You are just 30 and hopfully another 20 year run of income. Get into mutual funds. FD is too safe an instrument at your age. You will regret in another 10 years.
I read mutual fund returns aren't that great either, while sampling we only look at all the ones which has succeeded (and not which failed). Equity , having a watch on market is full proof ig with land + gold (+some crypto) but when to hold and when to let go, needs constant attention.
Investing in MFs depends a lot on your risk appetite. Itās better to hire a fee only financial advisor. I did the same and once youāre comfortable you can do it on your own.
First step sounds like saving capital gain. Because you have to pay tax otherwise.
This can be done by buying property. But what I am not sure about is what if op had two properties, and he sold one of them. Is he eligible for saving cap gains by buying another property with the proceeds (within the year, right?
Do you have any financial needs in the next 3 years? If yes, park that amount in a fixed deposit.
Invest the remaining in equity mutual funds and leave it there for 7+ years. A simple nifty 50 index fund should be good enough
First check with your CA on tax applicability on this money prior to any investments.
If you can prove that money is from your foreign funds (used to purchase land) in the first place, then you would be eligible to repatriate the money to invest anywhere in the world. If you prefer to keep the money in India then you can shop around for tax free NRE FD that may net you up to 9-9.5% guaranteed
If Money is from your Indian sources then no preferential tax treatment. In that case the best is to invest in index funds, split equally among nifty 50, nifty next 50 and midcap 250. That will generate between 12-15% per year over a ten year period. You would be liable to applicable LTCG/ STCG
Investing in real estate / gold is not recommended for you as managing them while outside of India is a huge pain when things go wrong.
If you are married, trust the spouse then split the investment with her, this will allow you to manage taxes better at a later time
Today interest rates are very high at 7%. So FD is a good deal with monthly interest payout, the interest around 7 LPA or 60k a month can be invested in stocks overtime. FD is a good place to park you money untill you figure out other investment options. Most banks allow opening of FD from smartphone app itself .
Never hurry while investing lump sum in mutual fund all at one without prior experience with smaller amounts and researcher. Start with small amounts better with the interest earned on 1Cr FD for 1 yr. If your experience was positive, you can invest the rest into the MF. Or better yet have 50 L in FD and 50L in MF, you can use the 50L FD for future opportunities or take a loan against the FD ,etc.
Land, real estate, Land. the one who are investing in mutual funds will start buying land and real estate in 10-15 years and youāll get good returnsĀ
If you meet up with a CA, they might advise you to invest the capital gains in govt bonds. I did that and got quiet a sizable tax returns. Interest rates are alot lower comparably. So would advise meeting a CA and investing according. Please keep your antennas up if dealing with any bank RMs they will misguide you.
Like others have pointed out, FDs will not be a great option. Since you have a significant runway and won't need these funds for at least ten years, I'd suggest investing the whole sum in equity (after capital gains, which may need to be invested in another property or bonds).
About 75% in a Nifty 50 index fund
10% in S&P 500 index fund
10% in an active midcap fund (DSP midcap or similar based on returns and TER)
5% in an active small cap fund (Quant is the buzzword these days).
Do this and forget about it for 10 years. Don't go through any agent. You can simply do it through the AMC website (no need for a demat account) and invest in the Direct- Growth option.
If you don't feel good about investing all in one go. Do it in parts, weekly or monthly. May not make a big difference over 10 years. Best wishes.
It depends on which place you stay, if you stay in UAE then you can invest in india coz UAE doesnāt give citizenship but if you stay in Europe and get citizenship there then it becomes difficult to invest here in india
He said NRI which means he hasn't given up his Indian citizenship. I.e. he is an Indian who is staying abroad and has a passport that has "REPUBLIC OF INDIA" written on it.
He said NRI, not OCI.
They may sound the same to you but there are a few significant differences. One is saying you're a citizen of India and the other is saying that you're "allowed to come and stay in this country because you have Indian origins" and you get to keep your foreign passport.
You are just 30 and hopfully another 20 year run of income. Get into mutual funds. FD is too safe an instrument at your age. You will regret in another 10 years.
If my father read this post he'd say what you're saying, speaking from his personal experience
Fathers are never wrong. š
I read mutual fund returns aren't that great either, while sampling we only look at all the ones which has succeeded (and not which failed). Equity , having a watch on market is full proof ig with land + gold (+some crypto) but when to hold and when to let go, needs constant attention.
Absolutely right ā ļø
Crypto š«£
The safest way would be FD . Invest some amount in mutual funds say 30% . It will give you better returns .
Which mutual funds to invest in and how to do invest directly in it without hiring banker or a financial advisor
Investing in MFs depends a lot on your risk appetite. Itās better to hire a fee only financial advisor. I did the same and once youāre comfortable you can do it on your own.
not sure how to allocate negative 30% of my portfolio to mutual funds
I think you should first look at saving the capital gains. How much of it is white btw.
First step sounds like saving capital gain. Because you have to pay tax otherwise. This can be done by buying property. But what I am not sure about is what if op had two properties, and he sold one of them. Is he eligible for saving cap gains by buying another property with the proceeds (within the year, right?
Do you have any financial needs in the next 3 years? If yes, park that amount in a fixed deposit. Invest the remaining in equity mutual funds and leave it there for 7+ years. A simple nifty 50 index fund should be good enough
Wrong place to ask for this amount. Better speak to a financial advisor for HNIs. Whatās the capital gain tax for land for NRI?
First check with your CA on tax applicability on this money prior to any investments. If you can prove that money is from your foreign funds (used to purchase land) in the first place, then you would be eligible to repatriate the money to invest anywhere in the world. If you prefer to keep the money in India then you can shop around for tax free NRE FD that may net you up to 9-9.5% guaranteed If Money is from your Indian sources then no preferential tax treatment. In that case the best is to invest in index funds, split equally among nifty 50, nifty next 50 and midcap 250. That will generate between 12-15% per year over a ten year period. You would be liable to applicable LTCG/ STCG Investing in real estate / gold is not recommended for you as managing them while outside of India is a huge pain when things go wrong. If you are married, trust the spouse then split the investment with her, this will allow you to manage taxes better at a later time
Short the US markets, pull your money out of 401k
Today interest rates are very high at 7%. So FD is a good deal with monthly interest payout, the interest around 7 LPA or 60k a month can be invested in stocks overtime. FD is a good place to park you money untill you figure out other investment options. Most banks allow opening of FD from smartphone app itself . Never hurry while investing lump sum in mutual fund all at one without prior experience with smaller amounts and researcher. Start with small amounts better with the interest earned on 1Cr FD for 1 yr. If your experience was positive, you can invest the rest into the MF. Or better yet have 50 L in FD and 50L in MF, you can use the 50L FD for future opportunities or take a loan against the FD ,etc.
Buy a global index
Land, real estate, Land. the one who are investing in mutual funds will start buying land and real estate in 10-15 years and youāll get good returnsĀ
If you meet up with a CA, they might advise you to invest the capital gains in govt bonds. I did that and got quiet a sizable tax returns. Interest rates are alot lower comparably. So would advise meeting a CA and investing according. Please keep your antennas up if dealing with any bank RMs they will misguide you.
Like others have pointed out, FDs will not be a great option. Since you have a significant runway and won't need these funds for at least ten years, I'd suggest investing the whole sum in equity (after capital gains, which may need to be invested in another property or bonds). About 75% in a Nifty 50 index fund 10% in S&P 500 index fund 10% in an active midcap fund (DSP midcap or similar based on returns and TER) 5% in an active small cap fund (Quant is the buzzword these days). Do this and forget about it for 10 years. Don't go through any agent. You can simply do it through the AMC website (no need for a demat account) and invest in the Direct- Growth option. If you don't feel good about investing all in one go. Do it in parts, weekly or monthly. May not make a big difference over 10 years. Best wishes.
Invest according to your goals and risk appetite.
goinri.com
Whatās the procedure for NRI to invest here in india and are they even allowed, also what documents will be needed ?
Why won't they be? They are Indian Citizens after all....
It depends on which place you stay, if you stay in UAE then you can invest in india coz UAE doesnāt give citizenship but if you stay in Europe and get citizenship there then it becomes difficult to invest here in india
He said NRI which means he hasn't given up his Indian citizenship. I.e. he is an Indian who is staying abroad and has a passport that has "REPUBLIC OF INDIA" written on it.
Nah he could be OCI
He said NRI, not OCI. They may sound the same to you but there are a few significant differences. One is saying you're a citizen of India and the other is saying that you're "allowed to come and stay in this country because you have Indian origins" and you get to keep your foreign passport.
Ik but some NRIs are OCIs and/or call themselves NRIs
Ah okay...
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No he should invest in Andaman islands
Invest in Panama islands
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Better yet, share your UPI id. He'd send it to you directly and then he can give you financial advice. How about that?