Personal Finance Queries For The Day (08-07-2019)

Joseph Lino, Singapore 787078: I am an NRI based in Singapore. I have been investing in mutual funds in India on a repatriate basis from my NRE account and in shares through my PIS account. I have obtained my Singapore citizenship and will have to cancel my Indian Citizenship and will be taking up the Overseas Indian Citizenship(OCI). I would like to inquire if I can continue to invest in mutual funds and shares in India through my NRE and PIS account.

Ans: Mutual funds in India are not allowed to accept investments in foreign currency. An NRE account is a rupee account from which money can be sent back to the country of your residence. The account can be opened with money from abroad or local funds. Amount can be invested through direct debit from NRE Account. If the investment is made through cheques or drafts, the investor should attach with the application form a foreign inward remittance certificate (FIRC) or a letter issued by the bank confirming the source of funds. There are some AMC’s which don’t allow investment in India for Citizen of USA or Canada. But as you are having citizenship of Singapore there is no issue.

Ashok Arunachalam, Ashnav002@gmail.com, Erode: I am 43. I have a target of 3 core in 17 years. I have started an sip of 21000 from may 2019. Axis blue chip fund direct-7000, mirae emerging blue chip fund direct-7000 and hdfc small cap fund direct-7000. Pls review.

All three funds are of different categories as Axis Bluechip is pure Large Cap, Mirae Emerging Bluechip is Large & Mid cap and HDFC Small Cap is Small cap fund. The issue is, even if you get 15% CAGR, the target amount would be around 1.77 Crores. So if you get 15% CAGR then you need to increase your SIP amount to Rs. 36,000/- p.m. Alternatively you can take use SIP top-up option.