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Ans: Hello,
Given that your current corpus in PF is not mentioned, the future value of the PF after 6 years will be 3,35,000 at 8.25%.

Ans: After October 1, 2024, NRIs will no longer earn interest on their PPF accounts. Despite this, you can still maintain the account until its maturity.

Ans: Hello Dilip,
Since you are approaching retirement, we’ve assumed a moderate return of 10%. To reach a target corpus of 1 crore and your portfolio consists of mutual funds and PPF investments, you can partially utilize the PPF maturity value, which is projected to grow to 35 lakhs over a 6 year period at an interest rate of 7.1%. To achieve the deficit, we recommend an additional SIP of Rs.16,000 along with your current SIP to achieve your goal. If you are not able to do this amount immediately, you can start off lower and increase your SIPs more aggressively. It is possible that your returns also are better and may also cover some of the gap.

Ans: Hello,
As you're planning for your retirement goal and desire moderate risk, we suggest investing in hybrid funds and considering the longer time frame you may include equity funds also for part your portfolio. Equity funds can be invested through Systematic Transfer Mode. Here are the recommendations:
HDFC Balanced Advantage Fund - Rs.2,00,000
ICICI Prudential Equity & Debt Fund - Rs.2,00,000
Nippon India Multi Cap Fund - Rs.1,00,000
ICICI Prudential Large & Mid Cap Fund - Rs.1,00,000

Ans: Hi,
Looking at the details, it looks evident that the investments being done by you is not enough to generate good corpus. Given that there are multiple goals involved, you have to look at at-least 25-30k per month into mutual funds to look at generating decent corpus lets say 5-7 Years down the line. Start streamlining your expenses and invest more to start planning for the goals better.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
You should analyse whether 8k per month is a good enough investment per month given your income. Target to invest at-least 25-30% of your monthly income. Since you are young, you can consider Mid & Small-cap funds with a small portion to large-cap funds to generate welath in the long run. You can consider to increase the investment by 10-15% every Year to build upon the Wealth.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
You are young and have the time to invest for long duration. We advise that you strive to increase your investment to 15-20k per month(less than half your income) over the next 10-15 Years to achieve a good Corpus. You can plan to invest in a mix of Large, Mid & Small-cap funds with a higher allocation to Mid & Small-cap funds.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
LTCG for Debt mutual funds is taxed at applicable tax slab.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
Dividend income gets added to the total income and is taxed at the applicable slab rates.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
The base Year has been changed to 2001 and the CII for the base year starts at 100 and keeps increasing every year. The new LTCG taxation says properties bought before 2001 are eleigible for indexation benefit with old taxation while post 2001, the LTCG applicable is 12.5% without indexation

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
The change in LTCG for real estate has been made effective from July 23, 2024. Since you have sold the property before this date, you should be able to apply for LTCG at old taxation with indexation. The new LTCG is 12.5% not 13.5%.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
Since the property was purchased before 2001, the sale after the gift deed should be eligible for old LTCG with indexation

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
Section 54 of the Income Tax Act exempts you from long-term capital gains if you invest your property gains in a new property. The capital gain is to be reinvested in a new residential property within 1 year before or 2 years after the sale, or construct a new residential property within a period of 3 years. Please check if the duration between the purchase and sale is 2 Years or less.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
The change in LTCG for real estate has been made effective from July 23, 2024. Since you have sold the property before this date, you should be able to apply for LTCG at old taxation with indexation.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
The information given is not sufficient to answer the question. Is the capital gain arising from equity/equity MF or Debt or real estate? Request you to send complete details so that we can answer your question better.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
We should be able to answer your question effectively if we get to know your age and the specific goals you are looking at. Without any goal for a specific duration, it will not be effective to say whether your savings and investment is enough. We urge you to prepare a goal list which might help you to streamline your budget. You can write to us once you have this list so that we can help you better.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
To start with, savings account will not help your goal. We advise you to invest this corpus in a mix of Largecap & balanced adavntage funds through STP mode to help you reach the goal. We advise to invest the 1.85 lacs saved every month in a mix of Large, Midcap and Hybrid funds to help you towards the goal. FD's also would not help you in achieving the goal that you have mentioned. EPF amount can be withdrawn once you cross 55 Years. Putting all of this together, you should be able to achieve a corpus mentioned by 7 Years not 5 Years provided it is invested into higher returns generating instruments. Since you have 5-7 Years time, it is possible to generate the corpus needed.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
First of all, we would advise you to check which policy is it that your parents have opened for you. If it is a life insurance policy requiring 17k per month, it might not be an effective policy because it might include an investment portion too. Many orgnaizations today have a decent health insurance policy for their employees. Hence, anything additional on the health insurance front should not cost you a lot of money. Coming to your goal of accumulating 18 lacs in 3-3.5 Years, we would like to say that the duration considered is short and prone to volatility. The more time spent, the better the generation of Wealth. However, to achieve your 18 lacs goal over 4 Years at 12% annualised returns, monthly investment comes to around 29k. One advise which we would like to give is, target a higher corpus and a longer duration to accumulate a larger corpus because you are still young.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
The change in LTCG for real estate has been made effective from July 23, 2024. Since you have sold the property before this date, you should be able to apply for LTCG at old taxation with indexation.

Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
This is insufficient data to answer your question currently. However, assuming that you might have invested the 20 lacs 10 Years back, you might be able to achieve a corpus of close to 1.9 cr after 10 Years from now assuming 12% annualised returns. The 22k sip might yield you a corpus of around 50 lacs in 10 Years assuming 12% annualised returns. You goal looks achievable. You can look to increase the SIP amount since your income shows you have the bandwidth.
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
This would depend on how soon you want to start receiving the pension. Assuming that you need the pension starting from age 60, you can apply for refund of EPF amount after age 55 since EPFO considers 55 as the retirement age. For superannuation, it is better to wait till the age of 60 because this comes with tax exemptions.
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
Given your mother's age and the situation, you may consider investing the monthly pension into a mix of Largecap, balanced advantage and Debt/Equity arbitrage mutual funds in the ratio of 20%, 50%, 30% respectively. This might help build a good risk-adjusted corpus in the long run. Assuming that you may need certain amount every quarter, you may consider quarterly swp from the funds which can give you a fixed amount. Depending on interest/dividend income might not be advisable since there is some volatility involved. I hope such a mechanism can help you build a good risk-adjusted returns along with receiving frequent amounts as needed.
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
Assuming that your in hand annual compensation is 50 lacs, 85k SIP looks smaller if we go by the expenses and savings ratio that is advisable. This might point out that there might be debt repayments that might be taking a chunk out of your income? You may have to relook on how to reduce your expenses gradually to build sufficent long term wealth. A 1-1.5 lacs SIP per month for the current compensation levels, looks suitable and which can build long term welath. The portfolio mix depends on your risk appetite. Assuming that you have a higher risk appetite, you may look at 25% largecaps, 25% flexicaps, 30% Midcaps & 20% smallcaps through the SIP mode. It is advisable that you do a detailed financial planning to assess where you stand against your future goals.
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
For the income mentioned by you, assuming that one takes all the deductions available under old tax regime, the old tax regime allows you to save some tax but not by a huge margin. Also, please note that going forward the Government might make more changes in the new tax regime to benefit larger interests. I hope this answers your question
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
From the given data, we can see that your monthly SIP can be much more than the current 1 lac per month. Assuming your current investment structure, 9-10 crore in 10 Years looks far fetched. We advise to increase your monthly SIP to accelerate your goal achievements.
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
The income is on the lower side to plan for expensive education and marriage. However, these are personal decisions that one can take to reduce the expenses. If one wants to plan for expensive education and marriage, you can look to come out of the ancentral property and invest the amount into Balanced advantage funds/Hybrid funds to plan for the education and marriage.
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
The type of investment would depend on your age and risk appetite. 100-your age is a broad based allocation to Equity that one can do. We suggest that you do a STP mode of investing. However, the given details is insufficient to give a detailed answer. Also, INR 1 lac per annum looks on the higher side and will drain the Corpus quite soon
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hi,
Broadly, your expenses look on the higher side which is not helping your investments which is low at 25k per month. We advise to streamline your expenses to bring them down while simultaneously increasing the monthly investments. We think that 50k per month should be the base and you can strive to improve upon this on a Yearly basis
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hello,
We beleive that 20 crore should be a good corpus for the expenses you have mentioned. Assuming that the duration you are looking for is decently long enough, you can invest the corpus into Large-cap, Balanced advantage and hybrid funds to grow the corpus while you do a systematic withdrwal plan
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Hello Manmohan,
We are assuming that you are also relatively younger in your age. Since, you have time, you can go for aggressive portfolio strategy with a higher allocation to Small & Midcap funds with a decent largecap funds exposure. Please be advised to do this in a SIP mode to take advantage of rupee cost averaging
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: Dear Kolli,
The Finance Ministry has clarified that house property bought before 2001 is eligible for indexation benefit, not on or after.
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

Ans: You can invest into a MF SIP. And can look at a combination of Largecap fund and a midcap fund in line with what was outlined here.

Ans: Your question is not clear pls.

Ans: Assuming that your earnings are 45K on a post tax basis, you can invest the balance into an SIP of Rs 5K per month. You can use a multicap fund like Nippon India Multicap fund

Ans: If you have good expertise in investing in stocks, understanding of market cycles and have the time to track your stocks; you can use direct shares. Otherwise, for most investors, mutual funds through SIP mode are a good option. You can start an SIP in a large cap fund like ICICI Bluechip, midcap fund like HDFC Midcap Opportunities and multicap like Nippon India Multicap

Ans: Please post here

Ans: I dont have clarity as the data is pretty generic. One of the best ways to invest into markets is through systematic investments. You can look to have SIPs across large, flexicap and midcap.

Ans: You can look at a mix of Large, Mid & Small-cap funds and decide on the mix based on your risk appetite. You can also park the funds in a debt fund and do a systematic transfer into an equity fund. Some Large-cap funds to mention are Nippon India Largecap fund & Mirae largecap fund. In the mid-cap category one may look at HDFC Mid-cap and SBI mid-cap funds. In the small-cap category one may look at ICICI Small-cap and Kotak small-cap funds.

Ans: The whole income will get added up. However, the freelancing income can be treated as income from business and profession and accordingly you can show relevant expenses that are attributable to this income or to run the freelancing business. Probably you are referring to the Tax deducted at Source (TDS). Note that TDS only only the deduction at source.. you would need to compute the tax while filing your return, show the TDS paid and arrive at the balance tax payable.

Ans: It is better to reinvest your FD into MF’s since you have 10 Years to retirement. You can look at a mix of Large, Mid & Small-cap funds with a higher ratio to Large & Midcap funds with a systematic transfer plan(STP) mode or one time. Some Large-cap funds to mention are Nippon India Largecap fund, ICICI Bluechip fund & Mirae Largecap fund. In the mid-cap category one may look at HDFC Mid-cap and SBI mid-cap funds. In the small-cap category one may look at ICICI Small-cap and Kotak small-cap funds. Small-cap funds can be through STPs through manage risk better. You are likely to build up a corpus of around Rs 4 cr.

Ans: You can have your SIPs into various categories- Large, Multi, Mid and Small Cap funds. You can have a higher allocation to Large-cap & mid-cap funds since you have a moderate risk profile. Some Large-cap funds to mention are ICICI Bluechip Fund & Mirae Asset Largecap Fund. In the Multicap/Flexicap category we can look at Parag Parikh Flexicap Fund/Nippon India Multicap. In the mid-cap category one may look at HDFC Mid-cap and SBI mid-cap Funds. In the Small Cap category, you can use Nippon India Small Cap Fund.

Ans: I am not clear on your risk profile. You can look to divide your investment between Large, Multi & Mid Cap funds with the mix depending on your risk profile. You can have a higher allocation to Large-cap & mid-cap funds if you have a moderate risk profile. Some Large-cap funds to mention are ICICI Bluechip Fund & Mirae Asset Largecap Fund. In the Multicap category we can look at Nippon India Multicap Fund. In the mid-cap category one may look at HDFC Mid-cap and SBI mid-cap Funds. If you have a higher risk appetite, you can add a Small Cap Fund, through a systematic transfer route.

Ans: You can relook at your investments in ICICI Commodities fund - sectoral funds are ones to be looked at only if you are able to track the industry cycles. Quant Small-cap fund is a high-risk fund style investing and one would need to keep it for the long term. You may look at adding a few Large-cap funds to your portfolio which is missing in your segment mix.

Ans: I hope that your job loss has not affected you emotionally. I see that you are close to your retirement age! One good thing to know is that you do not have any loans outstanding. On the other hand, you still have some responsibilities in your kid’s education apart from taking care of monthly expenses. Ideally, your investments should have covered your kid’s education expense annually given you have 1.30 cr in FD’s. However, if you continue to significantly depend on FDs, you may not be able to achieve your goals- as your returns would not beat inflation on a post tax basis.
At the same time, you are nearing retirement age, which makes you ideally risk conservative. As a first step, I would suggest you move some of your FDs to dynamic asset allocation funds like ICICI Balanced Advantage Fund. Part of your portfolio you can use Large Cap and Flexicap/Multicap funds. Second step is if you can look at some sources of earning to at least cover household expenses for a few years. Your can get it reviewed and see if it is delivering returns in line with managed funds. If not, you can move some of this also to managed funds.
A combination of looking for sources of income, and improving your returns will help you in this journey. One backup you have is that of a reverse mortgage on your house to take care of your expenses.

Ans: It is good to diversify your investments. Especially for long term requirements like retirement, PMS could be an option for you to consider.

Ans: This would depend on whether your company has a company car policy.

Ans: The benefits of investing through a Distributor are you get advice and handholding, you can leverage the experience of the distributor and their research which could also result in higher performance for a good distributor. The negatives of investing through a distributor are higher costs and potential conflict of interest where the distributor could choose a higher remunerative product for him.
You also have the option of using direct funds and appointing a Registered Investment Advisor which would take out conflict of interest.
You may find that a good distributor/advisor could add value beyond the lower cost that direct funds offer.

Ans: PF withdrawals in cases where contribution is not made for a continuous period of 5 years is subject to tax. If there was a previous organization you worked for, you can consolidate the same and if the period crosses 5 years, it will be tax free.

Ans: You can check your bank account details, IFSC code, etc for its accuracy at the time of filing your returns. If it is correct, you can go to the e-filing portal and raise a service request for a refund re-issue by submitting necessary information required by the portal.

Ans: First, of all it is good to know that capital intensive goals like fixed assets and loans are completed. You have planned your finances well. My responses are below:
• The Funds listed by you have performed reasonably well
• Currently, most of your portfolio is Equity oriented and are high risk. This is ok, but it is good to have some money on debt options. This has not been provided by you, so cannot comment.
• An assumption of 12% annualized returns over a period of 14 Years looks a little overstretched if one considers having a good mix of Equity, Debt and Gold in the portfolio. Your current SIP’s fall a little short of achieving INR 7 crore over 14 Years with 12% annualized returns. You could increase this on a yearly basis as your income goes up and you should be fine. Over the years, you can also increase the mix of Debt and Gold.
• Another question one needs to ask is whether the Corpus of INR 7 crore is enough assuming that one is planning for retirement. Our retirement models show that this kind of Corpus might be sufficient to cover monthly expenses of approximately INR 1.5-1.6 lacs in today’s scenario. The standard of living varies from person to person, so you can assess based on these inputs.