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Rediff.com  » Business » 'Sensex could touch 20,000; invest now'

'Sensex could touch 20,000; invest now'

March 04, 2010 14:09 IST

MoneyThe Budget announcements have been made. The finance minister changed the tax slabs giving more money in the hands of the people. However, he also hiked duty on petroleum leading to a fuel price rise.

The entire Opposition walked out of the Lok Sabha in protest terming the Budget 'inflationary'.

What effect will the Budget have on food prices? And on prices of other things? Has the FM given with one hand and taken away from the other?

In an hour-long chat on rediff.com on Thursday, financial expert Abhinav Angirish replied to many such queries. Here is the transcript:

Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. says, Hello. This is Abhinav Angirish.


SuhasMahajan asked, Hi Abhinav - Can you suggest how/where to buy infra bond in new fin year? Is there any choices which is best?
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers,  at 2010-03-04 11:55:57Govt is still to notify which institutions can issue these bonds. I suppose you will hear more on this by April 2010.
Dev asked, Hi Abhinav, Good afternoon, so keeping in mind the current Tax slabs for the salaried, what can be an ideal aloocation ratios in different asset classes i.e in MFs,Endowment Plans, Term Insurance, ULIPs and Infra bonds?
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Hi Dev. Allocation of asset classes purely will depend on your risk taking ability. For MFs it does not make any difference from the new tax slabs. Dividends continue to be tax free and ELSS schemes continue to enjoy 80c benefits liek Life Insurance. The new addition is the infr bonds upto 20000 for tax deduction. Which institutions can issue such bonds will be notified shortly. All interest bearing instruments such as ficed deposits / NCDs etc continue to be taxed as per your tax slab. However, new slabs gie extra cash in the hands of the tax payer.
ROHIT6666121212 asked, what is your prdiction for the markets in the long term say-1 year's time
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, The markets look good this year. Unless you hear some major issues from the west, we have set a target of 20000 for sensex.
ALEX asked, aBHINAV PL. TELL ME WHICH BETTER INVESTMENT ? REAL ESTATE OR SHARES
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Hi ALex, Both are completely different asset classes. Real Esate is illiquid whereas Shares woudl be liquid. You would also see high volatility in SHares ass real estate for a long term would be stable. Suggestinh which asset class to invest will depend on how much risk you wish to take and how long do you want to be invested. Whatever you do, think LONG TERM!
Raju asked, Hi Abhinav, I want to invest throu SIP in SBI Magnum Tax gain, How much is minimum investment required for the same.(500/- per month will be ok?)
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Hi Raju. Yes, you can do a SIP of 500 in Magnum Tax Gain.
Rohitmmi asked, Hi Abhinav. Greetings. can you guide me regarding short term capital gains on the profits/losses that i book on shares.
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, HI! 15% on ST gains if profits booked within a year and NO LONG TERM CP GAINS if sold after one year.
ARINDAM asked, ABHINAV, Plase tell which are the sectors which should give good returns in the equity market this yearr.
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, HI Arindam. We continue our stand on staying invested in Infr Stocks, I.T, FMCG. We beleive these sectors will do well this year
Rohit Moses asked, Sir how much & where we need to invest monthly to generate 50Lac in about 20 years
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, HI Rohit. If you invest in a diversified Equity fund thru sip as small as 5000/month and if grows @ 12%, you can comfortably create a corpus of 50L in 20 years
MKS asked, What kind of return you expect in the next 10 yrs, if invested in the real estate of Mumbai (chembur/ghatkopar/vikhroli).
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Hi! We believe that real estate investments in mumbai can fetch you over 5-8% annualsied gains in capital if you can stay invested for 12-15 years. These are conservative estimates. Besides you can also enjoy rental income if this is not your primary investment.
Arjun asked, Hi Abhinav I want to save yearly 50000 for the next 12 years from now can you suggest where do i get the best returns atleast 20% returns PA
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, hi Arjun. Difficult to say that you can make 20% p.a. We suggest you estimate the griwth between 12-15% considering that you are a long term investor. Though lot of funds over the last 10 years have given over 18-20% p.a., 12-15% are more realistic in nature. You can look at diversified funds like birla SL frontline equity, reliance growth, hdfc equity, hdfc top 200.
sudip asked, Hi Abhinav, I want to purchase some Sugar sector's share...is it right place to invest my money?
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Hi Sudip. Sure, there are a lot of Sugar companies that you can look at. We internally prefer Bajaj Hindustan. However, you need to know that commodities are very high risk - hogh returns and lot of factors (domestic & international) can affect the movement in prices.
Hari asked, Hi, Is it advisable under the current situation to continue putting 70k in ppf every year?
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Hi Hari. PPF still earns you 8% tax free returns. I'd not say that this a bad investment but you can also look at ELSS as well. It is a know fact that on term investments (PPF for 15 years), equity is the best asset class.
kkl asked, I am planning to take Child policy, should I go ULIP kind of policy, also please suggest which company should i go for?
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, We do not beleive in investments in INSURANCE. We strongly focus on Insurance as a pure risk cover as the word defines. Why would one want to take an Insurance policy for a child? You can look at some child benefit plans from various fund houses like ICICI Pru MF, Principal MF etc.
deshmukhvinit@rediffmail.com asked, Hi, I want to purchase DLF.Is this the right time to invest in this stock?
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Real Estate as a sector is not on our recommended list at the moment. So I would not recommend investment in Real Estate Stocks.
akhilesh asked, hi,please tell me the term plan name and compnay which can return the amount deposited at last of term covered?
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, You can look at the Birla SL RETURN OF PREMIUM plan. They have 100% return plan and even higher return options.
Arjun asked, What is the current level of 16000 how long does the same takes to reach 20000 level
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, We have projected a year for 20000 on sensex.
abu asked, Do you believe that after this budget more people would come into investing in Equity and less in Real estate?
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, The policy of charging 10% service tax for under contruction properties has raised an alarm but I dont feel that this will impact the investment in real estate in a big way.
RAJAJI asked, My age 39 yrs what is the investment ration for equity to debt? pls suggest
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Hello. Ideally, you should be looking at 60% equity and 40% debt. This will also depend on your risk appetite for equity. If you do not have higher risk appetite, you should increase allocation to debt.
abu asked, Which diversified mutual fund would you suggest keeping in mind a 10 year horizon. I would like to go in for a SIP for 4000 Rpm.
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Reliance Growth / HDFC Equity / Top 200 / Birla SL Frontline Equity
mmop asked, I am planning to invest monthly approx 5000 for long term may be for 18 to 20 yrs...what you suggest where should i invest with low risk and highest return.. also please suggest how much expected amout i will get at the maturity...
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Hi! look at diversified equity funds. EVen if they grow @ 12% p.a.. You will create a corpus of abt 50L in years. If they grow @ 15%, you can look at a corpus of 75L in 20 years.
bhushan asked, hi wanna invest in sbi magnum tax gain for ten years will it be a best option
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Sure. Magnum Tax Gain is a good fund with tax benefits under ELSS. You can surely invest your monies in this fund. The scheme has given over 18%+ returns in the last 10 years. Not that the same would be going forward but you time horizon is excellent for equity investments.
deshmukhvinit@rediffmail.com asked, Hi, I would like to invest Bharti for short term period(3-6 months) at what level should I enter?
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, I suggest you wait for investing in telecom for atleast 2 quarters as the margins are terribly impacted. Take a call in the last quarter in Bharti Tele or other telecom stocks.
pksoneji asked, Hi I have RIL shares sshould I buy more sharesof RIL??I am a long term investor
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, RIL is one of the largest weightage stocks on the exchanges. The comapny has created enormous wealth over teh years for its shareholders. You can surely add more RIL shares to your portfolio but keep in mind the old theory "DO NOT PUT ALL YOUR EGGS IN ONE BASKET"
kumar asked, Hi Abhinav, 1) Is any ULIP plan is better or MF in terms of returns? 2) Now that I can invest 20K for long term infrastruture bons, suggest few.
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, ULIPs surely are high on cost and cannot give better returns than MFs. What you need to calculate and check is not only the NAV but the initial and subsequent charges that teh company charges. In MFs, all you pay is Fund Management fees. MFs are much cheaper than ULIPs. Use Insurance only as a cover and not as an investment.
salil asked, At this sensex level is it wise to start SIP of mutual fund
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, SIP is Rupee Cost Averaging. It doe snot matter wen ou start it as long as you continue it for the long term. Look at a 5 yrs horizon for SIP investments.
satishs110 asked, Hi i invest in equity where i always remian invested in the market with 60-70% o fmy investment. remaining i always do short term trading. I always book profit irrespective of the comapnies. Do you think it is the right strategy.
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, We dont believe in short term trading as it is not advisable. It is only speculation. Real and long term wealth can be created by investing for the ong term in quality stocks.
invester asked,  Hi Abhinav, Pls respond.I took a BSL policy called Life Enhancer which has tax benefits and life cover as well. How good is this policy. Also can you suggest investment planning tips for next financial year? Thanks.
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, HI! Life Enhancer is an investment option which has 35% equity and balance debt. Buty which plan have you chosen? CLassic Life, dream plan? I can comment only when I know which policy you have chosen.
jatin asked, how about the NPS where govenment will invest 1000 rs for the next 3 years
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Brilliant scheme if you are looking at stable returns. It has currently given abt 14% p.a. returns and is managing abt 2500 crs. You will not hear any agent selling it as the govt has not appointed any such agents/distributors.
harsh asked, HARSH ASKED: Hi i wish to go for short term plan, invest ment of 5 lacs , pl suggest options?
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Hi Harsh. You can look at Flaoting Rate Fund or liquid FUnds. Look at Kotak FLexi Debt, Birla SL Savings, Reliance Monet Manager.
dipu asked, is it advisable to invest in first source solutions (FSL) at the current price of Rs.28 and where do u see the share price in say six months
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, First Source Ltd is in our recommended list of shares. You can buy it with a SL of 23 and a target of 39.
satishs110 asked, how is relaince capital from long term view
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, Rel Cap is a good stock but extremely volatile in the short term. It is a good bet for the long term.
partha asked, how to get 1 crore in 10 years and how much investment per month and where to invest
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, If you invest 10000/month which grows @ 12%, you will achieve your desired target.
mybmw asked, Hello Abhinav,I have just started my job in an Automobile company. My credited salary /month is around 35,000/- I am looking to invest a certain amount of my salary ...say 7500/- every month for a longer term like 15-20 years...without too much risk.What is the best option considering that i get high returns at the maturity, and how much?
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. answers, hi! if your period is 15-20 years for investment, equiy is the best option. There's no need to worry considering your horizon. Use SIPs as suggested to many here and you can look at earning 12-15% p.a. You can look at accumlating over a crore in 20 years. All the best!
Abhinav Angirish - www.InvestOnline.in, Abchlor Investment Advisors P Ltd. says, Thank you all! It was wonderful chatting. Please log on to www.InvestOnline.in and invest in Mutual Funds and SIP at no cost. Get access to over 13 banks (soon 40 banks) and many Mutual Fund companies. Host of other benefits and tools to mananeg your porfolios.