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.comI on Wednesday, financial planning expert Sailesh Multani offered some valuable tips. Here is the transcript:
Sailesh says, Goodevening everyone, lets begin the chat session.
ashish asked, suggest me good mutual fund on which i casn invest my money??
Sailesh answers, at 2009-07-22 12:23:24Hi Ashish, You can consider investing in HDFC Top 200, DSP BR Top 100 and HDFC Equity, which are some of the well-managed large cap funds.
avinash asked, let me know of investment options, other than insurance, ppf, nsc and fd
Sailesh answers, other than the investment options mentioned by you, you can consider investing in equity-oriented mutual funds. However, its important that you have a requisite risk appetite for the same.
shan asked, Hi Sailesh, i wanted to invest around 5000/- p.m in SIP in 2 tax saving MFs. which funds do you suggest ?
Sailesh answers, You can consider investing in Fidelity tax advantage and franklin india tax shield.
sushant asked, Is it right time to invest in Mutual Fund
Sailesh answers, yes, in my view this is the right time to invest in mutual funds. Also as an investor, you should avoid timing the market and invest in mutual funds through the SIP route.
vm asked, Hi,....Can you please let us know about term cover and its benefits...
Sailesh answers, Hi, Term plans are pure life cover plans. they offer maximum sum assured at lower premium as compared to endowment, money back or ulips. However, there are no maturity benefits if the insured survives the term.
sskumar asked, i have 50000/- where should i invest
Sailesh answers, before you start investing your money, you should first set your investment objectives and the time horizon to achieve the same. based on this you decide where to invest your money. Also, the investments should be made depending on your risk-appetite.
vm asked, Hi, How long we should stay invested in MF's through SIP...is the time horizon of 5 years or 5 to 10 or more than 10...
Sailesh answers, Hi. you should invest through SIP over 2 market cycles. A market cycle may take anywhere from 2-5 years. therefore 2 market cycles may take 5-10 years. A market cycle is defined as an up-down-up movement.
yateen asked, Can I sold my M.Funds I.T sector which I bought long back, no much appreciation.
Sailesh answers, Hi. IT funds fall under the category of sectoral funds. these funds perform well when the underlying sector does well. hwever, when the sector losses its sheen, the performance of these funds also take a hit. hence while investing in a sectoral fund, one has to really time his entry and exit from the fund. We suggest you to redeem your investment and invest in well-managed diversified equity funds.
Dhiraj asked, excuse my ignorance but what does SIP stand for?
Sailesh answers, SIP stands for Systematic Investment Plan. It is a route to invest in mutual fund scheme. To know more please click at the link below: http://www.personalfn.com/detail.asp?date=8/27/2008&story=4
khokon asked, I want to invsest 30K per month in SIP. How much Fund I should choose ? My choices are HDFC top 200 , DSPBR top 100 , Sundaram select focus , HDFC Equity , SBI Magnum contra and Sundaram select midcap.If I choose 3/4 funds from above , please suggest.
Sailesh answers, your selection of funds are quite good. You can go ahead with your investment plan.
niharika asked, What
about reliance natural fund. i invested 50000 in that fund. what about long term or i shift to another fund
Sailesh answers, Hi. Reliance Natural resources fund is a thematic fund. such funds are high risk-high return investment proposition. this should not be the core fund in your investment portfolio. its important that you have a core portfolio of diversified equity funds in place before you invest in any sector or thematic fund.
abhi asked, I started investing in MF few months back only HDFC TOP 200 & Sundram Tax Saver through SIP @1000. I am also planning to invest in new NFO Canara Robeco F.O.R.C.E Fund. Please suggest on current MF and New NFO
Sailesh answers, Hi, before investing in an NFO you should check whether it will add any value to your portfolio. Remember, NFO dont have a track record to show for. We give our views on the NFO on our website. you can subscribe to the same by clicking at http://www.personalfn.com/research-it/mutual-funds/ipo/denergy.asp
BHARAT asked, HI SHAILESH , IF I WANT TO HAVE ONE CRORE WITH IN TEN YEARS ,TELL METHE PLAN HOW MUCH I SHOULD INVEST ,AND WHERE-BHARAT
Sailesh answers, To accumulate one crore over 10 years, you need to invest Rs 45,059 on a monthly basis for the next 10 years. here the assumption is your investments will grow at the rate of 12% compounded annually.
DEEPAK asked, hello sir. M an NRI guy. I want an amount of Rs. 5 lakhs for my marriage after 4 years. How much i shuld invest monthly and where? Thanks
Sailesh answers, Hi. you need to invest approximately Rs 8272 per month. the assumption is your investment will grow at 12% compounded annually. You can consider investing in well-managed diversified equity funds.
pankajjain asked, Which are the best ELSS as on date to invest in (Rs 50,000)
Sailesh answers, I have replied to a similar query earlier in this chat. please refer to the same.
KRISHNAN asked, Could you advise the best investment option for tax saving as well as growth & secure?
Sailesh answers, ideally, your tax saving portoflio must comprise of both, tax saving mutual funds as well as assured return investment avenues such as ppf, 5-Yr FD and nsc. However, the allocation to these avenues will depend on your risk appetite.
Shailesh chudasama asked, is it safe invest in gold at this time
Sailesh answers, In my view, gold should form 5-10% of your total portfolio and you should stagger your gold investments through Gold ETFs.
KDAS asked, CAN I HAVE UR CONTACT NO/E-MAIL TO GET IN TOUCH WITH YOU??
Sailesh answers, you can write to me at firstname.lastname@example.org
srinivas asked, is it a good time now to invest in fixed deposits...
Sailesh answers, its very difficult to predict the interest rate scenario. Under present condition, if you invest in a FD, you post tax-return will be in the range of 5-5.5% assuming you are in the highest tax bracket. Considering the inflationary scenario of more than 6%, you are actually losing money.
rockstar asked, Hi Sailesh, what is your take on the arbitrage fund available in the MF industry. Thx
Sailesh answers, Arbitrage funds attempts to benefit from the price dicrepency in the equities and derivatives market. to know more about the same please click at http://www.personalfn.com/detail.asp?date=5/27/2008&story=4 AND http://www.personalfn.com/detail.asp?date=6/29/2007&story=3
Sailesh says, Thank you all for participating in the chat session. If you have any queries, please feel free to write to me at email@example.com