Bi-Weekly Advice Thread March 24, 2024: All Your Personal Queries

[henry_]

Ask your investing related queries here!

The members of /r/IndiaInvestments are here to answer and educate!

Alternatively, you could join our Discord and seek answers to your queries

If you're looking for reviews on any of these following, follow the links:

• which bank or brokerage to use
• which fund house is more capable and trustworthy
• which investing platform to use,
• which insurance company is reliable

Generally speaking, there is no best stock, or fund, or bank, or brokerage, or investment platform.

Answers are always subjective to your personal needs, but use those threads a starting point for you to look at what other Redditors have to say about a company, product, fund, or service.

You can then ask a more specific question about what product or service to buy, once you are able to frame your personal situation.

NOTE If your question is I got 10k INR, what do I do to get most returns out of it?, or anything similar; there is no single answer to this question. But we will also need A LOT MORE information if we are to provide some sort of answer:

• How old are you?
• Are you employed/making income?
• How much? What are your objectives with this money?
• Do you have any loan, or big expense coming up?
• What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know it's 100% safe?)
• What are you current holdings? (Do you already have exposure to specific funds and sectors? Have you invested in equity before?)
• Any other assets? House paid off? Cars? Partner pushing you to spend more?
• What is your time horizon? Do you need this money next month? Next 20yrs?
• Any big debts?
• Any other relevant financial information about you, that will be useful to give you an informed response.

Beware that these answers are just opinions of fellow Redditors and should only be used as a starting point for your research. This is NOT financial advice, in legal sense of the term.

You should strongly consider consulting a registered fee-only financial advisor before making any financial decisions. Ideally, such advisors should be registered with SEBI, and have a registration number.

Links to previous threads.

 

[maskil]

@henry_ In other countries a broker gives an option to its users which method they want to use while selling a stock or an etf, like FIFO/LIFO/Cost average/high cost etc. Is any broker providing a user in India to select a method that they want while selling?

 

[zashmaster]

@maskil This is not upto the broker in India. It has to be FIFO.

 

[taddai]

@henry_

Need suggestions as to where to invest 5k/pm for 4 years​

How old are you - 23y

Are you employed/making income- yes (monthly 54k)

How much? What are your objectives with this money - I want to buy a gaming PC the budget is '2.4L'. I want to save money (5k) for 4 years.

Do you have any loan, or big expense coming up? - No

What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know it's 100% safe?) - I just need the money I invested to return after deducting taxes when with drawing it after 4 years

What are you current holdings? (Do you already have exposure to specific funds and sectors? Have you invested in equity before?) - I started investing (at Nov-2023) through SIP a monthly amount of 10k

Any other assets? House paid off? Cars? Partner pushing you to spend more? - No

What is your time horizon? Do you need this money next month? - I want it after 4 years (I am only will to invest 5k. no top-up for 4 years)

Any big debts? - No

Any other relevant financial information about you, that will be useful to give you an informed response. - I barely have 15k left at the end of the month after all essential expenses from which I will be investing 5k for gaming pc.

Can anyone please suggest me where to invest this 5k/pm for 4yrs so that I can save up to 2.4L which is the budget of the PC I want to build.

 

[sandyanna]

@taddai For a guaranteed return at 4y investment period, you're pretty much stuck to fixed deposits.

 

[taddai]

@sandyanna Yes but I can't invest 5k per month in fixed deposit right? I think fixed deposit will only accept lumsum amount.

I am thinking of investing it in a debt mutual fund. Is it okay to do that

 

[bonzobob]

@henry_ Please review my portfolio.

Please review my portfolio:

• UTI Nifty 50 index - 40%
• Tata small cap - 20%

Planning to start below:
3. Motilal Oswal Midcap - 40%

Should I replace any of above ones with a flexicap fund?

Does it make sense to go for infrastruture based schematic fund since there will be lot of focus on infra in future?

Please suggest any improvements in the portfolio with reasons.

Thanks in advance!

 

[richie]

@henry_ How do I pay the loan emi on HDFC bank's site? The loan account has not been mapped and I don't see a way to pay. Does it get auto debited?

 

[richie]

@henry_ How do I file a revised return for a very old return (6 years old) as a legal heir? The original return was not filed correctly and is missing a TDS payment value due to which I have received a notice for a huge amount.

 

[charles72]

@henry_ Is anyone following Bandhan Bank Share? Any ideas whether it will show upside or breakdown further.

 

[brokenwings88]

@henry_ I was thinking lately of switching to index fund since in the long run index funds are expected to perform better than most of the mutual funds. I have redeemed my money from Parag Parikh and Nippon smallcap 250 fund and now I am looking for an index fund to invest in. Right now I am thinking of investing in either Next 50 or Nifty 500 but I need some advice. Is it okay if I have only one index fund in my portfolio? Should I consider ETFs over index mutual funds and what are the advantages? I will be investing close to ₹7 Lakhs and plan on continuing SIPs for a long duration since I am in my late 20s only. I was also considering investing everything in Smallcap 250 since I have a long time horizon in mind.

Note: I have sizeable amount as emergency fund in FDs so I can take favourable amount of risk.

 

[sandyanna]

@brokenwings88 All index funds basically hug the index closely. I haven't to date seen significant deviation from index from any mutual fund.

Choose any one you like. Rather, spend more time thinking about which index you want to hug.

 

[costeon]

@henry_ Short term investors, please advice me how would you invest 30L for the best returns?

How would you split this amount to ensure you make good returns while taking medium risk.

Which equities, index funds or EFTs and bonds would you choose? How much percentage can be invested in each?

I might opt for a mix of lumpsum and SIP. Wondering which stocks/sectors in India are a good choice for investing currently.

Thank you

 

[tang0]

@henry_ Want to clarify a doubt:

I am planning to buy a health insurance and there is no rent cap/limit. But in some YouTube videos and articles I have read that the room limit is generally 1% of the sum assured, is it true? Example: If I take health insurance of 5 lakhs, then will my room limit be of 5k only?

 

[unmedicated]

@henry_ Need Suggestions, New to mutual funds.

I am thinking of investing in mutual funds through SIP for 30 years and shortlisted some. Type of fund and fund allocation is below.

• Nifty 50 = 20% (UTI or ICICI)
• Nifty next 50 = 20% (UTI or ICICI or DSP)
• Midcap = 20% (Motilal or HDFC)
• Flexicap = 20% (Quant or Parag Parik )
• Smallcap = 20% (Nippon or DSP)

I am thinking of replacing nifty 50 and nifty next 50 with Large and midcap fund. Will that be a good idea?.

Share your insights on this. Thank you!

 

[brokenwings88]

@unmedicated Just invest in Nifty 500 since it covers everything you're investing in.

 

[sandyanna]

@brokenwings88 Nifty500 also maintains fund at market cap weights. Currently the OP is far too exposed at smallcap and MidCap corresponding to the weights.

It's not a bad thing necessarily, but speaking about fundamentals, I don't agree with overweight in any stock.

 

[unmedicated]

@sandyanna New to this and Couldn't understand clearly, care to explain. Am I doing something wrong here?

 

[vyrzaharak]

@henry_ Short term parking of funds

I have to pay the final installment of my home loan (10-80-10 scheme) of 17lac, which I will have by next month.
Expected to pay the amount by Sep 2025 i.e. about 18 months from now.
Worst case is to pay by 12 months.
Looking to park the amount in a safe way. Few options
1. FD in a bank --- Putting 17lac in one fd account feels risky.
2. FD in multiple banks - split into 3 fd, creating the accounts feels a hassle.
3. Liquid fund -- New to this, feels risky and tax implications( I'm in 30% salaried bracket) feel daunting.
4. Stocks -- risky.

Looking for your suggestions and inputs.

 

[duskborn]

@vyrzaharak Instead of FD, you can consider putting the money in T-Bill.

• T-bills have lower risk (due to gov backing)
• Slightly higher returns than FD