Investment

Do recurring investment for yearly goal – Livemint

Published

5 years ago

March 2, 2020

I retired at the age of 65. Now there is no contribution to my Employees’ Provident Fund (EPF) account. Will my account continue to earn interest as declared from time to time?

—R.K. Gupta

Employees typically rely on EPF to build their retirement corpus. With years of contribution both by the employer and the employee and along with the interest, and the benefit of compounding which works in favour of the investor, a sizeable corpus is built. On top of that, the tax-free status given to EPF makes it an attractive investment option, making an investor wanting to continue for long.

As the EPF account continues to earn interest whether you are employed or not, most investors just continue with the same.

If the PF corpus is not withdrawn after retirement, the account will become inoperative after three years and no interest will be paid. Also, the interest earned post retirement will become taxable in case there is no fresh contribution made to the account, thereby diminishing the returns net of taxes.

I earn ₹2 lakh a month and my husband’s business generates close to ₹1 crore per month (my husband takes home ₹20 lakh every month). We want to invest systematically for our luxurious vacation ( ₹40 lakh a year) and buying a car. Please advise.

—Amitha Shetty

The goal of vacation being short-term in nature—every year—there is a need to do a recurring investment. You can start monthly investment via SIP (systematic investment plan) in an ultra-short term debt fund for ₹3.25 lakh per month which will create a corpus of ₹40 lakh at the end of the year. This can be done on a recurring basis. Subject to how much you need per annum, the corpus can be redeemed accordingly.

Similarly, you can start a monthly investment for the purchase of a car. However, if the car is to be used for business purposes, your husband may consider taking a car loan in the name of his company to claim business expenses and the surplus funds then can be invested in a long-term equity asset class via mutual funds for creating long-term wealth.

Surya Bhatia is managing partner of Asset Managers. Send in your queries and views at mintmoney@livemint.com

Let’s block ads! (Why?)

Source link

Investment

S&P/TSX composite up more than 100 points, U.S. stock markets mixed

Published

3 weeks ago

October 16, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

Source link

Economy

S&P/TSX up more than 200 points, U.S. markets also higher

Published

4 weeks ago

October 11, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

Source link

Economy

S&P/TSX composite little changed in late-morning trading, U.S. stock markets down

Published

4 weeks ago

October 10, 2024

Anne Joseph

TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.

The S&P/TSX composite index was up 0.05 of a point at 24,224.95.

In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.

The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.

The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.

The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.

This report by The Canadian Press was first published Oct. 10, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

Source link