[TallBoy]

I am not sure of the 10% imposition on cap gains but I can tell you that in all instances of surcharge being imposed, it is computed as a percentage of the tax and not total income. So it would be 12.5+10% of 12.5.

Originally Posted by argchoff

So how does the extra 40 lakh capital gain get taxed? Is it taxed at 12.5+10=22.5%??

If so this sounds too much.

[rx100]

Originally Posted by argchoff

Please could someone explain how this is calculated? Suppose the capital gains (profit) on redemption is 90 lakh rupees. What i understand is there will be 12.5% tax on 50 lakhs (1.25 lakh exempt). So how does the extra 40 lakh capital gain get taxed? Is it taxed at 12.5+10=22.5%??

I am not sure about the surcharge on LTCG, read somewhere that it capped at 15% max unlike the 25% in other income.

Usually surcharge would be applied on the tax part not on the income, similar to how 4% education cess applied on income tax. So net tax would be 13.75%.

[maddyoni10]

Originally Posted by LonelyPlanet

I need to park 6Cr in funds for my retirement in 2 years time and start SWP. need 1.5L/ month and looking for a 30 yr time horizon
What are the best alternatives to meet my daily needs and still account for the inflation for the time horizon.
Have no other debt / commitments

Hi

First, a disclaimer! I am in no way related to this PMS I am recommending below. I read an interview of this PMS Founder Keshav Garg in MoneyControl.com and liked what I read. I also contacted him and spoke briefly. I looked through his site and a lot of what he says makes good sense. I have NOT invested in it right now as I dont have 50L to invest which is the minimum investment in a PMS as mandated by SEBI.

I have been following a PMS called CounterCyclical Investments. It is SEBI regd. and has clearly stated their investment Philosophy, who should invest in them, etc.. The way their charges are calculated is quite unique and very low. Please do your own analysis before taking a decision in this regard.

Links below for the PMS site and the interview with moneycontrol I mentioned about. Hope it helps.

https://cciplpms.com/


https://www.moneycontrol.com/news/bu...-11901881.html

[xcentrk]

My portfolio is as below:
----------------------------
1. Parag Parikh Flexi Cap Fund - 25k
2. Nippon India Small Cap Fund - 25k
3. Motilal Oswal Nifty Microcap 250 Index Fund - 25k
4. Tata Digital India - 10k
5. Canara Robeco Bluechip Equity - 25k

Total Equity MF investments as of today: 15L
Total investments in FD : 8L
Liquid Funds : 3L

So, total of 1.1L in SIP. My goal is for retirement corpus and children's education. My age is 39. I feel like I need at least 6-8 crores minimum to enjoy the retirement.

What do you suggest? I can increase the investment up to 2L per month. If that is the case, can I just increment the investment value of those funds by x2?

[DasAuto1985]

In terms of planning, has anyone used Scripbox, and if yes what is the feedback? If you can suggest alternatives, that would be great as well. Thank you.

[skviknaraj]

Originally Posted by DasAuto1985

In terms of planning, has anyone used Scripbox, and if yes what is the feedback? If you can suggest alternatives, that would be great as well. Thank you.

I have been using Scripbox over the last 5-6 years. I have not used any other platform and my overall MF portfolio is in single digit lakhs only. So cannot comment / give feedback regarding the long term performance of the funds suggested by Scripbox.

1. Are you looking to invest in Active mutual funds?
2. Are you not able to choose/shortlist/review Active mutual Funds?
3. Are you alright with paying more Expenses as you will primarily be investing in regular mutual funds?
4. Are you alright with redeeming and re-investing a portion based on fund performance?

If the answer is YES to all of the above, you can go ahead with Scripbox. They ask you choose your goal and timeframe and intent, based on historical performance, they suggest the minimum amount of SIP that is required and recommend suitable funds.

Just for planning: You can use it, but the projection given by them ( % growth annually) is based on Active funds they recommend. Also if you go with the funds they are suggesting, not sure how relevant it will be if you are going with other funds.

Please note that every quarter or so, they review the performance of the funds and ask you to withdraw and re-invest in other funds. This is part and parcel if you are looking to invest in Active Funds. You need to be ready to do this when they suggest and not bother about the future status of the fund they are asking you to redeem. So the recommended funds will change on a yearly basis. You may end up with a lot of MF folios and decluttering them through them will take some time as they factor in taxation also when suggesting the funds to redeem.

So far based on my portfolio, I am seeing a average XIRR of 28% in equity funds suggested by Scripbox. CONDITIONS APPLY for this performance.

One issue I had was the yearly automatic step up does not work due to some limitation in setting up SIP with MF. You will have to change the amount being invested when do your annual review / Check of your portfolio performance.

Other than that getting all details updated and interacting with their support has been great.

If you are looking to keep it simple go with Index funds and direct plans only. You can skip scripbox then.

[KryptonMonkey]

Originally Posted by xcentrk

My portfolio is as below:
...
What do you suggest? I can increase the investment up to 2L per month. If that is the case, can I just increment the investment value of those funds by x2?

I'm no financial expert, but if you can increase the investments, you MUST.
If you're satisfied with the asset allocation that you have via your SIP mix, then by all means, just increment each one by x2 and keep things simple.

This is why a lot of experts harp on getting your asset allocation right for your goals and sticking with it. Once the allocation is decided, each incremental rupee saved can be invested in the same pre-decided ratio. This will take away your procrastination and turn your intentions into action quickly.

[thirugata]

Originally Posted by xcentrk

My portfolio is as below:
----------------------------
1. Parag Parikh Flexi Cap Fund - 25k
2. Nippon India Small Cap Fund - 25k
3. Motilal Oswal Nifty Microcap 250 Index Fund - 25k
4. Tata Digital India - 10k
5. Canara Robeco Bluechip Equity - 25k


What do you suggest? I can increase the investment up to 2L per month. If that is the case, can I just increment the investment value of those funds by x2?

Note: I am not expert here, I am putting myself in your situation and thinking loud if it was me what I would have done.

This is a very aggressive fund selection. I am not sure if you are ok with the volatility this set will bring in during the correction. If you have the stomach to manage the volatility ignore the rest of the message.

My suggestion is to have total of 33% of your investment in largecap and it is better to add another fund of largecap/bluechip or even index (like NiftyJr) and divide that amount equally.

Digital India fund is thematic, so you need to understand the cycle of it and understand when you have to exit it.
So if you are doubling your investment I would recommend you to add the additional fund of this thematic fund to your flexicap bucket and divide that money into 2 and go for another flexicap or multicap. Same with smallcap and microcap fund, if you are doubling your money it would better to look for another fund in same category and invest into it so that you are not heavily dependent on one fund in categories like these.

So it would be 2 flexicap/multicap funds(40K), 2 smallcap (40K), 2 microcap or 1 microcap + 1 midcap (40K), 1 thematic fund (without increasing allocation and plan in place to exit) ( 10K) and 2 bluechip/largecap/index funds (70K).

[ghodlur]

Originally Posted by xcentrk

What do you suggest?

My suggestion would be to consult a certified Financial Planner to decide the funds based on the goals. Right now as I can see there are 2 major goals, going forward there could be multiple minor goals as well which need to be accounted for. For a small fee you would get professional advice where to invest to maximize the returns.

I assume you must have already done the allocation for Term Insurance, Medical Insurance and Emergency Fund, if not suggest to get that sorted out first before you move to investments.

[xcentrk]

Originally Posted by thirugata

Note: I am not expert here, I am putting myself in your situation and thinking loud if it was me what I would have done.

This is a very aggressive fund selection. I am not sure if you are ok with the volatility this set will bring in during the correction. If you have the stomach to manage the volatility ignore the rest of the message.

First of all, thanks for your reply.

Aggressive fund selection is because of my risk appetite. I invested in MF since 2013 and redeemed for various personal reasons. That is why I went aggressive since I redeemed too much of my savings and want to fill it soon. Obviously, after some 7-8 years will shift to less volatile funds.

Originally Posted by thirugata

My suggestion is to have total of 33% of your investment in largecap and it is better to add another fund of largecap/bluechip or even index (like NiftyJr) and divide that amount equally.

Even in the 15L of total, 5L consists of Large cap and total return stands at 15%. Whereas Flexicap and Smallcap has better returns. So thought of shifting to more aggressive approach.

The above fund selection is after I rebalanced my portfolio from mostly Large cap and Nifty Next 50 funds.

Originally Posted by thirugata

Digital India fund is thematic, so you need to understand the cycle of it and understand when you have to exit it.
.....

I work in IT and I can see the growth for next few years. So, I plan to exit in few years but until then I want to ride the growth wave of IT companies. So invested in this fund.

[Dry Ice]

Is there a way to see old historical returns for funds? Say returns of an index fund between 2007 and 2012?

[saket77]

Originally Posted by Dry Ice

Is there a way to see old historical returns for funds? Say returns of an index fund between 2007 and 2012?

You can download any fund's NAV history through AMFI's website.

Here's the link: https://www.amfiindia.com/net-asset-value/nav-history

[SmartCat]

Originally Posted by Dry Ice

Is there a way to see old historical returns for funds? Say returns of an index fund between 2007 and 2012?

1) Google "fundname valueresearchonline"
2) On the fund page on valueresearch, select 'regular' option (direct option was not available 15 years ago)
3) In returns graph, click on "Custom" and enter the month/year.
4) You get an interactive graph where you can see NAV value & its % movement for the entire time period. It also compares this particular fund's return with the index & the category average

[Vijay T]

Originally Posted by eagles_ts

Lots of well meaning advice on this thread, some accurate, some not quite accurate. Two things are apparent:

1) There is too much emphasis/ focus on security selection (which fund to invest).

It is a futile pursuit & an unnecessary one at that. To use a cricket analogy, if my required run rate is 4 runs / over there is no benefit / need to try & score at 8 runs / over. I

The real question is, do I know my required run rate ?

2) At a broad level, there is a lack of clear understanding on how to approach investments, yet there is a hesitation to hire a professional..

I fully agree with these 2 things mentioned.
Many have written "I am not expert but...."like sentences at the start & then elaborated.

My two cents would be "go to experts then"

There are many good investment advisors, financial planning companies.

I take advice from Naik Wealth which is located at Goregaon Mumbai.They are not paying me anything to take their name.

So far they have given me good returns of@21%CAGR on only mutual fund though the assurance was far lower. Time horizon is 5 to 6 years.

The benefit of taking services from "good "financial planning companies is that, they make you to arrive at required run rate as stated above & plan your investments accordingly & based on your risk appetite.

Secondly they review the portfolio periodically to ensure that your stated goals are going to be met or any change is required.

The question here could be how to find "good" planner.
It is from our good friends' experiences like Team BHPians.

[SmartCat]

Originally Posted by Vijay T

I fully agree with these 2 things mentioned.
Many have written "I am not expert but...."like sentences at the start & then elaborated. My two cents would be "go to experts then". The question here could be how to find "good" planner. It is from our good friends' experiences like Team BHPians

While the advice to go to a financial services firm is sound, it is not a "catch all" solution for everybody. Only those who are not interested in the process & not keen on learning should opt for a financial advisor. If you want an analogy, we don't go about saying "just hire a driver" to anybody who has a car related question on teambhp.

After all, financial/retirement planning is just common sense. With some experience and effort, most people who are interested in the subject can do it themselves. Additionally, if a member gives an advice to OP with a caveat that "I'm not an expert", we should not be mocking him here.

If the mutual fund thread on teambhp has 320 pages of content, 4800 posts and 1.5 million views, we have to assume that DIY route is popular.