rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Want to invest wise and be rich? Read this!

Want to invest wise and be rich? Read this!

December 20, 2011 17:33 IST

InvestmentsA New Year brings renewed hope and goals, especially when it comes to finances. The fresh start can provide the motivation you need to make it your best financial year ever.

And it's here that you need the help of an expert. Which are the best avenues of investment?

When the global financial sector is in turmoil, is it safe to invest in mutual funds? If so, which funds to invest in? How to evaluate the best best mutual fund?

In an hour-long chat on rediff.com on Tuesday, investment expert Vinay Mahajan offered some valuable tips. Here is the transcript:

sssss : Hi Vinay, please tell me some safe investment bets now
Vinay Mahajan : Investments always come with some risk, assess ur risk profile and the investment time horizon before investing. Fixed return investments are usually less risker
Aftar : Dear Vinay, how safe is gold as an investment option now?
Vinay Mahajan : Gold is a good hedge against inflation. Recently gold prices are at their peak but for a long term horizon gold is still a good bet

Harish : Hi Vinay, when do you think the economy will revive? And under the present circumstances is it safe in invest in equities?
Vinay Mahajan : Equity market reflect economy much in advance. if your investment horizon is long term go ahead and invest in equity markets. but ensure u do your homework on stocks before investing

nilesh : Hi Vinay ji, pl suggest me some tax saver mutual funds...
Vinay Mahajan : The tax funds come with a lockin of 3 years:- 1. SBI MAGMUM TAX GAIN 2. HDFC TAX SAVER 3. RELIANCE TAX SAVER are few funds you can select.

sandhya : how about bank FD
Vinay Mahajan : FD returns are not tax efficent, you may look at other alternates which are tax efficent- debt MF etc.

amit : hi where to invest for getting maximum return
Vinay Mahajan : If your investment horizon is long term and have sufficent risk appetite go for direct equity investments

raman : what is the best gold invest e-gold or proper coins
Vinay Mahajan : E - gold is a more convienet, safer and price efficent option

Abhishek : Liquid investments options??
Vinay Mahajan : Depends on your requirements, there are liquid products ranging from bank a/cs, deposits, MFs and equity markets.

Suresh Muddliar : hi wud like to invest one lakh please in which bond i invest
Vinay Mahajan : There are listed bonds which you can buy from exchanges.. and on going infra bonds.

RAJ : what is the expectation for Gold on a going forward basis? What could be right time to invest in Gold?
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

gdvs : Hi Vinay How would you rate the PPF.What is the best possible investment,say 2000,3000 or 5000 per month
Vinay Mahajan : PPF is a good tax free investment for a limited amount of 1lac per year if the horizon is 15 years as there is a lockin of 15 years. For regular saving if the horizon is long term go for Equity MF SIP and direct equity SIP

suma : hi, am 40 years old working as marketing executive (15k p.m) for a pvt company witout any savings. Please guide me how to plan my retirement
Vinay Mahajan : Start now, since you can invest for a longer term invest you have options to invest in 1. Equity MF SIP 2. ULIP 3. NPS

ALOK : Hello, sir should I invest through SIP or direct by purchasing shares
Vinay Mahajan : if you know the markets and have a risk appetitie go for direct approach or else invest thru SIP route

siddd : Hi Vinay, pleae let us know which investment is better - an SIP or ULIP ? Does investing in ULIP makes any sense ?
Vinay Mahajan : Depends on ur invesment objective, if your lookin to invest with protection or without

RAJ : how are Mutual funds rated currently?
Vinay Mahajan : Generally MFs are rated based on past performance & consitency. please visit some popular MF rating sites like www.valueresearchonline.com, myiris, moneycontrol & rediff.com

SachinP : Am 24 yrs old, and have joined a private company this year. i have zero investment at the moment. Please help on how best to start. Thanks
Vinay Mahajan : Start early to reap the benefits of investing. You can start by investing in SIP and ULIP. Also buy insurance (life and non life) cover.

psc : Hi Vinay, whatz your opinion on guranted returns in insurance sector, is the returns are more than bank fd's?
Vinay Mahajan : Returns from insurance are tax exempted, you need to compare them with FD from that prespective

rupakchakrabarty : hi vinay pls tell me good investment options now
Vinay Mahajan : Investment for a long term horizon is always preferrable. Start early, save regulary and invest for a long term. Invest in gold, insurance and equity (direct & non direct)

thammu.j@redillmail.com : Hi Vinay pls tell us at present investment in stocks is it okay???
Vinay Mahajan : mkts are trading at a discount if you are a long term investor blue chip stocks are attractive

Vinod : Hi Sir, I am planning to invest in LIC mutual funds to claim my tax exemption. Is it safe?
Vinay Mahajan : LIC MF is different from LIC. you will get the tax benefit in MF only on ELSS

manojtatpal@rediffmail.com : i want to investment in small sip type investment
Vinay Mahajan : Good option, small sips are always better, invest for a longer term

ravish : Hi Vinay, I have the following MFs - HDFC TOP200, IDFC Premier Equity Growth A, and ICICI Discovery find. I am investing 3k, 3k, and 1k on these funds. Please advise if it looks good to you.
Vinay Mahajan : Good, continue with these

abhay : what u suggest about investment in shares at current levels ?
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

girish : hi wats ur opinion on PPf .Which is beneficial PPf or Mutual fund
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

kishor : hello sir i am 45 years old i want to invest 10 lakhs for future planing where i have to invest
Vinay Mahajan : Decide abt your goals and then decide on asset allocation. the decide the products, insurance, MFs or direct equity

Rohit : dear Raman, proper coins should be the better ways to invest.
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

chandernayak : I am from Mangalore and have invested in Stock Market since 2006 and seen the ups and downs in last 3 years. As of date, my net return on investment is about 7.50% pa CAG. I am planning to sell off my holdings PMV is about Rs 44 Lacs and invest the money in real estate in Coimbatore. What is advice? Iam not very positive about Indian equity market for atleast another 2 years, i.e till this lame duck govt is kicked out of office.
Vinay Mahajan : If you understand the real estate market well and the risks attached go ahead and invest. Equity markets are better option for a longer term. Real estate is a non regulated asset class.

Lakshman : does it make sense to invest in hospital
Vinay Mahajan : If it is thru venture fund, plz asses the cash flow and risk associated with. Alternative you can buy health care stocks from the equity mkt.

rakesh jhunjhumwala : Hello Sir .. I think staying away from market is best option to keep your capital intact
Vinay Mahajan : May not be the best option and lose on some good opportunities

nitesh : i want to invest that gives profit in at least 5 years
Vinay Mahajan : Profit alone is not enough it should profit which is excess of inflation. go for options based on ur risk appetitte

rrr : hi Vinay, what wqould be better in todays scenario - to repay home loan or to invest in equities /Mutual funds
Vinay Mahajan : You need to plan holistically. Repaying the home loan can tax benefit loss. on the other hand the reduced EMI burden can be reinvested in SIP.

BISWANATH : Tell one stock name that i want to SIP @2000/- for 10 years
Vinay Mahajan : NIFTY ETF

mushi : I want to invest in HDFC TOP 200 mutual fund... should i start a monthly SIP of Rs 2000/- or deposit a lumpsum amount of Rs 40000/-
Vinay Mahajan : Start SIP and invest 40000 in two-three large cap funds

hem : i am 49 and had purchased HDFC Pension Super 2 years back with 3L p.a. premiium. Is my producy selelction coreect? Also in current down market, should one wait on holding M Funds with low NAV or quit?
Vinay Mahajan : Pension plan should be part of yr holistic retirement planning. dont decide in haste. MF investment should be kept for a longer. See if you require portfolio shuffling

govinda : is it a prudent decision to invest in bank FD
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

GOPI : I would like to invest Rs. 3 lakhs which i received from PF. what are the best options available to me for better retrn
Vinay Mahajan : Asses your cash flow requirement and risk appetitte. Then you can invest in debt MFs, MIPs, FMPs etc

malick : i am 45 and looking for investments with out interest income ?pls suggest
Vinay Mahajan : You need to invest in capital appreciating assets, simpler option can be equity mfs , equity mkts, real estate gold etc

murli : hi i have invested in gold etf, now the prices are droping is it the right time to invest in gold or should i have wait further
Vinay Mahajan : if horizon is long term keep investing. gold is a hedge to inflation

Vaibhav_kini123 : If I intend to save Rs 20000/- each month then what options do I have?
Vinay Mahajan : if horizon is long term go for SIPs, select among large cap and mid cap funds.

vinay : Iam doing SIP in Reliance banaking Fund , reliance grwoth fund, HDFC Equity Fund, DSP BR small n mid cap for the last one year n so. Are my investment are good for 5 yeras horizon
Vinay Mahajan : Banking funds and small & mid cap funds are not doing good right now. advisble to shift to large cap funds

prabhu : will 2012 start good for equity investments ?
Vinay Mahajan : future looks promising for India.

manoj : Hi Vinay, I would like to know the future of investing in Gold and what is the best form of gold invstmt. Are gold prices expected to drop.
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

ShaileshPatel : Hi, I am from Bangalore, Planning to buy 2BHK Apartment worth Rs. 45 lakhs with Home Loan, I am paying Rs. 10000 as rent currently. Is it good time to buy house or shall I continue with rent? I am in 20% tax bracket.
Vinay Mahajan : You need to asses the local mkts in terms of pricing and trends.

nitesh : i want to invest that gives profit in at least 5 years
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

ShaileshPatel : Hi, I am 27 from Bangalore, Planning to buy 2BHK Apartment worth Rs. 45 lakhs with Home Loan, I am paying Rs. 10000 as rent currently. Is it good time to buy house or shall I continue with rent? I am in 20% tax bracket.
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

red : Vinay, as per the earlier expert on rediff , he used to say to go for HDFC top 200, Fidelity equity, franklin blue chip funds. I had purchased those last year (sip) and am in negative position in all of above funds. Shud i continue to invest or hold or sell?
Vinay Mahajan : Mkts right now are not performing. But as you need equity investments are for long term.

red : Whats ur advice on gold etf? shud i go for it.?
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

red : Whats ur advice on gold etf? shud i go for it.?
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

malick : hai sir,i am looking for investments with out interest income.Pls suggest
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

ShaileshPatel : Hi, I am 27 from Bangalore, Planning to buy 2BHK Apartment worth Rs. 45 lakhs with Home Loan, I am paying Rs. 10000 as rent currently. Is it good time to buy house or shall I continue with rent? I am in 20% tax bracket.
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

Sachin : I want to invest 5000 per month, which MF is best
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

ea : can u tell abt best pension plans
Vinay Mahajan : Pension plans is one of the solutions. you need to first plan for your retirement holistically.

SRIKANT : HOW GOOD AN IDEA TO INVEST DIRECTLY INTO STOCKS LIKE L&T ETC., WHEN THEY R FALLING, BUY INTO IT IN SMALL QUANTITIES LIKE ONE OR TWO ON EVERY FALL OF RS. 100 OR SO
Vinay Mahajan : markets are not performing well due to internally as well as golabal reasons. however it is right time to do value buying

KRK : I am earning Rs. 50,000 per month. Want to incvest Rs.1,00,000. Is it right time to invest in stock?
Vinay Mahajan : right time for value buying. stagger your purchases over a period of time

ShaileshPatel : Hi, I am 27 from Bangalore, Planning to buy 2BHK Apartment worth Rs. 45 lakhs with Home Loan, I am paying Rs. 10000 as rent currently. Is it good time to buy house or shall I continue with rent? I am in 20% tax bracket.
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

Bimlesh : Hi Vinay, I have started investing in Stocks. Pl suggest me how to choose good stocks
Vinay Mahajan : There are 2 approaches, bottom up and top down. at present mkt offers gud opportunity for value buying in a staggered manner. select stocks which offer visibility of earnings.

murli : hi vinay , i have invested in gold etf, now iam concerned about decreasing price in gold,is the right time to invest further or should i stop investing
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

h : Considering the current market scenario, which instruments according to you have the highest return potential (including the high risk ones)?
Vinay Mahajan : Equity if horizon is long term

malick : suggest interest free investment
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

Sachin : want to invest 5000 per month, which MF is best
Vinay Mahajan : There are sevela option within MF. suggest to go for large cap diversifed funds

Srini : Hi! The equity markets are in the lower range now. Is it ok to invest now for a 2 year term or any other options available? Please provide your view...
Vinay Mahajan : We cannot say whether mkts have bottomed out. but for a longer term it is an opportunity to buy

ShriyaSaran : Hi Vinay. What are the qualities I should look for in a private wealth manager?
Vinay Mahajan : Knowledge, transperency, quality of advice and brand which he belongs to.

rajesh : Iam a investor of equity regularly since market is down now should i stop investing or should i invest please guide
Vinay Mahajan : If the horizon is long term it is the right opportunity to buy in a staggered manner

mahesh : Hello, I have portpolio of about Rs. 7 lac invested in various companies(DMAT Shares )present market value is about Rs. 3.0 lac , I have few blue chip stocks almost all reliance group , public sector bank, aviation , Engineering,IT,media,metal,pharma,power,shipping and telecom . what should i do now? average the price by adding more shares ? book loss and exit or hold for some time? when will market gain 20K (sensex), I appreciate your advise. Vinay Mahajan : You need to specify the stocks to suggest portfolio restructring. this should be a regular execirse.

adnan : What about HDFC young star plus
Vinay Mahajan : dont go by the plan name. first assess your requirements first and then look for solution then select product.

richie99 : most of the stocks have fallen now. Is it the right time to buy stocks now ?
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

ajk : I had bought 85 L&T shares at 1240 and its trading at 979 today, should I hold or exit?
Vinay Mahajan : If horizon is longer term hold

prashant : i have invested thr'monthly SIP in hdfc euity fund at present there is no appresiation shall i disinvest and put in bank fd , i am in 33% bracket of Income tax
Vinay Mahajan : SIP will reward you in the longer run in a tax efficent way.

bijay : Hi vinay please suggest me to invest rs 5000 for 3 years.
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

red : Stock market - what to do with the exsisting stocks which are bleeding v badly?
Vinay Mahajan : Look at restructuring but stay invested

SANTOSH : HI MHAJAN SIR, PLEASE TEL ME SOME TIPS FOR INCOME OF RS. 15000.00 PER MONTH
Vinay Mahajan : Start early, save regularly and invest for long term. no short cuts to making money

manojsingh : i am dipojit 5000/- per month which sceme
Vinay Mahajan : Answer given to a similar question in this chat.. please refer.

ajk : Entering stock market is good move now?
Vinay Mahajan : Depends on your risk appetitie and investment horizon. but presently isf offering good opportunity at discounted rates for a long term investor.

b : Hi Vinay, How do you rate Silver as an investment, and in is it good if one buys silver in physical form
Vinay Mahajan : Gold is less volatile compared to silver. however if you are an end user you can also look at e-silver form at National Spot Exchange

raviashani : i have home loan rs.12lacs for 15years,i can invest rs.10000 per month besides my emi pls suggest investment plan so that i can pay my home loan very soon.
Vinay Mahajan : Consider both EMI and investment separately from tax angle.

sfasf : can you order FDs, Mutual funds, stocks, gold and real estate in HYD in the increasing order of risk?
Vinay Mahajan : Least risk to most FD, Gold, MF, Stocks, Real estate in my opinion

Abhilash : Hi Vinay, I would like to know that, currently I have invested much in mutual funds & now I am looking for some other options. Apart from gold, where I can invest to earn good money as well as from taxation point of view. Can you please suggest. Thanks
Vinay Mahajan : Direct equity investment in horizon is long term.