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