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Jinal

Jinal Mehta  |95 Answers  |Ask -

Financial Planner - Answered on Mar 08, 2024

Jinal Mehta is a qualified certified financial professional certified by FPSB India. She has 10 years of experience in the field of personal finance.
She is the founder of Beyond Learning Finance, an authorised education provider for the CFP certification programme in India.
In addition, she manages a family office organisation, where she handles investment planning, tax planning, insurance planning and estate planning.
Jinal has a bachelor's degree in management studies. She also has a diploma in in financial management from NMIMS, Mumbai.
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Asked by Anonymous - Feb 20, 2024Hindi
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Sir, I'm an NRI ( based out of Australia ) looking to invest into mutual funds and need your advice whether I invest via NRO or NRE and the tax implications. Is it advantageous to invest in India mutual funds?

Ans: Investing for long term goals is always advantageous.
Investing through NRE account is advisable.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 08, 2024

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I am currently residing in UAE. Can I use the money from NRE account to invest in mutual funds? If so, please guide me how to do so. I usually remit INR 20k every month, which I would like to invest for long term, more than 10 years.
Ans: It's fantastic that you're thinking about long-term investments. Investing in mutual funds from the UAE using your NRE account is definitely possible. Let's go through the process and consider the best ways to achieve your goals.

Understanding NRE Accounts and Mutual Funds
NRE Account Benefits:

Non-Resident External (NRE) accounts allow NRIs to park their foreign earnings in India.
Funds in NRE accounts are fully repatriable, tax-free, and can be converted to INR.
Mutual Funds for NRIs:

NRIs can invest in Indian mutual funds through their NRE accounts.
Investing in mutual funds provides diversification, professional management, and potential for higher returns.
Steps to Invest in Mutual Funds from UAE
1. Contact a Certified Financial Planner (CFP):

A CFP will guide you through the investment process.
They can help you understand the best options available for your goals.
2. Complete KYC Compliance:

Your CFP will help you with the Know Your Customer (KYC) process.
Submit identity proof, address proof, and a recent photograph.
Documents need to be notarized or attested by the Indian Embassy if required.
3. Choose the Right Fund House:

Select a fund house that allows NRI investments.
Many reputed fund houses cater to NRIs.
4. Open an Account:

Your CFP will assist in opening an NRI mutual fund account with the selected fund house.
This can usually be done online through the fund house’s website.
5. Mode of Investment:

You can invest through SIP (Systematic Investment Plan) or lump-sum.
SIPs are recommended for long-term investments as they provide the benefit of rupee cost averaging.
6. Fund Transfer:

Transfer funds from your NRE account to the mutual fund account.
Ensure compliance with FEMA (Foreign Exchange Management Act) guidelines.
Investment Strategy for Long-term Growth
1. Diversify Your Portfolio:

Invest in a mix of equity and debt funds.
Equity funds for growth and debt funds for stability.
2. Equity Mutual Funds:

Suitable for long-term growth.
Include large-cap, mid-cap, and small-cap funds for diversification.
High-risk but potential for high returns.
3. Debt Mutual Funds:

Provide stability and regular income.
Less volatile compared to equity funds.
Include short-term, medium-term, and long-term debt funds.
4. Balanced/Hybrid Funds:

Mix of equity and debt.
Lower risk compared to pure equity funds.
Good for moderate risk-takers.
Advantages of Mutual Fund Investments
1. Professional Management:

Funds managed by experienced fund managers.
They make investment decisions based on market research and analysis.
2. Diversification:

Spreads risk across different securities.
Reduces impact of poor performance of a single security.
3. Liquidity:

Easy to buy and sell mutual fund units.
Funds can be redeemed anytime, subject to exit loads.
4. Tax Efficiency:

Long-term capital gains tax is lower.
No tax on dividends for NRE account holders.
Power of Compounding
1. Long-term Growth:

Investing for more than 10 years allows your money to grow exponentially.
Reinvested earnings generate additional earnings over time.
2. SIP Benefits:

Regular investments benefit from compounding.
Disciplined approach helps in building a substantial corpus over time.
Risk Management
1. Understand Risks:

Equity funds are subject to market risks.
Debt funds have interest rate and credit risks.
2. Risk Appetite:

Choose funds based on your risk tolerance.
Diversify across different fund categories to balance risk.
Regular Monitoring and Review
1. Periodic Review:

Review your portfolio regularly.
Make adjustments based on performance and changing financial goals.
2. Stay Updated:

Keep track of market trends and fund performance.
Stay informed about any changes in mutual fund regulations.
Tax Implications for NRIs
1. Tax on Capital Gains:

Short-term capital gains on equity funds taxed at 15%.
Long-term capital gains on equity funds above Rs. 1 lakh taxed at 10%.
Debt funds have different tax treatment.
2. Double Taxation Avoidance Agreement (DTAA):

Check if there's a DTAA between India and UAE.
This helps avoid being taxed twice on the same income.
Final Insights
Investing Rs. 20,000 every month from your NRE account into mutual funds is a wise decision. It leverages the power of compounding and professional management. By diversifying your portfolio, balancing between equity and debt funds, and maintaining regular investments, you can achieve significant long-term growth.

Stay disciplined, monitor your investments, and adjust your strategy as needed. Your consistent efforts will help you build a robust financial future.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 23, 2024

Asked by Anonymous - Jul 22, 2024Hindi
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I am NRI from USA/Canada. Which mutual funds I can invest in? Which mutual funds you would you recommend? Which MF I can invest directly from here (without having to visit India)?
Ans: Investing in Indian mutual funds as an NRI from the USA or Canada can be more complex due to regulations like FATCA (Foreign Account Tax Compliance Act). Not all mutual fund houses accept investments from NRIs in these countries, and some have additional requirements.

Mutual Funds Accepting Investments from US/Canada NRIs

While the list can change, here are some mutual fund houses known to accept investments from US/Canada NRIs:

Aditya Birla Sun Life Mutual Fund
SBI Mutual Fund
UTI Mutual Fund
ICICI Prudential Mutual Fund
Tata Mutual Fund
L&T Mutual Fund
PPFAS Mutual Fund
Sundaram Mutual Fund
Nippon India Mutual Fund
Direct Investment Options

Some mutual fund houses allow NRIs to invest directly online without visiting India:

Aditya Birla Sun Life Mutual Fund
SBI Mutual Fund
UTI Mutual Fund
Important Considerations

KYC (Know Your Customer) Verification: You'll need to complete KYC verification as per Indian regulations.
NRE/NRO Account: You'll need an NRE or NRO account in India to invest in mutual funds.
FATCA/CRS Compliance: Be aware of the implications of FATCA and Common Reporting Standard (CRS) on your investments.
Investment Goals: Clearly define your investment goals, risk tolerance, and investment horizon.
Diversification: Consider diversifying your investments across different asset classes and fund categories.
Professional Advice: If you're unsure about investment decisions, consult with a financial advisor who specializes in NRI investments.

Recommended Types of Mutual Funds
Equity Funds
Large-Cap Funds: These invest in stable, large companies. They offer moderate returns with relatively lower risk.

Mid-Cap Funds: Invest in medium-sized companies with potential for higher growth. They come with higher risk compared to large-cap funds.

Small-Cap Funds: These funds target small companies. They offer high growth potential but come with high risk.

Debt Funds
Short-Term Debt Funds: Ideal for conservative investors seeking stable returns. They invest in short-term debt instruments.

Corporate Bond Funds: These invest in high-rated corporate bonds. They offer higher returns compared to government bonds.

Liquid Funds: These are low-risk funds suitable for parking surplus cash. They provide quick liquidity and moderate returns.

Hybrid Funds
Aggressive Hybrid Funds: These invest in a mix of equity and debt. They offer a balanced risk-return profile.

Conservative Hybrid Funds: These have a higher allocation to debt, suitable for conservative investors.

Direct vs Regular Funds
Disadvantages of Direct Funds
Lack of Guidance: Direct funds do not offer advisory services. Investors may lack professional advice.

Time-Consuming: Managing direct investments requires significant time and knowledge.

Benefits of Regular Funds
Expert Advice: Certified Financial Planners provide valuable insights. They help in selecting and managing your investments.

Better Monitoring: Regular funds come with ongoing support and portfolio reviews. This helps in better management of your investments.

Final Insights
Investing in Indian mutual funds as an NRI is a viable option. Ensure you comply with all regulations and choose funds that align with your goals.

Consider seeking advice from a Certified Financial Planner. They can provide tailored recommendations and ongoing support. This ensures your investments are well-managed and aligned with your financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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You’re not alone in this, and it’s okay to seek help—whether that’s legal advice, emotional support from loved ones, or even professional counseling to navigate the stress and anxiety this situation might be causing. The most important thing now is to take steps that protect your peace of mind and ensure your future isn’t weighed down by his actions.

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Nayagam P

Nayagam P P  |3918 Answers  |Ask -

Career Counsellor - Answered on Nov 24, 2024

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Sir i am currently in class 11 th and i just want to prepare for jee mains and advanced 2026 exam so give me some roadmap to achieve and also guide me for computer science
Ans: Shreya, I trust that you have already enrolled in a coaching center, whether it be online or in person, and have finished your eleventh syllabus. (1) If you have not yet created your own short-notes for the 11th syllabus that has been completed, prepare it and continue to revise them every three days until 2026, even after you have commenced studying the 12th syllabus in December 2024. (2) Review the questions that you have incorrectly answered or skipped in mock tests conducted by your Coaching Center and/or practiced independently. (3) In order to increase your rank/percentile by targeting computer science at a reputable college/institute, prioritize mathematics (although all three subjects are equally important). (4) You should be thorough with NCERT books, particularly those pertaining to chemistry, in conjunction with the materials provided by your coaching institute. (5) Have 1-2 reference books for each subject. Not exceeding two. (6) Review the questions that were incorrectly answered or skipped in your mock and practice exams and retake the test. It is advisable to maintain a distinct note-book for these types of questions, which should include answers and elucidating notes, in order to review them repeatedly for all three subjects. (7) Download the SYLLABUS of JEE Main 2025 (available on Google by searching for "JEE Main Information Bulletin") and print it out, as there will be no significant changes to the syllabus in 2026. Maintain it on your study table and continue to update the 11th syllabus chapters and concepts that you have covered to date by marking them with a checkmark. This will boost your confidence if you continue to update the same till November 2025. (8) A slight difference in Syllabus might be visible when you acquire the 2026 JEE Main / JEE Advanced Syllabus. The same can be resolved within 15 days to one month in 2025-26. (9) Increase your productivity by studying for 45 minutes to 1 hour, taking a 10-minute break, and then continuing for 45 minutes. (10) Take a 2-3 minute break every 45 minutes while practicing questions, whether offline or online. This break should consist of closing your eyes and taking long breaths to enhance your concentration and mental capacity. (11) Additionally, it is recommended that you acquire the 20-40 PREVIOUS years question paper book of JEE (Main & Advanced) from Amazon. Arihant's, Disha's, or MTG's publications are recommended. Once you have finished reading a chapter, practice and complete it to determine the extent to which you have comprehended the concepts and to identify areas that require improvement. (12) By October 2025, ensure that you have reviewed significantly more than 90% of the previous years questions. Your confidence will be further bolstered by this. (13) After the mock test is completed at your coaching center, clarify all incorrectly answered or ignored questions and continue to revise and practice them, as these types of questions will significantly disrupt your performance in the actual JEE. (14) If you are a regular school student, inquire with your class teacher about the minimum attendance requirement as outlined in the Board's regulations (State, CBSE, ICSE, etc.). Utilize the remaining 15% by taking time off and preparing for your JEE, if only 85% attendance is required. (15) THE MOST IMPORTANT Value Added Suggestion: Rather than solely relying on JEE, please participate in 5-7 entrance exams/counseling process with a JEE score for getting admission into any one of the private engineering colleges to have a variety of options to select the most suitable one. All the BEST for Your Prosperous Future.

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Radheshyam

Radheshyam Zanwar  |1062 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 23, 2024

Asked by Anonymous - Nov 23, 2024Hindi
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My son graduated BE CSC with 8.9 CGP was offered a job as system engineer inTCS in April when he was in his 8th semister. Till November 23 he didn't get the on boarding letter, in the meantime whe appeared in two' exams under same offer. Advice what has been going on.
Ans: Hello.
Whatever you are saying is just shocking. The track record of TCS is not like that, as you described in your question. It would be better to contact TCS again and ask them when they will give on boarding letter. It is not clear from your query whether your son had done some correspondence with TCS or not related to the job offered. It is also not clear which two exams he appeared in. If not selected in a campus interview, searching for a job might be tedious but not so difficult. Ask your son to post a strong resume on the LinkedIn portal and remain in touch with his seniors. Please visit the websites of renowned companies daily to search for vacancies. There are many job-offering portals where he can register his name. Please ask the college placement division for any placement opportunities.
Wishing the best of luck for his bright future.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

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T S Khurana

T S Khurana   |197 Answers  |Ask -

Tax Expert - Answered on Nov 23, 2024

Asked by Anonymous - May 11, 2024Hindi
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Money
Can you please suggest on capital gains as per Indian taxation laws arising in the below two queries : 1) property purchased with joint ownership, me and my wife’s name in 2015 at a cost of 64,80,000, housing improvements done for the cost of 1000000 and brokerages of 200000 paid and sold the same property at 10000000 in Dec 2023? 2) 87% of the proceeds got from the deal i.e 8700000, have been reinvested to pay 25% amount in purchasing another joint ownership property in Dec 2023, 3) I have invested in another under construction property in Nov 2023 by taking housing loan, which is on me and my wife’s name worth 1.4 cr, here the primary applicant is me only while wife is just made a Co applicant in the builder buyer agreement and also on the housing loan . So what are the LTCG tax liabilities arising from the above 3 scenarios for FY 2023-2024 and FY 2024-2025. I intend to sale off the property acquired in (2) by Dec 2024 and use that proceeds to close the housing loan for the property acquired in (3), will this sale of property be inviting any tax liabilities if the complete proceeds received from the sale of the property in (2) would be utilised to close the housing loan taken in Nov 2023 for the property in (3) ? Since in FY 23-24, I would be claiming the LTCG from the sale proceeds of 1) invested in the purchase of property in 2), and I intend to sale off this property in Dec 2024, will the LTCG claim be forfeited on the property sale in (1), should I hold this property at least for further 1 year so that sale of this property in 2) will not invite STCG?
Ans: (A). Let's first talk about F/Y 2023-24 :
You jointly sold a Property during the year for Rs.76.80 lakhs (64.80+10.00+2.00), & sold the same for Rs.100.00 lakhs.
You have jointly also purchased Property No.3 (I suppose it is Residential only), for Rs.140.00 lakhs.
You should avail exemption u/s-54 & file your ITR accordingly. Please disclose all details about sale & purchase in your ITR.
02. Now coming to the F/Y 2024-25 :
You intend to Sell Property No.2, which was acquired in 2023-24. Any Gain on Sale of it would be Short Term capital Gains & taxed accordingly.
Alternatively, you may hold this sale of property no.2 (for 2 years from its purchase) & avoid STCG
You are free to utilize the sale proceeds in a way you like, including paying off your housing Loan.
Please note to avail exemption u/s 54 only from investment in property no.3 & not 2.
Most welcome for any further clarifications. Thanks.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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