1 min read.Updated: 24 Nov 2021, 11:18 AM ISTLivemint
It is advisable to invest a lump sum amount in dynamic asset allocation funds as they have the flexibility to alter asset allocation between equity and debt basis on their relative valuations and hence provide better risk-adjusted returns
Listen to this article
I had invested ₹100,000 in non-convertible debentures (NCDs) of Muthoot Finance Ltd in April 2017 and got ₹129,538 on maturity in June 2020. If you could guide me on whether it will attract capital gain tax or Income tax?
(Answers by Sanjiv Bajaj, joint chairman and managing director, Bajaj Capital.)
Maturity proceeds from NCDs attract tax due to long term capital gains. The applicable tax is 20% with indexation.
My monthly salary is ₹40,000 and I'm serving in the Indian Navy. I have completed my six years of service. I am looking forward to investing my accumulated fund which to date is around ₹10 lakh, on which currently I'm getting a decent interest rate. Do I need to continue this fund? Could you please suggest to me some avenues to invest this amount and moreover I can invest a monthly ₹20,000?
- Rakesh Vaidya
It is advisable to invest the lump sum amount ( ₹10 lakh) in dynamic asset allocation funds as they have the flexibility to alter asset allocation between equity and debt basis on their relative valuations and hence provide better risk-adjusted returns. You can equally divide this amount into ICICI Pru Balanced Advantage Fund and Nippon India Balanced Advantage Fund.
For monthly investments of ₹20,000, you may invest in equity-oriented mutual fund schemes because equity as an asset class delivers a superior return over a longer investment horizon. You can think of equally dividing your monthly SIP amount into Axis Growth Opportunity Fund, Kotak Emerging Equity Fund, IDFC Sterling Value Fund and UTI Flexi Cap Fund.