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Can you open both Sukanya Samriddhi Account and PPF account for your minor child?

Your PF, existing mutual funds, fixed return schemes and stocks will help you increase your overall capital over time. Increased capital can also be utilised to raise monthly cash inflow.

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Last Updated: Jan 06, 2020, 10.56 AM IST
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You can open both Sukanya Samriddhi Account and PPF account for your minor child.
I am 33. I have a Sukanya Samriddhi Account in the name of my 3-year-old daughter. I am investing Rs 1.5 lakh in this account per annum. Can I open a PPF account as well in her name to invest another Rs 1.5 lakh?
Ankur Choudhary, Co-Founder and CIO, Goalwise
replies: You can open a PPF account as well in your daughter’s name and invest another Rs 1.5 lakh in it, but you won’t get any additional tax benefit under Section 80C for this amount. You can open the PPF account with any major bank.

I am 46 and earn Rs 2 lakh a month. I am paying a home loan EMI of Rs 15,000. I have a personal loan ending in May 2020 which will allow me to save Rs 26,000. I have Rs 10 lakh in stocks and MFs and Rs 20 lakh in PF. I have an FD of Rs 8 lakh. I contribute Rs 36,000 a month towards fixed return schemes. I save Rs 30,000 a month. I want to earn Rs 1.5 lakh from my savings when I retire in 12 years. How can I achieve that goal?
Rajiv Bajaj Chairman and MD, Bajaj Capital
replies: Considering 10% CAGR for next 11 years, moderate risk appetite and Rs 30,000 savings, keeping at least Rs 5,000 aside as an emergency fund, you can start SIPs of equal amounts in SBI Magnum Multi Cap, ICICI Pru Multi Cap, Kotak Emerging Equity, Tata Mid Cap and Axis Small Cap. Gradually increase the investment amount. The idea is to initially invest in equity-oriented funds for 8 years, then shift the corpus to dynamic asset allocation funds for 3 years. In the 11th year shift the entire portfolio to debt oriented funds to mitigate volatility. After 12 years, opt for a Systematic Withdrawal Plan of up to 0.50% of the corpus, which will translate into Rs 35,000 per month. Your PF, existing mutual funds, fixed return schemes and stocks will help you increase your overall capital over time. Increased capital can also be utilised to raise monthly cash inflow.
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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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