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Does withdrawing KVP amount after 30 months attract penalty?


Is there any penalty within the rate of interest of Kisan Vikas Patra if redeemed after the lock-in interval of 30 month.

—Rajiv

 

Kisan vikas patra (KVP) doubles your funding quantity in 124 months. Nevertheless, it provides an choice to withdraw the cash earlier however not earlier than 30 months. After the completion of 30 months lock in interval, if the investor needs to withdraw, can achieve this and topic to when it’s withdrawn, the withdrawal quantity is decided for e.g., if you happen to want to redeem instantly after completion of 30 months however earlier than 36 months then the quantity repaid is 1,154 on each 1,000 of funding. Likewise, the quantity to be repaid will probably be decided by the interval you’ve gotten held the funding. So, if you wish to withdraw after completion of 5 years then the quantity to be repaid for invested quantity of 1,000 will probably be 1,332. The curiosity earned on the KVP is absolutely taxable as per your marginal price of tax.

 

I’m 25 years outdated and these are my current SIPs that are occurring. My threat profile is aggressive:

Axis Lengthy Time period Fairness – 4,000; Axis Targeted 25 – 3,000; HDFC index Fund – 9,500; HDFC Small Cap fund – 2,000; Mirae Asset Rising Bluechip- 5,500; Motilal Ostwal S&P 500 index – 4,000; SBI Small Cap- 3,000; PGIM FlexiCap- 10,000.

My take house wage is 81,000, and I spend money on PPF and FD’s. What proportion of wage needs to be invested by SIPs contemplating my threat profile? I’m investing from final 3 years. Please counsel on my current portfolio. Additionally would you suggest momentum funds? I’m investing from a perspective of 15-20 years so is it advisable to go all passive contemplating the timeframe. Would you counsel investing in small cap by way of Index funds? My objective is long-term wealth creation.

—Prasad

 

Your month-to-month investments needs to be an element of surplus of revenue over bills. These investments can then be unfold between Mutual funds Investments in addition to different funding avenues like PPF and many others. As you might be an aggressive investor and have a long-term funding horizon, fairness will be the first asset class and which you even have constructed over the previous couple of years.

Your mutual funds are a mix of varied asset courses inside fairness i.e. ELSS, massive cap, flexi cap, targeted, small cap, international funds and are good funds.

Surya Bhatia is managing associate of Asset Managers.

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