1. I have been investing Rs. 20,000 per month in two SIPs for the last five years. I am going abroad now. Can I continue my existing SIPs? Are there any procedures that need to be followed? – Abhishek Chakravarthy, Lucknow
Once your status becomes NRI, you will have to update your KYC to NRI status and your bank account in India to NRO status.
Regarding your SIPs, you may have to stop the current SIPs and start fresh SIPs in NRI non-repatriation or repatriation status as per your requirement and availability of eligible bank accounts (NRE & NRO).
You can submit the request for cancellation of existing SIPs online, or through your MF distributor’s portal, if available, or through the mutual fund websites, or through the office of your Distributor or Mutual fund /RTAs.
To ensure seamless transactions, such as dividend payouts or redemptions, you will need to update your bank account details with your mutual fund company.
2. I have been working in Bahrain for 10 years. I plan to return to Kerala and build a house within 12-15 years, my budget for the house is Rs. 50 lakhs. How much should I invest each month to accumulate this amount? – Sanoj, Bahrain
Your budget for building the house is Rs. 50 lakh. Considering the mentioned duration, you can opt for equity-oriented investments, according to your risk appetite. Below given are few ballpark figures.
An SIP of Rs. 16,250 per month, with expected returns at 12% per annum is likely to grow to around Rs. 50 lakhs in 12 years. If the expected return is 14%, then the required SIP amount is Rs. 14,250 per month. On the other hand, if the duration is 15 years and the expected returns are 14%, then the required SIP would be around Rs 8850 per month.
Alternatively, you can think of adding some lumpsum investments at the start or in between to reach the expected amount faster. You can choose multi cap funds if your risk profile is moderate and mid and small cap funds if you can take high risk.
3. I wish to invest for my four-year-old daughter, what investment plan would you recommend? – Deepika, Hyderabad
The optimal investment strategy depends on your investment horizon and risk tolerance. For a long-term horizon of 15+ years, equity mutual funds present a viable option. Consider systematic investments in Flexi cap or Multicap mutual funds, which offer broad market exposure and professional management.
4. Could you please elaborate SIF (Special Investment Funds) in India, and which AMC has started accepting SIF – Ananth, Delhi
Specialised Investment Funds (SIF) is the latest product category approved by SEBI. It aims to bridge the gap between mass market mutual funds and high-ticket options like PMS and AIFs.
SIFs are professionally managed and follow strict rules so that investors stay protected. They aim to give better returns by tapping into areas that need expert knowledge. SIFs can invest in varied asset classes like stocks, bonds, derivatives as well as private equity. Minimum investment amount is Rs.10 lakh. Some AMCs have announced their SIF approval and the brand, and some more are in pipeline for getting the regulatory approval. As per the industry news, AMCs with approvals are likely to launch SIF product and start accepting funds in the near future.
