Home >Money >Q&a >Invest in equity too for children’s goals

Stamp duty is now payable on the purchase of mutual funds. Suppose I invest A and stamp duty of S is deducted and units are allotted at A-minus-S. What will be the cost of acquisition for calculating capital gains— A or A-minus-S?


To calculate capital gains, the cost of acquisition will include the stamp duty paid. So, in terms of your question, your entire amount ( A) will be considered as the cost of acquisition, thus lowering the amount of capital gains that you owe tax on.

I am 29 years old. I am planning to invest 10,000 each per month in Axis Bluechip, Parag Parikh Long Term, UTI Equity, SBI Focused Equity, Axis Midcap, SBI Small Cap, Franklin India US Feeder and Mirae Asset Emerging Bluechip, for early retirement. My investment horizon is 15-20 years. Instead of debt funds, I invest 1.5 lakh in Sukanya Samriddhi Yojana (SSY) and 1.5 lakh in Public Provident Fund (PPF) per year for my daughter who is one-year-old now. I want zero risk since it’s for her education and marriage. Please advise.


Please use retirement calculators available online to check what corpus you will need to accumulate based on the age you wish to retire. This will help you plan your investments better and know if you are on the right track.

For your daughter’s goals, it is fine to go with SSY and PPF as they give good interest rates among debt instruments. However, they may not be enough to build a corpus to take care of education and wedding expenses of your daughter. Here again, use online calculators to check if you are saving enough. If you fall short, you may need to redirect some of the systematic investment plans (SIPs) for retirement towards these goals.

Split the 80,000 that you want to invest per month as follows: invest 15,000 each in Axis Bluechip and Parag Parikh Long Term Equity, 10,000 each in Invesco India Contra, Axis Small Cap, Mirae Asset Emerging Bluechip, Franklin India US Feeder and Aditya Birla Sunlife Corporate Bond.

If you do not wish to have a debt fund and you are willing to handle the risks of an all-equity portfolio, you can split the amount between Kotak Emerging Equity and Invesco India Contra.

Srikanth Meenakshi is co-founder, Queries and views at

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