Invest Mutual Funds

I got some query regarding alternate investments to fixed deposits from our website reader. I thought it would be useful to post the query to other readers so that it would be beneficial.

Query 1:

I am  62 yrs retired govt servant. I have an FD in Nationalised Bank. I am seeking  an alternative investment of Rs. 1 lakh - 50,000 in tax saving scheme, which  I understand is for a minimum period of 3 years,  and the remaining in  MF/SIPs. Kindly suggest the period and Co. which will be suitable for a  person like my age.  I have a very limited portfolio as of now.

Reply:

The Top performing Tax Saving ELSS Schemes are:

1.       HDFC Long term advantage fund – Growth

2.       HDFC Long term advantage fund- Dividend

3.       Escorts Tax Plan – Dividend

4.       Fidelity Tax Advantage Fund – Growth

The other top performing funds are available in http://www.investmutualfunds.net/top-20-sip-mutual-funds

Query 2:

I am an N R I for the past 30 years. I am 78 Years of age. All my savings are in F C N R deposits. I also have an N R E Rupee savings account. Over the years, the F C N R interest rates are extrmely low.

Kindly suggest how best to re-channel the savings in Mutual funds so that I could start getting a higher return, preferably on a monthly basis. Eagerly awaiting your advices.

Reply:

I suggest you to split your savings and invest accordingly.

20% of your savings – Keep it as Cash

50% of your savings – In debt schemes which has MIP (Monthly Income plans) where these schemes seeks to generate monthly income to the investors.

30% of your savings – In balanced schemes which seeks to generate slightly higher returns.

Please let me know if you have properties in india, additional income through your children and any other financial details that would help me for your financial planning.

Please let me know if i could help you for more details.