- Wealth PMS (50L+)
This page is Work-In-Progress and meant for Premium subscribers as a repository of our solutions for specific financial objectives.
In making these choices, we are not necessarily looking for the most feature-rich product but one that gives us the best chance of meeting the objective it is meant for. Before investing in any product listed here, make sure to read the companion posts with the rationale of why we picked what we did. Our longer-term wealth-building strategies are available in the form of the Model Portfolios here.
[Updated Apr 2022]
I will need a lump sum amount to pay for a specific objective within a period of 11 months or less. I have the money now. Where should I park this money till I need it?
Our current recommendation to is park money for less than 1 year in IDFC First bank savings account. Initially, we were yielding 7% on this savings bank account which has since dropped to 5% – it’s still equal to 1 year FD interest rate of SBI.
At 5% pre-tax and at 36% tax, this is a 3.2% post-tax return, which brings it in line with what the arbitrage funds will give post-tax. [Returns of arbitrage funds]
Equitas Small Finance Bank is offering 7% interest on savings bank account [link] which is something we can go for, since it is a scheduled bank, BUT we won’t because –
Cut to the chase – preferred allocation
|Less than 1 year||IDFC Bank Savings Account||5%-6%, for 10L to 2 Cr||[link]|
|Just above 1 year||IndusInd Bank FD||6% year, upto 2 Cr||[link]|
IDFC First Bank will not offer this rate indefinitely. When that changes, our suggestion will also change.
[Updated Mar 2022]
Which long-term tax-efficient mutual fund should I invest in?
Buy ELSS (Equity Linked Savings Scheme) Mutual Funds with track record of beating the category average over 1, 3, and 5 year annualized returns while demonstrating lower volatility.
Mirae Asset Tax Saver Fund (Direct Plan)
As a minimum, ensure covering 80C deduction of 1.5L, increase up to any amount you know you will not need for at least 3 years. Pick the Direct Option.
[Updated Apr 2022]
How can I get exposure to international stocks in my portfolio?
Currently, SEBI and RBI have disallowed inflows into funds that invest internationally, except those that only invest in ETFs. So the current answer is: Kotak Nasdaq 100 fund.
(If SEBI does open up investment limits, the earlier choices are below)
The best way to get exposure to international markets is through passive mutual funds / ETFs. Currently in India, there are only a handful of such funds. Of these, the Motilal Oswal Nasdaq 100 FoF was our pick for passive exposure. For active exposure, there are over 35 mutual funds to choose from. Of these, our top picks are:
Make sure to read both the detailed posts assessing international mutual funds.
Important Disclaimer: The products and strategies on this page are based on what we typically implement, for ourselves and our families. We do not receive any commercial considerations from the makers of the products on this page. If we do, we will see it stated clearly and unambiguously. At no point should you consider what’s on this page to be tailored advice or a promise or guarantee of specific returns. You are the best judge of whether they make sense for you, given your unique situation, willingness and ability to take the applicable risk. If you see an error in how we have interpreted the potential risk or return of a product, let us know on slack. We live to learn.