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  • Amit Trivedi

    01 Aug - 03:00hrs

    Build wealth with mutual funds

    Amit Trivedi Author & Founder, Karmayog Knowledge Academy

Posted By: guest:

I HAVE A PERSONAL LOAN OF 1.2 LACS AND A CORPUS OF 1.4 LACS. SHOULD I REPAY THE LOAN OR SHOULD I INVEST THE CORPUS?

Posted By: Amit Trivedi

: Repay the loan, as the interest cost would be higher than what you can earn through a no-risk or low-risk investment

Posted By: guest:

I have just taken a home loan a leading bank to finance a under construction property of a leading builder. Have already paid 60 of price and the loan is for the reminder. The loan was also processed by the builder. Now each tranche request is raised with a hefty interest clause for (of course I had signed the agreement as an excited buyer would without comprehending the repercussions). The first tranche was slightly delayed and as there is a little buffer is manageable.Consistent delays would be a concern. Tranche requests are raised once every 10-14 days. Good in the long term as the possession will be sooner but there is a real risk of the bank disbursal not happening on time consistently. Is there a way I could avoid bank disbursal delays? Could I park one tranche as deposit with the builder to cover for delays? Am l liable to such delays?

Posted By: Amit Trivedi

: This requires a legal opinion. Any lawyer would be able to help you only after going through the agreement between you and the builder. One would also require to go through the loan agreement.

Posted By: guest:

I have invested in HDFC mid cap opportunities fund Direct Growth since June 2017 with SIP of Rs.3000- p.m. Should I hold it for at least 5 years

Posted By: Amit Trivedi

: Are you serious? You just invested around a month or a month and a half ago. When you invest in a midcap fund, please have a minimum of five years horizon - extendable beyond ten years.Be ready to park your money for long period of time.

Posted By: guest:

My sips which I was investing since more than 5 years for my financial goals(children education and my retirement) which is more than 10 years now have generated good returns at present. Is it better to take out some profits and move to bank ac or any other fixed income account to protect profits? I dont need immediate money now. pls suggest

Posted By: Amit Trivedi

: Given the performance of equity markets in the last five years, I guess you would have earned far higher returns than what you had expected when you started your SIPs. That is a good situation to be in and your question is natural - regarding protection of the profits. However, before taking such a decision, it would be better to analyse your requirements - have the goals changes? Has the amount required for the goals changed? Do that assessment before getting into safe but lower return products. Also, please understand that if you get out of equity, it would be very difficult to get back in at the right price.

Posted By: guest:

Is Dynamic Fund and Value funds are one and the same in respect of diversification?

Posted By: Amit Trivedi

: No, value funds are pure equity funds - that is, they invest entire corpus in equity shares, whereas dynamic funds may reduce their exposure to equity for various reasons.

Posted By: guest:

My SIP MF returns have generated the good profits now , my financial goals are still more than 8 years away can I redeem some amount and put it in Bank ac , but if I redeem funds the power of compounding in mutual funds will be affected in the long term for my financial goals? Pls suggest you opinion

Posted By: Amit Trivedi

: Check your goals, if there is any change. Then figure out whether the fixed deposit returns would suffice to meet your goals. If yes, it makes sense to shift the money to FDs. However, the analysis may suggest that you may have to shift part of your investments to FDs. It is better to go back to the drawing board and check the requirement rather than taking decisions based on what has happened in the past.

Posted By: guest:

Am 41 and investing in the following MF through SIP since 5 yrs for long term financial goals(Children education and Retirement) say more than 10 yrs now UTI Equity Fund, Franklin India Prima Plus , LT Equity Fund, , IDFC Premier Equity Fund, Quantum Long Term Equity Fund and ICICI Prudential Dynamic Fund. Will these funds have potential to generate reasonable corpus in the long term. What returns can I expect the above funds.

Posted By: Amit Trivedi

: Difficult to comment on the future returns from any investment avenue. Kindly understand that all these are equity funds and hence these can generate high returns in long term (no guarantee here), but also carry high risk.

Posted By: guest:

Credit opportunities, Income, Dynamic bond, Gilt Funds. kindly suggest debt funds ?

Posted By: Amit Trivedi

: Depends entirely on your specific requirements.All the categories have their pros and cons.

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