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Some golden investment plans

April 10, 2009 12:18 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?

In an hour-long chat on rediff.com on Thursday, financial planning expert G K Balaji offered some valuable tips to our readers. Here is the transcript:

Balaji says, Welcome


shanu asked, Sir, Do you see the benchmark 10 year g-sec yield touching 5% in near future? What is your take on Income funds.
Balaji answers,  at 2009-04-02 12:48:25Dear Shanu, It seems difficult that 10yr gilt will touch 5% in the immediate to medium term but it is like to contract from the current levels. Investments can be done into income funds with an investment horizon of more than 1 year which have avg maturity of about 4-5years.
Ghajni asked, I have been investing into mutual fund with growth option through SIP..how would I know that for the perticular period of time say one year or two years how much I have gained..this is hard to conclude bcoz NAV value fluctuates..and usually fund value is the no. of units multipled by current NAV .Please explain thank you Ghajni
Balaji answers, Dear Ghajni, first account for the market value of your total investment by multiplying the no of total units * exisiting NAV. After which deduct it from the total amount invested through SIP will gives you gains/losses.
prem rawat asked, hi sir, i like to invest aroung 50 thousand premium per year for a long term about 15 to 20 years . from which fund i will get the most benefit and of course reliability of that company is most important.
Balaji answers, Dear Prem, we would recommend you to invest into large cap fund considering the market conditions & its relative safety. Funds such as DSP TOP100 & HDFC TOP 200 can be looked at.
anku asked, i want to invest 4 lacs for a period of 6 months. where should i invest. pls advise
Balaji answers, Dear Anku, consdering the investment time frame - equites as an asset class would be too volatile to invest into. If you are seeking safety & reasonable returns with low volatility then Short Term Income Funds can be an ideal option.
Suraj asked, Sir, i like to invest around 2.5 Lacs for higher education and marriage purpose of my grand daughter who is 3 months old now. Where i invest at low risk. I shall prefer govt. schemes only.
Balaji answers, Dear Suraj, i would recommend a mix of mutual fund & insurance product (child plan) to deliver relatively hihger retunrs than govt scheme in order to seek capital appreciation.
sharad asked, sir,take big life cover and rest of money should invest in mf.rest of money should invest in equity oriented fund
Balaji answers, Dear Sharad, the investment allocation should depend upon your risk appetite & investment objective.
RAJESH asked, Sir,Market has recovered by almost 25% from recent low do you think this bear market really continues further? can we exit 25% of equity portfolio and put it in short term debt fund?
Balaji answers, Dear Rajesh, This Market can move Upto 3500 on the NIfty. I would recommend you to start booking partial profits and deploy in short term funds.
hutaib asked, Dear Sir, what is your take on the recent RIL jump ? will this trend continue ?
Balaji answers, RIL has given a trend reversal. This movement can take reliance u till 1800 levels.
Sunil asked, The meltdown of stock markets have made investors rethink the sanctity of research reports and forecast data. What does one need to do before investing?
Balaji answers, The purpose of investing should match to your investment objective and accordingly portfolio allocation should be drawn right to enter into markets. Reports can only help in Giving you a better understanding of the company.
Raj asked, Sir I am Holding RPL at a price of 170 that translates to approx 2200 for RIL,What do you suggest
Balaji answers, The horizon fo your investment is very important. If you are a short term investor then you can look a selling 25%.
devrajbs asked, I have RPL at 148 ? What to do...
Balaji answers, If you are a short term investor you can look at selling 25%, if the stock rises another 20% can be considered.
praman asked, hello sir do you think that bad is over in mkts
Balaji answers, Dear Praman, Well I think and this is my personal opinion that market wise we might have already seen the worst, economically we've still got to see.
havocekta asked, Hi sir...i save around 2000 every month. Can u suggest where i shd invest? How is PPF or fixed deposit considering the stock market does not look good for another 2 years. Can u also suggest a strategy while buying stocks...what do we need to see in the report and where can we find their P/L statements? Thanks so much.
Balaji answers, IF the investment if for a period of more than 5 years then ideally SIP into ELSS or Large Cap Funds can de done since equites over a long term give superior inflation adjusted returns. For investing into stocks you can either invest thru stock market or thru mutual funds. To get p/l statement you can refer to companies website or BSE website.
Anil asked, I want to invest 50000 for one year? I dont want to take risk on my money ? Is there any investment plan available other than Fixed Diposit ??
Balaji answers, Dear Anil, You could invest in liquid and liquid plus funds.
biman asked, Sir, i am interested to invest 5000-10000 one time which is best place to invest plz advice me
Balaji answers, Dear Biman, You could try to invest in Equity Mutual Fund for a three to five year perspective.
vivek asked, Is it will be good to invest in GIlt (Govt. Security Fund0mutual funds at this stage.If yes then who will be the best?
Balaji answers, Dear Vivek, Yes, You can consider investing into GILTs for a one year perspective, given the inherent volatility. DSP Balck Rock GILT Plan A and Fidelity Flexigilt
devrajbs asked, Have been hearing of another ebb of around 6500-7000 to come b4 the eventual rise..What do you have to say on this ?
Balaji answers, In my personal opinion I doubt that such levels will be tested unless there's unexpected structural issues
sanjayithi asked, sir, pl tell me is it the best time to invest in sip. i hav being investing since 2 yrs
Balaji answers, Yes. This is an ideal time.
ankur asked, Sir i like to invest around Rs1 Lac where should i invest at low risk?
Balaji answers, Combination of ELSS, PPF and insurance
Karthik asked, Hi I'm a risk taking investor. Which is a good fund which gives high returns even though it may be risky
Balaji answers, ICICI Infrastructure Fund, Reliance Growth are the two funds you could look at.
ONKAR asked, HI SIR I want to invest 75000for one year? I dont want to take risk on my money ? Is there any investment plan available other than Fixed Diposit
Balaji answers, You could look at short term debt funds and liquid plus
chs asked, Which one is good in terms of return i am planning for my child education, ULIP , Mutual fund or PPF? i have the horizen of 18 years and also i am willing to put money in equity..which one is preffered ?
Balaji answers, Mutual Funds are a better option as they are more cost effective than ULIPS and give better returns than PPF over long term.
s asked, what is the prospect of nagarjuna construction
Balaji answers, You can look at buying Nagarjuna Construction and Ashok Leyland on corrections.
Gana asked, Hi, I am investing in below MF for past 3 years.Please let me know, do i need to change any below MF. 1.ICIC INFRA-5k 2.REL GROWTH-5k 3.REL VISION-5k 4.DSP TOP 200-5k 5.SBI MAGNUM CONTRA-5k I would like to keep this for another 5years and will continue till 2015 and then planning. Pls suggest me any changes required to modify my portfolio to get good returns
Balaji answers, No changes required.
divakar asked, Hi shall i start my SIP investments now
Balaji answers, Yes you should.
Mohan asked, Hello... I am planning to invest and insure. Whether pure investment pans and Pure Insurance plans are OK.. or Insurance along with investment plan is OK?
Balaji answers, It is advisible to have Investment plans and insurance plans seperately.
sameer asked, hi.balaji..wat is the safe option for investment in short term and long term
Balaji answers, For short term - Short term Debt funds and liquid plus For long term - SIP into Equity Mutual Funds
rakesh asked, hai sir, i want invest 1.5 lac for a period of 1 year.where should i invest. pls advice.
Balaji answers, You could look at STP into Equity Mutual Funds
sudhakar asked, I want to invest onlakh in stocks on long term 2 to 3 years. Which stocks should i purchase or should I invest in mutual funds. If so which mutual funds do you suggest
Balaji answers, You can invest in large cap diversied Mutual Fund like DSP top 100 and HDFC top 200
siddhesh asked, Sir, i like to invest around 10000 PM for higher education of my son who is 1 year old now. Where i invest at low risk.
Balaji answers, You can try child plans offered by Mutual Funds
Suhas asked, What are the Golden Investments according to you?
Balaji answers, Investment should be based on your asset allocation derived out of your investment objective.
Binod asked, I am interested to know whether I can get some benefit atleast more than the usual bank FD and not loosing the principal investment by investing in any long term growth option Mutual fund? If yes for how long I have to kept it with out withdrawl.
Balaji answers, You can look at short term income fund for more than 6 months.
apoorv asked, what is exactly short debt funds and liquid plus, please give more information about this investment options? pls give me informations about gold related MF
Balaji answers, Short term funds invest into high quality corporate bonds and Government Securities. Liquid Plus funds invest into money market instruments. Gold ETF's are a good option.
SHWETA asked,  wish to invest Rs. 1 lacs monthly for 9-10 yrs, what are the options
Balaji answers, If you wish to seek capital appreciation then Equity Mutual Funds are ideal investment options.
SANJU asked, I wish to invest Rs. 5 Thousand monthly for 5 yrs, what are the options
Balaji answers, Equity Mutual Fund and Debt Mutual Funds.
guptadebanjan asked, Dear Sir,among the MF options which one is good pure growth, div or div reinv?
Balaji answers, Growth options should be opted for capital appreciation while dividend option if you are looking for intermitent income in between.
chirag asked, I have bought tnpetro stock at 25 at present trading at 8.4 what should be done should i shift to another one is it the right time to shift???
Balaji answers, If your horizon is for a long term i wouldnt recommend you for exit at this price.
abhishekmathur1 asked, Sir I has entered the market during feb-may last year and bought SBI, GMR Infra, RPL, Dena Bank, Reliance Power. Today my investment is at half the vapue almost - as I did not sell any of my stocks. You think these stocks are going to get past there purchase price. are they at good valuations to buy now and hope to average out.
Balaji answers, You can look at buying SBI and Dena Bank. If your horizon is for a longer term you can also average GMR Infra and Reliance Power but do it on market corrections.
dds asked, which stock can anybody buy at this time
Balaji answers, You can look at entering into sugar stocks and industrials, but do that on a market correcting.
InvestmentFreek asked, what should be the portfolio considering Rs 10000 as monthly savings.
Balaji answers, It will depend upton you investment objective and risk appetite, however mix of equity and debt mutual fund can be appropriate.
InvestmentFreek asked, Whats should be a portfolio with Rs. 10,000 savings with medium risk and a horizon of 5 years
Balaji answers, Balance Fund and MIP funds
madhukar asked, Dear sir i have invested in LIC Money plus policy from last two years, this policy will contneu till 15 years bun unit price is rs 10 each is NAV dated 31.3.09 is rs. 8.0820 this means we are loosining money till today. What is your opnion should i contineu till 15 years or should i withdraw money after 3 years, and also suggest me which LIC policy gives good returns & better insurence thanking you
Balaji answers, Ya it should be continued till the term.
miketom007 asked, want to invest 2-3 lakhs for 15-20 years which is the best option avalable. if any equity or MF pls give me the names as i dont have any idea about it.
Balaji answers, Large cap Equity Mutual Funds like DSP Top 100 and HDFC Top 200.
rahul.h asked, Hi sir, I have about 20 lakhs to invest and im lookin at a time period of 5 years... so which investment plan should i go for in order to maximize my returns at the end of 5 years.??? i will 60 then and planning to retire.
Balaji answers, You can invest into MIP's, balance fund and arbritage fund for a 5 year perspective.
Balaji says, Dear All, Thank you.It was great chatting with you. In case any querries have remained unanswered do mail us at contact@way2wealth.com. HAPPY INVESTING!!!