rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Some golden investment tips

Some golden investment tips

September 15, 2011 17:27 IST

InvestmentsAre 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 Sailesh Multani offered some valuable tips during a chat on rediff.com on Thursday. Here is the transcript:

Sailesh says, Hello & Good evening - welcome to this chat session

subhash asked, Should I invest in GOLD ETF
Sailesh answers,  at 2011-09-15 16:01:29hi, you can allocate 10-15% of your potfolio to gold. Gold ETF is the most convenient way of investing in gold. You should not invest in these funds with a view to make quick money.
AJ asked, ICICI Pru Discovery Fund SIP for 3 yrs good or ok
Sailesh answers, hi, this is a midcap equity fund. Equity funds are ideal when your investment horizon is atleast 5 years. If you are willing to increase your investment horizon to 5 years then you can consider investing into this fund. Else you can invest in a balanced fund like HDFC Prudence Fund
bobby asked, Suggest some MFs for 2 yrs
Sailesh answers, hi, I recommend MIPs for investment horizon of 2 years. These are are essentially debt mutual funds. These funds typically invest 20%-25% of the corpus in equity related instruments like stocks. The balance 75%-80% is invested in relatively more safe instruments like corporate bonds, government securities, treasury bills and money market instruments. MIPs are structured to deliver higher return than a bank FD. However, it should be kept in mind that MIPs are market linked instruments. Therefore the returns are not assured. These investment products are suitable for investors who are willing to take some risk and have an investment horizon of 18-24 months. MIPs are more tax efficient compared to bank FDs. Interest from bank FDs are taxed as 'income from other sources' and clubbed with the total income. The appreciation in the value of MIPs is treated as capital gains. Long term capital gains from MIPs (units held for more than a year from the date of investment) are allowed the benefit of indexation and therefore subject to concessional rates which is 10% without indexation or 20% with indexation, whichever is less.
senthilk asked, I want to retire with 1 crore after 20 years from now. I earn 1 lakh/month. I have one 2 years old kid. How much should I invest monthly to reach my goal?
Sailesh answers, hi, if you want to accumulate Rs 1 crore in the next 20 years then you should invest a sum of Rs 15,000 per month in a mix of equity and debt instruments in such a mannner that your average annual return over the next 20 years is atleast 9%.
Raj asked, Hello Sir.... I am running in huge losses in my equity portfolio around 40% losses of total investment, should i exit or hold....
Sailesh answers, hi, you should get your portfolio examined with the help of a trusted investment advisor. If the companies you have invested in are fundamentally sound then you should hold onto them. If not then you should exit without having a second thought.
raj12345678 asked, For max return, which policy is best, SBI ppf or post office NSC?
Sailesh answers, hi, both PPF and NSC offer return at the rate of 8% p.a. Interest earned on PPF is tax free while that from NSC is taxed. Between the two, PPF is a better option. However, please keep in mind that PPF has a matuirty of 15 years while that of NSC is 6 years.
RadheyShyam asked, I am 45 yrs. Investing different MF 5k HDFC top 200, Reliance Growth 2K, SBI tax saver 1K, SBI Contra 2K and Sunderm select mid cap 2k and Post office RD 2K . All are monthly basis, please comments on my portfolio.
Sailesh answers, hi, you have tow dedicated midcap funds in your portfolio - Reliance Growth and Sundaram Midcap. Between the two I recommend Sundaram Midcap. You should exit SBI Tax Saver and Contra Fund. You may add Fidelity Equity and DSP BR Equity Fund to your portfolio.
bbt asked, dear shailesh ji, please advise two good elss sheme and investment is advisable in them now or later next year begining
Sailesh answers, hi, you can invest the following 2 funds this year - Fidelity Tax Advantage Fund and HDFC Tax Saver
vis asked, Continuing SBI Magna Taxgain fund is better or can we stop this fund?
Sailesh answers, hi, I dont recommend this fund. You may exit this fund and invest in Fideltiy Tax Advantage Fund
Ravi asked, Ravi.. have invested 1 lak in LIC profit plus. now the value is 76,000 only. Shall i continue paying 3 rd premium or quit? pls advice
Sailesh answers, hi, you should continue with this policy and pay the premiums. there is no point surrendeinrg the policy at a loss. You will see returns from this plan only after 7th or 8th year
psm asked, Is Gold ETF considered as a Debt fund like MIP?
Sailesh answers, hi, yes Gold ETF is treated like a debt fund.
kapil asked, Kindly advice how much money could be invested in some scheme so that i get a income of Rs. 50000 pm to run my monthly expences.
Sailesh answers, hi, I will need more information from you to answer your query. Please mail me your query separately at sailesh.multani@gmail.com
rs asked, i have 5 lacs of saving i am planning to buy a house since i am not havign a house, is this a right time to buy a house as the interest rate and price of house is too high. Pls suggest me.
Sailesh answers, hi, I am advising investors against investment in real estate at this juncture because of the abnormally high prices. Since you live in a rented house and dont have any other option you will have to buy the houase at the prevailing prices. If you can wait for 6 months then probably you may get a house at a lesser price. Also look for a loan that has a fixed rate of interest in the initial years.
rs asked, i have 5 lacs of saving i am planning to buy a house since i am not havign a house, is this a right time to buy a house as the interest rate and price of house is too high. Pls suggest me.
Sailesh answers, hi, I am advising investors against investment in real estate at this juncture because of the abnormally high prices. Since you live in a rented house and dont have any other option you will have to buy the houase at the prevailing prices. If you can wait for 6 months then probably you may get a house at a lesser price. Also look for a loan that has a fixed rate of interest in the initial years.
deep asked, sir, I can invest 10,000 per month for the next 2.6 years. I plan to buy a new home in 2014. Where & how to invest for maximum return.
Sailesh answers, hi, your goal is only 3 years away. I would not advise you to invest in equity funds. The best investment for you would be a short term bond fund like Fidelity Short Term Income Fund.
Dheeraj asked, I have a crore of rupees and I am highly risk averse. What is my best form of investment as on today?
Sailesh answers, hi, since you are not willing to take risk with your moneny, the best option for you would be to invest in Bank Fixed Deposits. IF you want to earn a little more than the bank FD then you can even invest in AAA rate company deposits. I recommend HDFC Ltd FD
YATIN asked, Can u suggest some good MIP for investments
Sailesh answers, hi, my recommendation in this category has been HDFC MIP - Long Term Plan
zubin asked, HI Sailesh, I would like to know if it is wise to invest in hard gold (Gold coins) or in Gold ETFs? Also where can the Gold Coins invested be sold cause the banks who sell the coins are not allowed to buy it back as per the RBI norms.
Sailesh answers, hi, between physical gold and Gold ETF, I advise Gold ETFs. Gold ETF is the most easiest and convenient way of buying and selling gold.
abhish asked, i have STP going out from HDFC MIP LTP to HDFC TOP 200.is this the right strategy
Sailesh answers, hi, this is not the ideal way of doing a STP. In the case of MIP you would be paying an exit load of 1% if you have not completed one year from the date of investment. Ideally STP should happen from liquid funds.
umeshchordia asked, Is LIC Policy is better than PPF
Sailesh answers, hi, LIC is completely different form PPF. LIC offers insurance plans. PPF is a debt instrument. PPF is good for earning regular income from your investment. Life insurance plans are good only if you want to take a risk cover for your life.
Giri asked, I have invested in SBI life Horizon II (ULIP), but it doesn't show me any significate growth in last five years, what shall i do for that ?
Sailesh answers, hi, ULIPs typically break even in the 7th or 8th year. You should hope to see your ULIP growing from then. Please get a portfolio of your fund's portfolio and get it examined with the help of a trusted advisor to see if the fund is managed well.
sreedhar asked, Sir, My take home salary is Rs 40K, what should be my savings? I am 32, married now. What should be my mix of assets?
Sailesh answers, hi, the thumb rule is that 40% of your income should be saved. Your portfolio ideally should be 70% equity, 15% gold and 15% debt
sobti asked, hi, i am deepak. today is my daughter's 5th b'day. i want to invest rs 5000 every month till another 15 yrs when she'll turn 20. waht is the best option, kindly guide.
Sailesh answers, hi, wishing your daughter a Very Happy Birthday. You should start building a portfolio of diversified equity funds for your daughter. You can choose to invest in HDFC Top 200 Fund, DSP BR Equity Fund and Fidelity Equity Fund. Besides you can also invest a small amount in Fidelity's Children Plan which has two options - Marriage and Education Plan.
Arvin asked, i am 30 yrs age and never invested in anything
Sailesh answers, hi, it is never too late. You can start investing in a mix of equity funds, Gold ETFs and debt funds. SIP is the preferred rate of investment into equity funds
Sashank asked, Sir, I am investing @ Rs. 4000/- pm in HDFC Top 200 fund. Is this the right time to add some more units at the current NAV (for app Rs. 50000/-)?
Sailesh answers, hi, you can certainly invest in HDFC Top 200 fund at the current level
kito asked, Long term advice for share market players
Sailesh answers, hi, invest in equity with a 5 year horizon. Invest only if your risk tolerance level is high. Ideally you should have a portfolio comprising of equity funds, bank FDs and Gold ETFs. Dont forget to book your protfits at regular interval. Get your portfolio reviewed once every year.
Arjun asked, Should I invest in Nifty ETF
Sailesh answers, hi, you can have a small allocation not exceeding 15% of your total equity portfolio to index based funds. n India there are several open ended diversified equity funds that have outperformed benchmark indicies like Sensex and Nifty by huge margins
vidy asked, I have SBi MSFU contra, SBI gold, SBI emerging fund, SBI magnum multicap, ICICI bluchip focused, HTDF top200, fidility equity mutual funds of each Rs1000 per month SIP. Shall I go with these funds or switch over to other funds.
Sailesh answers, hi, I am ok with all the funds in your portfolio except for SBI MF funds. You may exit them and invest in better performing funds like Frannklin India Bluechip Fund and DSP BR Equity Fund.
atul asked, which is best option for investment?
Sailesh answers, hi, the best option for investment depends on your investment objective, investment horizon and risk appetite. E.g. If you are willing to take high risk and invest for more than 5 years then equity funds are ideal for you.
ravinag1 asked, do you think market has bottomed out and its time to buy if so which segment stocks
Sailesh answers, hi, it is very difficult to figure out if the market has fathomed out at the current level. You will know is only in the hindsight. The best strategy would be to stagger your investment in 4-5 phases. Invest over a period of one month. Dont wait to time the market to perfection.
Investor asked, Real Estate, Shares & Gold/Gold ETF wihch is the best option?
Sailesh answers, hi, in my opinion every investor should invest in Gold ETF. Between Real Estate and shares, I would recommend Shares. I am of the opinion that equity markets are attractively price for a long term investor. Real estate prices defy logic and fundamentals. Hence not recommended at the current level.
samir asked, is it a good time to enter mid cap equity mkt if we have a 5-7 yr horizon?
Sailesh answers, hi, midcap stocks have fallen more than the large cap ones. Midcap funds are also an attractvie option for investors. I would recommend Sundaram Midcap and DSP BR Small and Midcap Fund in this category. The allocation to this fund should be capped at 20% of the overall equity portfolio.
mraveend asked, I am 40yrs old and investment horizon is 10yrs and planning to invest 1lakh rupees per month. What is the plan suggest for investment?
Sailesh answers, hi, if you are willing to take risk with your investments, then you should allocated 60% of your surplus to equity funds and 40% to debt funds. Investment in equity funds should preferably be done through SIPs. For debt Bank FD is ideal.
busi asked, what is the difference between gold ETFs and gold mutual funds? and where should i invest in order to get better returns
Sailesh answers, hi, Gold ETFs are mutual funds that invest directly into gold. These funds can be bought and sold through the stock exchange. Demat account is compulsory for investing into Gold ETF. Gold Savings Funds are fund of funds. These funds invest in Gold ETFs. Demat account is not required for investing into these funds.
Raj asked, Sir, If investing in mutual funds via SIP, what kind of horizon do you suggest considering the current bearish and macro economic policies, what funds do you suggest please? I can plan 5K a month.
Sailesh answers, hi, even if you are investing into equity funds through the SIP route, you should invest with a 5 year view.
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 sailesh.multani@gmail.com.