Ask PenguWIN

We WIN together. PenguWIN’s expert thoughts on the Latest and Greatest in the Wealth Management presented to you as Q & A!

Q1. Will PenguWIN be able to help file my Income Taxes?
Q2. I want to open a PPF A/c and start investing. Can PenguWIN assist?
Multiple Investors

While PenguWIN can help with planning and offering advice on how to go about saving taxes, structuring the salary, where and how to open a PPF A/c, how much to invest in PPF, Income Tax filing has to be done through a Chartered Accountant (Auditor). Similarly preparing Wills and Trusts need to be done in consultation with a Lawyer.

The services that PenguWIN offers can be classified under 2 broad categories – Planning & Advisory (P&A) Service and Execution Service.

We can help with Planning and Advisory for the following:

  • Mutual Funds
  • Company Deposits
  • Government Bonds
  • eGold
  • Real Estate
  • Insurance
  • Individual Income Tax &
  • Estate Planning

The execution services are focussed on

  • Mutual Funds
  • Company Deposits
  • Government Securities
  • eGold &
  • Insurance

 Q3. I wanted to invest about 5 Lakhs in stock market. Can PenguWIN help me identify some good stocks and help me invest? Sanjay, Chennai, India

Dear Sanjay, There are many people who want to ride the India growth story and the NaMo wave. PenguWIN does not directly engage in stock markets as it’s a specialized area which we don’t venture into at this point in time, and would prefer to take the Mutual Funds route. There are about 1800 Mutual Fund schemes of which about 350 invest in stock markets. We believe this offers a wide variety of equity investment options and prefer the Mutual Fund experts with strong research teams to directly engage with stocks.

Q4. Are Mutual Fund investments all about investing in Stock Markets? – Geetha, Chennai, India.

 Dear Geetha, This is a myth that prevails among many investors. The fact is that we have about 1800 Mutual Fund schemes in India and MFs investments include Government Securities, Gold and Corporate debt. Only around 350 schemes invest in stock markets and the Assets Under Management (AUM) of Equity mutual funds is only 22% of overall assets of 9,45,321 Crores (as of April ‘ 2014)

Q5. What kind of returns can we expect from Indian Stock Market? Multiple Investors

The Indian Equity Market is on a euphoria anticipating growth measures from NaMo. Most of the people are optimistic that the next 5 years will see a turnaround in the growth story of Indian Economy. PenguWIN’s forecast is a compounded annual growth rate of approximately 20% from Equity Mutual Funds. Ie. Investment doubling in 5 years.

Q6. My friend died due to cancer at a young age without writing a will. He is survived by his wife, mother, father and brother. Will his assets automatically pass on to his wife? Balachander, Pondy, India

Dear Balachander, extremely sorry to hear the demise of your friend. A person dying without writing a will is referred to as “Intestate”. Based on the succession act, the wealth of a person dying intestate is distributed among his legal heirs in accordance with section 8 and 9 of The Hindu Succession Act, 1956. The property of an intestate shall be divided among the class I heirs that include wife, children and mother. In absence of class 1 heirs, the property devolves to class 2 heirs including interstate’s father and siblings. Hence your friends mother needs to agree to transfer the property ownership to her widowed daughter-in-law and a settlement deed can be executed for the same

Q7. What is the recommended allocation to Real Estate investments? Multiple Investors

Indians typically have a liking for real estate and hence our allocations to real estate are high when compared to developed countries. Real estate gives psychological satisfaction to the people. In countries like US, Wealth Advisers recommend a maximum allocation of 25% while for Indian situations we recommend a maximum of up to 50%. This is only a ball-park figure and depending on the net worth and risk appetite of individuals, the recommendation would vary

 Q8. I am selling my residential plot for 75 lakhs. I heard that there are some new TDS rules introduced recently. Can you please enlighten? Raj, Chennai, India

Dear Raj, The Finance Bill 2013 has proposed that the purchaser of an immovable property (other than rural agricultural land) worth Rs 50 lakh or more is required to pay withholding tax at the rate of 1% from the consideration payable to a seller and deposit the same in Government treasury.

The seller can claim this TDS credit in his IT returns while the buyer cannot claim this amount as tax paid in his returns


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