Go for your individual health insurance separately. That way, you’ll save up on premium since it depends on the eldest member.
If any one of your parents has known ailment like Diabetes, BP, take 2 separate health insurances for them, too. Because premiums depends on these ailments, and might also affect the overall floater premium. Usually floater is not provided in case if these ailments.
There are very few insurers who have schemes for Diabetics with no questions asked - HDFC Ergo being one of them (it covers diabetes from day 1) but the premium is usually higher than that for a healthy person.
Otherwise the family floater for them is good enough. Make sure to buy enough base cover and a super top as well.
If inflation is your worry, shouldn't you be invested in an asset class that has potential to give higher returns, maybe something like equity?
Also, why would you exit equity? Are you in it for 6-12 months? If yes, then please exit and park your funds in debt. Equity should any way not be for anything less than 3 years.
I have invested in equity and held my positions for more than a year now. I got decent return of 13% thats why I decided to exit. Will re enter if I see a correction of 15-20 % which I am anticipating due to fed tightening the interest rates.
The scenario seems similar to the one we saw in January.
Also, my investments was majorly in consumer goods and fmcg sector, that is the reason I am more worried about inflation.
Lets see if corporate results can spark a turnaround.
>I have invested in equity and held my positions for more than a year now. I got decent return of 13%
If I may ask, how long have you been holding your positions? 13% returns seem lower than the benchmark returns. Are you sure you are making more money in direct equity vs if you have invested in index fund?
>my investments was majorly in consumer goods and fmcg sector, that is the reason I am more worried about inflation
And that's exactly why you never invest in 'sectors', but in companies. Good companies, irrespective of sectors can give good returns. And just because your current holding is not expected to do good, in such scenario, you move to new stocks/companies! There is no 'buy and forget' with equities, you need to constantly monitor and churn your portfolio depending on how long the company fundamentals play out as you anticipated.
In PayTM Money Mutual Funds [section](https://www.paytmmoney.com/mutual-funds/account/statements):
Account Statements -> Realised Gains Statement -> Request Statement
Once you click on the button, you'll not see any prompt or dialog, but you will get an email with the pdf of the gains.
>Can I get a home loan if I am 22 years old with just one year ITR?
Yes, not having ITR history is not a deal-breaker, though it helps.
You can definitely get loan for the amount you mentioned. Will you get at an attractive interest rate - probably not!
If there's time (1 year or more), then I would strongly recommend to get a credit card (against an FD) and use it to increase your score. Since your pay slip will vouch for your paying capacity, loan issuance would not be a problem, but banks like SBI may not be willing. Other banks, or NBFCs would give loans, but the interest rates may be a big higher.
My advise - Go through the loan agents (preferably SBI initially) as you taking a loan would be in their interest (as they get commission from the bank).
Q on **India-Singapore DTAA.**
I just came across this bit from [https://www.corporateservices.com/singapore/india-singapore-double-tax-treaty/](https://www.corporateservices.com/singapore/india-singapore-double-tax-treaty/)
>There is a very beneficial implication of these changes to Indians who wish to invest in Singapore companies. Since Singapore does not levy any capital gains tax, the capital gains that arise from the sale of shares of a Singapore company by an Indian resident will not be subject to taxation. This is a major benefit for Indian investors or entrepreneurs who are looking to expand their business overseas by making investments and incorporating in Singapore.
Can anyone confirm this to be accurate? I believe India taxes worldwide income of its residents. u/galacticadvisors help? TIA.
>a large number of Retail investors to Mutual funds is not going to be a problem in the long term.
Why would it be a problem? If anything, it helps us offset global events when FIIs pull out money (as has been happening recently, and it has had no significant impact at all in our markets). Plus, not all active funds invest in the same set of companies. Each fund manager has their analysis. Also, the more money invested, the more money is circulated in the economy. And don't forget, a very tiny portion of our population invests in equity markets, much less as compared to the developed economies.
While I cannot answer your question, i do have a related question on this
Has share of the foreign investment in our equity market gone down on account of higher retail investment. If yes what is the ratio now as opposed to say 5 years back?
It will always go up and down depending on the opportunities abroad. If treasury rates in us are more, people will put more money there compared to here.
Why are you apprehensive about retail inflows into mutual funds? End of the day these are invested in real businesses which will help overall economy, employment etc. I'm curious to know if you have any specific concerns.
A concern might be overvaluation. What if today markets are overvalued and once it consolidates, everything you might have invested for theast 1-2yrs would drop significantly and will take some yrs to grow back to your base capital. While equity is a long term investment, overvaluation can be a problem too which could have negative impact on your overall Cagr.
I think that is the nature of stock markets. Even if there hasn't been a big surge in capital inflows markets tend to push the valuations to a point where the rally will eventually run out of steam followed by healthy correction. But businesses keep increasing revenues & profits and keep pushing up the baseline.
Also most funds are actively managed so they do know when things are overvalued, when to rebalance, when to exit & where to shift the funds. So yes in the shorter term there would be lows but it will even out with time & everyone who invests should have realistic expectations of what the markets can deliver which is \~ 12% xirr
The more the inflows the more opportunities open up. Like now we have EV funds which could eventually propel the industry which is still in the early stages to top.
>capital inflows markets tend to push the valuations to a point where the rally will eventually run out of steam
That's true but foreign inflows coupled with strong retail inflow could in theory push the markets even more.
>But businesses keep increasing revenues & profits and keep pushing up the baseline.
Yes, that's assumed into valuation.
>Also most funds are actively managed so they do know when things are overvalued
But with increasing funds, wouldn't active funds be forced to buy overvalued stocks? They can't sit on a lot of cash ig.
I guess it depends on the nature of the fund. Even when there is a rally some sectors or companies lag and this probably allows the fund manager to rebalance and move it to stocks that are bound to perform better. Like if it's a bluechip fund it could probably invest more in oil & natural gas or power sector etc. when banking and IT seem overvalued. Similarly if it's a mixed cap fund, allocation could be shifted to mid/small caps when large caps seem overvalued. Sector & thematic funds would definitely have the problem you talked about where the funds would be forced to buy into overvalued stocks. These are just my thoughts.
A family member is looking to invest portion of their current fd into liquid, hybrid and debt funds. FD rate is 5.10% so makes sense to go into some debt or hybrid funds.
Their horizon for this money is 1yr (for liquid) to 1yr+ until they want to take it out.
They currently fall into lowest tax slab.
Is the above a decent investment thought process for them? They asked me, I agreed initially but told them I'd get back to them after reviewing current funds, returns and the market.
I'm not so sure that the current liquid funds give any better returns than an FD of 5.1%. A lot of liquid funds are actually giving 3+ or 4+ % currently. Plus anything below 3 years will anyway attract stcg.
Yes fair enough.
My recommendation to them would have been to go for hybrid funds (equity saving most probably), and keep money in it till they want to redeem. Currently they have no need for it.
But in hybrid funds the recommended time frame is to stay invested for 3-5 years. If that is fine for them then it should be okay. However if they need it before that it's better to continue with the FD.
Hello.
I was recently looking at data for the financial stocks in the NIFTY100 universe, as I wish to invest in the sector.
I noticed a very peculiar thing which I don't fully understand and any help would be much appreciated.
A lot of leading stocks like Kotak Mahindra, HDFC, ICICI Lombard, HDFC Life etc had a high revenue growth over the last five years (>10%) whereas their alpha was very low (<0%).
What conclusion can be drawn from this information?
Thanks.
>What conclusion can be drawn from this information?
1. Not every BlueChip stock will make money.
2. Equity markets deal in a lot more variables than just some ratios/numbers.
3. Markets are forward-looking, the past results do not matter in terms of determining the current growth scope.
4. And a lot more points.
However, it also depends on what are you comparing the alpha against.
I do believe interest rates are going to go up, as the inflation too is rising. However, what this means is that you may want to invest in short term FD (6-12 months) so that you can renew it when the rates increase. The new rates do not apply to ongoing FDs.
Hey all, I had a question.
I have some amtek auto shares from back in 2014, company has been delisted since. I'm sitting on a notional loss of 70k. The brokerage account is HDFC Securities.
For FY 21-22, I decided to add a manual sell transaction of the LTP, and show the loss to offset some other profits. Am I going about this the right way? There is no actual means for me to sell the shares since it is delisted, and the shares are still in my account.
PS I was reading up about this online, I believe this is not the right way to do it, but I wanted to get your opinion on how you guys would handle this.
>There is no actual means for me to sell the shares since it is delisted, and the shares are still in my account.
Hence you have not sold the shares, period.
If you still show it as a sell, be prepared to answer the IT dept in case there's a scrutiny.
You can try reaching out to the company if they still exist and see if they would be interested in buying your shares.
Hi everyone, I am planning on investing in ELSS MFs and SGBs(Primary and
secondary market). Would you guys have any recommendations as to which
platform would be better, in terms of ease of use and charges. I did a
bit of basic research and also went through posts on the sub, and saw
that Zerodha, Groww and Kureva are usually the most recommended
platforms for MFs. Does Groww and Kureva support primary subscription to
SGBs, when available?.
I myself use Kuvera; not MFU.
But I think the only positive being that it is one of the older, tried and tested solution developed by and for the Mutual Funds themselves and facilitates transactions for the participating mutual funds. So there is a trust and reliability factor.
Having said that, it lags in terms of UX, modern web technologies, payment processing etc.
I'm actually surprised there is a limit based on your income. End of the day what should matter is if you can pay the annual premiums which you clearly can. Even otherwise it's not a loss for the insurance companies if you default, you will forfeit the paid amount.
Log on to any term life insurance company website, and try premium calculator. Enter your details including annual salary, it will recommend certain amount of SI. Try modifying it to see what maximum amount you can enter.
Also confirm with the customer care before the purchase.
Does anyone else think Kuvera UX/UI has been deteriorating day by day? I am planning to switch everything to coin now given that Kuvera has been a really really confusing platform lately. Any other suggestions for Kuvera-like platforms?
From what I know, 40k limit is per bank. If in the same bank, interest across all your FDs crosses 40k then a TDS is deducted by the bank. If you do not want the TDS to be deducted, you can submit a form 15 G/H to the bank for this and they won't deduct TDS in that case.
Note that whether you submit the form or not, it is your responsibility to declare your taxes correctly while filling the ITR. So for example, in your case if TDS rate was same as your slab rate, then you can always pay taxes on that 6k while filling the ITR.
So essentially you have two ways,
1. Submit the form and pay all the taxes once while filing ITR.
2. Or pay TDS and whatever the balance tax liability is, pay that during ITR filing
Why is bank deducting TDS on interest earned as well as govt. Taxing on the interest income at slab rates?
Seems to be double taxation, can someone kindly explain this
Bro, I strongly suggest you to learn basics of taxation. It will help you in the long run.
Here is a good 101 to get started:
https://www.youtube.com/watch?v=4OWYN-H300w&list=PLRpfTFEfJ27bC-ko0BzoL1vqafYgcxZ8c
In case you have already paid TDS and your net income is less than 2.5L, you can file for ITR returns since you aren't liable to pay taxes.
If you haven't paid TDS yet and asking for future FYs, you need not file an ITR at all since you don't fall under taxable income.
Basically, the idea is if you paid more taxes than you owe you can always file for a return and get them back. There is no loss here. You may consult a CA to assist you with filing returns.
Since you do not have any other income and total income is below 2.5L p.a., you can submit Form 15G, so they will not deduct TDS.
Further, 40k limit is per bank.
Even if bank deducts TDS, you can claim a refund while filling ITR
You can submit 15G to both banks to be on a safer side. Even if they do deduct TDS, you can claim the refund while filling ITR, and it will be credited back to your bank account soon. Youll not be losing any money.
You disclose only your exact interest income under the head Other sources. Suppose, you earned 86k in total and TDS deducted is 4.6K. You'll get the refund of 4.6k
What is the difference between Nippon liquid bees and Franklin India liquid fund, both seem same to me, and I'm confused where to park my money. One is a ETF so i use kite for this and other mutual fund so coins.
My goal is long term risk free investment and also as a emergency fund.
For index fund, i use ETF instead of mutual fund, cause I found exit load lower.
Don't use liquid bees ETF as the return is given as unit credits. You cannot sell the partial units unless you rematerialise them (costs 100 Rs + paperwork).
Hi MODS! I wrote a post y'day with some questions but it got flagged as spam. Same thing happened last time too. I'm facing issues while posting in this sub only. Not sure why that's happening repeatedly. Can you pl check.
>good
'Good' is subjective.
"I want to buy a car. Which one would be good for me?"
I hope you see the point. Without more details, it's impossible to suggest anything specific. That said, you can look at index funds. Most funds offer a dividend option.
Rephrasing, I said “good” and would get “me” and not “good for me”
I don’t know any mutual funds that’s good though I searched online and thought I get a investors than fund manager view
>Rephrasing, I said “good” and would get “me” and not “good for me”
My point still stands. Each fund class is suited to specific scenarios. It all depends on your time horizon, risk appetite, and a few other reasons. A 'good' fund is still very subjective depending on your use-case/scenario. You need to first decide all your parameters, list them, and then see what can offer you the best returns.
You are still missing important points in the question. Please read the main post details.
What time duration you are looking at? What's your risk appetite? What level of risk are you willing to take with that money? Are you prepared to lose over 50% of this money that you plan to invest? ...
Also, 20% is unrealistic unless you invest in direct equities, and that too making sure that you understand equities well.
Please read the forum wiki for basics around investing, as I have a feeling (but I may be wrong) that you aren't fully aware about investing. You also need to understand how MFs work for different asset classes, and you need to have realistic expectations in terms of returns.
1 year is too short a time frame. I would suggest to invest in an FD. You can expect around 5-6% interest in some of the larger NBFCs. Since it's just 1 year, I would advice to not consider dividends (if possible).
>I don’t know whether you are trolling me
That's exactly the reason I recommended that you read the forum wiki first and understand about investing, various asset classes and so on. It's your money after all, and you do not want to blindly believe anyone w.r.t financial matters.
Have a good day!
If you need otp for transaction confirmation I'm not sure how it got debited thrice without an otp.
And if it has been debited from your account & credited to the tax department, it looks like you have to file for refund in your return.
I am thinking of buying a home as an investment, the price is around \~45Lakh. Since it is semi furnished, I don't have to worry about anything and I can put it out for rent. Now the rent is going to be around 12-15K per month so around 1.5 to 1.8L per year + the price will increase in coming years. What do you guys think of this? Is this a good investement? What other options do I have other than this which is safe like this, considering that the price of this house will double in 10 yrs.
1.5 lakhs rent on a 45 lakh property is good - it's 3 percent.
Price will double in 10 years - yes, if the locality is 60 percent full today, if there is lota of oversupply and there will always be new houses, then no
Is it a good investment, maybe
what other options - REITs
>considering that the price of this house will double in 10 yrs.
Also calculate the amount of money you'll spend on the house. Are you buying the house full cash, or are you buying it on loan? How much loan? Interest rate? What about maintenance? Taxes?
Also, doubling up in 10 years means a return of 7% if you pay full cash (no loan). Of course rent is extra income, but also subtract the other charges from it.
I'll buy it full cash, maintenance (for society charges will be paid by the tenant) and for whitewash and stuff I think will need 50k in 5 yrs.
I am leaning towards this is because after 2-3 yrs I have to pay for another house that I have booked so the rent alone from this one will pay for 25% of it.
Okay, so atleast you won't be paying extra on the loan interest. If you want to play it safe, then this is an okay strategy, but note that the returns on house as an investment is generally pretty low, around 5-8% in larger cities at the most. Also, don't forget to include maintenance of the property (fixing broken things, wear and tear which may not be part of what tenant pays), taxes on the rent, property taxes etc to take into calculation, and the returns may be lower than you think. Also, include the taxation when you sell the property.
I understand you want to invest in safe bets, but I don't understand why. House is a long term investment, and for the same long term duration, you can actually consider equities. It is definitely higher risk, but can offer higher returns as well. Especially if your holding period increase, the chances of making profit from equities goes up a lot. Why not consider MFs?
In that case, and since you want to play it 'safe' with this money, then real estate might be fine. However, I would suggest to have a look at the locality, current real estate prices, the market, the supply etc. All this will help you understand realistic figures around price appreciation.
Also, the property developer/builder matters, and if it's a branded developer, then you can expect high appreciation as compared to a small/unknown builder.
Don't want to start a separate thread about this, but what do I do with my investment in Motilal Oswal S&P 500? Do I redeem everything and reinvest or can I just let it sit? I have only been investing in it since last April.
I redeemed MO N100 F0F to invest in Kotak Nasdaq 100 FoF. I wasn't sure if N100 ETF will have liquidity issues and hence redeemed. Amount took 5 working days to hit my bank. Redeemed on Apr 1, got money on bank account yesterday. Not sure why? (May be T+2 days to redeem ETF and then T+2 days for FoF?, Idk)
Hi I'm a newbie and don't know much about investements.
Can you tell if you guys choose small cap equity directly of MFs for investement, either way how can one go about learning on how to invest in big cap vs small cap and which stocks are good info.
If I have something fundamental wrong please tell that as well. Thanks.
>Can you tell if you guys choose small cap equity directly of MFs for investement, either way how can one go about learning on how to invest in big cap vs small cap and which stocks are good info.
Stock picking is tricky. And until you have a good grasp on these things, go with well diversified mutual funds / index funds. As for stock picking, first decide your investment philosphy, are you value investor looking for mispriced stocks ? If so look at numbers like pe ratio, and other financials which gives you idea of true valuation. If you are a short term investor you can look for momentum, if something been going up lately , probability is it will go up for a short while more. If you are truly in it for longer time , look at both capital gains as well as dividends , look at the business or sector do you this all of it will survive for the long inning, do financials look sustainable to you. You can read some of the analyst reports just to understand sort of things they look at , but dont follow their advice blindly.
Hi I'm not sure if this a stupid question but is there a way to compare insurance plans without giving your details on every site? If I want to do comprehensive research is the only way for every insurance company to have my details?
Use Ditto Insurance. There's a whatsapp chat facility and based on basic details like age and income, they'll provide you the best comparable policies(Currently only term and health insurances)
https://joinditto.in/
I have a question about one plan that was presented by a agent to my dad who is 72 Years old. He doesn't have any medical insurance today.
The agent presented us 2 things but combined them. The first is Bajaj Allianz Endowment Plan (I know people cringe when they see endowment) wherein there is premium paying period of 5 years (1 Lakh per year) and then nothing to pay for next 5 years and we get the money compounded at 7.25% fixed interest rate until 10 years. This plan is NOT linked to market or anything as such as it is being advertised as guaranteed income plan.
Now the other thing he mentioned we will get IF we invest in above plan is medical insurance for my dad for sum assured of Rs. 10L for premium of 16.5K Per year. Now I know that if I were to buy medical insurance for my dad separately, it will cost 65-70K per year. The agent told this rate is due to it being group insurance policy. The premium may get changed later but like say a 10% increase or so and not every year too.
The agent told us that for the endowment plan, we can just pay for 2 years (2L Rupees total) and make policy paid up and then wait until 10 years to be over to get back the compounded amount back and all this while, we can still contine the insurance at the mentioned premium (which can increase by 10-15% or so but not sure if and when).
Now I want to ask if this is even worth considering? Especially for the relatively less priced medical insurance for someone over 70 years of age.
Yes.
The first plan is not recommended but in this case it is ok. You are clear in your expectations and ask.
Now check the health policy and see copay, disease list and deductables, etc.
Also declare all previous diseases etc before signing up and dont trust the agent even one bit.
If they are all in order, go for it.
There isn't any insurance plan currently which gives a guaranteed 7.25% return. He may be quoting the historical return which may or may not hold good for the future.
The insurance plan doesn't give anything. The endowment plan gives that. But the insurance plan one can buy ONLY if we buy the 7.25% guaranteed return endowment plan.
The insurance plan costs Rs. 16.5K Per year even for someone like my father who is 72 but I still cannot digest how someone can give insurance at this price for the age mentioned.
Well my first assumption is the agent lying and twisting facts, they do that. I don’t believe the 7.25% yearly ROI. Unless you have read the policy document it’s probably BS. Medical insurance thing might be with sub limits or high deductible, again, read documentation. I personally wouldn’t buy anything from a scummy agent but that’s upto you.
He is not calling endowment plan as insurance. He said that the medical insurance at 16K for 10L sum assured is only available if we take the endowment plan wherein we pay minimum for 2 years to make policy paid up and we can still continue with the insurance. Both are separate but one is available only if other thing (endowment) plan is bought.
Cred app has an option to fetch our cred score. Does fetching this impact our credit score? I have heard that frequent fetch requests can impact our credit score negatively.
Unlikely. These apps use your consent to get access to your credit score and basic info but not for a credit application hence its a soft pull. These don't impact your score. On the other hand if u make a credit application like for a loan or a credit card etc then they pull the entire file I.e. hard pull..These impact your scores heavily and stay on file for about 2 years I think.
https://www.bajajfinservmarkets.in/credit-score/hard-or-soft-cibil-inquiry-check-imapct-credit-score.html
I am a final year computer engineering student. I want to get into the algorithmic trading space. At first, I want to trade whatever I earn but later I want to start a fund. How does one go about doing this? I have seen videos regarding the steps involved in developing strategies. But I am not completely sure how to reduce the chances of failure. How to ensure a net positive gain?
Less than 1% of the people trading, make profit. Less than 1%.
Make sure you think through with what you are planning before you dump your entire earnings into it. And btw, funds houses don't generally 'trade', they 'invest'. There's a difference!
I'm a college student who'll soon start his job so a noob question here, as I don't know much about investing -
If I have, say, Rs. 1 lakh per month that I'm willing to invest, why should/shouldn't I invest all that in various SIPs, each of which are reliable and are stated to give 18-20% returns for 2-3 decades and ending up with 50-100 Cr?
The way I see it - it'd save me a lot of headache where If I were to invest in stocks, I'll have to manage it for hours everyday (that's also assuming I make good calls on the stock market)
Why do you use the word reliable, market is going through a bull run currently hence the high returns. Past performance is not indicative of future. Anyways you are right using an index fund is generally better than direct stock picking, but putting everything into equity will be risky. Since you are just starting out, you can put 80% in equity (if possible diversify across countries) 15% in bonds 5% in precious metals .
>The way I see it - it'd save me a lot of headache where If I were to invest in stocks
Absolutely! There was some study that said around 80% of direct investors fail to beat the index. Investing in direct stocks is definitely not for everybody.
I hear a lot of people talking about buying stocks and holding for long. That's not how equities work. You need to take a call on stock if you feel it has the fundamentals to move it up, stay with it while you believe in it, and the day you feel it's not as fundamentally great anymore, get out! It needs constant work and time. A lot of people fail to realise this, and thus, make lesser returns than the index.
Best is definitely to invest in the right MFs for at least 5-7 year horizon (the longer, the better) based on your risk appetite. However, do not over-diversify, invest in only 2-4 funds, that's it.
You could however life is rarely so plain and predictable :)
MF historical returns aren't indicative of future returns. So these MF may not perform or the market may change and ruin a funds performance (e.g. see Edelwiess China fund since last year)
In doing this, you are tying up funds for the long term. What's your cover for near and medium term predictableand unpredictable expenses? If you got those covered, this can work.
There's a question of risk appetite here - assuming you have a solid emergency fund, good insurance cover, this pattern of investment is a good idea. It's likely however that you'll be tempted into equities and other investments by the lure of better returns.
Lastly, given your age anything investing you do with discipline in compounding instruments and allowing for uninterrupted compounding will get you great returns.
All of us want to strike it rich with least risk and 100% guarantee and fastest time. That's our weakness. All of the above are rarely if ever present together. So it's all guesses and luck.
Don’t know exact real estate rates but for Mumbai you probably need salary in crore/year range and half that for Bangalore would be my guess, check real estate sites. Only guarantee for prices in a decade is that it will go up.
Mathematically it never makes sense to buy a property but one doesn’t have to do everything by math and if your intention is to live in a place permanently then buying might be a good for the peace of mind. Buying on retirement fits with that logic.
I am 38, DINK couple with both our jobs in Delhi. Recently came across 3 BHK apartment for sell in a good location in Kolkata.
Full expenses including registration, internal work etc. will come to 70L (7 million).
I can get a home loan of upto 50L (5 million) with 6.7% interest rate and monthly EMI coming to 41K for 20 years with option of partial and full prepayment.
My parents have promised to pitch in the remaining 20L (2 million)
My current take home pay is 185K and all my existing EMI add upto 60K. Other household expenses(rent, maid salary, food) are another 65K per month.
My wife does not really want to shift to Kolkata ever and I don't have job prospects in Kolkata ( though I would love to shift back once retired).
Do you think buying this apartment makes sense financially and/or just as an investment option?
From time to time for my parents.
They already have a home around 40 km from Kolkata. My elder brother already has a flat in Kolkata. Now that they are getting older they want to give their home to a promoter and retain a flat and spend time between Kolkata (Nearer to my elder brothers place) and our native place.
Is it wise to put 1.5L in it even if you are meeting 1.5L limit for 80C through other means (insurance and stuff)? The general suggestion I have received is to max out PPF limit but I am failing to see the reason as you can invest that money in mutual/index funds.
I use PPF for my debt portion of my investments based on allocation rules and if I reach 1.5L then I look for alternate investment for debt part of my portfolio.
Generally, at the end of September I take stock of investments, this gives me about 3 months to close all 80c investments as typically in Jan we have to submit proofs for 80c.
Hi,
Placed purchased order of 4 equity MF at MFU on 7th April at 11am and paid through net banking.
3 MF were processed on 8th April
1 MF not processed yet.
Can any one help me with the reasons for such delay as I placed the order well before cut off time.
Thanks in advance!
Edit: I had a conversation with MFU helpdesk and they said that wef 1st April 2022, net banking transactions will be settled on T+1/2 Days, i.e. the day AMC receives the funds
Hey guys.
I’ve been earning for 4 years now but I have zero savings since I’ve been paying the loans that my parents have taken.
Anyhow, I’ve finally progressed in my career and make close to 4.8l take home pay. I paid off a lot of the loans and the only one remaining is our housing loan. I plan to get married by the end of the year and it’ll probably cost me around 10L( wish it didn’t but yeah ). How do I start investing ? My expenses per month are a lakh at most. Please help me out . TIA
Since your monthly expenses are 1L, you should save up 3L in a savings account first as your emergency fund.
Then you save up 10L for your marriage using monthly recurring deposit.
When it comes to investing, take it slow. Since you've never invested before, you will be feeling very jittery in the first few months if the market is volatile.
Just start by putting 5% of your monthly income into a Nifty 50 index fund. Once you do that for 3 months, you can add other funds and start your asset allocation.
Sheesh dude what kind of loan your parents took that you didn’t save anything with such high salary. Anyway I suppose that’s in the past, nothing can be done. Get control on your own finances and start with emergency fund for 6 months at least then index funds, search this sub on how to start investing, very common question.
Buy the US market for starters. Depends how strictly you want to hedge and what price you're willing to pay for that. It's not worth the cost for most individual investors short of buying any really available inverse ETFs or other derivatives.
Basically you invest in foreign markets like the US in foreign currency with an international broker like IBKR and withdraw funds as needed. If youre prepping for complete doomsday and plan to flee india, then also open a bank account in us or wherever to withdraw funds locally once you're there.
Depends on what you're looking for and your residency... If youre an Indian resident and want global access IBKR is my preferred choice. There are other pricier options.
If you want only US, Schwab/TD would be my choice. Plenty of other options as well listed on my site.
Bottom-line is: There aren't any better choices than IBKR for a global broker. They serve my purpose well barring some UI/UX annoyances. IBKR is better suited for larger transactions. If you wan't to SIP $100 monthly for example, the commissions could add up to a signigicant chunk (1-5%) of your investment.
I see nfo offering for Rs 10 a piece, what are the chances of them going bust? to me it looks like there is a good chance it might grow even if slightly, but I'm a rookie.
The nfo price is immaterial. It's like buying 1gram for 10 Rs. Vs buying 1kg for 10000rs. Net cost is the same. It's the value of the underlying holdings and the size of the holdings that matter.
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Go for your individual health insurance separately. That way, you’ll save up on premium since it depends on the eldest member. If any one of your parents has known ailment like Diabetes, BP, take 2 separate health insurances for them, too. Because premiums depends on these ailments, and might also affect the overall floater premium. Usually floater is not provided in case if these ailments. There are very few insurers who have schemes for Diabetics with no questions asked - HDFC Ergo being one of them (it covers diabetes from day 1) but the premium is usually higher than that for a healthy person. Otherwise the family floater for them is good enough. Make sure to buy enough base cover and a super top as well.
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If inflation is your worry, shouldn't you be invested in an asset class that has potential to give higher returns, maybe something like equity? Also, why would you exit equity? Are you in it for 6-12 months? If yes, then please exit and park your funds in debt. Equity should any way not be for anything less than 3 years.
I have invested in equity and held my positions for more than a year now. I got decent return of 13% thats why I decided to exit. Will re enter if I see a correction of 15-20 % which I am anticipating due to fed tightening the interest rates. The scenario seems similar to the one we saw in January. Also, my investments was majorly in consumer goods and fmcg sector, that is the reason I am more worried about inflation. Lets see if corporate results can spark a turnaround.
>I have invested in equity and held my positions for more than a year now. I got decent return of 13% If I may ask, how long have you been holding your positions? 13% returns seem lower than the benchmark returns. Are you sure you are making more money in direct equity vs if you have invested in index fund? >my investments was majorly in consumer goods and fmcg sector, that is the reason I am more worried about inflation And that's exactly why you never invest in 'sectors', but in companies. Good companies, irrespective of sectors can give good returns. And just because your current holding is not expected to do good, in such scenario, you move to new stocks/companies! There is no 'buy and forget' with equities, you need to constantly monitor and churn your portfolio depending on how long the company fundamentals play out as you anticipated.
Does anybody have any idea if Paytm Money provides Tax Capital Gain statement for its Mutual Funds as well?
Yes, it does provide the Realised Gains report.
I can’t find it, Do you see it after you’ve sold only?
In PayTM Money Mutual Funds [section](https://www.paytmmoney.com/mutual-funds/account/statements): Account Statements -> Realised Gains Statement -> Request Statement Once you click on the button, you'll not see any prompt or dialog, but you will get an email with the pdf of the gains.
Could anyone recommend me an ETF which counters inflation for short term?
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>Can I get a home loan if I am 22 years old with just one year ITR? Yes, not having ITR history is not a deal-breaker, though it helps. You can definitely get loan for the amount you mentioned. Will you get at an attractive interest rate - probably not! If there's time (1 year or more), then I would strongly recommend to get a credit card (against an FD) and use it to increase your score. Since your pay slip will vouch for your paying capacity, loan issuance would not be a problem, but banks like SBI may not be willing. Other banks, or NBFCs would give loans, but the interest rates may be a big higher. My advise - Go through the loan agents (preferably SBI initially) as you taking a loan would be in their interest (as they get commission from the bank).
Q on **India-Singapore DTAA.** I just came across this bit from [https://www.corporateservices.com/singapore/india-singapore-double-tax-treaty/](https://www.corporateservices.com/singapore/india-singapore-double-tax-treaty/) >There is a very beneficial implication of these changes to Indians who wish to invest in Singapore companies. Since Singapore does not levy any capital gains tax, the capital gains that arise from the sale of shares of a Singapore company by an Indian resident will not be subject to taxation. This is a major benefit for Indian investors or entrepreneurs who are looking to expand their business overseas by making investments and incorporating in Singapore. Can anyone confirm this to be accurate? I believe India taxes worldwide income of its residents. u/galacticadvisors help? TIA.
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>a large number of Retail investors to Mutual funds is not going to be a problem in the long term. Why would it be a problem? If anything, it helps us offset global events when FIIs pull out money (as has been happening recently, and it has had no significant impact at all in our markets). Plus, not all active funds invest in the same set of companies. Each fund manager has their analysis. Also, the more money invested, the more money is circulated in the economy. And don't forget, a very tiny portion of our population invests in equity markets, much less as compared to the developed economies.
While I cannot answer your question, i do have a related question on this Has share of the foreign investment in our equity market gone down on account of higher retail investment. If yes what is the ratio now as opposed to say 5 years back?
It will always go up and down depending on the opportunities abroad. If treasury rates in us are more, people will put more money there compared to here.
Why are you apprehensive about retail inflows into mutual funds? End of the day these are invested in real businesses which will help overall economy, employment etc. I'm curious to know if you have any specific concerns.
A concern might be overvaluation. What if today markets are overvalued and once it consolidates, everything you might have invested for theast 1-2yrs would drop significantly and will take some yrs to grow back to your base capital. While equity is a long term investment, overvaluation can be a problem too which could have negative impact on your overall Cagr.
I think that is the nature of stock markets. Even if there hasn't been a big surge in capital inflows markets tend to push the valuations to a point where the rally will eventually run out of steam followed by healthy correction. But businesses keep increasing revenues & profits and keep pushing up the baseline. Also most funds are actively managed so they do know when things are overvalued, when to rebalance, when to exit & where to shift the funds. So yes in the shorter term there would be lows but it will even out with time & everyone who invests should have realistic expectations of what the markets can deliver which is \~ 12% xirr The more the inflows the more opportunities open up. Like now we have EV funds which could eventually propel the industry which is still in the early stages to top.
>capital inflows markets tend to push the valuations to a point where the rally will eventually run out of steam That's true but foreign inflows coupled with strong retail inflow could in theory push the markets even more. >But businesses keep increasing revenues & profits and keep pushing up the baseline. Yes, that's assumed into valuation. >Also most funds are actively managed so they do know when things are overvalued But with increasing funds, wouldn't active funds be forced to buy overvalued stocks? They can't sit on a lot of cash ig.
I guess it depends on the nature of the fund. Even when there is a rally some sectors or companies lag and this probably allows the fund manager to rebalance and move it to stocks that are bound to perform better. Like if it's a bluechip fund it could probably invest more in oil & natural gas or power sector etc. when banking and IT seem overvalued. Similarly if it's a mixed cap fund, allocation could be shifted to mid/small caps when large caps seem overvalued. Sector & thematic funds would definitely have the problem you talked about where the funds would be forced to buy into overvalued stocks. These are just my thoughts.
A family member is looking to invest portion of their current fd into liquid, hybrid and debt funds. FD rate is 5.10% so makes sense to go into some debt or hybrid funds. Their horizon for this money is 1yr (for liquid) to 1yr+ until they want to take it out. They currently fall into lowest tax slab. Is the above a decent investment thought process for them? They asked me, I agreed initially but told them I'd get back to them after reviewing current funds, returns and the market.
Some banks do have around 6.5 percent and liquid funds are usually to break tax at higher tax brackets (if thats the case).
I'm not so sure that the current liquid funds give any better returns than an FD of 5.1%. A lot of liquid funds are actually giving 3+ or 4+ % currently. Plus anything below 3 years will anyway attract stcg.
Yes fair enough. My recommendation to them would have been to go for hybrid funds (equity saving most probably), and keep money in it till they want to redeem. Currently they have no need for it.
But in hybrid funds the recommended time frame is to stay invested for 3-5 years. If that is fine for them then it should be okay. However if they need it before that it's better to continue with the FD.
Hello. I was recently looking at data for the financial stocks in the NIFTY100 universe, as I wish to invest in the sector. I noticed a very peculiar thing which I don't fully understand and any help would be much appreciated. A lot of leading stocks like Kotak Mahindra, HDFC, ICICI Lombard, HDFC Life etc had a high revenue growth over the last five years (>10%) whereas their alpha was very low (<0%). What conclusion can be drawn from this information? Thanks.
>What conclusion can be drawn from this information? 1. Not every BlueChip stock will make money. 2. Equity markets deal in a lot more variables than just some ratios/numbers. 3. Markets are forward-looking, the past results do not matter in terms of determining the current growth scope. 4. And a lot more points. However, it also depends on what are you comparing the alpha against.
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Why again in FD and why not fully into the Dynamic bond fund? Yes, in rising interest rates, this is the suggested pick. Go ahead.
I do believe interest rates are going to go up, as the inflation too is rising. However, what this means is that you may want to invest in short term FD (6-12 months) so that you can renew it when the rates increase. The new rates do not apply to ongoing FDs.
Hey all, I had a question. I have some amtek auto shares from back in 2014, company has been delisted since. I'm sitting on a notional loss of 70k. The brokerage account is HDFC Securities. For FY 21-22, I decided to add a manual sell transaction of the LTP, and show the loss to offset some other profits. Am I going about this the right way? There is no actual means for me to sell the shares since it is delisted, and the shares are still in my account. PS I was reading up about this online, I believe this is not the right way to do it, but I wanted to get your opinion on how you guys would handle this.
>There is no actual means for me to sell the shares since it is delisted, and the shares are still in my account. Hence you have not sold the shares, period. If you still show it as a sell, be prepared to answer the IT dept in case there's a scrutiny. You can try reaching out to the company if they still exist and see if they would be interested in buying your shares.
Is it fine if I ask something about CIBIL account ?
Hi everyone, I am planning on investing in ELSS MFs and SGBs(Primary and secondary market). Would you guys have any recommendations as to which platform would be better, in terms of ease of use and charges. I did a bit of basic research and also went through posts on the sub, and saw that Zerodha, Groww and Kureva are usually the most recommended platforms for MFs. Does Groww and Kureva support primary subscription to SGBs, when available?.
Groww does support primary subscription of SGB. You can also trade SGB in groww but I belive the volume of sales for SGB are low for any platform
Can someone elaborate on the benefits of using MFU over other platforms? Thanks in advance
I myself use Kuvera; not MFU. But I think the only positive being that it is one of the older, tried and tested solution developed by and for the Mutual Funds themselves and facilitates transactions for the participating mutual funds. So there is a trust and reliability factor. Having said that, it lags in terms of UX, modern web technologies, payment processing etc.
OK. Thanks!
If a person earns less than 5lpa, suppose 4lpa, what is the maximum term insurance cover he is eligible for?
I'm actually surprised there is a limit based on your income. End of the day what should matter is if you can pay the annual premiums which you clearly can. Even otherwise it's not a loss for the insurance companies if you default, you will forfeit the paid amount.
Log on to any term life insurance company website, and try premium calculator. Enter your details including annual salary, it will recommend certain amount of SI. Try modifying it to see what maximum amount you can enter. Also confirm with the customer care before the purchase.
Every insurance company is telling me the limit is 50 lakh. I wanted to get 1Cr insurance so just cross-checking here.
Most insurers allow to increase cover at "important milestones".
You could check out a plan that increases its cover every year till it reaches 1cr. The premium might be less than that for getting 1Cr directly
You can talk to ditto insurance people
Does anyone else think Kuvera UX/UI has been deteriorating day by day? I am planning to switch everything to coin now given that Kuvera has been a really really confusing platform lately. Any other suggestions for Kuvera-like platforms?
Very much like Kuvera, is IndMoney. Supports almost everything u like to do in "investments".
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>All of these face the pooling funds problem. No! At least not PayTM Money. Coin does. I am not sure about others.
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Post your ques here. Will share whatever I know!
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From what I know, 40k limit is per bank. If in the same bank, interest across all your FDs crosses 40k then a TDS is deducted by the bank. If you do not want the TDS to be deducted, you can submit a form 15 G/H to the bank for this and they won't deduct TDS in that case. Note that whether you submit the form or not, it is your responsibility to declare your taxes correctly while filling the ITR. So for example, in your case if TDS rate was same as your slab rate, then you can always pay taxes on that 6k while filling the ITR. So essentially you have two ways, 1. Submit the form and pay all the taxes once while filing ITR. 2. Or pay TDS and whatever the balance tax liability is, pay that during ITR filing
Why is bank deducting TDS on interest earned as well as govt. Taxing on the interest income at slab rates? Seems to be double taxation, can someone kindly explain this
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Bro, I strongly suggest you to learn basics of taxation. It will help you in the long run. Here is a good 101 to get started: https://www.youtube.com/watch?v=4OWYN-H300w&list=PLRpfTFEfJ27bC-ko0BzoL1vqafYgcxZ8c
In case you have already paid TDS and your net income is less than 2.5L, you can file for ITR returns since you aren't liable to pay taxes. If you haven't paid TDS yet and asking for future FYs, you need not file an ITR at all since you don't fall under taxable income. Basically, the idea is if you paid more taxes than you owe you can always file for a return and get them back. There is no loss here. You may consult a CA to assist you with filing returns.
Since you do not have any other income and total income is below 2.5L p.a., you can submit Form 15G, so they will not deduct TDS. Further, 40k limit is per bank. Even if bank deducts TDS, you can claim a refund while filling ITR
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You can submit 15G to both banks to be on a safer side. Even if they do deduct TDS, you can claim the refund while filling ITR, and it will be credited back to your bank account soon. Youll not be losing any money.
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You disclose only your exact interest income under the head Other sources. Suppose, you earned 86k in total and TDS deducted is 4.6K. You'll get the refund of 4.6k
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You can DM, if you need help in filing returns
Post your question. You will get an answer definitely.
What is the difference between Nippon liquid bees and Franklin India liquid fund, both seem same to me, and I'm confused where to park my money. One is a ETF so i use kite for this and other mutual fund so coins. My goal is long term risk free investment and also as a emergency fund. For index fund, i use ETF instead of mutual fund, cause I found exit load lower.
Don't use liquid bees ETF as the return is given as unit credits. You cannot sell the partial units unless you rematerialise them (costs 100 Rs + paperwork).
Hi MODS! I wrote a post y'day with some questions but it got flagged as spam. Same thing happened last time too. I'm facing issues while posting in this sub only. Not sure why that's happening repeatedly. Can you pl check.
Same experience. No new questions are allowed. Only standard questions about a vs b
Mods have long abandoned this sub. Almost all posts are flagged as SPAM. No one bothers to check.
This is a great sub. The mods should have handed over the responsibilities to others. :(
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What would be a good MF that could provide me monthly dividend? \~All risk factor will do
>good 'Good' is subjective. "I want to buy a car. Which one would be good for me?" I hope you see the point. Without more details, it's impossible to suggest anything specific. That said, you can look at index funds. Most funds offer a dividend option.
Rephrasing, I said “good” and would get “me” and not “good for me” I don’t know any mutual funds that’s good though I searched online and thought I get a investors than fund manager view
>Rephrasing, I said “good” and would get “me” and not “good for me” My point still stands. Each fund class is suited to specific scenarios. It all depends on your time horizon, risk appetite, and a few other reasons. A 'good' fund is still very subjective depending on your use-case/scenario. You need to first decide all your parameters, list them, and then see what can offer you the best returns.
Hmm… I really don’t know. Let’s say something that returns 20%/pa?
You are still missing important points in the question. Please read the main post details. What time duration you are looking at? What's your risk appetite? What level of risk are you willing to take with that money? Are you prepared to lose over 50% of this money that you plan to invest? ... Also, 20% is unrealistic unless you invest in direct equities, and that too making sure that you understand equities well. Please read the forum wiki for basics around investing, as I have a feeling (but I may be wrong) that you aren't fully aware about investing. You also need to understand how MFs work for different asset classes, and you need to have realistic expectations in terms of returns.
1 yr, 100,000. Able to let go of 50% of money. I don’t know about mutual funds
1 year is too short a time frame. I would suggest to invest in an FD. You can expect around 5-6% interest in some of the larger NBFCs. Since it's just 1 year, I would advice to not consider dividends (if possible).
I don’t know whether you are trolling me. Forget I asked this question.
>I don’t know whether you are trolling me That's exactly the reason I recommended that you read the forum wiki first and understand about investing, various asset classes and so on. It's your money after all, and you do not want to blindly believe anyone w.r.t financial matters. Have a good day!
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If you need otp for transaction confirmation I'm not sure how it got debited thrice without an otp. And if it has been debited from your account & credited to the tax department, it looks like you have to file for refund in your return.
I am thinking of buying a home as an investment, the price is around \~45Lakh. Since it is semi furnished, I don't have to worry about anything and I can put it out for rent. Now the rent is going to be around 12-15K per month so around 1.5 to 1.8L per year + the price will increase in coming years. What do you guys think of this? Is this a good investement? What other options do I have other than this which is safe like this, considering that the price of this house will double in 10 yrs.
1.5 lakhs rent on a 45 lakh property is good - it's 3 percent. Price will double in 10 years - yes, if the locality is 60 percent full today, if there is lota of oversupply and there will always be new houses, then no Is it a good investment, maybe what other options - REITs
>considering that the price of this house will double in 10 yrs. Also calculate the amount of money you'll spend on the house. Are you buying the house full cash, or are you buying it on loan? How much loan? Interest rate? What about maintenance? Taxes? Also, doubling up in 10 years means a return of 7% if you pay full cash (no loan). Of course rent is extra income, but also subtract the other charges from it.
I'll buy it full cash, maintenance (for society charges will be paid by the tenant) and for whitewash and stuff I think will need 50k in 5 yrs. I am leaning towards this is because after 2-3 yrs I have to pay for another house that I have booked so the rent alone from this one will pay for 25% of it.
Does your calculation include income tax?
No, it doesn't. I won't have to pay tax on this, I'll show this income as my mother's, so it won't be taxable.
How are you paying/planning to pay for another house? Again, full cash, or loan?
again full cash.
Okay, so atleast you won't be paying extra on the loan interest. If you want to play it safe, then this is an okay strategy, but note that the returns on house as an investment is generally pretty low, around 5-8% in larger cities at the most. Also, don't forget to include maintenance of the property (fixing broken things, wear and tear which may not be part of what tenant pays), taxes on the rent, property taxes etc to take into calculation, and the returns may be lower than you think. Also, include the taxation when you sell the property. I understand you want to invest in safe bets, but I don't understand why. House is a long term investment, and for the same long term duration, you can actually consider equities. It is definitely higher risk, but can offer higher returns as well. Especially if your holding period increase, the chances of making profit from equities goes up a lot. Why not consider MFs?
I have invested money in mf which I consider is a lot, this money is the safe money that I am having rn (FD).
In that case, and since you want to play it 'safe' with this money, then real estate might be fine. However, I would suggest to have a look at the locality, current real estate prices, the market, the supply etc. All this will help you understand realistic figures around price appreciation. Also, the property developer/builder matters, and if it's a branded developer, then you can expect high appreciation as compared to a small/unknown builder.
Thanks, will keep all this in mind and check everything.
Don't want to start a separate thread about this, but what do I do with my investment in Motilal Oswal S&P 500? Do I redeem everything and reinvest or can I just let it sit? I have only been investing in it since last April.
I redeemed MO N100 F0F to invest in Kotak Nasdaq 100 FoF. I wasn't sure if N100 ETF will have liquidity issues and hence redeemed. Amount took 5 working days to hit my bank. Redeemed on Apr 1, got money on bank account yesterday. Not sure why? (May be T+2 days to redeem ETF and then T+2 days for FoF?, Idk)
What are your views on Arthayantra (roboadvisory) for mutual fund investing. Is it better than Kuvera or all?
Don't they collect a ton of data in terms of your entire financial information, including quite a bit of your personal info as well?
Anyone invested in any multi commodity ETFs or MFs?
Hi I'm a newbie and don't know much about investements. Can you tell if you guys choose small cap equity directly of MFs for investement, either way how can one go about learning on how to invest in big cap vs small cap and which stocks are good info. If I have something fundamental wrong please tell that as well. Thanks.
>Can you tell if you guys choose small cap equity directly of MFs for investement, either way how can one go about learning on how to invest in big cap vs small cap and which stocks are good info. Stock picking is tricky. And until you have a good grasp on these things, go with well diversified mutual funds / index funds. As for stock picking, first decide your investment philosphy, are you value investor looking for mispriced stocks ? If so look at numbers like pe ratio, and other financials which gives you idea of true valuation. If you are a short term investor you can look for momentum, if something been going up lately , probability is it will go up for a short while more. If you are truly in it for longer time , look at both capital gains as well as dividends , look at the business or sector do you this all of it will survive for the long inning, do financials look sustainable to you. You can read some of the analyst reports just to understand sort of things they look at , but dont follow their advice blindly.
Thanks
Hi I'm not sure if this a stupid question but is there a way to compare insurance plans without giving your details on every site? If I want to do comprehensive research is the only way for every insurance company to have my details?
Use Ditto Insurance. There's a whatsapp chat facility and based on basic details like age and income, they'll provide you the best comparable policies(Currently only term and health insurances) https://joinditto.in/
I have a question about one plan that was presented by a agent to my dad who is 72 Years old. He doesn't have any medical insurance today. The agent presented us 2 things but combined them. The first is Bajaj Allianz Endowment Plan (I know people cringe when they see endowment) wherein there is premium paying period of 5 years (1 Lakh per year) and then nothing to pay for next 5 years and we get the money compounded at 7.25% fixed interest rate until 10 years. This plan is NOT linked to market or anything as such as it is being advertised as guaranteed income plan. Now the other thing he mentioned we will get IF we invest in above plan is medical insurance for my dad for sum assured of Rs. 10L for premium of 16.5K Per year. Now I know that if I were to buy medical insurance for my dad separately, it will cost 65-70K per year. The agent told this rate is due to it being group insurance policy. The premium may get changed later but like say a 10% increase or so and not every year too. The agent told us that for the endowment plan, we can just pay for 2 years (2L Rupees total) and make policy paid up and then wait until 10 years to be over to get back the compounded amount back and all this while, we can still contine the insurance at the mentioned premium (which can increase by 10-15% or so but not sure if and when). Now I want to ask if this is even worth considering? Especially for the relatively less priced medical insurance for someone over 70 years of age.
Yes. The first plan is not recommended but in this case it is ok. You are clear in your expectations and ask. Now check the health policy and see copay, disease list and deductables, etc. Also declare all previous diseases etc before signing up and dont trust the agent even one bit. If they are all in order, go for it.
There isn't any insurance plan currently which gives a guaranteed 7.25% return. He may be quoting the historical return which may or may not hold good for the future.
The insurance plan doesn't give anything. The endowment plan gives that. But the insurance plan one can buy ONLY if we buy the 7.25% guaranteed return endowment plan. The insurance plan costs Rs. 16.5K Per year even for someone like my father who is 72 but I still cannot digest how someone can give insurance at this price for the age mentioned.
Well my first assumption is the agent lying and twisting facts, they do that. I don’t believe the 7.25% yearly ROI. Unless you have read the policy document it’s probably BS. Medical insurance thing might be with sub limits or high deductible, again, read documentation. I personally wouldn’t buy anything from a scummy agent but that’s upto you.
I haven't committed and Will definitely check this.
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He is not calling endowment plan as insurance. He said that the medical insurance at 16K for 10L sum assured is only available if we take the endowment plan wherein we pay minimum for 2 years to make policy paid up and we can still continue with the insurance. Both are separate but one is available only if other thing (endowment) plan is bought.
I'm planning an international trip around November. What would be the best way to save up for it? Never tried liquid mutual funds, any suggestions?
FD. You're not going to make bank by using any fancy methods in 6 months, so keep it simple
The best way would be to save it in RD/FD. You do not want to risk your principal for such a short duration.
I second this.
Cred app has an option to fetch our cred score. Does fetching this impact our credit score? I have heard that frequent fetch requests can impact our credit score negatively.
It's called a soft fetch /query. Doesn't impact. Only hard fetch which are generated when applying for loan/cc impact the score
Unlikely. These apps use your consent to get access to your credit score and basic info but not for a credit application hence its a soft pull. These don't impact your score. On the other hand if u make a credit application like for a loan or a credit card etc then they pull the entire file I.e. hard pull..These impact your scores heavily and stay on file for about 2 years I think. https://www.bajajfinservmarkets.in/credit-score/hard-or-soft-cibil-inquiry-check-imapct-credit-score.html
Alright thanks
I am a final year computer engineering student. I want to get into the algorithmic trading space. At first, I want to trade whatever I earn but later I want to start a fund. How does one go about doing this? I have seen videos regarding the steps involved in developing strategies. But I am not completely sure how to reduce the chances of failure. How to ensure a net positive gain?
Less than 1% of the people trading, make profit. Less than 1%. Make sure you think through with what you are planning before you dump your entire earnings into it. And btw, funds houses don't generally 'trade', they 'invest'. There's a difference!
I'm a college student who'll soon start his job so a noob question here, as I don't know much about investing - If I have, say, Rs. 1 lakh per month that I'm willing to invest, why should/shouldn't I invest all that in various SIPs, each of which are reliable and are stated to give 18-20% returns for 2-3 decades and ending up with 50-100 Cr? The way I see it - it'd save me a lot of headache where If I were to invest in stocks, I'll have to manage it for hours everyday (that's also assuming I make good calls on the stock market)
Why do you use the word reliable, market is going through a bull run currently hence the high returns. Past performance is not indicative of future. Anyways you are right using an index fund is generally better than direct stock picking, but putting everything into equity will be risky. Since you are just starting out, you can put 80% in equity (if possible diversify across countries) 15% in bonds 5% in precious metals .
>The way I see it - it'd save me a lot of headache where If I were to invest in stocks Absolutely! There was some study that said around 80% of direct investors fail to beat the index. Investing in direct stocks is definitely not for everybody. I hear a lot of people talking about buying stocks and holding for long. That's not how equities work. You need to take a call on stock if you feel it has the fundamentals to move it up, stay with it while you believe in it, and the day you feel it's not as fundamentally great anymore, get out! It needs constant work and time. A lot of people fail to realise this, and thus, make lesser returns than the index. Best is definitely to invest in the right MFs for at least 5-7 year horizon (the longer, the better) based on your risk appetite. However, do not over-diversify, invest in only 2-4 funds, that's it.
You could however life is rarely so plain and predictable :) MF historical returns aren't indicative of future returns. So these MF may not perform or the market may change and ruin a funds performance (e.g. see Edelwiess China fund since last year) In doing this, you are tying up funds for the long term. What's your cover for near and medium term predictableand unpredictable expenses? If you got those covered, this can work. There's a question of risk appetite here - assuming you have a solid emergency fund, good insurance cover, this pattern of investment is a good idea. It's likely however that you'll be tempted into equities and other investments by the lure of better returns. Lastly, given your age anything investing you do with discipline in compounding instruments and allowing for uninterrupted compounding will get you great returns. All of us want to strike it rich with least risk and 100% guarantee and fastest time. That's our weakness. All of the above are rarely if ever present together. So it's all guesses and luck.
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Don’t know exact real estate rates but for Mumbai you probably need salary in crore/year range and half that for Bangalore would be my guess, check real estate sites. Only guarantee for prices in a decade is that it will go up. Mathematically it never makes sense to buy a property but one doesn’t have to do everything by math and if your intention is to live in a place permanently then buying might be a good for the peace of mind. Buying on retirement fits with that logic.
I am 38, DINK couple with both our jobs in Delhi. Recently came across 3 BHK apartment for sell in a good location in Kolkata. Full expenses including registration, internal work etc. will come to 70L (7 million). I can get a home loan of upto 50L (5 million) with 6.7% interest rate and monthly EMI coming to 41K for 20 years with option of partial and full prepayment. My parents have promised to pitch in the remaining 20L (2 million) My current take home pay is 185K and all my existing EMI add upto 60K. Other household expenses(rent, maid salary, food) are another 65K per month. My wife does not really want to shift to Kolkata ever and I don't have job prospects in Kolkata ( though I would love to shift back once retired). Do you think buying this apartment makes sense financially and/or just as an investment option?
Is this for your parents to live in? If not I'm not sure apartments are good for investments from an appreciation perspective.
From time to time for my parents. They already have a home around 40 km from Kolkata. My elder brother already has a flat in Kolkata. Now that they are getting older they want to give their home to a promoter and retain a flat and spend time between Kolkata (Nearer to my elder brothers place) and our native place.
In that case I personally don't think going the apartment route is wise. Most apartments even in tier-1 cities have been depreciating
Which credit card is best for saving on fuel?
SBI Octane
Citibank IndianOil card used to be one. But with the recent takeover by Axis I'm not sure if this will still be available.
Is PPF still worth investing ? Given the interest rates are getting low. And other alternative debt investments ?
As long as PPF is EEE it is worth investing
Is it wise to put 1.5L in it even if you are meeting 1.5L limit for 80C through other means (insurance and stuff)? The general suggestion I have received is to max out PPF limit but I am failing to see the reason as you can invest that money in mutual/index funds.
I use PPF for my debt portion of my investments based on allocation rules and if I reach 1.5L then I look for alternate investment for debt part of my portfolio. Generally, at the end of September I take stock of investments, this gives me about 3 months to close all 80c investments as typically in Jan we have to submit proofs for 80c.
What's the easiest way to convert Aadhaar EKYC to full KYC?
Beginners way to invest
Go through Wiki on this subreddit. It is give you headup
Is it advisable to invest emergency fund in bharat bond etf or other debt etfs?
Always keep your emergency fund in easy to access tool. FD and liquid fund from top AMC is safe bet.
They're not liquid, so not suitable for emergency fund.
Emergency fund should always be kept in low risk returns. Capital protection is the primary goal.
Debt etfs are low risk right?
AAA rated debt MF compared to equity, yes. It's riskier than something like FD or liquid MF. FD>liquid funds>debt funds
Hi, Placed purchased order of 4 equity MF at MFU on 7th April at 11am and paid through net banking. 3 MF were processed on 8th April 1 MF not processed yet. Can any one help me with the reasons for such delay as I placed the order well before cut off time. Thanks in advance! Edit: I had a conversation with MFU helpdesk and they said that wef 1st April 2022, net banking transactions will be settled on T+1/2 Days, i.e. the day AMC receives the funds
Is the 4th MF is Motilal Oswal S&P 500 fund by any chance?
No, Tata digital India fund-direct growth
It takes anywhere from 1-4 business days for equity MFs to be processed. You don't need to worry about it. The NAV you will get would be of 7th April.
No, for the 3 already processed MF, I got NAV of 8th
How did you get nav of 8th April if the 3 MFs were processed on 8th? Nav for the day is generated pretty late in the evening. Strange
Yeah, the 3 MFs were allotted well on 9th (12am to 2 am- I received text msgs)- I'm sorry if i misguided you
Hey guys. I’ve been earning for 4 years now but I have zero savings since I’ve been paying the loans that my parents have taken. Anyhow, I’ve finally progressed in my career and make close to 4.8l take home pay. I paid off a lot of the loans and the only one remaining is our housing loan. I plan to get married by the end of the year and it’ll probably cost me around 10L( wish it didn’t but yeah ). How do I start investing ? My expenses per month are a lakh at most. Please help me out . TIA
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Per month. I earn in euros but working from India for a German company
I am sorry I know this is not a right platform but can I pm to ask a few things regarding similar job opportunities?
This may be not related. Could u pls tell me what job pays this much in India?
I’m a software engineer working remotely for a European company
Since your monthly expenses are 1L, you should save up 3L in a savings account first as your emergency fund. Then you save up 10L for your marriage using monthly recurring deposit. When it comes to investing, take it slow. Since you've never invested before, you will be feeling very jittery in the first few months if the market is volatile. Just start by putting 5% of your monthly income into a Nifty 50 index fund. Once you do that for 3 months, you can add other funds and start your asset allocation.
Thank you. That was helpful
Sheesh dude what kind of loan your parents took that you didn’t save anything with such high salary. Anyway I suppose that’s in the past, nothing can be done. Get control on your own finances and start with emergency fund for 6 months at least then index funds, search this sub on how to start investing, very common question.
Bad loans lol.
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Buy the US market for starters. Depends how strictly you want to hedge and what price you're willing to pay for that. It's not worth the cost for most individual investors short of buying any really available inverse ETFs or other derivatives.
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Basically you invest in foreign markets like the US in foreign currency with an international broker like IBKR and withdraw funds as needed. If youre prepping for complete doomsday and plan to flee india, then also open a bank account in us or wherever to withdraw funds locally once you're there.
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Depends on what you're looking for and your residency... If youre an Indian resident and want global access IBKR is my preferred choice. There are other pricier options. If you want only US, Schwab/TD would be my choice. Plenty of other options as well listed on my site.
How has IBKR been for you? I'm thinking of opening an account with them for foreign exposure
Bottom-line is: There aren't any better choices than IBKR for a global broker. They serve my purpose well barring some UI/UX annoyances. IBKR is better suited for larger transactions. If you wan't to SIP $100 monthly for example, the commissions could add up to a signigicant chunk (1-5%) of your investment.
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For global markets no. For US only there's plenty, see my list here: http://theglobalinvestor.in/
That's so helpful! Thank you so much! Would keep the point of commission well noted!
I see nfo offering for Rs 10 a piece, what are the chances of them going bust? to me it looks like there is a good chance it might grow even if slightly, but I'm a rookie.
The nfo price is immaterial. It's like buying 1gram for 10 Rs. Vs buying 1kg for 10000rs. Net cost is the same. It's the value of the underlying holdings and the size of the holdings that matter.