Ask Us: Banking

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I plan to invest Rs 50,000 in mutual funds. I want to know how much the new rule on transaction fees by Sebi will affect my investments?

— Priyanka,Kolkata

The transaction fee is applicable only when the

investment amount per transaction is Rs 10,000 or more. So,depending on how you transact,the transaction fee can vary from 0.2 per cent to 1.5 per cent of Rs 50,000. So your returns will be lowered by the transaction fee.

I am 32 and want to plan for my retirement. I have Rs 3 lakh in my bank account. Which mutual funds should I invest in to earn higher dividends and generate a steady income?

— Suresh,Delhi

If we assume that you want to retire at 60,the investment suggestion,in what follows,is based on a moderately aggressive risk profile:

40 per cent into mid-cap funds like HDFC Mid-cap Opportunities and DSP Blackrock Small and Mid-cap Funds; 30 per cent into multi-cap into HDFC Equity Fund and Fidelity Equity Fund; 20 per cent into large-cap funds like HDFC Top 200,ICICI Prudential Focused Bluechip and Franklin India Bluechip Fund; and 10 per cent into balanced funds like HDFC

Prudence fund and DSP Blackrock Balanced Fund.

I plan to do a reverse mortgage of my property worth Rs 70 lakh. How much can I expect to get every month?

– Natwarlal,Mumbai

The maximum loan amount inclusive of interest for entire tenure depends on your banks but most banks have a maximum limit of Rs 1 crore.

Generally,as the age increases,loan to property value ratio increases i.e. the older you are,the higher amount of loan you can get. Since there is no industry standard,the amount of loan given to you may vary from bank to bank. You may or may not get the complete market value of the property as loan. While seeking out reverse mortgage,seek the bank which gives out maximum amount with minimum interest and for the longest period.

Rajesh Krishnamoorthy is MD,iFAST Financial India,For your personal finance queries mail us at,expressmoney@expressindia.com