Need advice on this portfolio..

POSTED BY Ramkumar ON March 11, 2012 4:16 pm COMMENTS (24)

I am 32 years old. Here is my current portfolio. Risk Appetite – High. Need experts’ advise to further refine it. Thanks in advance.

Equity (SIP) – All started Jan 2012

HDFC Top 200 – 10K
HDFC Prudence – 10K
Franklin India Bluechip Fund – 10K
IDFC Premier Equity Fund – 10 K

PPF – Using up 1 lakh a year

ELSS(Not going to invest anymore)

HDFC Tax Saver Growth – 25K – Can regain in 2013
SBI Tax Gain – 90K – 3 years lock-in is over.

Direct Stocks:
1.5 Lakhs

Term Insurance:
HDFC Life – 75L – Mine
Birla Protector – 65 L – My Wife’s

FD(SBI@9%) – 35 Lakhs – Need this in another 3 months for my second house purchase.

Thanks,
Ram

24 replies on this article “Need advice on this portfolio..”

  1. Dear Ram, how many days are there in June & how many in July month? That’s the answer for your interest calculation.

    thanks

    Ashal

  2. Ramkumar says:

    Folks – Any update. Really need your help are there any issue with the above account stmt & interest calculation?

    Thanks,
    Ram

  3. Ramkumar says:

    Lets see how this gets displayed!!

    6/6/2013 Int.:06-05-2013 To 30-05-2013 11,957.00   -17,15,527.00
    6/6/2013 Int.:06-05-2013 To 30-05-2013 4   -17,15,531.00
    6/6/2013 Int.:31-05-2013 To 05-06-2013 2,870.00   -17,18,401.00
    6/6/2013 Int.:31-05-2013 To 05-06-2013 1   -17,18,402.00
    3/7/2013 TRF (EMI) –  22,702.00 -16,95,700.00
    5/7/2013 INSURANCE – NIC 4,814.00    -17,00,514.00
    6/7/2013 Int.:06-06-2013 To 05-07-2013 14,459.00    -17,14,973.00
    6/7/2013 Int.:06-06-2013 To 05-07-2013 58    -17,15,031.00
    23/07/13 TRF (EMI)   – 22,702.00 -16,92,329.00
    1/8/2013 LEGAL AUDIT REPORT CHGS 1,000.00     -16,93,329.00
    6/8/2013 Int.:06-07-2013 To 05-08-2013 14,836.00   -17,08,165.00
    6/8/2013 Int.:06-07-2013 To 05-08-2013 54   -17,08,219.00

  4. Ramkumar says:

    Dear Ashal & Others

    I am verifying my loan account statement and I see something is fishy or not clearer to me.

    1. Last month, they added 4814 Rs to the account saying “INSURANCE – NIC ”
    2. This month they added another 1000 Rs saying “LEGAL AUDIT REPORT CHGS”
    3. One important thing for June(for the outstanding -17,18,402.00@10.25) the interest was 14,517 but this month the interest is 14,894 Rs. My query is with June month’s EMI the outstanding came down to -16,92,329.00. How come the Interest rate is more compared to the last month?

    Here is the loan stmt for the last 10 transactions (Not sure how this is going to be displayed in the web page)

    6/6/2013 Int.:06-05-2013 To 30-05-2013 11,957.00   -17,15,527.00
    6/6/2013 Int.:06-05-2013 To 30-05-2013 4   -17,15,531.00
    6/6/2013 Int.:31-05-2013 To 05-06-2013 2,870.00     -17,18,401.00
    6/6/2013 Int.:31-05-2013 To 05-06-2013 1     -17,18,402.00
    3/7/2013 TRF  –  22,702.00 -16,95,700.00
    5/7/2013 INSURANCE – NIC 4,814.00   –  -17,00,514.00
    6/7/2013 Int.:06-06-2013 To 05-07-2013 14,459.00   –  -17,14,973.00
    6/7/2013 Int.:06-06-2013 To 05-07-2013 58   –  -17,15,031.00
    23/07/13 TRF     22,702.00 -16,92,329.00
    1/8/2013 LEGAL AUDIT REPORT CHGS 1,000.00     -16,93,329.00
    6/8/2013 Int.:06-07-2013 To 05-08-2013 14,836.00     -17,08,165.00
    6/8/2013 Int.:06-07-2013 To 05-08-2013 54     -17,08,219.00

    For sure I am going to the bank but I want your advice before I go and speak to them.

    Thanks,
    Ram

  5. Dear Ramkumar, I’m trying to answer your queries.

    1. BOB had made us to go for registration of mortgage deed on our property in the office where the property is registered in our name. Is that a normal practice? They added about 3400 Rs for that in our loan account.
    Yes registration of Mortgage deed is a normal practice.

    2. If the above item is normal practice, how we should revert it once the loan is paid up fully?
    Once the loan is fully repaid by you, please demand a loan closure certificate & at the same time demand a mortgage cancellation request letter from BOB. Carry both these things with you & contact an advocate in your area. The advocate ‘ll do needful for cancellation of Mortgage deed. At the time of cancellation, a designated officer from BOB ‘ll also come to sign on behalf of BOB to sign for cancellation of Mortgage.

    3. You had mentioned that you had some personal experience. Do they have a loan account “login” are something where we can see the stmt, prevailing interest rates, etc. at any time we want? Reason being, today just casually I asked for the loan stmt and I came to know 3400 was added to the loan outstanding for the mortgage(the point # 1)? If i have some website login, anytime I can take a look. When i asked them these details, those buggers looked at me as if I had asked someting wrong. That why posting it here.
    If your wife do have a SB account with BOB, demand Netbanking for the same & you ‘ll get the loan account linked automatically. 🙂

    Thanks

    Ashal

  6. Ramkumar says:

    Ashal,

    The registration is over and all the required papers have been collected from the seller. Thanks for your help.

    Have couple of queries..

    1. BOB had made us to go for registration of mortgage deed on our property in the office where the property is registered in our name. Is that a normal practice? They added about 3400 Rs for that in our loan account.

    2. If the above item is normal practice, how we should revert it once the loan is paid up fully?

    3. You had mentioned that you had some personal experience. Do they have a loan account “login” are something where we can see the stmt, prevailing interest rates, etc. at any time we want? Reason being, today just casually I asked for the loan stmt and I came to know 3400 was added to the loan outstanding for the mortgage(the point # 1)? If i have some website login, anytime I can take a look. When i asked them these details, those buggers looked at me as if I had asked someting wrong. That why posting it here.

    Thanks in advance.

  7. Dear Ramkumar, apart from the original owner’s own sale deed’s copy from him, please demand the originals bills for municipal taxes paid in last 3Y (more is still better). Electricity bills for at least last 12 months. Any other bills related with property.

    Apart from this original propety file containing documents like development plan, NA/NOC issued by concerned authority, Permission to development by the municipal authorities & many more.

    thanks

    Ashal

  8. Ramkumar says:

    Any updates on this frnds??

  9. Ramkumar says:

    Folks,

    BOB has sanctioned my Wife’s loan y’day. The registration is going to be in a week’s time.

    Would like to know now as to what are the “Originals” that the owner(The current apartment owner) has to give us during/after the registration.

    Also, What are the docs would bank take from us?

    Just want to know this in advance so that I am aware of it and well prepared of it..

    Thanks in advance frnds!!

    Thanks,
    Ram

  10. Dear Ramkumar, Interest rates are competetive in the market & I do have some personal experience with BOB. One of my friend switched over from ICICI to BOB 3-4 years ago.

    for exact details of interest rates of BOB home loans, please check the respective site

    Thanks

    Ashal

  11. Ramkumar says:

    Alright. Thanks Ashal. How competitive their interest rates are and any first hand experience from the readers they can share me?

  12. Dear Ramkumar, thanks for the update. Please opt BOB to save your time, efforts & money. The BOB is also a PSU bank so usual practices/problems are there. Yes a product like Max Gain is not available there.

    Thanks

    Ashal

  13. Ramkumar says:

    Hi Ashal – After a year long search, we have now found a house. I am working with SBI to see if I get a loan. Looks like due to some issues(Khata/Patta not issued by the development authority but by the Panchayat) the changes are getting bleak. will continue to check with them.

    In the mean time, thought it might be a good idea to discuss some things here.

    1. What is the next bank you suggest, like you did for SBI Maxgain. I am doing some research in the web and found HDFC is next good one eventhough it is private bank.

    2. The property owner is already having a loan with Bank of Baroda. The owner says it woudl be easy for both of us if we go with BOB. Does anyone have any idea how these guys are. Internet did not offer me much help.

    3. It is a 5 year old apartment and when it was built, Syndicate bank had approved it. Again need some review comments about this bank too.

    thanks in advance.

    Thanks,
    Ram

  14. Ramkumar says:

    Sure Ashal. One final query.

    Any suggestion about regaining the matured ELSS funds’ money(lock in over for about 60K – SBI Tax gain) and put it in some other funds or let it be there in the ELSS funds itself??

    Thanks, Ram

    1. Dear Ramkumar, Instead of giving a direct yes or no type answer, I shall ask you to compare the return for past 1-2-3 years in the ELSS & the other funds you are investing in. If ELSS are lagging behind, switch it, else keep as it is.

      Thanks

      Ashal

  15. Ramkumar says:

    Will do. Will come again in case I still have queries. Thanks again Ashal.

    1. Dear Ramkumar, I can answer your Max Gain related queries right now but I want you to check some details on your own. Believe me this ‘ll help you to understand your own situation better & you ‘ll come with a clear mind to discuss in details after doing a home work. 🙂

      Thanks

      Ashal

  16. Ramkumar says:

    Thanks for the detailed explanation Ashal.

    Here are the answers for your queries..

    PPF – Will do as you say.

    ELSS – As our income tax is taken care by PPFs, thought no point in going for ELSS. I am routing the money to the diversified mutual funds(SIPs) i had mentioned. Comments??

    Also any word about regaining the matured ELSS money and put it in some other funds or let it be there in the ELSS funds itself??

    FD(SBI@9% 35 Lakhs) – You mentioned to go for only 12-15 as down payment. Couple of Queries on this.

      Since I have excess money, any particular reason why I shouldn’t down payment the entire 35L? Comments??
       Don’t I endup shelling out lot of money in terms of interest if I borrow a lot.

       Actually if I had to go with 12-15L down payment, I would have bought the house long back. I did not want more than 20L as Loan on my head. That’s the reason I waited for this long to generate ample cash on hand.
       I did the same thing for the first house too. I waited until i have 50-60% cash, then I bought the house on Loan. I could come out of the loan in 2 years.
       In case I go with only 12-15L as down payment, what is your suggestion for the money I have(20-23 L) currently. Invest in such a way it generates more money than the interest i pay for this money to bank. Comments??

    In the mean time I will explore SBI Max Gain scheme. They say don’t look a gift horse in the mouth.I am really thankful to you. Even I never took a very closer look on all these items. Really appreciate it.

    Thanks,
    Ram

    1. Dear Ramkumar, Here is my explaination –

      ELSS – You did not mentioned for the 80C status or full PPF for your wife & I’m counting for full family’s income that’s why I asked. Yes as both the PPF account ‘ll take care of 80C now no need to go for ELSS.

      FD(SBI@9% 35 Lakhs) – Please check SBI max Gain first & I believe a lot of doubts ‘ll be clear then & there for you automatically. Even if you feel to ask for, please come here again or give me a personal mail, as you wish. Please visit the nearest SBI branch ASAP. Just to add one last point – Please purchase the house in joint ownership of you & your wife.

      I’m happy for the fact that I was able to help you. Please keep posting.

      Thanks

      Ashal

  17. Ramkumar says:

    Sorry for the typo… It was 1.3L only.
    It is combined[80 Mine+50 Wife’s].
    It just gets into FD rt now. Candidly I don’t know what to do with that. Actually my thot was to ask this as a query when I get answers for my initial queries. Anyway you caught it.Until you pointed it out I did not even realize how magnanimous it was. Thank you

    Appreciate your time.

    Thanks,
    Ram

    1. Dear Ramkumar, After considering the fact that you are going to purchase a house in next 3-6 months, here are my views for your current portfolio & future course of action.

      1. Equity (SIP) – OK

      2. PPF – Using up 1 lakh a year – Please try to put similar amount in to your wife’s PPF account also & try to invest in both accounts on or before 5th april every year to earn full year’s interest.

      3. ELSS(Not going to invest anymore) – May I ask why?

      4. Direct Stocks: – No comments as no details are there

      5. Term Insurance: As of now it’s OF if we consider the current status but the moment, home loan is there, increase your cover as well as wife’s cover by another 50L Rs. each.

      6. FD(SBI@9%) – 35 Lakhs – As this is meant for home purchase, here is my suggestion. Out of the possible cost of 50L Rs. – Opt 12-15L Rs. down payment from your own pocket & arrange 35 to 38L Rs. loan from SBI under Max Gain scheme. For details on the same, please check forum for prev. queries, contact local SBI branch or simply google it. If you are unable to understand after doing all this for Max Gain, come back here in this discussion & we ‘ll discuss it in details. Opt for a 20 or 25Y loan in this Max Gain plan.

      Current mly commitments + new loan EMI + new term plan + 2L Rs. PPF, effective mly amount ‘ll be around 1L Rs.which is almost equal to your mly saving rate.

      Please update with your views on the over all things.

      Thanks

      Ashal

  18. Ramkumar says:

    Thank you Ashal.

    Here you go…

    1. Income – 1.3 K per month.

    2. Expenses – 30 K

    3. Family Size – 3.(My Spouse & a daughter)

    4. No Loans – Closed down my first one couple of years back.

    5. Around 50L (Would opt Housing loan for the remaining amount).

    Thank You.

    1. Dear Ramkumar, is it 1.3K or 1.3L Rs.? Is it your individual income or combined income? 40K into MF SIPs, roughly 8.5K into PPF on mly basis another 2-2.5K into both term plans on mly basis. This totals up to 51K Rs., where are you investing remaining 49K Rs. out of your very healthy saving rate of 1L Rs. mly.

      Thanks

      Ashal

  19. Dear Ramkumar, please provide more info for your income, expenses, family size, current loan liabilities, Cost of 2nd house you are planning to purchase…………………….

    Thanks

    Ashal

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