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Markets sinking: Should you invest in MFs?

November 20, 2008 14:08 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?

Financial planning expert Vicky Mehta replied to many such readers' queries during a chat on Wednesday. Here is the transcript: 

vicky says, 
hi, good afternoon everyone. let's begin the chat session.

raj asked, Hi, Can you please let me know if it is a good time to invest in Tax Saving MF (ELSS)
vicky answers,  at 2008-11-19 12:36:35hi, if you are a risk-taking investor and are willing to stay invested for the long-term then you should consider investing in a tax-saving fund. i would recommend investing via the sip route.
Rajveer asked, Hey, I have invested in MF and the value is 50% down. Wat should i do should i exit or hold??? Pls answer.
vicky answers, hi, the answer would depend on a host of factors like your risk profile, the funds that you are invested in and your investment horizon among others. broadly speaking, if you are invested in funds that are right for you and you can stay invested for the long-term, there is no need to panic and exit.
abacasd asked, can you tell me about investing money in liquid funds. Is it the right time?
vicky answers, hi, liquid funds are low risk avenues used for parking monies for shorter time frames. generally, they offer better returns than a savings bank account. to know more, please read an article by clicking at http://www.personalfn.com/detail.asp?date=9/12/2008&story=3
sunny asked, hi i want to ask you how safe is to invest in MF as compared to Fixed Deposit for a long terms
vicky answers, hi, FDs are assured return investment avenues, also they offer safety of capital. mutual funds are market-linked investments. the returns are not assured; also, the capital can be at risk. clearly, the investment proposition offered by mutual funds and fds is different. you can consider having both in your portfolio; the allocation should be based on your risk profile.
saurabh asked, hi viky how r u? which is the best MF in industry and how much time we should hold our investment in MF to get the maximum profit.
vicky answers, hi, there is no such thing as the best mf. what you need to do is understand the investment proposition offered by various funds and select the one that suits you the best.
Rima asked, what is ETF ? and your suggestion about ETF??
vicky answers, hi, etf is an exchange traded fund i.e. a mutual fund that is listed on the stock markets and traded on a real time basis like stocks. to know more, please click at http://www.personalfn.com/detail.asp?date=8/16/2008&story=3
Rima asked, what is ETF ? and your suggestion about ETF??
vicky answers, hi, etf is an exchange traded fund i.e. a mutual fund that is listed on the stock markets and traded on a real time basis like stocks. to know more, please click at http://www.personalfn.com/detail.asp?date=8/16/2008&story=3
suman_maity2006 asked, I never invested in any mf.so I am a beginer.how sould i invest systematicaly?is this the right time to invest?
vicky answers, hi, first you should decide on the investment objective/s that you wish to accomplish and the time period for the same. then, select funds that can help you achieve those goals and invest via the sip mode. this is not a bad time for risk-taking investors to get invested for the long haul. to know more, please write at info@personalfn.com
Sunil asked, How it makes differecne between MF and ULIPs?
vicky answers, hi, mutual funds are pure investment avenues, while ulips combine both insurance and investments. both m funds and insurance are market-linked in nature.
Sunil asked, How it makes differecne between MF and ULIPs?
vicky answers, hi, mutual funds are pure investment avenues, while ulips combine both insurance and investments. both m funds and ulips are market-linked in nature.
jack asked, Hi, Can you tell me which are the safe funds to invest for short term. (say 3 to 6 months) thank you.
vicky answers, hi, you can consider investing in low risk avenues like liquid, liquid plus funds and fmps with a similar investment horizon. also, short-term fds is an option you can consider.
IRANNA asked, hi can i get information regarding mf ... whats the procedure to invest in mf
vicky answers, hi, you can contact an amfi certified distributor to know more about mutual funds and to get invested. also, you can invest directly with the fund house and save on the entry load.
sac asked, How are SBI Magnum Taxgain and Fidelity Tax Advantage funds performing?
vicky answers, hi, while both the funds have borne the brunt of the falling markets, fidelity tax advantage has fared better than magnum tax gain in the downturn.
ffghlkk asked, HI Vicky .. Can you pls tell me which of these MFs are god ones to buy : SBI Contra,HDFC top 200,HDFC growth fund,Sundaram midcap growth,icici pru infrastructure etc ... & any other from your side to be recommended
vicky answers, hi, hdfc top 200 and sundaram mid cap are among the better managed funds in their respective categories.
ksuren28@rediffmail.com asked, if u r nit remember i am writing again. I am having Life time super pension scheme under ICICI Prudential and I have already paid Rs.40000/ in Oct, 2007. The value of the said amount has come down to the tune of 21000/ and it was due for payment again in Oct 2008 which I have not paid so far because the grace period is of 1 month. The said scheme is under Maximiser. Now please advise me whether to continue the policy by paying second installment or not? '
vicky answers, hi, several ulip investors are concerned now on account of the fall in the value of their investments. to know more about the options available to you, please read our article on the subject by clicking at http://www.personalfn.com/detail.asp?date=7/31/2008&story=3
vineet asked, Which is better to invest? dividend option or growth option
vicky answers, hi, that would depend entirely on your need for liquidity. dividends though not assured offer liquidity to investors. meanwhile in the dividend option, the onus to book profits lies with the investor.
good asked, hi, what do u say about the DSP Blackrock.
vicky answers, hi, that's the name of the fund house. it has in its arsenal some of the better managed funds in the country.
saju asked, hi... how about DSP BR Top 100..is it a good mf to invest now??
vicky answers, hi, its among the better-managed funds in the large cap segment.
santhosh asked, I have made SIP in Sundaram Mid cap, Franklin Flexi cap, Reliance Equity Opportunities, Reliance Media & Entertainment, Relinace natural resources, Reliance Diversified Power Sector, DSP Tiger Fund & TATA Infrastructure - each Rs. 1000 /- each for 12 months. Is it advisable to hold these funds?
vicky answers, hi, there are too many sector/thematic funds in your portfolio. ideally, a portfolio should have well-managed diversified equity funds at its core and sector/thematic funds (if at all) should occupy a minor portion.
Ranjeet Singh asked, hi vicky how are u ? i just wanted to know that can i get interest rate in current account?
vicky answers, hi, that would depend on the bank in question. but generally, the norm is that banks do not offer any interest to current account holders.
Girish asked, Should I continue my SIP in DSP Opp Fund (Growth) option. How is the performance of the said scheme. Thanks
vicky answers, hi, its an opportunites style fund that maintains a bias for large cap stocks. will suit risk-taking investors.
RAHULW asked, IS SAVING IN HDFC GROWTH FUND (G), SUNDARAM BNP PARIBAS-SELECT FOCUS (G) AND RELIANCE VISION FUND (G) ARE ADVISABLE.
vicky answers, hi, sundaram select focus is an aggressively managed large cap oriented fund. its a good fund for risk-taking investor. i would prefer to invest in hdfc equity over hdfc growth.
bhuvan asked,  Hi Vicky keeping the current scenario it is better to invest through SIP ot bulk investment in Mutual fund.
vicky answers, hi, my preference would be for an ongoing sip. if liquidity permits and markets provide an attractive opportunity, you can make lump sum investments on an 'as and when' basis.
chicki asked, Dear Vicky Mehta sir, if I give you 50000 rupees which MF will you invest in right now and will you take a risk?
vicky answers, hi, i'm a risk-taking investor and would invest the monies via an sip in some of the funds that i have mentioned during the course of the chat. i would also take into account my existing portfolio and the investment goals that i have set for myself before making any investment.
vicky says, look's like we have run out of time. thank you all for participating in the chat. if you have any queries, please feel free to write to me at info@personalfn.com