₹1.50 lakh p.a. in PPF account

₹5,000 month-to-month SIP in SBI Heath Care Alternatives Fund

₹1,000 month-to-month SIP in SBI Consumption Alternatives Fund

₹5,000 month-to-month SIP in SBI Gold Fund

I wish to make investments a further sum of ₹10,000 each month in mutual funds. My time horizon is 15 years. I’m investing on-line from my regular financial savings account and never from my NRI account. I m not submitting any ITR in India. Kindly advise whether or not I must file tax returns? What’s the most restrict upto which an NRI can put money into mutual funds? I’m staying in Muscat.

-Anil Madhavan

By Balwant Jain, funding and tax knowledgeable

It’s by no means advisable to put money into sectoral schemes, since efficiency of the fund is determined by the efficiency of that individual sector. An investor investing in sectoral funds has to time the entry and exit proper to make beneficial properties. It’s all the time advisable to put money into diversified fairness funds the place the fund supervisor makes allocation to the sector which is in vogue. So it is best to cease your present SIPs in SBI Well being Care Alternatives Fund and SBI Consumption Alternatives Fund. Your allocation to gold funds is simply too excessive as a share of your total mutual fund portfolio. So, it is best to cut back your SIP in SBI Gold Fund to ₹2,000.

Funding suggestion is determined by your funding time horizon and your danger profile since your time horizon is round 15 years, you possibly can take danger of investing in fairness, aggressively. It is best to overview your investments periodically, a minimum of as soon as in a yr.

I like to recommend the next mutual fund portfolio to speculate ₹21,000 monthly:

Axis Blue Chip Fund – ₹10,000

DSP Mid Cap Fund – ₹5,000

SBI Small Cap Fund – ₹4,000

SBI Gold Fund – ₹2,000

Since gold funds have annual bills whereas investments in Sovereign Gold Bonds (SGB) offer you curiosity on the charge of two.50% in your funding quantity, I might advocate you to purchase SGB from the market as a substitute of continuous with the SIP in gold fund if you are able to do that in order to make sure that your funding in gold on common doesn’t exceed 10% of your total common month-to-month investments.

There isn’t a higher restrict upto which an NRI can put money into mutual funds in India. Nonetheless among the fund homes don’t enable residents of some international locations like US, Canada to put money into their mutual funds. You wouldn’t have to file your ITR right here simply since you are an NRI. You need to file an ITR right here in India provided that your revenue in India earlier than varied deductions exceeds the fundamental exemption restrict.

Once you turn out to be an NRI, it’s your responsibility to tell your financial institution about change in your standing from resident to non resident for banking and funding functions and the financial institution has to then designate your present checking account as NRO account. Please inform your financial institution instantly about your NRI standing.

Since, you might be NRI, you possibly can put money into the PPF account until its maturity and you can’t prolong your PPF account as soon as it matures. So, be sure you don’t prolong your PPF account even by mistake as soon as it matures. It’s unlawful and chances are you’ll face drawback for claiming the proceeds.

(Views as expressed by the knowledgeable.)