Financial planning

vignesh 946
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Hi pankaj

I.Canara Robeco Equity Tax Saver- growth fund age is 3 yrs only from its inception. with its dividend option has provided good retrns over the past 5 yrs can i put my money on that?

II.Can i invest more than what i earn? say (I am getting some of the money form my parents an putting them in diversified mutual funds)??

III. I want to buy gold in a long term perspective. In which mode there will be least cost involved in brokerage? say am investing in gold etf for the next 5 yrs and converting them to gold while redemption should i need to pay capital gain tax? will i be able to escape from the tax if i buy gold mutual funds ?

IV." The mutual funds are capital gain tax free if u redeem it after one yr". this sentence i read in many blogs .I can understand that there is no tds. will that be added to my income of that financial yr?

V.. I am goi to do STP with my father s final settlement. Iam goi to do this for around 2 lakhs.
1. Hdfc prudence /hdfc balanced i thought of choosing. (We dont touch for the next 5 yrs). 2. Franklin india bluechip Suggest me some more funds and how much I can invest this amount every month .

Kindly guide me Thanks Vignesh

gold-etf financial-planning mutual-fund investment income-tax
1 Answers
  1. Canara equity tax saver dividend fund was started in March 1993 and growth fund came later in 2009. Performance of both will be same and you can invest in this fund. But as its a tax saver fund, it will be available only till March 2012 as after that direct tax code is being implemented. If you want to take income tax benefit u/s 80C, this is a good choice.
  2. You can invest more than what you earn, but in that case returns would be taxable (if taxable) in hands of person whose money you are investing. If investment is in diversified mutual funds and they are not redeemed before a year, it would not attract any income tax.
  3. Gold ETF is best way to invest in gold as it attract minimum overhead charges. Long term gains (after three years) on gold investment (both ETF and mutual funds) would attract 20% income tax with indexation benefit.
  4. Gains from not all mutual funds are tax free after one year. It applies only to Equity based mutual funds. On other mutual funds there would be tax payable. But their won't be any TDS deduction in any of the mutual funds, you would need to compute and pay yourself. In case of short term gains (less than a year) from debt based mutual funds, gains will be added to income and taxed as per slab rates. For long term gains, it would attract 20% income tax with indexation benefit.
  5. If its your father's retirement amount and we would need it, it will be better put into non-risky investments like Fixed maturity plans, fixed deposits, MIP mutual funds etc. If there is already a corpus for them then it can be invested into balanced or large cap mutual funds.
    In balanced funds category, HDFC prudence, DSPBR Balanced, HDFC Balanced, Reliance Regular Savings Balanced, HDFC Children's Gift and Birla Sunlife 95 are some of the best funds.
    In Large cap category, you may choose from DSPBR Top 100 equity and Franklin India Bluechip.
Pankaj Batra5212
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