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Best investment options of 2009!

March 06, 2009 16:13 IST

Are you always at a loss while planning your finances?

Are you aware of the investment options available in the market? How best can you plan your finances?

What are the crieria for evaluating an investment option?

Are mutual funds profitable investment options? When and how should one buy mutual funds?

In an hour-long chat on rediff.com on Tuesday, financial planning expert Vicky Mehta replied to many such readers' queries. Here is the transcript: 

vicky says, 
hi, goodafternoon everyone. let's begin the chat session …

maker asked, In the current situation, do ELSS MFs make sense? What should be the time frame for investment?
vicky answers,  at 2009-03-04 13:24:22hi, yes, for risk taking investors who are willing to stay invested for the long haul (atleast 3-5 years), elss (tax-saving funds) are a good option. i would recommend that you opt for an sip that runs over 18-24 months.
biru asked, I am planning to invset in mutual funds. Is this the right time to invset or market will go down further? How about ICICI Infrasture fund and SBI Equity fund?
vicky answers, hi, for risk-taking investors, now is not a bad time to invest in equity funds via the sip mode for the long-term. i would recommend that you opt for well-managed diversified equity funds (like hdfc top 200, dsp equity, among others) that have a track record across parameters to show for.
Robby asked, Vicky, what are some good resources to evaluate and benchmark the performance of one's mutual fund portfolio?
vicky answers, hi, you can evaluate individual funds by comparing their performance vis-a-vis funds offering a similar investment proposition. also the fund's showing vis-a-vis its benchmark index must be studied. finally, find out how the funds fare on risk parameters.
jaspal asked, Is there benefit in investing in nifybees instead of stocks
vicky answers, hi, nifty bees is an etf (exchange traded fund) that tracks the s&p cnx nifty index. investing in the same will aid investors track the performance of the benchmark index. this style of investing is referred to as passive investing. investing in individual stocks will amount to taking a call on that stock's prospects.
manish jain asked, I am low risk taker. where should i invest upto 5-10 lacks
vicky answers, hi, if you are a low risk taker, then a significant portion of your portfolio should be invested in assured return/fixed income instruments like bonds, fixed deposits, small savings schemes, among others.
garry asked, Hi vicky.I want to invest 12lakhs fr 6months.Then i will purchase a property.So please advise how do i invest.thks!!
vicky answers, hi, you can consider investing in liquid funds or short-term fixed deposits.
niranjan asked, Gd Afternoon mr. Vickey. For tax saving purpose, i want to invest rs. 20000 . Which will be better Tax saving fixed deposits for 5 yrs or mutual fund. If mutual fund which will be better to invest? regards
vicky answers, hi, ideally, your risk appetite should help you determine if the investment should be made in fixed deposits or mutual funds. if you accord higher importance to safety of capital and assured income, the fixed deposits should be your calling. if you can take on risk, then an elss will make a better fit.
abhijeet asked,  have invested in sip @1000/- per month is the investmenet in tata infrasture is correct
vicky answers, hi, the fund is a thematic offering. if you are a risk-taking investor who has a view on the sector and can time your entry into and exit from the fund, then you should continue to be invested.
srikanthk asked, wat are the investment options other than mutual funds and shares. considering the market scenario and fall of stocks der is no question of investing in equity. nething like investing in gold and all...is it a better option at this stage??
vicky answers, hi, from an asset allocation perspective, even fixed income instruments and gold should form a part of your portfolio. the allocation needs to be customised to your individual needs.
pai.ajay asked, do you think its better to go for a FD or Debt fund is better ?
vicky answers, hi, a debt fund investment doesnt offer assured returns. it is vulnerable to market risks. conversely, a fixed deposit offers assured returns and safety of capital. the trade-off is that while exposing investors to higher risk levels (vis-à-vis fds), debt funds can deliver better returns, especially on a post-tax basis.
KV asked, Hi Mr.Mehta, U have answered Niranjan that he could opt for Fixed deposits also for tax saving investments. Could you please help me understand since I was under the impression that they were not tax savers (am new to a job. so am naive in these topics)
vicky answers, hi, banks offer 5 yr fixed deposits that are eligible for tax benefits under section 80C. also 5-Yr deposits offered by post office, are eligible for section 80C benefits.
vishalyadav asked, hi vicky , which are the ELSS mutual funds that you would recommend today for an investment of 50000 ?
vicky answers, hi, franklin india taxshield, hdfc taxsaver and fidelity tax advantage, are among the better tax-saving funds in the country.
reshma asked, i want 20 lacs after 20 years frm now. which investment is good? Life Insurance or SIP in Mutual funds. ihave rs 40000 surplus per year
vicky answers, hi, i would recommend that you utilise life insurance products for the stated purpose i.e. to insure yourself. for wealth accumulation, create a portfolio comprised of equities, mutual funds, fixed income avenues, among others.
vickasani asked, hi vicky,just wanted to know if ive invested in mf's at levels of 14000 when will this mkt provide me an exit;also while the market is down and free falling should i average out and buy more mf units? also which equity scheme will b best - elss..Thanks in advance
vicky answers, hi, if the funds that you are invested in are right for you i.e. they suit your risk appetite and can aid you achieve your financial goals, then you can continue to be invested or can even consider making further investments. We have dealt with this topic in an article on our website, to read the same, please click at http://www.personalfn.com/detail.asp?date=1/28/2009&story=5
manasjana asked, IS NSC AFTER MATURITY IS TAXABLE
vicky answers, hi, yes, interest income from nsc is taxable.
asfgh asked, Please answer............. I have been married since one year and plan to start a family from next year so where should i invest so that my childrens education is not a burden for us.. we both r workin and already have about 2.5 lacs p. a. of savings
vicky answers, hi, would recommend that you first decide on the sum of money that you will require to provide for your children's education and time frame for accumulating the same. then you should make an investment portfolio comprising of avenues like mutual funds, fixed income, among others to achieve the stated sum. the allocation to various avenues will change over a period of time. an investment advisor/financial planner can help you form the investment plan.
kakar asked, i am 42 years old, have two loans going on, one for the car and other house loan, for 10000/- and 13800/- i get about 55000/- every month and i have total lic about 89000/- per year and i put on ppf 70000/- per year, what you think i should do more to see a better life after 58 years of my age
vicky answers, hi, broadly speaking, your investment portfolio is lop-sided in favour of fixed income avenues. think, you should consider adding other asset classes like equities, gold...
vicky says, looks like we have run out of time. thank you all for participating in the chat. if you have any further queries, plese feel free to write to me at info@personalfn.com