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'Should I Move FD Cash Into MFs?'

Last updated on: December 18, 2023 09:43 IST
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Do you have financial planning queries?
Please ask your questions here and rediffGURU Kirtan A Shah, managing director (private wealth) at Credence Family Office (external link), will answer them.


Illustration: Dominic Xavier/

SANDEEP: hi, i am doing sip of 10000 per month. 2000 in ICICI blue chip fund growth, 2000 in HDFC top 100 fund & 2000 in HDFC small cap fund, 1000 in HSBC midcap fund & 1000 in SBI Blue chip fund growth. I am investing in this from last three year. I am 51 year old & i am doing it for my retirement. Is these funds are good or should i change these?

Exit the below funds:

  • HDFC Top 100
  • HSBC Midcap

Add the below Fund:

Kotak Emerging

Anonymous: Sir, I just retired from my service @60yrs. I will get my PF + other fund Rs 50L. Please advice how to invest the amount so that my principal not disputed and I can get Rs 30,000 pm for my monthly expenses. My family of 2 persons are covered Rs 50L health insurance. Regards

The best is to split your investments into the below 2:

  • Senior Citizen Savings Scheme

Venkatraman: Sir. At present I am investing in through SIP the following MFs, HDFC Top 100 Growth; HDFC Hybrid Debt Growth; HDFC Flexi Cap Growth Nippon India Focused Equity SBI Long Term Equity Am I doing prudent investment or should change to other funds?

Exit the below funds:

- HDFC Top 100

- HDFC Hybrid Debt

- HDFC Flexicap

Continue with the remaining two.

Anonymous: I am 48 and wish to retire by 54. Present corpus in PF etc is 1.6 Cr, 25 lakh invested in Equities and MF (Mainly Index Funds) and another 40 Lakh in NPS. Presently I have SIPs of Rs 50K for NIFTY index funds besides regular PF deduction from the employer. Present monthly expenses are around 1 lakh per month. Would I be able to retire early at 54 keeping in view a life expectancy of 85 yrs?

Your expense at retirement assuming 6% inflation will be 17L

You will need Rs 4.5 cr to retire at 54 with the help of which you will be able to receive the Rs 17L + Inflation

You will need to increase your SIP to Rs 1.3 L to achieve the same

Subhash: Hello Kirtan, Greetings. Request a serious suggestion on my investment planning. Have majority of my savings into FDs due to my earlier conservative approach and even now am having the tax benefit as the FDs are on my wife's name where we do get the tax benefit. Also started significant portion into MFs which is a portfolio by itself of nearly Rs 50 lakh. My question is: I want to plan for my younger son's future and our retirement which almost have the same time duration of about 12-13 years. How can I go for my investment if am looking for around 5-7 crore of corpus by then?

What options could you provide me assuming I do have good risk appetite now as I have seen a good 5 year cycle in the MFs now? I want you suggest 2 options: 1 - With a fresh investment now and the products which I should go around and 2 - If you advise to use the fixed deposits also to contribute to the wealth creation (I have a total of around 60-70 lakh as FDs). So please suggest a good portfolio with the above 2 scenarios.

Have 6-12 months of your monthly expenses as contingency in FD's, everything else can be deployed towards your goal.

Assuming you have Rs 1 cr today to allocate to the goals & need Rs 6 cr in 12 years, you will have to do an SIP of 70K over & above the Rs 1 cr that you will allocate towards the goals.

MFs are the best way for you. Invest in 4-5 well diversified MFs and start an SIP in the same MFs.

You can ask Kirtan A Shah your personal finance questions HERE.

Disclaimer: This advisory is meant for information purposes only. This advisory and the information in it does not constitute distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.

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