8 replies on this article “Early retirement – How to invest for later year”

1. Ashal Jauhari says:

   January 24, 2013 at 10:59 am

   Dear Vishal, as of now you are out of India, so I do not know how ‘ll you manage the required paper work & interestingly as you are in US of A, some AMCs ‘ll not accept your application at all. Please check with Franklin & DSP before jumping in.

   Regarding opting between direct or distributor, if you are availing services of a financial planner from day one, the advisory part for selection of MFs & AMCs is taken care off by that planner, so the add on benefit of distributors’ advice ‘ll not be there with you. So you can opt for direct option to save on trail commission.

   Thanks

   Ashal

   Reply
2. Vishal Bhatia says:

   January 24, 2013 at 2:41 am

   Dear Ashal and Ramesh,
   Thanks for your replies. It is extremely helpful to get your feedback. I will also consult a financial planner but want to be clear in my mind as to how to proceed. Another question:

   1. Do you recommend that Eq. MF investemnt should be done directly to the respective fund houses (HDFC, Franklin etc.) or should I get a brokerage like ICICDirect or Kotak and set up SIP and fund purchases through them?

   Regards
   Vishal

   Reply
   1. Ramesh says:

      January 24, 2013 at 8:48 am

      In current conditions, it is best to go directly to AMC, and select 1 or 2 differently styled diversified equity funds.

      You need to understand the difference between getting the best return and getting a decent above average return on your money. The former is a luck thing while the latter more depends upon your persistence.

      Go with one fund only in one fund house.

      My reco
      1. Franklin. Either blue chip or prima plus or flexi cap, in order of increasing risk/return grading.
      2. For equity only, DSP: top 100 or DSP equity, again in increasing order of risk/return grading.
      3. HDFC: top 200 or hdfc equity, similar order.

      That is it. No need of mixing more funds. No need for mixing of Amcs.

      All of these are profitable AMCs, so I don’t see then leaving. But still of something of that sorry happens, you can shift to the alternative.

      Reply
3. Ashal Jauhari says:

   January 23, 2013 at 1:00 pm

   Dear Vishal, let me add a bit in dear Ramesh’s reply. He is also a doctor by profession. So in a sense he can understand your life & situations better than other normal people. That’s why he has given his honest opinion.

   You are free to avail services of a professional or DIY. Choice rests with you.

   Thanks

   Ashal

   Reply
4. Ramesh says:

   January 23, 2013 at 11:41 am

   Why not get the help of a professional like Manish/Nandish to look into these aspects?

   1. Since you are doctor, I mostly think you are not very inclined in managing money yourself. So, let a professional help you.

   2. You will need to establish a trust for all those charity works too, and a professional will help you start, manage and maintain that.

   3. Since the amount of your investments is big, and the goals are complex involving charity and taxation issues, I think it will be best for you to do this way.

   P.S. I do not have any personal benefit in recommending Manish to you. If you can find out someone else, well and good.

   Reply
5. Ashal Jauhari says:

   January 23, 2013 at 11:19 am

   Dear Vishal, please ignore the prev. reply as it was meant for another discussion.

   Here is my take – between the 2 HDFC funds, please opt one & add Quantum Long Term Eq. fund. Please make sure, you are returning back to India within your specific time frame. The reason is – if you delay your return, even the accumulated returns in these Indian Eq. funds ‘ll be added to your American income & you w’d have to pay tax on it.

   Other things can be discussed once you are back in India.

   Thanks

   Ashal

   Reply
6. Ashal Jauhari says:

   January 23, 2013 at 11:14 am

   Dear Vishal, as you are in 30% tac slab, dividend stripping ‘ll create more problem to calculate your STCG. So in my personal opinion, please invest in growth plans only.

   There is more to it – as you are planning to invest in Eq. funds using STP. You can notuse STP from Rel. debt fund to HDFC eq. funds or to DSP eq. funds or to Quantum eq. funds.

   You w’d have to invest in the debt funds of respective individual eq. funds where you want to invest finally.

   Thanks

   Ashal

   Reply
7. Free Financial Calculators says:

   January 23, 2013 at 10:39 am

   Dear Dr. Vishal,
   invest a majog chunk of the money 60-70% in large cap funds like Franklin India Blue Chip,
   ICICI Prudential Focused Bluechip Equity, DSPBR Top 100 Equity Reg

   and some small- and mid-cap funds like
   IDFC Premier Equity
   ICICI Prudential Discovery

   HDFC Top 200 is a good large and mid-cap fund which you could also consider.
   HDFC equity is quite similar to top 200 but more risky and choosing one of them should do.
   Pattu

   Reply

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