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Some golden investment tips

September 22, 2011 17:30 IST

MoneyAre 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 and Welcome to this chat session

dil asked, this is the best time to invest in stock market if you have a long term view
Sailesh answers,  at 2011-09-22 16:06:53hi, if you have a long term view i.e. 5 years and more with an apettite for risk then equities are for you. I usually recommend diversified equity funds via the SIP route
deepak asked, I want to invest Rs.2000/ on monthly basis around 15 to 20 years for my daughter education & marriage.Plz tell what should I do & where I invest this money so I will get good returns at the time of maturity.
Sailesh answers, hi, the best investment for your daughter's future expenditure on education and marriage would be diverisfied equity funds. you can allocate 70% to equity funds, 10% to debt and 20% to gold via the gold ETF. SIP is the preferred route for investing in equity funds.
nagesh asked, I have been investing in my MF since 2008 and still my money is same infact less than what I had invested. But its not in the case of my PPF which is good to invest
Sailesh answers, hi, you should get your portfolio checked through a competent investment advisor. It is possible that you have not invested in fundamentally strong funds. PPF is good only if you are looking for safe and assured returns in your portfolio. Ideally both equity funds and PPF shoould be a part of your portfolio.
Viswanath asked, I am a very small investor. My monthly income is 15k. I would like to know the best investment options that are available. Please suggest me a suitable instrument where I can invest without any hassle of loss.
Sailesh answers, hi, first of all set an investment goal for yourself. This will help you decide your investmen horizon. Accordingly you can decide your asset allocation.
deepak asked, Hi,I am investing Rs 1000/.each in three fund i.e Reliance RSF equity,Reliance Equity oppourtinity fund & Fidelity euity fund for last two years but returns are not good.Plz tell me should i continue or close this SIP's.
Sailesh answers, hi, you can hold onto Reliance RSF Equity and Fidelity Equity Fund and continue with the SIPs. Equity market has been very volatile for the last 9 months. If you hold on to your investments in these funds you will definitely make money over the next 5 years which in any case should be your investment horizon
ramesha asked, Hi Sir, I have been investing in DSP BR Tiger fund through SIP for past 5 years. Do you think i should redeem and invest in another MF?
Sailesh answers, hi, this is a infrastructure related fund. I would recommend that you switch to DSP BR Equity Fund which is a far better performing fund than DSP BR TIGER Fund.
prav asked, please explain when it said that 20% annual return for particular MF whether it means that if rs 100 invested in MF, the NAV of the same will become 160 after 3 years or it will be 120. please also advise whether that on equity based MF en-cash after 1 years will attract the tax if it is then what are the charges for tax.
Sailesh answers, hi, when we say 20% returns p.a. for equity funds it means year on year return. So if you invest Rs 100 today you should expect Rs 20 as profit every year if the expected return is 20% p.a. There is no long term capital gains tax on equity funds if it is redeemed after one year from the date of investment
Srinivas asked, Dear Sir, i have 4 ULIP's and would like to discontinue at least three and go for long term investment plan. Could you please suggest which one would be best one for creating corpus ?
Sailesh answers, hi, I would not recommend surrendering your ULIPs at a loss. the best investment for building a retirement corpus is equity funds. Retirement is a case of long term goal and equity is the best asset class that can help you build your asset class as one can expect higher returns compared to any other asset class. Buying a retirment plan from insurance company probably wont help
deepak123 asked, My son is 4 years old and i want to plan for his higher education. I wish to get 1 crore in 15 years. how much money per month should I invest and where to achieve my goal?
Sailesh answers, hi, to reach your goal of Rs 1 crore in the next 15 years you will have to invest a sum of Rs 24,200 per month into a mix of debt and equity and target an annual return of 10%
raju asked, Hi Shailesh you are saying 40% of our salary should be saved or invested? is it possible? take an exaple for 40K sal per month and pls expln me...
Sailesh answers, hi, I have mentioned in my earlier chats that one should save atleast 40% of one's income. This is only a thumb rule to check if your expenses are under control. This can at best be used to ensure that you are saving adequately to povide for your life goals like retirement, children's education and marriage.
Paresh asked, Hi, I wish to invest Rs 2000 PM in MF SIP. which MF shd i invest in?
Sailesh answers, hi, I recommend the following 3 funds among others : Fidelity Equity Fund, DSP BR Equity Fund and HDFC Top 200 Fund.
kiru asked, Sir I have invested 50000 in gold etf at 2690/-,, last month should I keep it or sell.
Sailesh answers, hi, I dont encourage investment in gold from trading perspective. My view on gold is farily simple. One should invest 10-15% of his portfolio in Gold. This should be done more out of diversification of your portfolio. Gold is also an hedge against inflation. It alos reduces the volatility in your portfolio. Making quick money from trading in gold could prove very costly
nele asked, what is the best investment presently. Gold ,mutual fund, property, FD's
Sailesh answers, hi, in the current scenario I would recommend investment in all the asset classes mentioned by you except real estate. you should allocate your investible surplus based on your investment goals, risk appetite and investment horizon.
rohan asked, Hey Sailesh, I am an art director i make 65 a month and my expenses are about 20. My goals: a 2bhk home, car, and be financially sound. Please suggest me the kind of investments i should do and what volumes? thanx
Sailesh answers, hi, if you really want to achieve all your goals within the stipulated time frame, then you should get a financial plan made for yourself which will act as a road map that will take you to your goals. For this it would be better if you can engage the services of a trusted financial planner.
surewin asked, Is it better to invest in GOLD ETF or GOld mutual funds if I want to invest lumpsum
Sailesh answers, hi, you can invest in both. Ideally Gold ETF is better as these mutual funds invest directly into gold. But for these funds you will compulsorily need a demat account. Gold saving funds are fund of funds. These funds invest in Gold ETFS. Therefore you dont need a demat account to invest in these funds.
taru asked, should i hold the stocks purchased at cheap levels or become a trader and sell when i get 10% or so.
Sailesh answers, hi, it is always better to be a long term investor when it comes to equity investments. At the same time you should not forget to rebalance your asset allocation to adjust for profits that you have made in one asset class. In other words, if you have made money in equities then you should periodically book profits to balance your asset allocation.
Balaji asked, Hello Sir, I have made the mistake of investing lump sum in MFs at market peak and not I'm facing losses. The dilemma I am in now is to whether invest in SIP for the same funds such that my losses are averaged uout or whether to redeem all and go for fresh portfolio
Sailesh answers, hi, if you have invested in fundamentally strong funds then you have nothing to worry about. Please get your portfolio evalauted with the help of a trusted investment advisor. Going forward invest in equity funds only through SIPs
raju asked, I think its always better to invest in FD rather than investing in share or mutual fund seeing to todays market status? what is your comment sir????????
Sailesh answers, hi, it is but natural to expect these kind of reactions when markes fall so sharply. But that does not change the characteristic of equity markets. Equity markets will remain risky irrespective of the sensex level. At the same time one can expect much higher inflation adjusted returns over the long term from equity markets. The condition is to play according to the rules. equity and debt are required in any portfolio. the combination of debt and equity in any portfolio will depend on your risk appetite and investment horizon.
Vinay asked, Current MF SIP: 3500 per month in HDFC Tax SAver, 4000 per month in HDFC Top 200, 4000 per month in Fidelity. Apart from HDFC tax saver, the other two have been negative since the past 8 months. Any suggestions
Sailesh answers, hi, all the funds in your portfolio are good. in my view there is nothing to be worried about. Hold on to your investments. I am sure your funds will make money once the equity markets stabilise and start their upward journey.
RajivNatarajan asked, Considering the current scenario, where I should invest, in Gold or bank FD?
Sailesh answers, hi, invest only 10-15% of your portfolio into gold. The balance investible surplus can be invested into FD if you are looking for a safe and assured returns.
bhanot_aditya asked, Mr Multani ..I want to be crorepati at the retirement age i.e. 60yrs...so how much should I invest & where?? Right now I am 29yrs old
Sailesh answers, hi, you have 31 years to reach your target of Rs 1 crore. Assuming your investments earn an average return of 10% p.a. over the next 31 years, you will have to invest a sum of Rs 4,000 approximately to reach your goal.
prav asked, Pls advise which one is best investment for 10 years time horizon Gold ETF or Gold saving MF? Whether Gold ETF can be purchase like SIP ..?
Sailesh answers, hi, SIP is not possible in Gold ETF. You will have build in a discipline to buy few units of Gold ETFs every month to benefit from SIP
raajeev asked, I would like to invest for my children education targeting next 15 yrs. I am current investing thru SIP in HDFC Eq, HDFC Prudence, HDFC Top 200, DSP Top 100, Fidelity Equity and Sundaram Midcap. Is this investment OK. Kindly suggest
Sailesh answers, hi, all the funds short listed by you are good. You may go ahead and invest in them through the SIP route
chandunits asked, dear sir i am a new employee in corporate and i want invest money inorder to save taxes and at same time want some good return so what should i do?
Sailesh answers, hi, you should take advantage of Section 80C benefit to save your tax. ELSS and PPF are two good tax saving instruments that will not only help you save tax but also help you grow your money. ELSS is a diversified equity fund that invests 100% of its corpus into equity markets. Therefore, this fund carries maximum risk.
gautamk asked, Hello Sir, Please reply I am investing Rs.1000/- each per month from past 22 months in DSP top 100 and HDFC top 200 growth plans. As of now after investing 22000 each i am in loss of around 700 - 800 rs. in each of the fund. Should i continue or exit from the same. If continue for how long? I am also investing 1000/- month in DSP balance fund and 500/- in reliance regular saving fund and rs. 500 / reliance gold saving which i started previous month . should i continue with all these thanks
Sailesh answers, hi, all the funds mentioned by you are fundamentally sound. You should continue with your SIPs in them.
gautamk asked, Hello Sir, Please reply I am investing Rs.1000/- each per month from past 22 months in DSP top 100 and HDFC top 200 growth plans. As of now after investing 22000 each i am in loss of around 700 - 800 rs. in each of the fund. Should i continue or exit from the same. If continue for how long? I am also investing 1000/- month in DSP balance fund and 500/- in reliance regular saving fund and rs. 500 / reliance gold saving which i started previous month . should i continue with all these thanks
Sailesh answers, hi, all the funds mentioned by you are fundamentally sound. You should continue with your SIPs in them.
gautamk asked, Hello Sir, Please reply I am investing Rs.1000/- each per month from past 22 months in DSP top 100 and HDFC top 200 growth plans. As of now after investing 22000 each i am in loss of around 700 - 800 rs. in each of the fund. Should i continue or exit from the same. If continue for how long? I am also investing 1000/- month in DSP balance fund and 500/- in reliance regular saving fund and rs. 500 / reliance gold saving which i started previous month . should i continue with all these thanks
Sailesh answers, hi, all the funds mentioned by you are fundamentally sound. You should continue with your SIPs in them.
Swati asked, HI Sailesh, If I have to buy gold for utility (daughters marriage/family obligations, own use etc.) Is it advisable to buy in bulk now or keep investing money in other resources and then buy gold as and when needed. I need to know the profit/loss ib both scenarios. I am planning to take personal loan in case i have to buy it now. Thanks in advance.
Sailesh answers, hi, first of all I wont advise you to invest in gold by taking a personal loan. I would advise you to invest regularly in gold ETFs. If that is troublesome for then you should invest in Fidelity's Children Plan - Marriage Plan.
Sailesh says, We seem to have run out of time. If you wish to get answers to your questions that were not answered in this chat then you may mail them to me at : sailesh.multani@gmail.com