Personal Finance Queries For The Day (12-09-2018)

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B Gopkumar - 12 September 2018

Is it OK to invest in Sundaram Services fund, an open ended equity fund in service sector? The same is said to be opened on 29th August, 2018.

Abhijith, Gudalur

Yes, Sundaram Services Fund is offering unique composition of an opportunity to invest in services industry. You can consider investment in it as a part of giving diversification to your overall portfolio.

I am nearing retirement in 2 years in a private service. I will get PF and Gratuity. I will not get any pension. I have savings in my bank accounts and FDs. I have my own accomodation. Please advise me on how to invest to get a monthly income of Rs 50,000 per month. Also the incomeshould be inflation adjusted to last about 35 years. Please suggest portfolio of investments which may include Mutual Funds. I have no dependants except my wife. I have a Mediclaim and top up policies.

Raj Kumar, Delhi

Given the fact of no prior regular income provisions after your retirement, suggesting you to invest in Hybrid fund (balanced fund) offering presently around 10% to 12 % returns per annum. To get Rs 50000 per month income after your retirement, you should invest approximately Rs 60 lakh now in Hybrid funds (balanced fund) like Canara Robeco, ABSL Equity Hybrid fund, Reliance Equity Hybrid Fund, etc with an option of SWP (systematic withdrawal plan) at 10% per annum in monthly mode once you retire. Alternatively you can choose to invest in other debt & accrual funds offering around 8% to 9% returns per annum.

I have SBI lIfe SBI Unit Plus II plan since March 2007. Will they consider the top-up amount also at the time of loyalty addition. Please guide.

Sameer, Sirsa

Suggesting you to get in touch with your SBI Life RM or advisor for your support requirement on specific plans. In general, majority of ULIP plans are accepting top up amounts over and above the payment of regular premiums committed by you.

Kindly review : 1. Axis Long Term Equity Fund--Direct Growth amount invested 145000, current value 187445 2. DSP Black rock Small Cap Fund--Direct Growth amount invested 146000, current value 154296 3.HDFC Mid cap Opportunities Fund-Direct Growth amount invested 140000, current value 166573 4. Kotak Standard Multicap Fund Direct Plan Growth (Kotak Select Focus) amount invested 160000, current value 199594. Also I want to invest 50000 as lumpsum, please suggest which fund should be targeted.

Rishi, Lucknow

Since your majority of current investments are in mid & small cap funds, you may consider large cap funds like ABSL Frontline Equity, Reliance Top 200, HDFC Top 200 and ICICI Bluechip funds for your new investments.

I have started a SIP last year of 1000 of Kotak select focus and know I want to increase it and they are saying that we can not increase the SIP but u can take new SIP of same scheme.

Sumit, Bilaspur

Kotak select focus fund is now renamed as ‘Kotak Standard Multicap Fund’. As being an open ended fund, Ideally it should allow any additional investment anytime. Increasing amount in same SIP may lead to the change in National Automated Clearing House (NACH) / Electronic Clearing Services (ECS) mandate of particular SIP amount to your bank, hence they might be suggesting you to start the new SIP in the same fund. Please get in touch with your advisor or AMC for more details.

I am 36 years old. giving rent 22000pm, licpremium 70000py termpolicy 20000py, mediclaim15000py, ppf 2000pm. I am investing in direct plan, growth option of the following mutual funds via SIPs since sep 2018: SBI Bluechip Fund - Direct - Growth- 3000 Motilal Oswal Multicap 35 Fund - Regular - Growth- 3000 hdfc mid cap OPPUTUNITY DIRECT- 2000 Reliance Small Cap Fund-1000 sbi equity hybrid fund-2000 My long term goals are: (i) Retirement after 25 years (approx.): Rs 1 crore (ii) for home after 10 years 40 lakhs (iii) Children's education after 15 years: Rs 50 lakh. Is my portfolio ok?

Shilpa, Navi Mumbai

Since you have not mentioned investment term, assuming regular investments in LIC traditional policy & PPF till 25 years. Assuming performance of different asset classes, Considering LIC traditional average annual returns @ 5% p.a., PPF average annual returns @ 8% p.a. and equity oriented funds returns @ 15% p.a. in expectation of its continuation in future too. You need to increase investments in these SIPs from existing 11,000 p.m. to around 25,000 & above p.m. to meet your goals.

I have invested an amount of INR 1000 in each of the below MFs and I am earning INR 300000 P.A. I want to invest for 5 years, and I have other safe deposits with bank. Is my choice correct in MFs? 1.Sbi consumption opportunities fund 2. Canara robeco emerging equities 3.Axis bluechip fund 4.Tata digital india fund 5.Tata India consumer fund 6.Axis multicap fund

Ramesh, Bangalore

Normally fund choices are depended on the tenure & size of goals. Prima facia all these funds seems good for long term investments, you should continue these SIPs for even longer period.

I am investing Rs 5000 in both HDFC hybrid equity fund and ABSL frontline equity fund. I want to start two more SIP of Rs 5000 each in emerging bluechip and axis bank long term equity fund. Is this good or should I change the plan?

Prateek, Bangalore

Majority of these funds are belonging to Large cap funds category. Large cap funds offers lesser to moderate risk & moderate returns. If it meets your purpose all these funds are good for investment depends on your goals, risk appetite and expected returns.

Disclaimer: Views expressed are personal and we do not promote any brand or investment funds.

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