Ask our experts – September 2023

I am currently residing in Qatar under my husband’s sponsorship. I have investments in mutual funds and National Pension Scheme (NPS), which are managed through my savings bank account. Since I have relocated to Qatar, do I need to redeem these investments? Will there be any issue
with the income tax department in the future if I continue to hold these investments in my regular savings account? – Shilpa Harikrishnan

As per regulatory guidelines once you become an NRI, you need to change your residency status in the KYC (Know Your Customer) records from a ‘resident’ to a ‘non-resident’ in all your existing investments and in Income Tax department records. Continuing your resident savings account after gaining NRI status is considered illegal under the Foreign Exchange Management Act and the penalty involved will be huge. Therefore, you need to convert your SB account as NRO account immediately. In the case of mutual fund holdings, you need to update your status in KYC and subsequently submit the request for updating the status and change in bank with respective mutual funds.
For NPS, you can approach the agency through whom you have done the investment and do the procedures for status change. Given the financial monitoring by various regulators for deviations or otherwise, it’s advisable to keep the accounts in line with your NRI status.

Could you please suggest some stocks which can give a high return on a long term basis. High return in 10 to 15 years.  –  Alen Mathew Sabu ,  Mannar

Please view stock recommendations by our research desk:

I am 60 years old and want to stop my equity fund SIPs (totalling around Rs. 20 lakhs) and invest the amount in Hybrid funds. I have shortlisted some funds- ICICI Pru Equity and Debt, SBI Equity Hybrid, ABSL Balance Advantage Fund, HDFC Balance Advantage Fund etc. Could I expect a
regular income of Rs. 25,000 per month as SWP? – Sreedevi, Kottayam

To view our recommended Aggressive Hybrid and Balanced Advantage funds, please turn to page 38. We would suggest you evaluate your risk profile and decide a suitable allocation. With respect to regular income query, going by your expectation of Rs. 25,000 per month withdrawal on a capital of Rs. 20 lakhs works out to approximately 15% return on an annual basis, which looks a bit on the higher side. While there are funds that might have the potential to deliver higher returns in the long term, it may not occur on a constant basis. Assuming such returns for a regular
withdrawal needs to be relooked and moderated so that the withdrawals along with market volatility don’t affect the overall capital adversely.

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