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

[janiedunn]

@sokheaven Mutual funds

 

[sokheaven]

@janiedunn How about Index ? me and my friend we both put some of our capital on the Nifty 50 since 2021, things been looking good

 

[janiedunn]

@sokheaven i was thinking about fofs, in the semiconductor domain

 

[kman973]

@henry_ Hi I have a question of EPF interest. I am an IT employee and switched companies in July 2021. A new EPF account was created by new employer. I recently check epfo portal, the last interest credited in my old epf account is in March 2022. Is this normal ? I see online that the account should accumulate interest for 3 years. I am planning to merge accounts now but wanted to know if that years interest is lost or can I do something about it?

New account has 2 interest credits in March 2022 and March 2023.

 

[dinafrancis]

@henry_ Tata aia fortune guarantee pension plan

I'm having second thoughts after signing up for this policy in my mother's name. Does this seem like a good plan?

Please help me clear my mind guys.

Basically i pay Rs.2L/year for the 1st 12 years and wait for 5yrs. After that tata aia pays me ~₹2,61,000/year for the next 52 years. If my mother passes away before that I get death benefit.

Is it worth having this policy?

https://preview.redd.it/ke6cvvy3awr...bp&s=00ed361f82e3ec0a0cbe36f195e8f4158b622d2d

 

[sbr68]

@dinafrancis Let's do some calculations.

At 2L/year which is 16,666 per month.

If you start a monthly SIP of this in a liquid fund for the next 12 years. Assuming the average CAGR of 6.4%.

After 12 years of SIP total value will be ₹36,16,092

After wait of 5 more years in the same liquid fund this will become ₹49,31,143

Now if you start an SWP of ₹22,000 per month (₹2,64,000 per year) while the remaining will keep on growing at the same rate of 6.4%.

Even after 30 years of withdrawal of ₹22,000 per month your remaining corpus will become ₹86,59,213

Now this calculation is using a debt instrument (liquid fund). Since your holding period is 17 years and if you start an SIP on let's say Nifty 50 index fund, then your overall returns will be way higher.

 

[dinafrancis]

@sbr68 Thank you for the reply. This makes sense. I have closed the policy and soon will start investing. Any good MF you may suggest?

 

[gamebancadoithuongonline]

@henry_ I am expecting to get rental deposit as home owner and also some emergency funds are in liquid funds for more than 6 months. Should I consider keeping these together in some other kind of funds like money market funds or T bill? Most of it wouldn't be needed for a yr at least, and I wanted to get a lil bit extra returns with no significant additional risk. But if need arises i should be able to withdraw without hassle.

 

[play311]

@henry_ Hi I recently bought Home loan from Yes Bank.
After paying EMI of 17,294 for around 6 months, I did a prepayment of 5L in Yes bank, this March.
Today I received this message from Yes Bank.
Can anyone please let me know, what does this mean?
Details when loan was taken during last Octo'
Amount Disbursed: 21L Tenure: 360 ( l assume it is Months) ROI: 8.85%

Message I received:

Dear Customer, your Reschedulement request for YES BANK Loan a/c No. , linked with REPOAJOJ rate has been processed on 15/03/2024.
In lieu of the said changes, the effective ROI on your loan stands 8.85 % and your monthly EMI due date is 15th with the EMI amount of Rs. 17294 for the balance tenure of 170 months. There is no change in other T&C. For more details call us on 18001200 or visit your nearest branch.

 

[disciple1997]

@play311 It means that now the tenure is only 170 months instead of original 360 months. You kept the emi same and chose to reduce the tenure.

 

[play311]

@disciple1997 thank you for clearing my doubts

 

[derick101drew]

@henry_ I was thinking of investing some money in RBI floating savings bonds. Is it any good and do we have to pay some brokerage if we invest in it?

 

[kelly732]

@derick101drew No brokerage. The returns will be slightly better than NSC.

 

[inconstantdoubt]

@henry_ Hey everyone,

I hope you're all doing well. I'm creating a new SIP portfolio from AY-24/25 and I'm looking for some advice on how to optimize it. Currently, I have the following funds:

Funds
Amount
Goal
Note

UTI Nifty 50 Index Fund
₹8,500.00
Retirement/Home


Mirae Asset ELSS Tax Saver Fund
₹3,000.00
Retirement/Home
Required for tax purpose

Quant ELSS Tax Saver Fund
₹3,000.00
Retirement/Home
Required for tax purpose

Axis Midcap Fund
₹5,500.00
Retirement/Home


Parag Parikh Flexi Cap Fund
₹5,500.00
Retirement/Home


SBI Liquid Fund
₹12,500.00
Car/Vacation/Tax Buffer/Emergency Fund/Depreciation
₹5000 - Planning to buy a car so just parking money for time being

Nippon India Liquid Fund
₹12,500.00
Car/Vacation/Tax Buffer/Emergency Fund/Depreciation
₹5000 - Planning to buy a car so just parking money for time being

Total
₹50,500.00

However, I feel like I might have too many funds and I'm wondering if there's a way to optimize this portfolio, perhaps by reducing the number of funds while still meeting my financial goals efficiently.

I'm finding it difficult to decide which ones to eliminate. Any insights or recommendations on how to streamline this portfolio would be greatly appreciated. Additionally, if there are any alternative funds or strategies that you think might better suit my goals, I'd love to hear about them.

Thank you in advance for your help!

 

[disciple1997]

@inconstantdoubt Combine two Liquid and two elss funds into one. If you are parking the money in liquid funds for more then 90 days then you can invest in T Bills as well which will give you better interest

 

[gamebancadoithuongonline]

@disciple1997 T bills through specific MFs or are there some direct retail ways?

 

[disciple1997]

@gamebancadoithuongonline You can buy TBills from Zerodha/ upstox or directly from RBI using rbidirect.

https://i.ibb.co/ysZ672M/IMG-1498.png

 

[inconstantdoubt]

@disciple1997 I got you, But choosing is the hard part from me hence the two funds. And yeah that's a good suggestion. Thanks for the response!

 

[faiththeist12]

@henry_ I pay 1.5L PPF every year but randomly. is there some advantage to investing today or this week till 5th?

 

[kelbiiz]

@faiththeist12 Yes, if you pay by Apr 5th, you would get the complete year interest.