Can government employees invest in stock market? Are there any restrictions? I wish to invest for long term basis so do I require any approval from higher authorities? -Sebastian George, Thrissur.
Government employees are allowed to invest in shares but speculation/day trading is not allowed, with certain disclosure conditions as given in the service rules. Accordingly, if total transactions in shares, stocks, debentures, or mutual funds throughout the calendar year equal or exceed six months’ basic pay, all government employees are required to send an intimation. We would suggest you refer to the service rules as applicable to you.
I am an NRI and we plan to invest some funds regularly through mutual funds and shares in India. Is it possible? What is the procedure? Please advise. – Geetha Nair, Bahrain.
As an NRI, you can invest in shares/mutual funds in India either through your NRE or NRO Investment Accounts linked to respective NRE or NRO Bank A/cs as per the norms of Reserve Bank of India (RBI) and SEBI. You would have to open the above mentioned Bank and Investment accounts in compliance with the KYC guidelines laid out for the same. You can contact any SEBI registered broker like Geojit who would help you with necessary guidance and support for opening relevant Bank and Investment accounts for meeting up your investment requirements.
I am approaching retirement and expect to receive Rs. 20 lakhs as retirement benefits. With minimal pension income expected, what investment strategy would you recommend for generating regular monthly returns? – Vijaya, Salem.
Consider implementing Systematic Withdrawal Plans (SWPs) through mutual funds. We recommend you invest in fixed income/debt mutual funds where currently the yields range between 6.8% to 7.2%. When withdrawing, it would be prudent to consider leaving some portion of the yield as margin of safety. You may consider a withdrawal rate of 6.5% per annum, with approximate monthly withdrawal of Rs.10,700. Note: Fund yields and maturity periods are subject to market conditions. Verify current rates before making investment decisions.
Investing in mutual funds is fairly simpler, once the KYC is registered, one can start investing in the mutual fund schemes as per your investment objective and goals, from the NRI bank accounts.
