u/the_aeon_

I have recently started accumulating REITs and INVITs and understand the basic payout structures like interest, dividend (and income payout, rent payout), repayment of capital etc.

My question is what all should I keep tracking as and when buying, payouts etc happen so it’s not a hassle at the year end to file the ITR as well as when selling units.

Would the year end form sent by trusts include most of the above? I believe it would include payout breakup which I feel should simplify the payout taxation at least.

Specifically confused by the repayment part as well - do I keep tracking how much my cost of acquisition has reduced after each payout? How does taxation work when selling?

I have been following this community for some time now and have seen people making strategies around individual stocks.

Would love to hear from experienced folks on pros and cons of these strategies wrt ETFs like Nippon India Nifty Dividend Opportunities, Mirae Asset BSE 500 Dividend Leaders 50 as well as Dividend Yield Mutual Funds (multiple of then from SBI, HDFC, Tata with both Growth and Payout options).

Could these be good for beginners?
I have got some REITs and INVITs for base. Would it be a decent strategy to divert those payouts to one of these ETF or Fund rather than trying to find individual stocks?

Below is wife’s and my joint portfolio (both in early 30s) -

Equity portfolio (MFs, ETFs) - 50L
Debt portfolio (MFs, FDs, EPF) - 50L
Gold (ETFs, SGBs) - 15L

Total ~ 1.15 Cr
Current joint SIP - 3L per month

RSUs ~ 3Cr (almost 50:50)

The original plan was to use some portion of RSUs as down payment to buy a house (loan on remaining amount) with a budget around 3Cr.

Now I have another 1 cr (through family gift deed) coming in soon (around September).

What options do I have to park this 1 cr which is tax efficient and aligns with our house buying plan?

I already have a term and health insurance and emergency savings in FDs (~6 months runway, other than mentioned above).

1. Arbitrage funds? Taxation under equity laws and reasonable risk adjusted returns.

2. Debt funds? Or FDs? Not thinking about these due to high slab taxation.

3. I have also been reading about REITs - decent yield and capital appreciation. Worried about the liquidity here though. Any other risk here?

4. I have a good find for a real estate builder floor - 2BHK. Costs around 1.7 Cr which I can split with this 1 Cr capital and rest using RSUs to gain tax benefits on a portion right away. Possession is in March 2027. This might not be liquid enough for my future purchase so I would have to keep that totally separate but would increase my exposure to Real Estate overall and be a secondary source of income (~50k per month as per current yield in the area). Was always a plan to have secondary real estate investment other than our own home. But this feels rushed.

I am thinking a combination of 1 and 3 in 50:50 ratio.

Anything obvious I am missing? What would you do/suggest in this case? Any help would be appreciated.

I am looking to put in a 2.5 L lumpsum investment in Mutual Funds.

Existing SIPs (1L/month) -
PP Flexi Cap Fund - 35k
MO Midcap 150 Index Fund - 30k
Invesco Small Cap Fund - 25k

Rest 10k goes in international and gold ETFs.

I am thinking of putting 50k in PP Flexi, 1L in MO midcap 150 index fund and 1L in a smallcap fund.

I don’t mind this being a super aggressive move as I don’t need this money for coming 8-10 years. I got this by selling my existing underperforming funds to reduce diworsification.

Questions -
Does PP split make sense or I just divide the whole 2.5L into mid and small only?
For the midcap and small, does it make sense to add into existing funds or I should try and find parallel funds to avoid risking the SIPs and this lumpsum into same funds?
Is it advisable in current market to add all 2.5L at once or should I do it progressively? Maybe double my SIP for coming months?

I personally think adding to existing funds should be fine as I already trimmed down number of funds in my portfolio. Just wanted to hear if there are other suggestions.

Risk Tolerance - High
Investment Horizon - 10 years