My investment plans for next FY

The last day of the financial year is normally a good time to take stock on the investments of the year gone by and also to plan for the next FY. For me the current FY investments had gone pretty much as expected. I did not really sell much and, even though there were some redemption, I invested in similar avenues through the year.

There were 3 main issues that characterised my investments of the current FY:-

  1. I invested in several IPOs but got allotted only 3 of these.
  2. A lot of my FMP got redeemed and, unlike other years, this time I invested the principal proceeds in mostly hybrid products – Equity Savings Funds, MIP, Dual Advantage funds etc. I also put some money in Balanced funds. PPF was continued as an investment.
  3. I invested in MF selectively and not as much as I would really have liked to. This was due to the generally rising indices levels. I could have put a lot more money in December than I did – truth be told, I did not anticipate the strong rally from January onward.

So, given this backdrop, what are the investment plans for the next FY? As some of the readers will know my passive income from interest, dividends, house rental are enough to take care of my regular expenses. The expenses for my college going children are quite high but these are catered for separately. My active income from being a Consultant is reasonable – it is probably only about 40 % of what I could potentially earn as a full time CXO, but as I do it with only 20 % of my time, I am quite happy about it. Much of this money is used in equity investing – some for MF and the rest in stocks, IPO or otherwise. The rest is to be used for discretionary expenses, last year we replaced most of our household furniture. This year the plan is to change the laptop and also buy a new desktop. We are also planning a trip to Italy in May.

Finally, without further ado, this is my investment plan for the next FY:-

  • PPF investment of 3 lacs for both me and my wife.
  • Investment in select IPO to the tune of 2 lacs through the year.
  • Investment in stocks to the tune of another 2 – 3 lacs.
  • MF investment of average 40,000 per month, to be bought at the right times.
  • My FMP redemption will be to the tune of 20 lacs or so in this year. I plan to use the capital gains for my expenditure and use the principal for investing in:-
    • Equity Savings fund
    • Balanced funds
    • Monthly Income Plans
    • Arbitrage funds
    • Dual advantage plans
    • Capital protection plans
    • Short term debt funds
    • Gilt funds

A lot of my investments are market linked, so I will look at the Nifty and other indices closely through the year. While stock purchases do not always depend on index levels, I am keen to buy MF only at the right time. If the time does not come I just do not buy, as was the case for much of the first 3 months of 2017.

I am happy with the above plan and just hope that some of the better IPO allotments happen !!

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6 thoughts on “My investment plans for next FY

  1. Dear Sir,

    Can you please elaborate on your FMP investments – like how different are they from traditional FDs – are they equity based?.. and how is their tax treatment?, is premature withdrawal allowed?

    Regards,
    Shankar

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    • FMP are debt investments for a fixed tenure. Withdrawal not possible and tax treatment same as debt funds, LTCG with indexation after 3 years. Most FMP do not have any equity, some have a small amount.

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  2. Nice article.
    ” If the time does not come I just do not buy” – can you tell what you plan to do with any available funds while waiting for the right index level?

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  3. Dear Sir,
    If 30 Lakhs can be planned for generating Passive income from 2020 onwards thru Debt funds. How do you suggest (as per your planning done) to deploy and in which instruments. Returns expected post tax 9-10% (for general house hold expenditure) and principal to be reinvested again. Thank you.
    Regards
    Surya

    Like

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