[karanraheja]

Originally Posted by Red Liner

1. ELSS in MUTUAL FUNDS is an equity exposed fund which will give you a tax benefit under Section 80 C but LTCG (long term capital gain) tax is applicable at the time of withdrawal.

Investors will have to pay a tax of 10 per cent on their long-term capital gains exceeding Rs 1 lakh in a financial year. I dont see such high returns for a person to expect to pay a LTCG tax.

Originally Posted by Red Liner

3. ULIP PLANS will be unit linked which will have both market exposure just like ELSS in mutual funds and government bonds as well considering this will also be giving you Tax benefit under 80 C as well as tax free returns at the time of maturity under Section 10(10)D of Income Tax.

AVOID ULIP.

Questions:

1. I need to invest 1.5L to gain maximum tax savings. How should I diversify it amongst the above? Or should I diversify at all?

It depends on your personal choice , Are you already having plenty of Traditional LIC plans ? If not invest 50% in ELSS and 50% in Traditional Plans.

2. Which funds do I invest in considering the options at present? What are your recommendations?

In ELSS - AXIS Long Term , Kotak Tax Saver , Mirae Asset Tax Saver , Invesco Tax saver , DSP Tax Saver to name a few.

[Red Liner]

Originally Posted by karanraheja

Investors will have to pay a tax of 10 per cent on their long-term capital gains exceeding Rs 1 lakh in a financial year. I dont see such high returns for a person to expect to pay a LTCG tax.

AVOID ULIP.

Questions:

1. I need to invest 1.5L to gain maximum tax savings. How should I diversify it amongst the above? Or should I diversify at all?

It depends on your personal choice , Are you already having plenty of Traditional LIC plans ? If not invest 50% in ELSS and 50% in Traditional Plans.

2. Which funds do I invest in considering the options at present? What are your recommendations?

In ELSS - AXIS Long Term , Kotak Tax Saver , Mirae Asset Tax Saver , Invesco Tax saver , DSP Tax Saver to name a few.

Thanks Karan. This makes sense. No traditional LIC plans here, but I like how Mirae is growing and will probably go with them, and begin a SIP exercise for the next FY.

And thanks for the LTCG reckoner. I was trying to understand that - you have made it simply clear!

[vinit.merchant]

Originally Posted by saildrive

I have a unique question:

My breakup for 2018-19
Principal - 689403 (repaid)
Interest - 90007

My office has deducted (projected) a huge chunk of tax already, can I look at investing in any schemes so as to save this 'scary' deduction in my March 2019 salary in the next 5 days?

Let me know the best viable option (MF or otherwise) urgently.

I assume you have already exhausted your 80C of 150,000. If so, then no additional MF investment can be of any help in reducing the tax outgo, since now even the withdrawal quotient has been made tax free.

If you have not utilised the additional 50K in NPS, then I suggest you to opt for that, although I am not sure if a lumpsump can be done in NPS, followed by the normal monthly installments.

[hserus]

Originally Posted by vinit.merchant

I assume you have already exhausted your 80C of 150,000. If so, then no additional MF investment can be of any help in reducing the tax outgo, since now even the withdrawal quotient has been made tax free.

If you have not utilised the additional 50K in NPS, then I suggest you to opt for that, although I am not sure if a lumpsump can be done in NPS, followed by the normal monthly installments.

If you don't have adequate mediclaim yet upto the 15000 limit you can always get some. Or donate some amount to charity and offset it against tax.

[rovingeye]

Originally Posted by vinit.merchant

If you have not utilised the additional 50K in NPS, then I suggest you to opt for that, although I am not sure if a lumpsump can be done in NPS, followed by the normal monthly installments.

I can confirm 50k NPS investment can be done as a lumpsum to save 15k in taxes for the FY. in fact, I just did it a month back.

Note NPS has tier I and tier II. Only the tier I investment is considered for tax deduction. So, don't bother about tier II.

[Red Liner]

Follow on question:

What app/online tool do you use to make your MF/SIP investments? I can see that through my banking tool I am offered only the regular plans. On the MF websites I have access to the direct plans.

Are there tools that will allow me to aggregate my investments across MF houses in one place and also offer me a direct plan?

[SmartCat]

Originally Posted by Red Liner

Are there tools that will allow me to aggregate my investments across MF houses in one place and also offer me a direct plan?

https://coin.zerodha.com/

[Red Liner]

Originally Posted by SmartCat

https://coin.zerodha.com/

Super. Was just reading about these guys on Quora. I guess MYCAMS is also an option. But since you've probably actively already done the ground work, I will go with Zerodha from the next FY onwards.

Unfortunately, I just happened to find out about this whole Direct vs Regular plan fiasco after investing the 80c requirement for this FY through my banker an hour back.

[pradkumar]

https://www.mfuindia.com/ -- this is a company floated by all mutual funds together. No charges.

https://groww.in/ -- Again free, but not sure about their business model.

Thanks,

Pradeep

Originally Posted by Red Liner

Follow on question:

What app/online tool do you use to make your MF/SIP investments? I can see that through my banking tool I am offered only the regular plans. On the MF websites I have access to the direct plans.

Are there tools that will allow me to aggregate my investments across MF houses in one place and also offer me a direct plan?

[rovingeye]

The advantage of CAMS and Karvy apps is that you do not separately have to create an account on those platforms. As long as you have your email address set on the different fund folios you own with various fund houses, you should be able to get a consolidated view in those apps. You can also directly transact on cams/Karvy.

[sgiitk]

Due to a forthcoming purchase I have reduced my MF exposure. Make sure you leave about 10-14 days for the process to complete. Some may come back with a 'signature mismatch', which your bank can take care of. Only you lose time in all this.

[sups]

Can somebody guide me with respect to ICICI Prudential Value Discovery Fund? Once it was a very good fund, but it is not doing good from last few years. Is it better to switch to a better large cap/multi-cap funds place of this? I am looking at next 10 year horizon to stay invested.

[rovingeye]

Originally Posted by sups

Can somebody guide me with respect to ICICI Prudential Value Discovery Fund? Once it was a very good fund, but it is not doing good from last few years. Is it better to switch to a better large cap/multi-cap funds place of this? I am looking at next 10 year horizon to stay invested.

I switched out of this one a year back due to its lack of performance vis-a-vis the other funds in this category.

In fact, as far as possible, I've consciously stayed away from most fancy and thematic funds with atrocious expense ratios while rebuilding my folio this time around. I'm mostly sticking to index funds and index ETFs that will track the markets up and down without charging me a bomb. I've realized, over time, most fund returns average out anyway and there's no point in making the fund houses rich by paying high fund management charges.

[hothatchaway]

Originally Posted by Red Liner

Super. Was just reading about these guys on Quora. I guess MYCAMS is also an option. But since you've probably actively already done the ground work, I will go with Zerodha from the next FY onwards.

Unfortunately, I just happened to find out about this whole Direct vs Regular plan fiasco after investing the 80c requirement for this FY through my banker an hour back.

As already pointed out, MF utility or MFUindia.com is a good one stop shop for all mutual funds especially if you want to buy direct. Signing up is easy especially if you are kyc compliant and their web interface is basic and clutter free. Cams is also good but they don't cater to all fund houses. Zerodha coin is free, offers most funds but only in demat form. Most mf purchases are made on account statement mode and the ones held in demat form attract demat charges which are nominal however.

[ghodlur]

Originally Posted by sups

Can somebody guide me with respect to ICICI Prudential Value Discovery Fund? Once it was a very good fund, but it is not doing good from last few years. Is it better to switch to a better large cap/multi-cap funds place of this? I am looking at next 10 year horizon to stay invested.

Originally Posted by rovingeye

I switched out of this one a year back due to its lack of performance vis-a-vis the other funds in this category.

I am still stuck with this dud and was highly recommended by my Financial planner. Even Value research online till last month was showing as a 4 star fund now downgraded to 3 star. I am having the SIP till Aug 2019. Should I stop the SIP and start in an alternative?