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Getting Your Investments Right

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Getting Your Investments Right
Getting Your Investments Right
Team Outlook Money - 06 June 2019

Julie, Navi Mumbai

What is the trend of Gold Recycling in the last five years?

Jewellers report up to a 15 per cent increase in transactions involving exchange of old gold, attribute shift to a jump in metal price.

The quantum of recycled gold in the system is on the rise in India on account of an increase in gold prices and some players ensuring transparency in evaluation and pricing, said jewellers and gold loan companies.

This trend is also helping curb imports, thus saving foreign exchange. India is the second-largest consumer of gold and the largest importer of the yellow metal, importing about 700-800 tonne annually.

Rachit Chawla, Founder and CEO, Finway

 

Harsh Gupta, New Delhi

I need some investment advice. Please suggest how can I plan some of my monthly investments and lump sum also.

You should invest according to your goals. For short-term goals, invest in short term funds. For long-term goals, invest in equity mutual funds. Start off with large cap or index funds, whatever you invest in equities- even if it is Rs1000 per month, ensure it stays invested for at least seven to 10 years if not more to truly see it grow.

Shweta Jain,

Certified financial planner and Founder, Investography

 

Manoj Kumar Aggrawal, West Delhi

I am 45 year old and want to have fund of Rs50 lakh at the end of six years (March 2026) for my daughter’s marriage. How much to invest every month and what is the likely portfolio mix?

You will need to invest atleast Rs51,000 per month for daughter’s marriage if you wish to get to Rs50 lakh at the end of six years. You can start off with 100 per cent equity for the first year and then balanced funds for the second and third year and then debt funds for the rest three years. This way, the first year investments have four to five years to stay invested and grow and you can move them to short term debt funds by the end of five years so everything is safe when money is needed.

Shweta Jain,  Certified financial planner and Founder, Investography

 

A Venkata Subramanian, Chennai

I am a senior citizen. My son transfers around Rs40,000 per month (say Rs4.8 to 5 lakh per year) to my bank account to enable me to meet our personal, living, medical and travel expenses. Me and my son file Income tax returns. Should I indicate the sum received from my son in my tax returns under the Exempt Income column or can I ignore it as my son is just supporting his father as part of his family obligations?

As per the current tax provisions in case any money is received without consideration in excess of Rs50,000, the entire amount received will be treated as a taxable income. However, this provision shall not be applicable in case money is received from a relative which includes son (being lineal descendant of the individual). Accordingly, money received from your son in order to meet the expenses will not be a taxable income.

Divya Baweja, Partner, Deloitte India

 

Yogesh, Nasik

I want to transfer some stocks from our joint Demat a/c (I am primary holder) to my wife’s sole Demat A/c. What will be our tax treatment?

Tax treatment in the hands of wife

As per the current tax provisions, in case shares and securities are received without consideration in excess of Rs50,000, the entire amount received will be treated as a taxable income. However, this provision shall not be applicable in case the shares are received from a relative which includes spouse of the individual. Accordingly, shares received by your wife will not be subject to tax in her hands.

Tax treatment in the hands of the transferer

In case you plan to gift the shares to your wife, there will not be any capital gains tax in your hands. This is because such transaction is not considered as transfer under the existing tax provisions. Hence, there will not be any tax liability arising in your hands.

Divya Baweja, Partner, Deloitte India

 

Nagaraj Kamat, Ankola

I am new to the share market. Last week I purchased RCOM shares. But since its share was going down and to make it average I bought repeatedly. Now I am stuck with 3,245 shares. Kindly suggest a way out.

Rcom seems like an investment which you should not have made in the first place as the shares were crashing since a long time. The Company has huge debt and even suspended their operations. Any upside will only be speculative. Hence, I would recommend you to avoid buying more and exit at an appropriate time.

Rachit Chawla, Founder and CEO, Finway

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