Bi-Weekly Advice Thread March 31, 2024: All Your Personal Queries

[elliot44]

@rwg319 I called the 1800 no (between business hrs.. say post 10 am) a few days ago to set up my pin.

 

[forevereternal]

@rwg319 If you can login to cra-nsdl for NPS then go to the "grievance" tab and submit a new grievance related to your issue.

 

[rwg319]

@forevereternal Thanks. This option worked. I submitted a grievance online and the information was emailed to me within couple of days

 

[noahvm]

@henry_ Which is the best investment plan for a 20k stipend per month?

I have completed my final year MBBS and would be starting my insternship in a few weeks. I will be getting around 15-20k in stipend. How much should I invest and how should I split my investments?

 

[logant2222]

@noahvm When do you need it back?

In general for your age and experience, put 5k in Nifty index fund so you learn and experience volatility, and put remaining in an RD since likely you will need within the next 5 years.

 

[seekeroftheway]

@henry_ I'm unable to make investments in Navi US fund of fund.

Any reason? I read that foreign ETFs are blocked, is this the reason?

Anyone has some details?

 

[beloved123]

@seekeroftheway Yes
They sent out a mail, they will stop the fund
Last date for one time lump sum was 30th March, 3pm

 

[seekeroftheway]

@beloved123 Whoa... Let me check my mail.

So what's next?

Edit : I haven't received any mail actually. Possible to share some info on this if you know?

 

[kelly732]

@seekeroftheway This is not an issue with Navi, but due to an RBI dikait for MFs dealing with foreign funds. They have set a max limit at an industry level. Silly as it may sound, the fund houses have to follow the rule.

 

[seekeroftheway]

@kelly732 Yes.. I understand that.. Which is really unfortunate.

 

[theincrediblebaptistor]

@henry_ From where can I get historical return of all the nifty indices ? I want to invest in few different indices and want to check historical returns of last 20 years

 

[sandyanna]

@theincrediblebaptistor You can use GOOGLEFINANCE function in Google Sheets.

=GOOGLEFINANCE("NIFTY_50", "price", "2000/01/01", "2023/01/01", 1)

 

[zobers]

@henry_ Kindly advice and help refine my investment plan - I have the opportunity to invest 2L per month in equity for a year and half. This is unrelated to my salary and budgeted expenses.

Profile: I have worked in IT for decades and I estimate that I have about 10 years of "service" time left. My salary in excess of living expenses is about 1-1.5L per month. This goes to savings and investments. Interest from existing deposits goes back to FD.

I have no debt. I live in my own apartment. Children are already independent. I support my parents, in-laws and spouse (home maker). We have approx 3 Cr as FDs (not including my PF and PPF). I have made periodic investments in stocks and my portfolio is approx 1CR (mostly blue chip stocks, little in Gold ETF, no mutual funds so far).

I have the opportunity to invest 2L per month in equity for a year and half. This is my plan for the investment of 2L per month.

• Rs. 25,000 manual SIP in SBI Large and Midcap fund
  
• Rs. 25,000 manual SIP in ICICI Prudential Large and Mic cap fund
  
• The remaining (Rs. 1.5 L) to be use to accrue more of the stock I hold (list below)

Reliance, L&T, IOC, TCS, SBI, HDFC, Tata Steel, Bharat Dynamics, Tata Motors, Infosys, Mishra Dhatu Nigam, Bharat Electronics, HAL, Data Patterns, and Biocon

All the above will be long term investments. I plan to hold them 5-8 years, if not more. My objective is to get at least 15% CAGR on the investment.

Does this sound like a reasonable plan?

 

[beloved123]

@henry_ I have 2 SIPs with Navi through Kuvera,
One of them is closed now(US total market)

But my money for both SIPs are deducted but app is not reflecting it as successful SIP. It shows 'in process'.

It's second day now. Is this normal?

 

[sunshinegirl23]

@henry_ MotilalOswal has started NIfty 500 index where the investment is spread across 500 stocks. Can you guys provide your thought on this approach. The MF is claiming that it performs better than Nifty 50 index with 15.6 CAGR.

 

[sandyanna]

@sunshinegirl23 This MF provides access to midcap and smallcap at market cap weights. So it is very highly correlated to Nifty 50 itself.

As for the rest, it is upto you to decide if you want to diversify into

• midcap or smallcap
• at what weightage
• with different methodology (passive vs active)

If you want to invest at market cap weight passively and diversify into midcap and smallcaps, then this one single fund is going to give you exactly what you want.

 

[kmichonanchored]

@henry_ My current portfolio value in MFs, which is entirely equity focused, stands at ~₹16L (invested ₹12.2L through a combination of SIPs and one timers over the period of 6 years.

I was thinking of redeeming the ₹3.8L profit and reinvesting it back to essentially increase my invested amount. However, I'm assuming I'll have to pay ~28k in taxes (10% due to LTCG) + some transaction fees if I redeem it, which I feel is pretty high.

So my question is, should I take this plunge of redeeming the profit or just stay invested and leave my profits alone?

Any thoughts on the above would be very helpful.
Thanks!

 

[sandyanna]

@kmichonanchored The Indian Government has a 1L per financial year exception for LTCG. So you can sell your instruments and not have to get an exception for upto 1L which then you can reinvest into your existing MF portfolio. You seem to have realised this as you converted the 3.8L profit into 28k in taxes at 10% LTCG.

There is no point in going beyond the 1L exception if reinvesting is the purpose because that ~28k that you lose in taxes, could instead continue to growth inside the MF itself. The growth inside a MF is generally compound growth, so the more money you leave inside it, the more it has a chance to grow.

Do get the tax-exempt 1L LTCG though. That 1L of gains should be reinvested.

 

[janiedunn]

@henry_ I am a 2nd year engineering student, have 40k i won in a competition, looking to invest such that i get best returns in the next 3-4 years as i plan to start my own company.

 

[sokheaven]

@janiedunn Well it depends on what kind of investment you looking at, its really depending on it