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

[vyrzaharak]

@duskborn How to find out and good way to invest in them? Any pointers to start?

 

[duskborn]

@vyrzaharak You can do it through RBI Direct Retail OR Zeordha Kite

 

[runningwithfire]

@henry_ In the interest of diversifying investments, is investing in an infra fund any good? Any suggestions on a specific fund that can be looked at?

 

[sandyanna]

@runningwithfire Investment in a special sector isn't diversifying. Instead, it is concentrating your stock allocation to specific stocks present in both infra sector and nifty index.

You can choose to concentrate based on gut feeling and instinct, but it needs to be a calculated risk, as portfolio allocation will necessitate that by concentrating on one sector, you're taking away money that would otherwise be part of your initial portfolio allocation.

 

[amyworshipsjesus__]

@henry_ I just graduated from college and currently repaying my loan. I can save upto 10k per month at present. I want to start investing, so I can (hopefully) multiply my money. I have some big expenses coming 3 years down the line but after that I want to play the long game.

I would appreciate any help from you guys on how to start investing, where to start, where to learn about various investment instruments, which stocks to choose and how much time it needs. Thank you!

 

[amyworshipsjesus__]

@henry_ I just graduated from college and currently repaying my loan. I can save upto 10k per month at present. I want to start investing, so I can (hopefully) multiply my money. I have some big expenses coming 3 years down the line but after that I want to play the long game.

I would appreciate any help from you guys on how to start investing, where to start, where to learn about various investment instruments, which stocks to choose and how much time it needs. Thank you!

 

[resjudicata]

@henry_ Got a lumpsum of 25 lakhs. What would be a good safe investment? Are nifty and sensex overpriced at the moment?

Do index funds fees of 0.2%/yr eat up a lot of the corpus or is it fine to pay that much?

 

[sean4567]

@resjudicata Depend when you need that money ?

Pick UTI Nifty 50 or HDFC Sensex

First dump 25L in to the liquid fund and then start STP of weekly or monthly in such a way that the entire corpus gets transferred in 1.5-3 years.

Don't care much about the expense ratio in the index fund, tracking error is the better metric to judge an index fund.

 

[resjudicata]

@sean4567 I don't need the money for the next 5-6 years, and have no plans to spend it on anything even after that. Just want to make sure it's kept decently.

Is HDFC sensex fund good? I have some money in ICICI Pru sensex. Do you recommend the HDFC one over that one?

What's a good liquid fund? Thanks in advance!

 

[sean4567]

@resjudicata Pick the respective amc liquid/short term debt fund as your target mf.

Wasn't able to check tracking error RN but HDFC has a larger aum which is a positive in index fund cases.

You can't go wrong with either tbh just check the tracking error.

As you have already invested in ICICI I would suggest to go with it unless you have linked it to some goal. The less clutter the better imo.

Personally I went with UTI Nifty 50 but index works best when you have at least 10 year investment horizon as that's when law of averages works out in index funds favour.

Active funds could provide you a better alpha for 5-6 years investment horizon but comes with a downside of shortlisting and reviewing it on an annual bases.

 

[resjudicata]

@sean4567 According to live mint, it seems that HDFC does have a lower tracking error. Will switch to that entirely. Thanks!

 

[sean4567]

@resjudicata Happy to help mate just be careful of taxes before redemption.

 

[makavelli]

@henry_ Now that international ETFs are also banned from accepting new purchases, how to invest internationally? Is Vested the best choice or are there other options? How is the experience with Vested?

 

[sean4567]

@makavelli Fof will be stopped as well? ICICI Nasdaq will work imo.

 

[makavelli]

@sean4567 Nah everything is stopped

 

[jaytee58]

@henry_ Can I still invest 50000 in Elss or NPS ?

I currently have a lic policy with a half yearly premium of 13.5k (27k per annum ) and a Kotak Life goal maximizer with annual premium of 50k . And at 12% pf rate , my payslip dedcuts 7200 per month (86.5k per annum) .

If i understand correctly this would suffice for 80C deductions .

Can I still invest additional 50k in ELSS or NPS under 80CCD ?

FYI . my current month payslip income tax deduction is at 60k .

I don't have any other deductions or Home loans . How can I reduce my tax pay

With 18LPA , I fall under 30% of tax bracket

Any help would be much appreciated. Thank you

 

[jesusismyvirtue]

@henry_ Quick check if I'm on the right track.

Age : 24.

Goal is to reach 1cr by 2030 so that I can start a family.

Monthly earnings after tax : 1.1 lakh

Expenses : 35k. (7.5k pg rent + food, 15k to parents, 12.5k eating out/travel).

Recurring deposit: 20k.

Nifty 50 : 30k.

Nasdaq100: 25k.

Would appreciate any financial advice so that I can reach my goal.

 

[alicefive]

@henry_ Im planning on taking a loan for my MSc in India prolly in NITK or MIT, but ive no clue how loans work like will they pay for my accommodations(hostel fee) and laptop, what about other expenses like if they ask for it? How will they pay for the laptop ?

 

[bonzobob]

@henry_ For health insurance, Is it better to have unlimited restore as add on or in base policy? For e.g., hdfc optima secure provides it as add on while icici max health advantage provides it in the base policy itself. I had read somewhere that it is better to have something like unlimited restore in the base policy itself rather than add on(in case they remove the add on in future).

 

[repentantheart]

@henry_ SWP to buy a car.
Saw a reel on Instagram about buying a car with SWP if you have full cash available, it said to take Bank loan for the car and invest own amount in SWP for a 7year period at about 12% p.a., after using swp calculator I'm left with a profit of around 1.5 lakh. I'm confused if it'll actually work? Any help would be appreciated.