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Rediff.com  » Business » Want to invest smart and be rich? Here's help!

Want to invest smart and be rich? Here's help!

October 20, 2011 17:34 IST

InvestmentAre 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, 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

RAKESH asked, HOW TO PLAN FOR AGE AFTER 60 YEARS
Sailesh answers,  at 2011-10-20 15:59:36Hi, you are perhaps asking about how you should go about planning for your retirement. To ensure a comfortable retired life you should start building the required retirement corpus today. This corpus will be based on your current household, lifestyle, travel, medical and similar expenses. These are the expenses you will incur even after your retirement. Basically your retirement corpus should generate regular income to take care of these expenses. This corpus will comprise of stocks, equity funds, fixed deposits and Gold ETFs. If you find it too technical to work out your retirement corpus, you should get a personalised retirement plan written with the help of a competent and trustworthy financial planner.
Santosh asked, What is the best children marriage plan?
Sailesh answers, Hi, to build a marriage fund for your children, you should start building a corpus comprising predominantly of equity funds. Gold ETFs and Debt in the form of bank deposits should also be added to the portfolio. I would not advise a children's plan sold by insurance companies for planning your child's marriage.
Shweta asked, Hello sir. I have burnt my fingers by investing in big name SIPs like Reliance Infra, Reliance Power, UTI Energy etc. Should i stop investing now ?
Sailesh answers, hi, you have invested in sector funds. Sector funds will do well only when the underlying sector does well. Therfore, it is not a wise decision to invest in sector funds. Diversified equity funds should be the ideal choice. Diversified equity funds have the flexibility to invest across sectors. As such these funds are among the better performers among the equity funds. I would recommend an exit from the funds held by you. You may consider investing in the funds recommended by me at the start of this chat.
trikunsh asked, Hi Sailesh, I have only invested in property so far and it has given good returns. I am using 1 property as residence and another one is on let. Should I hold on to both properties or is it time to book profits by selling one of the property in view of the current economic climate? For your information I live in Ahmedabad.
Sailesh answers, hi, if you are confident that the property you have bought for investment will not depreciate much in value when the prices eventually correct then you should hold on to the same. If not, then it should be a good time to exit from real estate.
sai81 asked, what is the best pension plan?I am 30 yrs old and working in a MNC company. Thanks for your answer
Sailesh answers, hi, I dont advise pension plan as an answer to retirement planning. I would advide you to get a personalised retirement planning done with the help of a financial planner. Ideally you should aim at building a retirement corpus that will generate enough income to ensure that you maintain your desired standard of living.
rao asked, I invested from last 5 years in Reliance growth,DIV power and HDFC top 200. CAN I continue or Redeem. Now I started in HDFC equity,PRudence,MIdcap OPP and Relieance equity opp and Banking from last 4 monthes. Please guid me.
Sailesh answers, hi, I would not recommend Reliance Power and Banking Sector fund. Even Reliance Equity Opportunities Fund is not among the better and consistent performing funds. You should hold on to the other funds in your portfolio.
rskelkar asked, invessting in Rs 2000-principal large cap Rs 1000 each in FT blue chip, hdfc prudence, HDFC equity, DSP tax saver, Canara robeco Tax saver having Rs 5000 post office recurring please sugest investment for another Rs. 5000 per month.
Sailesh answers, hi, overall a good portfolio. Continue with your investments. Please review your portfolio once in six months
rao asked, Please tell me which will be the best mutual fund for my daughter education after 5 years.
Sailesh answers, hi, you can build a portfolio of funds recommended by me at the begining of this chat for your daughter's portfolio
dinesh asked, i want to invest in sip which is the good one.
Sailesh answers, hi, there is no single fund that can be single out as a best fund. You should aim at building a diversified portfolio consisting of 4-5 funds from different fund houses. You can consider starting SIPs in the funds recommended at the start of this chat
b asked, I need 10 lakhs after 10 years. What can I do?
Sailesh answers, hi, you should invest a sum of Rs 5000 (approx)every month in a mix of equity and debt instruments like equity funds, bank fixed deposits. you should target an average annual return of 10% over the next 10 years.
bhatia asked, Sir I am having SIP od HDFC Top 200, HDFC Equity, BSL Frontline Equity, ICICI Infra Fund each of 1000 per month, sir how is my investment???????
Sailesh answers, hi, except for ICICI Infrastructure Fund you can continue with your other funds. Infrastructure fund is a thematic fund and will do well only when infrastructure related sectors do well.
mmnayak asked, Hi Shailesh, I own a house. My son will complete his education and start earing in next 3 years. I built a corpus of Rs 5500000/- and Rs 6000000/- in Equity. I would like to retire in next 4 years. What should I do to get monthly income of Rs 50000/- when I retire. I have Medical insurence of Rs 500000/- for me & my wife
Sailesh answers, hi, answer to your question will involve few calculations. pls mail your query to me at sailesh.multani@gmail.com
shourie asked, Hi Mr.Sailesh, I want to Invest lumpsum for my newborn son, is HDFC Children Gift Fund good for such lumpsum investment at once or do you advice any other schemes.
Sailesh answers, hi, HDFC Children's gift Fund is a good fund for building your child's education portfolio. Besides this fund you can invest in Fidelity India's Children plan - Education Fund and Marriage Fund
BS asked, I need 50 Lakkh after 12 yrs, I can invest/save monthly 10000/- where , how should i invest?
Sailesh answers, hi, assuming your investment grow at an average rate of 10% p.a. over the next 12 years you will have to invest a sum of Rs 18,000(apprx) to reach your target of Rs 50 lakhs
cksahu asked, hi sir i m starting my career my income isarounf 25000 pm i can save 10000 for investmet where i get benefit
Sailesh answers, hi, you havent mentioned your age but assuming that you are in the age bracket of 25-3 years you should be investing predominantly into equity funds. You should start SIPs in to 4-5 diversified equity funds. This investment strategy will help you accumulate wealth over the long term which in turn will help you in meeting your financial goals
unni asked, HI Sir, i have a New Bhima Gold life insurence for assured 10 lakhs for 20yrs term which started last year and half with quaterly premium of 10000. I have already paid 60000 and i am thinking to stop this policy as i came to know this yield very minimal profit and want to invest those money into mutual fund and get a term policy for 50 lakhs with low monthly amount. What you suggest?
Sailesh answers, hi, Term plan is the best type of insurance plan. I would go with your idea of Term plan instead of New bhima Gold Life Insurance. I would like to advise investors that they should not buy insurance plan if they want to grow their money. Equity funds are best equipped to do this job. If you want to insure your life then Term plan is the best.
Priya asked, Hi, I had invested Rs.10000 in Reliance natural resource growth fund in Feb-2008? Should I keep or redeem it?
Sailesh answers, hi, you should exit this fund immediately and consider investing in the funds recommended by me at the start of this chat
Naresh asked, Dear Sailesh :- I purchased a 2BHK flat in Pune in 2005. The value of that flat has risen by about 3 times my purchase cost then. Should I hold on to it still or sell it off ? At the moment, I've given it on rent & its fetching me a good monthly income ? Please advise the property market in Pune.
Sailesh answers, hi, as far as property prices are concerned, I can only say that prices of property are at an all time high and fundamental dont justify such high price. Accordingly I expect the prics to correct. 300% return on property is a good return. In my view you should exit this property and invest the proceeds into a safe investment instrument like Bank FD which will generate regular income for you.
Tejas Mehta asked, I need to make atleast 2 crores after 30 yrs...how do i go abt it?
Sailesh answers, hi, you need to invest a sum of Rs 8,900 per month in a mix of equity and debt with a target annual return of 10% p.a. over the next 30 years
pravin asked, I want to invest in GOLD ETF FUND , can u suggest a good fund
Sailesh answers, hi, I recommend Benchmark Gold BeES ETF
raj asked, i have invsted in mid cap share but all dips -50% whar shold i do now?
Sailesh answers, hi, midcap stocks by their very nature are volatile. you can expect their prices to move 50% on the either side within a short span of few weeks to months. I do recommend midcap funds to investors buy advise them to cap the exposure to 15% of the total equity fund portfolio. If you have invested in fundamentally strong company then you should hold onto the same. Equity investing is a patience game. Therefore, one needs to have an investment horizon of 5 years
priyanee asked, Sir, I have invested in LIC money back policy & jeevansree for 20 yrs with SA 10 Lac. What do you say about this two?
Sailesh answers, hi, since you have already the plans you should continue with them. I would not recommend insurance plans if you wish to grow your money. Buy a Term Plan if you wish to insure your life. In my view a sum assured of Rs 10 lakhs is too low. According to me every individual should have a minimum sum assured of Rs 50 lakhs to start with
ttt asked, Almost for 2 years i am investing via SIP in 1. HDFC Top 200 2. HDFC Equity 3. HDFC Prudence 4. Sundaram Select Midcap 5. Reliance Growth Still my Portfolio of 1.5L is having 15k loss, all are in loss... like HDFC Top 200 is having 8% loss. Should i re-think on my investment? as i am expecting 12% annual return...so how this 2yrs 24% will be covered after covering losses?
Sailesh answers, hi, overall your portfolio looks ok to me. Equity markets have given a negative return n the last one year. Equity funds are a derivative of equity market. therefore their return is also in the negative. You should hold on to your funds and if possible invest more if you have additional funds to invest.
modi asked, can i go for sip in hdfc gold or etf which one is better
Sailesh answers, hi, if you have a demat account then ETF is better.
Naresh asked, Hi Sailesh, please let me know if investing in real estate & gold funds or physical gold is the next best investment in India now ? If yes, how much do you think Gold will touch in the next 1-2 years. One of my friend who works for Gold Bullion market has asked me to park all my funds in gold. Please advise.
Sailesh answers, hi, I am of the view that every investor should invest in Gold via the ETFs. Allocation to gold should not exceed 15% of the total portfolio. It is a common mistake by investors to go overboard on an asset class which they think will do well. It is important to remember that asset classes have their own characteristics which do not change. I would not advise more than 15% allocation to gold even if gold is expected to do well in the near future.
kca asked, Buy a car? Home? TV? vacation? etc. will come out only when the money is grown, exactly I want to grow the money
Sailesh answers, hi, it takes patience and discipline to grow your money. You have to take a long term view if you are investing in assets like equity and real estate. SIP is the most preferred way of investing into equity funds as it builds in a sense of discipline in the investment process.
Priya asked, Hi I am investing 1000 monthly in the following mutual funds: HDFC TOp 200-Growth, Sundaram BNP Paribas Tax saver, Birla Sunlife Frntline equity fund, Reliance Vision-Growth. Should I Continue with these or make any changes in my portfolio?
Sailesh answers, hi, Exit Reliance Vision and Sundaram Tax Saver.
AmitKr asked, Hi Sailesh, Plz suggest any good Equity MF having these criterias : 1) Low Expense ratio 2) Management doing Well 3) Good track record for 5 yrs 4) Risk :Average
Sailesh answers, hi, refer the funds recommended by me at the start of this chat. Those funds meet all your criteria
man asked,  i want to invent 2000 per month.wer should i invest??
Sailesh answers, hi, you can start with SIP in HDFC Top 200 Fund and Fidelity Equity Fund.
ksbhat asked, HI Sailesh, I've invested Rs.25,000 in principal personal tax saver fund 4 years ago. Now it is Rs. 11,400/- Should I exit or hold?
Sailesh answers, hi, eixt this fund. prefer Fidelity Tax Advantage Fund to anyother fund in the ELSS category.
kca asked, Sirji, I want the name of top large cap fund
Sailesh answers, hi, my pick in this category woul d be Franklin India Bluchip Fund
SharmaSR asked, I am 50 yrs old salaried person .I have two sons stydying in class IX & IV . What &how should I plan to finance their studies and marriages .
Sailesh answers, hi, you should get a personalised comprehensive financia plan written for yourself with the help of a competent financial planner. The plan will guide you as to how you should go about investing to meet your various goals
uppuanand asked, Should I continue SIP in Reliance Growth and HDFC TOp 200 or any other better one u can suggest
Sailesh answers, hi, continue with HDFC Top 200. Stop SIP in Reliance Growth Fund
kp asked, I am 62 and retired. I want to invest part of my money with time horizon of 6-7 years for regular income. please suggest. Thanks.
Sailesh answers, hi, you should consider investing in 9% Senior Citizens Savings Scheme. You can invest upto Rs 15 lakhs in this scheme in joint name. This scheme pays interest every quarter.
sharad asked, i have taken home loan of 10 lakh at the rate of approx 10%.i have 2 lakh in my saving account.pls help me to plan this money. how should i go about this
Sailesh answers, hi, if possible you should go ahead and prepay your home loan. Prepayment charges have been done away with. If you are looking at investments then you should look at equity funds if you are willing to take risk and invest for the long term
kp asked, Please suggest me a fund which can give a return of atleast 12%. I have a investment horizon of atleast 5-6 years. thanks
Sailesh answers, hi, you can expect and average annual return of 12% from the funds recommended by me at the start of this chat.
AmitB asked, What will be your opinion on Tarus tax shild? i invested 10000 in 2008 in it.Should i keep it or exit ? Plz advice
Sailesh answers, hi, you should exit this fund.
kishore asked, I am invested in DSP tiger fund with 60K as corpus; invested through SIPs over the last 2 years. Should I stick to this fund
Sailesh answers, hi, switch to DSP BR Equity Fund.
BigBear asked, Sir, can you suggest some debt or any other safe funds that can generate more returns than FDs? (Currently higest FD rate for 2 years term in 10.5%)
Sailesh answers, hi, if your investment horizon is around 18 months then you should consider investing into short term income fund.
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.