95 — JM Core 11 Fund -0.7 18.01 19.37 Principal Multi Cap Growth Fund -4.87 16.33 17.87 ` Tata Retirement Savings Fund -1.23 13.94 19.44 Kotak Standard Multicap Fund 2.29 15.96 19.83 9.42 15.93 14.27 SBI ETF Sensex Hybrid: Debt-Oriented Equity: Tax Planning Equity: Mid Cap investment was made by mutual fund houses in domestic equities in January, even as foreign investors pulled out a massive 5,200 crore ICICI Prudential Regular Savings 6.35 10.18 11.62 Mirae Asset Tax Saver Fund 3.04 20.78 — -10.6 15.07 24 L&T Midcap Fund UTI Regular Savings Fund 4.67 8.43 10.52 Principal Tax Savings Fund -5.31 15.99 17.68 -6.81 13.76 21.27 DSP Midcap Fund Tata Retirement Savings Fund 2.33 9.06 10.42 Motilal Oswal Long Term Equity -8.98 15.59 — -8.48 13.39 23.39 Kotak Emerging Equity Scheme ` Figures are % returns. 3-year and 5-year returns are annualised. Source: Value Research 4 Prerequisites To invest in mutual fund schemes, investors must be KYC compliant. This can be done at the AMC’s office or registrar’s office or at a KYC Registration Agency (KRA). There is a standard KYC form to be filled by the investor. Documents such as copies of prescribed address proofs and identity proofs must be furnished along with the form 1 5 Choice of schemes Once KYC formalities are done, the investor has to decide which schemes to invest in. Since the investor is going to set up systematic transfer plan (STP), he needs to choose a liquid fund and equity fund of the same fund house. Consulting an adviser is advisable to help make rational choices Liquid funds A mutual fund application form must be filled to invest in a liquid fund. A cheque in favour of the specific liquid scheme should also be attached. If the investor is not taking the services of an adviser, he can submit the form at the AMC office himself 2 6 Systematic transfer 3 Along with the mutual fund application form, an STP form must be submitted. It must indicate the transferor scheme—the liquid scheme and the transferee scheme—the equity scheme to which the transfer must be made. The transfer frequency can be weekly, fortnightly, monthly or quarterly SHIV & SMITA BARUAH, BOTH 32, SALARIED, NOIDA FAMILY FINANCE House takes priority The other goals can be achieved in a staggered manner. have to take a loan for 20 years. At an interest rate of 8.5%, the EMI will come to around 34,700 and this can be easily sourced from the surplus. As for life insurance, Shiv has a term plan and a traditional plan worth 51.5 lakh. Maalde suggests he retain the two and buy another term plan of 1 crore for himself and 50 lakh for Swati, at 1,417 a month. The couple has a family floater plan of 5 lakh, but should buy a 10 lakh plan at 1,666 a month. Shiv should also buy a 25 lakh critical illness and a 25 lakh accident disability plan for himself, and a 25 lakh accident disability plan for Smita at 1,000 a month. – stay in a rented house in Noida and bring in a combined salary of 1.38 lakh. Their goals include building an emergency corpus, buying a house and saving for retirement. Financial Planner Pankaaj Maalde suggests that since they don’t have any children, they can stagger their child-related goals and start investing for these after a few years. The couple can achieve the goals as per the table given below. For the house worth 50 lakh that they want to buy in 18 months by making a down payment of 10 lakh, they will have to start an SIP of 53,000 in an ultra short-term fund. For the remaining amount, they will Shiv and Smita Baruah ` ` ` ` ` ` ` ` ` ` ` ` ` ` ` ` by Riju Mehta Investment needed (` month) Future cost (`) / time to achieve Resources used Goal 1.95 lakh Cash, fixed deposit - Down payment for house 10 lakh / 1.5 yrs - 53,000 PPF, EPF, NPS, Equity funds Retirement 6 crore / 28 yrs 16,500 Investible surplus needed 69,500 Annual return assumed to be 12% for equity. Inflation assumed to be 7%. SHARMA’S PORTFOLIO CASH FLOW Asset Current value (`) Existing Suggested Cash 67,000 Send us your personal finance questions at [email protected] 1.38 lakh 1.38 lakh Income ` ` Debt Outflow PPF 1.62 lakh Fixed deposit 1.35 lakh 55,000 55,000 Household expenses ` ` ` EPF 1 lakh Contribution to dependants ` NPS 30,000 5,000 5,000 ` ` Equity Mutual funds 3.72 lakh 1,863 5,113 Insurance premium ` ` 8.67 Total lakh 17,500 69,500 Investment ` ` Liabilities Current value (`) Loan Nil 79,363 1.34 lakh Total outflow ` ` Total liability Nil ` 59,137 3,887 Surplus ` ` 8.67 lakh Net worth (approx) ` AMIT MAHESHWARI, RAJ KHOSLA, WRITE TO US FOR EXPERT ADVICE Write to us at [email protected] with ‘Family Finances’ as the subject. Financial plan by FounderandManagingDirector,Mymoneymantra ASHOK SHAH, Pankaaj Maalde COVER STORY Will you be tax free? The Budget has proposed that earnings up to 5 lakh will be tax frewe. Find out the feasibility of claiming deductions ` to or ask your vendor for a copy ETWS 58888

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