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 Thursday, financial planning expert Sailesh Multani offered some valuable tips. Here is the transcript:
Sailesh says, Hello & Good evening - welcome to this chat session
Sailesh says, For all those who are looking forward to recommendations on various types of mutual funds, here are my picks. In the equity fund category HDFC Top 200 Fund, DSP BR Equity Fund and Fidelity Equity Fund. In the balanced fund category, I recommend HDFC Prudence Fund. In the ELSS category HDFC Tax Saver and Fidelity Tax Advantage Fund
akrish asked, what is the future of ULIPS which were started on 2004..would it be good to continue them till they mature
Sailesh answers, at 2011-12-01 16:00:32Hi, you should compare the charges as well as the returns of your ULIP with those of the top performing mutual fund s of the same asset class . On that basis you should take a decision either to continue with your ULIP or surrender them.
Prasanna asked, which is the best investment plan
Sailesh answers, Hi, there is nothing like a best investment plan. Every investment plan is unique as it should be linked to your investment objective, risk appetite and investment horizon
David asked, Sir, I am David Kumar, working as a Manager and earning a salary of Rs.40,000 per month. Can you please advise me how I can invest wisely and minimise my tax volume David
Sailesh answers, hi, you should run your salary structure through a chartered accountant who will suggest ways and means by which you can make it tax efficient. Also you should make investments under section 80C to ensure that you availa of the deduction of Rs 1 lakh under the said section.
kinh asked, I have a aviva ulip active for last 3 yrs,.. however the amount invested against units gained is on the negative side. Do advise whether to continue or withdraw(surrender) the policy.
Sailesh answers, hi, you can refer the answer to a similar question at the start of this chat
Anila asked, Sir, I have been only investing in FDs. I am not familiar with Stock market and dont follow it. Could you tell me what other ways I can invest my money other than FD which would give me good returns? I also have a PPF.
Sailesh answers, hi, you should continue your investments in PPF and FD. Besides you should consider investing in diversified equity funds recommended by me at the start of this chat. Rather than investing directly into stocks, equity funds would be ideal for you.
Suranjeet asked, I want to invest in shares. But I hv no knowledge about the share market. So will it be wise to go for investment in share market having zero knowledge in that line???
Sailesh answers, hi, if you dont have knowledge of stocks then equity funds are ideal for you. Let the professional fund manager manage your money
balachandra asked, I stoped SIP in reliance growth and Div power and HDFC top 200 after 4 years. Can I withdraw or start again.
Sailesh answers, hi, you should withdraw your money only if you want to use the money for some goal. Otherwise you should remain invested. HDFC Top 200 Fund is among the best performing funds. If possible you should start your SIP again.
Aravindkumart asked, how are nsc certificates., are they give atleast ok returns in long term
Sailesh answers, hi, NSC is good as a tax saving instrument. Apart from them they are not good as invesment option. Today one to three year FD fetches return in the range of 9-10% p.a. This is any day better than NSC which pays interest @8% p.a.
Amit asked, How to invest smartly to get good returns. Currently I am investing rs. 50000/- in FD, Rs. 15000/- in PPF, Rs. 37000/- in ULIP insurance. thanks
Sailesh answers, hi, you have a diversified portfolio. Among your investments ULIPS are not ideal. While you should continue with the existing ULIPS you should not buy any more insurance plans if your objective is to grow your money. Add diversified equity funds to your portfolio. You can start SIPS in the funds recommended by me at the start of this chat.
fahim asked, hi, what first few imp tips would you give to some one starting the online trading.
Sailesh answers, hi, online share trading should be used only as a tool to buy and sell shares. You should not indulge in frequent buying and selling of stocks. This can be very risky. you should be a long term investor only if you are investing in equity
yogesh asked, i am 51 year old, so pl tell me the safe investment for me.
Sailesh answers, hi, you should consider investing inbank FDs or small saving schemes like Post Office Monthly Income Scheme. IF you are willing to take some degree of risk, then debt funds are ideal for you. currently short term income funds are ideal investment option in the debt category.
RK asked, How do I invest in Gold and in what format ? Is it advisable to buy now ?
Sailesh answers, hi, you should invest in Gold Exchange Traded Fund (ETF). It is easy to buy and sell Gold ETF. Allocation to gold should not be more than 10% of your total portfolio.
bhaskar asked, At this point should invest in One time or SIP's please suggest good MF Schemes...
Sailesh answers, hi, you can invest lumpsum but you should stagger your investments into 3-4 phases. SIPs are as preferable as it helps you buy more units when the markets are down. Also it brings about discipline in your investment apporach, a virtue which is very important for becoming a sucessful investor.
mgs asked, Is it better to park fund in FD for 1or 2 yrs,seeing the volatility in the market.
Sailesh answers, hi, if you are willing to take risk and invest for the long term i.e. 5 years then you should continue to invest in equities. If you want to wait for the markets to show some signs of stabilisation before you invest, you should put your money into liquid funds.
rajesh asked, Hi i am rajesh what about gold as an investment
Sailesh answers, hi, gold is very important from portfolio diversification perspective. You should invest 10-15% of your portfolio into gold ETF. Gold should be treated as an insurance in your portfolio. You should not invest in gold to make quick profits.
cake asked, sir i want to invest about 5-7 thousand in mutual fund for 20-30 year, please suggest a single fund where i can invest in
Sailesh answers, hi, you should not invest only in one fund. It is always better to invest in 3-4 mutual funds for diversification. You can invest in the funds suggested by me at the start of this chat
chintamani asked, Hi Sailesh,if DTC is implemented, what are the ways of investment for saving INCOME TAX?
Sailesh answers, hi, there is a lot of ambiguity with respect to DTC. The best thing to do is to wait for the DTC to be implemented and then make the investment strategy for the future.
BGhag asked, I have been investing in SIPs for the last 3 years on monthly basis. now the total value of my SIP investment is 30 lacs. but due to the market fluctuations, i have not earned any profit. rather the statement shows a loss now. should I continue investing in sip or put this amount into FD wherein I get a guaranteed return on investment?
Sailesh answers, hi, you should continue with your investments in equity funds through SIPs. The markets have been volatile in the last one year and therefore you are not seeing your money grow. This risk is always associated with equity. You should continue with your SIPS regardless of the direction the markets take. If you are long term investor with an investment horizon of 5 years and more then you are bound to make money from your investments
7897878 asked, sailesh, how do we invest in Gold ETF?
Sailesh answers, hi, to invest in gold ETF you need to open a demat account and a share trading account with a registered share broker. Buy and selling of Gold ETF is similar to buying and selling of stocks.
Gitachan asked, Hi, I have invested heaviliy in FDs. However, I am worried about the real returns (inflation adjusted) which are in negative. Should I stay invested?
Sailesh answers, hi, you should not look at the returns of your FD only. Your portfolio return should be more than the inflation. Therefore it is always advisable to have a diversified portfolio consisting of equity funds, bamk FD and Gold ETFs
cssinha asked, I am retired and having 10 lakhs,can I get monthly 20000 per month by investing in any guranteed scheme. cssinha
Sailesh answers, hi, you are targeting an annual returns of 24% from your investments on a regular basis. This is not possible from any fixed income product available. In fact this kind of return is not possible even from risk asset class like equities. You need to tone down your return expecations
shyam_iisc asked, There is lot of voltaility in the market these days. One day Sensex is going up and other day it falls down and everyone relate it to global clues. How global clues changes so suddenly? What is your take on it?
Sailesh answers, hi, markets move on sentiments. Sentiments are affected by newsflow. Therefore you see a lot of fluctuation on a day to day to basis. If you are willing to take risk and invest for 5 years and more, you should continue with your equity investment. Short term flucutations should not affect your investment decisions.
vinay asked, what is the best tax saving option from Bank and post ofice for sr. citizen
Sailesh answers, hi, you can consider investing into PPF or NSC. PPF has a maturity of 15 years while NSC has a maturity of 5 years. You can even invest 5-yr bank FD that qualifies for tax saving.
suma asked, ppf/mutual funds which is good option for a 40 years old for retirement planning
Sailesh answers, hi, your retirement fund should consist of equity funds, bank FD, PPF and Gold ETF. For you both PPF and equity funds would be ideal. PPF is the best debt instrument available today. Both equity funds and PPF are ideal for long term goals like retirement.
Asha asked, To avoid long term capital gains is it wise to invest in property in the present scenario (the property prices in mUmbai being at the peak, wld there be scope for further appreciation) or put the entire amount in capital bonds
Sailesh answers, hi, I personally am of the opinion that real estate prices in mumbai are abnormally high. There is no point in making investments at these levels. You would be better off investing your money in long term capital gains tax saving bonds.
Rahul M asked, I want to prepay home loan after three years from now. Should I start investing Rs 10,000 monthly in rd or mutual fund or shares or gold or silver so I will get maximum money in my hand to prepay loan.
Sailesh answers, hi, you should prepay your loan to the extent possible.
Kumaran asked, I am having an termplan + MFs. So i didnt take ULIPs. Is it good without ULIP in my profile? iam having only health insurance covered by my company. i plan to take helath insurance also. Please advice
Sailesh answers, hi, you are better of having a term plan and mutual funds. There is no issue if you dont have a ULIP in your portfolio.
Sailesh says, We have run completely out of time. I thank you all for participating in this chat. If you have any questions which were not answered during the chat, please mail them to me at email@example.com.