Bi-Weekly Advice Thread March 31, 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.

 

[punchukis]

@henry_ Hey everyone!

Please suggest a good broker for investing globally. I have been looking at HDFC's global investing (Stockal) and ICICI Securities.

I just have two asks:

• It should have all or most stocks listed (including ETFs). Have seen many brokers do not have many companies listed
• Safety

Thank you so much for the help!

 

[scottmcc2]

@henry_ i am new to investing.

my financial advisor advised me to make an account on zerodha and complete the kyc because it can be done online.

and advised me to then use kuvera or mfcentral if i am a beginner to actually invest .

I have made the account on zerodha and completed my kyc. he also said something about investing a small amount in a liquid fund on zerodha as well. Can anyone explain why he suggested this?

i have also created an account on kuvera. what do i do now? 'transfer' my kyc?

 

[elliot44]

@scottmcc2 The KYC is associated with the Pan no. It is now applicable to investment with any financial institution. All they need to do is to use your Pan no to confirm KYC is completed.

Use MF Central if you want SOA mutual funds rather than Kuvera. Zerodha is good for demat MF.

If the Investment is successfully processed it means that the KYC etc is complete and the investor is good to go. Liquid funds have low minimum ( rs 500-1000) and 7 day lock-in so easier to invest/redeem.

 

[theendwasin70ad]

@henry_ Question: Is it better to buy insurance through Ditto like brokers or directly on the company website once you have decided?

For example I want to go with hdfc ergo, should I go with ditto or directly buy it on their website

 

[kelly732]

@theendwasin70ad Once you have "really" decided on a provider, an advisor is not much value.

Ditto however claims they support in case of issues in making a claim (not sure how much leverage these guys have).

In case you are getting the same quote from ditto and for direct, doesn't hurt to go through them.

 

[theendwasin70ad]

@kelly732 Quote is same

 

[clstan]

@henry_ Hey guys!

I am a newbie investor. Have very little to no idea about investing in mutual funds. My more financially invested friends have been hounding me to invest in MFs for years now. I have watched some videos online and based on my friends' suggestions installed the ET money app.

I have made a monthly SIP of Rs.10,000/- in SBI large and Midcap fund and Quant mid cap fund. I can invest up to 40k per month. Based on the previous year performance of these mutual funds that are mentioned in the app, the return on investment seems to be greater than 20% p.a. Is this really true? From browsing this sub, everyone seems to expect

 

[jassy]

@henry_ One of my SIP on Kuvera to Navi US FoF failed to go through after the new regulations. Any idea on how long it'll take for the money to get credited back into my account?

 

[teryebir]

@jassy I reached out to support regarding this - they responded back with upto 7 business days.

 

[jassy]

@teryebir Yeah, the credit was done today.

 

[praisegodiambornagian]

@henry_ I already have a few FDs in 1 bank, should I create a new FD in the same bank or in some other bank like HDFC.

What are some good liquid funds I can invest in?

 

[ofangelsanddemons]

@henry_ Greetings Everyone,

I was introduced to this group by a friend and quickly realized the wealth of information I’ve been missing out on. I acknowledge that I’ve made several errors, such as a conservative approach to savings by only depositing funds in the bank. However, becoming a parent has shifted my perspective towards proactive financial planning for my children’s future.

Beyond maintaining an emergency fund, I currently have 10 lakhs in cash and contribute 30,000 monthly to a Systematic Investment Plan (SIP) with the intention to continue for at least the next five years. After perusing various blogs and educational videos, I’ve concluded that SIPs are a more strategic approach than lump-sum investments. My investment horizon is long-term, and I’m not anticipating immediate returns, so I would value any advice on selecting the appropriate fund type. Should I opt for a large-cap or a flexible fund? With the plethora of options in the market, what criteria do you consider? Is it the returns, P/E ratio, or other factors? I’m eager to learn about the funds you’ve chosen and your reasoning behind those choices.

Thank you!

 

[kelly732]

@praisegodiambornagian Check if you bank is covered under the deposit insurance scheme https://www.dicgc.org.in/FD_ListOfInsuredBanks.html . If the bank goes bust, you get the principal upto 5Lakhs back.

Neverthless, it is safer to keep some part of the money in one of the large banks like SBI/HDFC/ICICI, even at slightly lower interest rate to balance out the risk.

 

[dylb]

@henry_ Hello all, I'm new to investing. Is my strategy balanced and MF picks sound? Any tips on how I can improve would be greatly appreciated.

Context: 27 years old, Salaried, Single.

Monthly Salary = Rs 80,000 (post EPF).

Monthly EPF Contribution = Rs 1800.

My mutual fund investing portfolio:

• ICICI Prudential Nifty 50 Index Direct Plan Growth - Rs 10,000
• Parag Parikh Flexi Cap Fund Direct Growth - Rs 10,000
• Quant Small Cap Fund Direct Growth - Rs 10,000
• Motilal Oswal S&P 500 Index Fund Direct Growth - Rs 5000
• Motilal Oswal Nasdaq 100 FOF Direct Growth - Rs 5000

Total Investment per month = Rs 40,000

Share of monthly salary invested = 50%

I plan on continuing this strategy for a very long term. Did not consider ELSS since im in new tax regime. Also not sure if I should be investing in liquid (lower returns) and individual stocks (highly risky and needs alot of research).

 

[catholic500]

@dylb I also have a similar salary bracket... Don't you think investing 50% of your salary isn't a bit much? If you are not paying for rent or other EMIs then I guess this looks fine.

 

[marodi]

@henry_ Hello, i wanted to know what determines the interest rate change in

NSC/FRSB/PPF and if its possible to make an educated guess about this

change in future?

Im currently deciding between investing in FRSB vs SG Bonds. FRSB

has great rates currently (8.05%) but they deduct TDS whereas SG Bonds

have nominal rates(7.44%) but they dont deduct TDS and rate will be

fixed.

Im worried of a situation where the FRSB rate falls below the

7.4%pa. This way i suffer interest loss plus the TDS difficulty (Income

PA is above 2.5L but below taxable limit, so every year this TDS will

need to be claimed back as a refund pointlessly)

 

[newlight]

@henry_ Hey money wizards,

I need help to buy gold for my overall investment, can you recommend how and where should I buy it from, on a monthly basis?

Also, I need your advise on my how to invest better or optimize my portfolio. I have only started investing for last 3-4 years and got a stable income just 1 year back. I am 27 and I bring 2.4L per month (just recently got upgraded to a better job)

https://preview.redd.it/9po6qkt8fss...bp&s=1a85af1b1765567f21a62c8b02f3f34534aabb60

 

[yeeingfromoverhere]

@henry_ Coming straight to the point. I earn around 110K per month in India. My age is 24. My goal is to make around 5-6cr in next 10-15 years through all modes(salary, investments etc)

Currently my investments(sips) are like,

10k - ppf

5k - nps

10k - mutual funds (4k - pp flexi cap fund, 4k - index funds (small cap 3k, nifty 50 1k), 2k - elss funds)

Is this sufficient?

 

[jassy]

@yeeingfromoverhere Not really, no.

You'll need to invest somewhere between 55-60k every month with an annual step up of 10% with 12% returns for 15yrs to get around 5cr.