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Let's Talk Money Team

Answered by our expert: Khyati Mashru

Viewer query: This is Nivedita Alva here from Bengaluru. I am a 48 year old working with a chartered accountant as a front desk executive for the last 15 years. I draw a salary of ` 11,000/- a month. Have also attached details of my FD''s in Vijaya Bank and Andhra Bank. 

Have a PPF account with SBI since the last 28 Years started by my mother and we had it for 15 years and then have been extending it for 5 years ever since.  I have an RD Account opened in my name in Vijaya Bank where in I put in ` 5, 000/- a month for a year. My mother has put in some money in shares in a company owned by my cousin’s husband which earns us dividends. She also has put in FD's in our names in the same company for which interest is earned.

I stay with my mother so have no expense of rent or food except for my cell phone and travel expense to my office. 

I have money in my account in Vijaya Bank and would like to ask if I could invest in Mutual funds and which one do you think is a good one. 

How do I get in touch with a portfolio manager and am I eligible to take help of one?

Expert advice: Dear Ms. Nivedita Alva,
As per your current age, you have very high asset allocations towards debt investments, which will though give you a guaranteed return however the average return on your FD’s is coming to 7.5%,  which is barely equivalent  in line with current inflation which is around 7%.  It logically means your money is just keeping pace with INFLATION and not actually growing in true sense. We recommend your urgent attention to your existing portfolio with regards to Asset Allocation.  So we have given you the PLAN OF ACTION (POA) below for your existing investments and we have also answered your query on your new investments. As we understand you don’t have major liabilities and major expenses so your goals will be inclined towards Wealth Multiplication. And we also understand from your current investment pattern that you are a Conservative risk taker and we recommend you to move to a Moderate Profile
·         Liquidate 50% of your FD’s.
·         Reinvest that 50% in the Balanced Mutual funds, which will give you a combination of Equity and Debt instruments. Where in Equity will give you growth and Debt will protect you against volatility of a market.
Recommended funds: -
a)      L&T Prudence fund
b)     SBI Magnum Balanced Fund
·         Continue with your balance FD’s in a cumulative interest mode, and you can also hunt for FD’s with little better return in the market.
How Restructuring of Existing Investments will help you: -
Value of above portfolio at the age of 60 years if your restructure the Portfolio as per the recommendation: -
·         From FD’s: à Rs. 19,77,000/-
·         From Balanced Mutual Fund : à Rs.32,90,000/-
       (*Please note the valuation is assumed at a certain rate considering many parameters and above figure is not guaranteed and is subject to market and interest fluctuation risk)
Assuming you will retire at the age of 60, we would recommend you to go slightly aggressive with your new investment. For the proper asset allocation we have mined for you a gamut of few best funds in their category. The mix of funds below will give you entire portfolio the much needed make over and give you robust growth over a horizon of 10 year +, which in turn will give your financial journey a lofty destination and
Your other Queries: -
·         Yes you can take the help of Portfolio Manager/Financial Advisor
3 years ago

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Subramani Iyer : 3 years ago
cheaters n looters gets loans immediately,how.?
Subramani Iyer : 3 years ago
why no loans to me.

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About The Anchor: Manisha Natarajan

Manisha Natarajan is Executive Editor Business and Real Estate at NDTV. She currently hosts the daily prime time real estate programme 'The Property Show' and a weekend personal finance show ‘Let's Talk Money’.

Manisha learnt the ropes of television journalism as a reporter for BBC World's 'Moneywise' and 'India Business Report'. She has anchored over 1000 hours of live business news, including key events such as the Union Budget, Economic Survey, Credit Policy and Tax Roundtables.

She's also a keen blogger on ndtv.com and has been an in between columnist with Indian Express - ‘Stock Talk’ and Mint - ‘Money Matters’.

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