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Company: Mutual fund distributor
Company: Mutual fund distributor
Company: Mutual fund distributor
Company: Mutual fund distributor

FAQ :

Q. Why Retirement Planning?
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It is very important to plan retirement because during retirement one doesnt have a regular working source of income. Hence, to ensure that all the then needs are met without any impact on the lifestyle, it is necessary to have regular inflows of income. Retirement planning helps in a futuristic approach towards creating and managing a corpus that can be used for meeting basic needs, luxury needs, beat inflation, and leave behind a legacy for next generations.
It is very important to plan retirement because during retirement one doesnt have a regular working source of income. Hence, to ensure that all the then needs are met without any impact on the lifestyle, it is necessary to have regular inflows of income. Retirement planning helps in a futuristic approach towards creating and managing a corpus that can be used for meeting basic needs, luxury needs, beat inflation, and leave behind a legacy for next generations.
It is very important to plan retirement because during retirement one doesnt have a regular working source of income. Hence, to ensure that all the then needs are met without any impact on the lifestyle, it is necessary to have regular inflows of income. Retirement planning helps in a futuristic approach towards creating and managing a corpus that can be used for meeting basic needs, luxury needs, beat inflation, and leave behind a legacy for next generations.
It is very important to plan retirement because during retirement one doesnt have a regular working source of income. Hence, to ensure that all the then needs are met without any impact on the lifestyle, it is necessary to have regular inflows of income. Retirement planning helps in a futuristic approach towards creating and managing a corpus that can be used for meeting basic needs, luxury needs, beat inflation, and leave behind a legacy for next generations.

Q. Gold ETf vs Physical Gold. which option is better
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Out of "Gold ETF or Physical Gold", ETF option is many times better if the objective is for investing. It provides the following benefits over the Physical Gold:

1) The Custody worries as ETFs are only reflected in the Electronic form

2) The Liquidity at full prevailing Prices without any other Taxes or levies - in comparisons with Physical Gold

3) Ease in Liquidity.

4) LTCG: If you sell after holding for 36 months, you generate long-term capital gains. These gains are taxed at 20% (plus any cess) with indexation

 

 

Q. What is the difference between investing in a mutual fund and in an Initial public offering of a company?
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"Investing in Mutual Fund" means indirectly Investing in Bunch of Equities (scheme based) on the specific Asset Allocation of the Mutual Funds. Such stocks are available to invest through stock exchanges in secondasry markets or even in initial public offers based on the Mutual Funds Scheme features. An Investor can simply invest under the suitable schemes of the Mutual Funds and thgrough the Fund manager based on the scheme objective the investments are made on Net Asset Value basis but "Investing in Initial Public offer of a company" means the specific program of the company to bring in the sale of its equity through Public offer under strict norms stipulated by SEBI and Investors can participate in the same based on their categories like Individual or Corporate or others...and as per the rules as specified by the IPO Mandate. It briefly means that this is an offer made by the company directly to the investors at specific Minimum and Maximum Price band.

Q. I am 25 and from India and have just started my first job. where should i start investing to get good returns for my marriage which is in 4 years.
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  1. FIirst set financial goal .
  2. Decide marriage fund targeted expenses as per your aspirations .
  3. Do budgeting then as per the disposable income start systematic investement plan.
  4. In time intervals keep on adding top up investements and do periodic reviews.

As you are mentioning you are just starting to invest, mostly you should first be looking at building your emergency fund corpus and insurance planning (Term Life Insurance, Personal Accident Insurance and Health Insurance). If you’ve already taken care of those and are ready to start investing towards other goals, specifically this goal of providing for marriage expenses (which is 4 years from now), you may consider investing in schemes under Conservative Hybrid and Balanced Advantage Categories. These schemes provide superior risk adjusted returns over medium term horizon.

Q. What happens if I miss SIP instalment in India?
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As per the new rules of NAV applicability, units will be allotted on all purchase transactions, including SIPs, as per the NAV of the date when money is available in fund's bank account for utilization (before cut-off time). So, in case you miss a SIP instalment, you'll not get units for the said instalment, as the amount wouldn't reach Fund/ Scheme's Bank Account. MF/AMC won't levy any penalty whatsoever for the missed SIP Instalment. However, if SIP debit in the bank account was missed due to insufficient balance in the account, then your bank may levy penal charges for ECS/ACH return / bounce.

Q. I am 47 years old and I want to retire early. I have approximately 2 crores in equities, debt, gold and liquid assets. I also own a house valued at > 2 crores in Mumbai. My liabilities currently are zero. My family comprises wife and daughter. My parents are self sufficient financially and are not dependent on me. My expenses currently are about 12 lakhs PA. Please advise when would be an ideal time for me to retire?
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  • The data  is incomplete and insufficient .For eg . Portfolio YoY returns , Daughter age , education fund provisions , marriage fund provision , your current retirement kitty and lifepartner age to calculate suitable retirement age .
  • When we calculate retirement corupus requirement Self consumption expenses / taxes etc  related data is also vimp.
  • Still we assume if portfolio invested @10% , inflation@6% ,and 60% Of current expenses  PA  post retirement; you can take  a retirement call within 3 years ! (tentatively)
  • Disclaimer - The advise is based upon limited information and assumptions.

Based on the information you provided, it seems you have a teen ager daughter. Assuming you don’t have any other financial goals, your daughter’s graduation, marriage and your retirement income seem to be the goals due to be achieved. Due to lack of clear information about the exact age of your daughter, her career aspirations and the kind of marriage you have in mind for her, it is not possible to do exact estimations (calculations) with regards to those goals. However, setting aside 50 Lakhs for those goals from your 2 Crore Corpus may be sufficient. Remaining 1.5 Cr. may be considered to be available for your retirement income goal. The value of the present own house, which is self-occupied (?) may not be considered towards any goal. Further, you haven’t specified how much more you’ll be able to save & invest monthly, towards your retirement goal from now, until you retire.

 

Assuming the life expectancy till age 85 and you wish to get retirement income equal to your present annual expenses i.e., 1L per month, and you will be able to save Rs.1 L per month for retirement goal from now till retirement, and some other sets of assumption about inflation and rates of return on investment you may be able to retire at age 54. You may build your retirement corpus using Equity and Equity Oriented Hybrid Mutual Funds and arrange retirement income cashflow using Systematic Withdrawal Plans from Debt and Conservative Hybrid Funds.

 

A Google Spreadsheet calculator for you is made available at http://bit.ly/calc2retire which you can download as .xlsx and get to know what is optimum retirement age by changing different variables. Further, as can be seen in the above answer, there are many things that require your inputs. And assumptions have to be fine tuned by experts in a way that suits your situation (for example rate of return on investment). As this is a critical decision of your life, please consult an expert before you decide and also to put in place an investment and withdrawal plan.

I really appreciate your diversified Asset Allocation in your Portfolio and also the strong valuations as on today.,

Retiring early is the dream of almost everyone in this world. I always feel that just an adequate Retirement Corpus may not be the factor to decide the retirement date - but the most important factor to practically think on "What is going to be my Post Retirement Life".

I am sure when we pass through our career with our busy routine, there are many things that we like to do in our life but some how can't do those due to scarcity of time and we store that in our bucket list (To be done at your free time). Many times this bucket list becomes so big that some times we start thinking that, let me retire early so that I can start doing all the stored asssignments of my bucket list - based on my own priorities. Many "Such to do things" authomatically get disappered over the perid of time. But this is one important view Point to think on early retirement.

Infact in my career of almost 4 decads - I have seen the early retirees or even the retirees at 60 get bored/confused with the sudden change of Post Retiremnent life! I appreciate the fact in your case of adequate Nest-Egg developed over a period of time and also you do not have much responssibility except may be of your daughter's marraige etc. Therefore my suggestion would be to use the following startegy to retire early:

With the existing Portfolio Equity segment gradually Move to Mutual Funds atleast with those equities that you think are at stretched valuations.

If you are heavyly into Gold and Liquid Assets - just analyse the "any time requirement" size and if you are at Physical Gold - Move to Soverign Gold Bonds instead of physical one, for many reasons. Liquid Assets are important but not more than... say above your 6 to 7 months requirement at the most 11 months. Try to initiate in deferred annuity plans..with guaranteed Fixed rate payouts with long term basis. Every time you also need to check on Tax Efficiency...And with all this you start thinking or actually persuiting other favoriate things one by one, by taking out some free time from your daily schedule so that gradually you will get the idea about the new lifestyle and think whether you are eager to do that rather than the existing routine. So with all this I think you will be happy to retire at your age 55 or with more confidence at 53 but certainly not before that.. This is my frank opinion Sir!

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All the data/information shared above are opinions/ views that solely belong to the Mutual Fund Distributors. UTI Mutual Fund (acting through UTI Trustee Company Pvt Limited) / UTI Asset Management Company) owes no responsibility/ liability whatsoever in this regards. The information contained should not be construed as forecast or promise, and the only objective of this initiative is to educate the consumers to take a more informed investment decision. Any investment decision taken based on the information provided in the content above shall be at sole risks, cost and consequences of the user.



 


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