I am 36 years old and invest Rs 12,000 every month in three fund schemes through SIP. I invest Rs 8,000 in an RD, Rs 24,000 per annum in PPF and Rs 25,000 per annum for LIC premium, Rs 500 per month in APYP, Rs 2,000 per month in NPS, Rs 10,000 per year in Gold Bond, Rs 2,000 I pay Rs 2,000 per month in VPF and Rs 2,000 in ESP. Now I am planning to go abroad permanently. should i redeem all my Investment Or can I continue with these?
Raj Khosla, Founder and Managing Director of MyMoneyMantra.com replied: As per RBI regulations, all your resident savings and deposit accounts must be converted into non-resident accounts upon departure from India. You should first consolidate your bank accounts and re-designate it as per the resident status (NRI/NRE/NRO). For MFs and other investments, you will have to do KYC again and share updated bank account details. You will not be able to make any new investment in PPF. However, you can hold the existing account and continue to receive benefits till maturity. You can also continue with your insurance plans. Liquidate investments that cannot be tracked. Once settled, understand the NRI taxation laws and start investing again in the Indian market.
I am a pensioner. I am getting less pension of Rs 67,000 per month after commutation. I want to invest in short term mutual funds through SIP. Please suggest some risk free alternatives.
Rishabh Desai, AMFI Registered Mutual Fund Distributor, Reply:
Technically there is no such thing as a risk free option mutual funds. The short-term is usually between 1 to 4 years, so you need to mention your investment horizon. Since you are a pensioner looking for conservative investment options and have a short investment horizon, investing in high credit quality loan/fixed income products would be ideal, with the primary goal of conserving capital. You can match your tenure with the maturity profile of the debt fund. Make sure to only venture into well-managed funds with high credit quality and high AUM. The interest rates are currently low and we are expecting the rate hike cycle to start soon. Thus try not to venture into any medium to long term funds as these funds will face comparatively high marks of market volatility. You can also consider venturing into short term government/post office schemes. Lastly, make sure you diversify your investments well across various debt/fixed income products.