Money Guru: 10 funds for financial independence, this 15th August - details

In this edition of Money Guru, Zee Business’ Swati Raina speaks to Firoze Aziz, Deputy Chief Executive Officer (CEO) at Anand Rathi Wealth Management to tell viewers 10 funds that will make investors financially independent, this Independence Day.

Which funds will yield benefits?

Investment that will increase your wealth

Which schemes will give better returns?

!0 funds for financial independence day as we celebrate 75th year of independence.

Goal Planning

- Child’s education

- marriage of child/children

- home buying

- Vehicle buying

- Retirement planning

Formula for investment

Save at least 30 per cent from your income

Invest in different asset class

Formula for investment in equities – (100 years – your age). For e.g. if your age is 30 then you must invest 70 per cent of your investment pool into equities. 20 per cent in debt and 10 per cent in gold. Include some part of your investment portfolio with real estate.

Beneficial Schemes

- SIP in equity mutual fund

-PPF

-NPS

- Health Insurance Scheme

- Life Insurance Scheme

PPF vs NPS

- NPS                   PPF

Maturity                             70 + Age              till 60 years

Interest                               12-14%                 7.1%

Minimum Investment    Rs 500(टियर1)        Rs 500

Tax Benefits                      Rs 2लाख                Rs 1.5 lakh investment

Partial Withdrawal           Before Retirement 20%   After 7 years

How to increase in wealth?

- Sovereign Gold Bond

- Gold MF

- Gold ETF

- PPF

- NPS

Investment in Gold

Sovereign Gold Bond

Annual 2.5 per cent interest, 8 years lock-in period

The amount is auto credited in 6 months

In Sovereign Gold Bond the maturity income is tax free

In interest, tax will be deducted as per the income slab

Trading on stock exchanges prior to maturity will invite tax

You can take loan in lieu of gold bond

Gold ETF

One of the best ways to invest in gold

Gold ETFs are open ended Mutual Funds

1Gold ETF Unit is equivalent to 1 gram gold

Facility to invest in gold and stocks

You can buy Gold ETF on exchanges like a stock

Firoze’s advice to investors

Large Cap funds

Fund                                                        3yr annualized returns                                                                             

Canara Rob. Bluechip Eq.                                18.14%

Mirae Asset Emer. Bluechip                              22.65%

Feroze’s Advice on Flexi Cap fund

Quant Flexi cap                                          33.06%

HDFC Flexi cap                                         17.46%

Feroze’s Advice Mid Cap fund

Kotak Emerging Equity                              26.41%

Feroze’s Advice Multi cap fund

Invesco India Multicap                                   19.65%

Feroze’s Advice Small cap fund

Nippon India Small cap                                   33.47%

Feroze’s Advice Focused Fund

SBI Focused Equity Fund                                  17.24%

Firoze’s Advice

Contra Fund

SBI Contra Reg                                          28.52%

Feroze’s Advice ELSS

Quant Tax Plan                                          36.00%