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Should I invest in Equity or Debt?

Milind Vadjikar | Answer |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Sep 17, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more

Question by shailly on Sep 07, 2024Hindi

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Hello Sir, I have 3 queries First: With 30L corpus what is the ideal way of investing percentage wise in order to grow and save money without too much risk. in assets as follows: 1. FD 2. Mutual funds/ (stocks/coins if necessary just for beginning) 3. NPS Account 5. Emergency funds Second: Does ITR Filling and Income tax paying is same thing Third: NPS dashboard shows 41% XIRR with invested value as rs 1193.20 and holding amount as rs. 1202. Investment made in aug-24 and national/gain loss comes of just rs. 17/18. What does that means? Isn't it should be much more according to XIRR and return percentage? This is for tier 1 (all citizen model) with schemes chosen as equity as 74.90% and corporate bonds as 25.10%. Pls. suggest.

Ans: 1. First and foremost you must put aside 6-8 months of regular expense coverage into à liquid mutual fund. After doing this if you have some lumpsum left then you should invest it in NPS or equity savings fund (moderately high risk) depending on your financial goal priority viz retirement (NPS) or some other. If your time horizon is 10 years+ even for goals other then retirement, then you may think about investing in pure equity fund but that will have very high risk.

2. You are supposed to pay you income tax liability for financial year during the same year through Advance tax, TDS and also self income tax payment by 31st March. After that you have to furnish complete record of your entire income during previous FY to the tax authorities with exemptions, deductions if any vide IT returns before 31st July. After doing this exercise you assess how much tax you paid during the previous FY and how much tax you actually were liable to pay. If the difference is positive amount then income tax department will issue a refund with interest. Also if difference is negative the you have to pay the difference amount with interest to the income tax department. So return filing is basically comprehensive reconciliation statement of your previous FY income tax payments and additional tax overdue or refund if any.

3. NPS Returns given in the statements are based on inflows, gives the annualized effective compounded return rate in your account as per XIRR working. The calculation is done considering all the contributions/redemptions processed in your account since inception and the latest valuation of the investments. The transactions are sorted based on NAV date.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Happy Investing!!

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