I am 35 years old and am planning to invest for 25 years to accumulate a corpus of Rs. 50 crore. How much should I start with in monthly SIPs?– Aiswarya, query in Geojit Insights
To accumulate Rs. 50 crore, a monthly investment of approximately Rs. 3 lakh in an equity-oriented mutual fund is required, assuming an expected annual return of 12% over 25 years.
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I am currently investing in stocks and my demat account is linked to my savings bank account (SIB). I am also investing in mutual fund SIPs. I was an NRI and returned to India a few years back and at that time, my NRE account was inactive. Then, once again I got a job outside India and the NRE account was reactivated.
My question is, can I continue my current stock investments and SIPs through by Indian savings account? I read that the savings account should be converted to NRO for such investments. If I do that, will I have to change the account again when I return home? If I cancel my visa and return permanently, will the NRO account become inactive? What should I do? Please advise.– Ramesh Aravind, Kollam
As per regulatory guidelines, once your status becomes NRI, you need to convert all your existing investments held under resident status to NRO. Continuing to hold a resident savings account after acquiring NRI status is considered a violation under the Foreign Exchange Management Act (FEMA) and may attract penalties. Similarly, when your status changes back to Resident Individual, you must update the status of your investments accordingly.
I see many ratings like AAA, A, A+, AA-, BBB+, BBB, BBB-, A STABLE, A STABLE. Please tell me the order of valuation (from smallest to largest)? – Bobby A, Hyderabad
Rating agencies generally use alphabetic or alphanumeric symbols to describe the credit risk of an instrument. The typical order from lowest to highest creditworthiness is: D, C, CC, CCC, B, BB, BBB, A, AA, AAA Within each grade (except AAA and D), a plus (+) or minus (-) may be used to indicate relative standing within the category. • AAA: Highest creditworthiness • D: Default or expected to default. Always refer to the respective rating agency’s notes for accurate interpretation.
Can shares in a joint account be transferred to the individual demat accounts of the same individuals? If so, how? Will it be subject to tax?– Naveen Bhat, Nagpur
Yes, it is possible. The transfer can be done by submitting a Delivery Instruction Slip (DIS) to your broker. The signatures must match the order of names in the joint demat account. Transferring shares from a joint demat account to individual accounts of the same individuals is not taxable, as there is no change in beneficial ownership—the shares are simply being moved between accounts held by the same individuals.
