» Business » Some golden investment tips

Some golden investment tips

April 07, 2011 18:16 IST
Get Rediff News in your Inbox:

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?

In an hour-long chat on, financial planning expert Sailesh Multani offered some valuable tips.

Here is the transcript:

Sailesh says, Hi, good evening and welcome to this chat session

karthik asked, Hi I am interested in investing in HDFC Equity and Quantum-Long term Equity. Do they follow the same investement pattern?
Sailesh answers,  at 2011-04-07 16:00:02Hi, Quantum Long Term Equity Fund follows the value style of investment wherein the fund manager invests in stocks that are trading at a discount to their fair value. There are very few funds in India that follow the value style of investment, Templeton India Growth Fund being one of them. HDFC Equity Fund follows the growth style of investment wherein the fund manager can invest in stocks that are trading at a premium to their fair value. Both the funds follow a different philosophy and can find place in an investor's portfolio
ASHUTOSH asked, How should I invest Rs.20000 per month so that I can make my investment Rs. 6 Crore after 20 Years? Or if this is not possible How much & which instruments should I invest per month to make it Rs. 6 Crore in 20 Years.
Sailesh answers, Hi, to reach your goal of Rs 6 crs in 20 years you need to invest Rs 60,500 (approx) every month assuming a growth rate of 12% p.a. If you invest Rs 20,000 per month then your money has to grow at the rate of 25% p.a.
tabs asked, sir,last year i invested sbi magnum tax gain growth for 25 k,this year i have invested in hdfc tax saver growth for 35 k,i want to know the future about both the funds,should i continue or shift to other funds after lockin period
Sailesh answers, hi, there is hardly anything that you can do until the mandatory lock in period of 3 years is over. Given the track record, HDFC Tax Saver is expected to be more consistent. You can evaluate the performance of both the funds after 3 years and take a call
raj123 asked, well is there a good article that survey all the investment option and sugest best based on individual risk appitite and goals
Sailesh answers, hi, in case of investments there is no such thing as one size fits all. Every individual's requirement is unique and the investment plan has to made in accordance with his needs, risk appetite and investment horizon. you need to sit down with your investment advisor and get a tailor made plan for yourself
anand asked, hi is it right time to invest in mutual fund
Sailesh answers, hi, there is never a good or bad time for investmnt in stock markets. Every day brings with it challenges and opportunities. The best thing to do is to manage them. the best strategy to make money from equity markets is to invest systematically into well managed diversified equity funds. Dont bother to time the markets.
sudeen asked, i have invested in DSPR top 100 , Fidelity tax advantage , reliance regular saving , Dspr balanced , sundaram tax saver is a good portfolio please advice
Sailesh answers, hi, overall a good portfolio. Dont add anyother tax saving fund in your portfolio Two are enough
spl asked, Hi Sailesh, Iam doing SIP's in HDFC equity- 1000rs, Reliance equity opportunities- 1000rs, DSP black rock equity fund 1000rs, IDFC premier equity 2000rs, How is my portfolio?
Sailesh answers, hi, except for Reliance Opportunities fund, I like all the other funds in your portfolio. You can consider adding Fidelity Equity Fund.
Sailesh answers, hi, good portfolio. You need to divrsifiy further. Add Franklin India Bluechip Fund.
Mayank asked, I have 4,00,000 approx in hand for investing,in the medium term which fund would you recommend to stay invested in
Sailesh answers, hi, you have not defined what do you mean by medium term. If its 2-3 years then MIPS are the best option. If its 3-5 years then balanced funds are the ideal choice.
raina asked, Hi Sailesh Is it worth to invest in mutual funds related to infrastructure and power as most of the focus is on the development of infrastructre
Sailesh answers, hi, I do not recommend any sector or thematic fund like infrastructure fund to any investor. These funds do well only when the underlying sector is doing well. Once the sector falls out of flavour these funds fail to deliver good returns. It is always best to stick to diversified equity funds. If the infrastrcuture related sectors are likely to do well, then the diversified funds will also invest in them albeit in lower proportion compared to a dedicated infrastructure fund.
cheena asked, is EPF withdrawal taxable?The EPF transfers are not happening for years.Then how can they ask to pay tax for withdrawals??
Sailesh answers, hi, EPF withdrawal is taxable only if it is donw within a period of 5 years from the date of joining the organisation.
rajn asked, Hello Sir, I am doing the following SIP to make down payment for a house currently costing 40L I want 10L for initial down payment, when will I be able to do the initial downpayment. I do the following SIP, 2000/- in HDFC Top 200 2500/- in DSP BR Top 100 2000/- in IDFC premier equity 1000/- in RSF Equity I have a surplus of Rs 5000/- PM where should I invest. I also want to build a contingency fund of Rs 3 laks how should I go about doing it. Thanks.
Sailesh answers, hi, you have not mentioned by when do you want to do the down payment. If it is any time before three years then SIP is certainly not the right strategy to build the necessary fund. SIPS are good for meeting long term goals, goals that are atleast 5 years away. I would advise you to stop your SIP. Start investing the money into a bank FD or a liquid fund. Similarly, if you want to build a contingency fund then start an SIP into a liquid or liquid plus funds.
avisaw asked, does SIP really benefit
Sailesh answers, hi, there is no doubt in my mind about the SIPs and I speak out of my own experience. you will see the benefit of SIPs over the long term, say 5-10 years hence. If you have not started your SIPs i would advise you to do it first thing tomorrow morning.
Abhisek asked,  should I force my employer to switch from PF to NPS for more tax savings in this Financial Year? please advise.
Sailesh answers, hi, I would like to wait and watch the performance of NPS schemes. therefore I would advise you to stick to PF for the moment.
tcs asked, apart from stock market what are the best investmen options for higher growth rate?
Sailesh answers, hi, apart from equity there is only one asset class that can give you more than average returns and that is real estate. Currently the real estate prices, according to me, are in a bubble zone. This asset class has not corrected at all. I expect the bubble to burst anytime. I would not advise investors to invest in real estate at the moment.
Imran Multani asked, Greetings Sailesh, Would like to know the difference between Dividend and Growth. Which option should i choose out of dividend, growth , dividend payout or growth ?
Sailesh answers, hi, choose the growth option if you want to grow your money and benefit fully from the power of compounding. Go for the dividend option if you want some ocassional cash flows. Dividend option reduces the power of compounding if the dividend is not reinvested wisely.
Kamal asked, Hello Sir, Sir i had invested in Kotak ELSS in 2005 and after the over of Lock in period i had still not redeemed my units..what should i do?
Sailesh answers, hi, I would advise you to redeeem this fund and reinvest in Fidelity Tax Advantage Fund. fidelity is by far the best fund in the ELSS category.
shahid asked, I want to pension plan and my age is 40 yrs and i am in it, which is the best organization to go with
Sailesh answers, hi,by the time you retire, you need to build a retirement corpus that will generate regualr income for you that will be adequate to meet all your post retirement expenses. The corpus should be large enough to last your life time. You need to get a retirement plan made with the help of a professional financial planner. Dont buy a retirement plan from any insurance company. It will not solve your problem.
nahid asked, PPF or ELSS..which should be considered for tax saving?
Sailesh answers, hi, both are good. While PPF is an assured return porduct, ELSS have the potential to dliver more than average returns. PPF pay 8% interest every year while one can expect a return of 12-15% over 3-5 years from a well managed ELSS. Please note that ELSS is a equity fund and carried maximum risk. The best strategy is to invest
equally in both the instruments.
VinodGupte asked, do you see a bubble forming in gold? or do you think it will earn us money in the long term (5-7 years)?
Sailesh answers, Hi, in my view every investor, irrespective of age and risk-profile, should have atleast 10% allocation to gold. Gold is a precious metal and will always remain in short supply. It is the most sought after asset class in times of financial distress like the one we witnessed in the year 2008. Moreover, it is a store of value. The value of gold in terms of goods and services it can buy has remained constant over the centuries. Therefore, investment in gold also serves as a hedge against inflation. Gold as an asset class is less volatile compared to other asset classes like equity, debt and real estate. It can be used to diversify one's portfolio to bring in more stability in returns. For investors who are planning to invest in gold, it makes sense to invest in gold today. However, don't buy all the gold you want to add to your portfolio in one shot. Rather spread your investment over a six months time frame. I would advise investors to invest in Gold Exchange Traded Funds (ETFs) as against physical gold. ETFs are easier to buy and sell. Please keep in mind that you will need to open a demat account compulsorily if you want to invest in Gold ETFs.
dev asked, hi sailesh, which one is better L&T mutual fund or Reliance regular savings? should i keep both or sell?. Also, please suggest 3 best open ended Mutual fund ..
Sailesh answers, hi, sell both. Here are my 3 favourites - HDFC top 200, Fidelity Equity and DSP BR Equity Fund.
prashanthande asked, i can invest 25000 pm. please tell me the way to increase my returns. I dont have any specific target in my mind though. but i should get at least 20% returns
Sailesh answers, hi, it is always better to link your investment to your investment objectives. Set your objective and the time frame within which you want to reach the same. Accordingly choose your options. Simply expecting a 20% return from your investment would mean investing everything into equity related instruments like stcks and equity funds. This is a very risk strategy and may not suit your profile.
Ranjan asked, What are your views on Smirdhi Plus LIC Policy ?
Sailesh answers, hi, when it comes to insurance, I only recommend Term plans. Term plans offer higher sum assured for a lower premium. You can give LIC samriddhi plus a miss.
gauravjain asked, can you tell me good investment for short term (9 months - 1 year)
Sailesh answers, hi, the best investment according to me is liquid fund or ultra short term income fund. If you are not mutual fund savvy then you can stick to more simpler investments like Bank FDs.
Vishnu asked, Wghich ELSS is the best looking at long term 5-10 years? I have invested in Pru ICICI, HDFC Tax-Saver, SBI
Sailesh answers, hi, my personal favourite in the ELSS category has been Fidelity Tax Advantage Fund.
safe asked, which is best gold etf fund? shall i invest every month some amount on these funds
Sailesh answers, hi, I recommend Benchmark Gold ETF
Dishoom asked, Dear Sailesh, ICICI Pru Discovery Fund (G) is this a good fund to invest?
Sailesh answers, hi, this is a good fund to invest in but I would cap the exposure to this fund at 5% of my total equity portfolio.
Balu asked, I started a ULIP through Tata AIG in April 2008.So now i am going to complete 3 yrs. Is it wise to continue investing or better to exit depending on current scenario.ULIP tenure was for 30 yrs.
Sailesh answers, hi, ULIPS are not recommend ed by me a these are very expensive products. A ULIP takes 7-8 years to break even. In your case there is no point surrendeing it at a loss. I would advise you to continue with your ULIPS till you make some profit. Going forward say NO to ULIPS.
pandalasrinivas asked, good afternoon sir, I P.srinivas, present completed age 39 years, Iam very weak in financial planning, still now I have not saved any thing in my life, my family size is 1 daughter - 6 years, 1 son- 2.5 years, I have lost money in market. Please advice me how to start investment for my kids
Sailesh answers, hi, you need to get a financial plan made for yourself with the help of a competent and professional financial planner. There is no other way I can think of to put your finance in order. Get the plan first and then invest according to it.
ssd asked, 1) I have done SIP investment in Reliance Growth Fund. Should I be continue the SIP. 2) Ideally for how many year SIP should be done for a particular fund ?
Sailesh answers, hi, continue with your SIP but try and diversify your portfolio. Add few large cap baised funds like HDFC Top 200. Ideally the SIP should continue for 5 years and more.
PD asked, Hi Sailesh, I would like to invest 2.5 L with time frame of 1 to 1.5 year and I need to take this amount of my housing loan down payment. Where do i get better returns? Should I stick to only FD? Thank You.
Sailesh answers, hi, stick to FD or ultra short term income fund.
rajashri asked, Hi, I have 6 SIPs (Rs, 1000 each) HDFC top 200, Reliance Growth, FranklinTempleton Prima plus, SBI Magnum, Birla Sunlife Equity growth from past 2 yrs. I am have plans to conitnue SIP for another 8-10 yrs. Pls let me know, whether above funds are good ? Also planning to invest in HDFC prudence balance fund Rs 50K keeping 10 yrs in mind. Pls let me know anyother good fund to invest for long term plans.
Sailesh answers, hi, add fidelity equity, DSP BR Equity and HDFC Prudence to your portfolio.
shreyas asked, I have bought LIC jeevan tarang where i need to pay 26000 per year for 20 years and after 20 years i will get Sum assured + 27500 per year for 100 it a good investment?
Sailesh answers, hi, first figure out if Rs 27,500 will be enough for you after 20 years. If not, then have you planned for the deficit and how are you going to bridge the gap if any. Please mail me your query separately to I will work out the rate of return on this policy and advise you accordingly.
priyanaka asked, Hi Shailesh, pls advice if the public deposits schemes of various companies offering returns of 11 - 12% pa safe
Sailesh answers, hi, compared to company FDs, Bank FDs are more safe. Banks are paying interest at the rate of 9% for one year while that offered by corporate FDs is in the range of 11-12%. Company FDs are more riskier plus they are unsecured loans. In case the company goes into liquidation the FD holders cannot claim their money from the insolvent company. Please be careful about Company FDs. Please check their track record with respect to payment of interest and repatyment of capital. Ratings by Rating Agencies are not enough.
allan asked, I am investing 3000 per month in ULIP plan from last month for 10 yrs.How is it this investment?
Sailesh answers, hi, please stop this plan immediately. you have not much to lose. Instead start SIPs in equity funds if you want to grow your money.
narichnafamous asked, Hello Sir. Please guide us about tax implications if we redeem units invested through SIPs in mutual funds. It last SIP was within one year of redemption and if the last SIP was prior to one year of that. Thank You.
Sailesh answers, hi, first of all i assume that you are referring to units of equity funds. Equity funds are exempt from long term capital gains tax if the investment is held for more than 12 months from the date of investment. In case of SIP only those instalments are exempt from long term tax which have completed 12 months.
gauravjain asked,  is bajaj allianze good for investing in mutual fund ?
Sailesh answers, hi, Bajaj Allianz is an insurance company. When it comes to mutual funds I would recommend HDFC, Fidelity and DSP Blackrock among others
shah_kaps asked, Sir what is good investment for child education down the line 10 years
Sailesh answers, hi, to plan for your child's future with respect to education and marriage which is 10 years away, the best strategy is to build a portfolio comprising of equity funds and Gold ETFs. Inestment in Gold ETFS can be capped at 15% of the total portfolio.
bbs asked, Dear sir I want to build a contingency fund through SIP please named some liquid or liquid plus funds for my contingency fund
Sailesh answers, hi, I would recommend HDFC Cash Managment Fund - Treasury Advantage plan
rose asked, hi...i have invested Rs.5 lakhs with Karvy PMS, is it advisable to continue
Sailesh answers, hi. I am not a fan of PMS. In my humble opinion one can easily manage a portfolio of Rs 5 lakhs on his own. If it is difficult to manage Rs 5 lakhs then the best option is equity funds but no PMS at all. Even if the portfolio size is 10 crores I would not recommend a PMS. Still equity funds would be my first choice.
Sailesh says, We have run completely out of time. I thank you all for participating in this chat session. If you have any questions which were not answered during the chat, you can mail them to me at: Please mention your age and current asset allocattion.
Get Rediff News in your Inbox:

Moneywiz Live!