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Rediff News  All News  » Business » Post-Budget financial planning? Here's help!

Post-Budget financial planning? Here's help!

July 08, 2009 11:45 IST

Union Finance Minister Pranab Mukherjee marginally raised the Income-Tax exemption limit, abolished FBT and Commodity Tax and said his government is here to work for the benefit of the aam aadmi.

The Opposition blasted the Budget, most captains of the Indian industry cheered and the Sensex tanked a massive 870 points at close.

What exactly does the Budget has for the common man? Are you going to benefit from the Budget proposals? Or does it hardly make any effect on your daily life?

Financial advisor Parag Parikh offered some valuable tips. Here is the transcript:

RaJ asked, I bought TISCO stocks for 423.Rs now it came down to Rs.398 should i keep it or sell it. What would be the impact of Budget on Metal industries.
Parag Parikh answers,  at 2009-07-07 15:28:43You are not a long term investor. Your question signifies trading mentality. In the long run it will hurt your financial interest. avoid it. the budgt has no impact on metals
rajul asked, Please advice best share of 2009
Parag Parikh answers, Only for long time investors, you would do well to buy Icra, Crisil, Gujarat Gas, Indraprastha gas and Mphasis
manohar asked, can suggest me good power stocks
Parag Parikh answers, Never buy a stock which is a fancy in the market. as you end up paying a fancy price for it. at present power stocks are fancy.
Amit asked, How can a person assure that he gets to meet the basic needs of family and also save a little for future needs seeing the rise of prices?
Parag Parikh answers, meet a good reputable financial planner and get a financial plan done for your family. this is the first step you must take
rajul asked, after looking to the budget, do u think share market will go up
Parag Parikh answers, your guess would be as good as mine and nobody can predict the markets and those who try are fooling you. try and buy companies who have good fundamentals
rohit asked, what is the effect of budget on infrastrucutre development shares?
Parag Parikh answers, volume growth will be good but capital requirements are huge. its a long drawn process. there will be equity dilution also. all shares may not be good investments
SUBHASISH asked, What is GST
Parag Parikh answers, goods and services tax
AK1 asked, Hello Parag, how is the overall budget? Is it good for a salaried employee?
Parag Parikh answers, for people to whom surcharge was applicable it is good. others get a lollypop of 1000 rupees
anni asked, There were lots of expectation from budget by investor but what is lucrative option now to invest in equity or gold will be in lime light in a near future (6-9 months)
Parag Parikh answers, 6 to 9 months its not possible to predict. over 3 to 5 years equitys are the best bet
anni asked, how u see the job industry after the budget 2009-10 specially the finance jobs which were worse hitten due to the stock market crash 2008? what is ahead.........
Parag Parikh answers, near term there is not much change. however in India participation in financial markets is very low. less than 2% of the population invest in equity. long term good growth prospects.
Gitanjali asked, I want to invest 5000/- per mnth.. which financial portfolio i should take for next 5 yrs in current scenario?
Parag Parikh answers, invest in a index fund. systematic investment plan
KAILASH asked, sir i wish to be stock market technically analysis which course pursue in this carrier
Parag Parikh answers, I do not believe in technical analsis. We believe in fundamental analyses and behavioral finance. Read my latest book "Value investing and behavioral finance"
Renu asked, Hi Parag,I bought 100 IndiaBullFin@ 500 last year and now its 190 I am planning to exit at 50% loss but it not reacing 250, would you suggest to exit at the current level 190 or wait for some more time also your opinion on DLF.
Parag Parikh answers, you made a wrong decision to buy India bulls at a fancy price. Bad luck take the loss. as regards dlf I would recommend avoiding any real estate stock
Goofy asked, Sir, Is an investment in NPS a good idea or should I invest in pension schemes offered by insurance companies?
Parag Parikh answers, NPS will be a good option.
itsgirish asked, which are the sectors u fell which will out perform after the budget
Parag Parikh answers, fmcg and gas will do well. asked, Dear Sir, Please tell me who better MIS or NSC
Parag Parikh answers, MIS gives higher returns and NSC gives tax benefits.
drshetti asked, whats name of BOOK recently written by you?
Parag Parikh answers, value investing and behavioral finance
ravisplay asked, Are shares For oil companies a better option?looking at the oil rpices which are always increasing in the long run?If yes which companies shares are good?
Parag Parikh answers, oil companies have continuosly suffered on account of government interference. that is not going to change.
ravisplay asked, DO you think Investing in the Banks Like ICIC or HDFC are a better option for the long run?
Parag Parikh answers, HDFC is a better choice
hi asked, hi i would like to invest 10-15k very month, tell me sme good investment options. Is it good to invest in Mutual funds/SIP or to buy shares??? pls advise me
Parag Parikh answers, to buy shares if you have a good investment advisor and you are doing it for a long term
itsgirish asked, can this budget change the market scenerio
Parag Parikh answers, markets change with the change in sentiment of the large number of investors
drshetti asked, Will you give FINANCIAL PLANNING for me who is in karnataka if i send you all details by e mail ?
Parag Parikh answers, go to our website or write to
srenipraj asked, Hi Parag, I have planned to buy few stocks currently for long term investment. Is it a right time or wait for some corrections to happen and then purchase
Parag Parikh answers, irresespective of where the market is going we come across good value buys in the market. having a bottom up approach would help one. moreover a good investment advisor would help you choose the right stock. you can also visit our website.
ravisplay asked, Why you think mphaisis is good on a long Run?
Parag Parikh answers, mphasis is now a dollar 800 million turn over company. parent is dollar 40,000 million turn over comapny HP. lot of outsourcing work coming to mphasis. current valuation is cheap
red asked, y was the stock market falling so heavily during budget, when budget started it was going up??
Parag Parikh answers, due to build up of heavy expectations and speculative positions
Abhishek asked, i need to invest 10Lakhs in savings pls suggest me it is good or not
Parag Parikh answers, invest over a period of time and not in one lump sum
umeshps asked, I have bought power grid at 150 and HCC at 145. What to do with these stocks. Please advise me
Parag Parikh answers, it is difficult to advise you as am not sure of the purpose of your investing decision. and whether you are a investor or a trader
Dev asked, how do you see the impact of the budget on the banking sector? It appears that with the deficit, there will be pressure on nationalized banks... do you think the deficit will impact private sector banks like ICICI bank, HDFC or will it be a boon for them?
Parag Parikh answers, deficit will increase interest rates in the long run and have some negative impact on investment portfolios of banks. private banks will be less affected
jiji asked, when will the prices come down and middle class can live happy
Parag Parikh answers, the prices will not come down. inflation could go up looking at the stimulus packages given by various governments to kick start the economy
Ashutosh asked, I am a small investor. I have purchaseed 1300 Shares of Chambal Fertilizer avaraging Rs. 54.00. It was lot of expected from Budget about Fertilizer. in Last two trading Session it has been beaten. What is future about it? I can hold it even for long
Parag Parikh answers, dear ashustosh dont call yourself a small investor because if you have bought these shares expecting something in the budget then you were only trying to speculate. now if the price is not going up you want to be a long term investor. this is not the way you should be treating your hard earned money.
rabhmi asked, Paragji I have 10000 RNRL is it right time for Sale
Parag Parikh answers, depends on the court judgement
Renu asked, Hi Parag, Can you please suggest some good fundamental stocks to invest with a time span of 1-3year.
Parag Parikh answers, see research section
gowtham_arulsix asked, what abt BSE in future?
Parag Parikh answers, NSE will grow faster than BSE
saikumar asked, Is it good idea to create a retirement corpus through MFs or It is better to opt good ULPP. If so as per my finantial planning I have to invest 3000/- as SIP per month to reach required retirement Corpus. Please suggest me one or max two MFs.
Parag Parikh answers, MFs or NPS not ULIPS
RKBHATT asked, hallo sir, i got in my mutual fund portfolio, ipru infra, relience power, reliance equity advantage, fidelity international opprtunity, sunderam midcap and capax, hdfc equity and tata young citizen so how is my portfolio ? further i want to make sip in hdfc equity and birla sunlife fronline equity, wht u suggest ?
Parag Parikh answers, it is best not to invest in sector funds as they come out with schemes only for fancied sectors. best to go for diversified funds or index funds
uu asked, what is the future of ITC stocks
Parag Parikh answers, the new fmcg businesses will start contributing in a few years time. cigarette business continues to be a cash cow. you can hold on
Haru asked, Is good idea to invest around Rs. 5000 per month in PPF on longterm basis? What is the other better option?
Parag Parikh answers, PPF is good for debt component, if you are young you should have a larger allocation for equities. contact a financial planner
Goofy asked, do you suggest investing in MIP schemes in the current market scenario?
Parag Parikh answers, MIPs are misleading schemes as the monthly income is not guaranteed. if you need regular income go for debt schemes or bank FDs
33 asked,  HI Parag, why od you discourage investing in ULIPS. I hv invested almost 8 lcas in ulips. I do have a long vision ie 6-10 yrs.
Parag Parikh answers, the expense structure is very high. most of your money goes to pay insurance agents commission in earlier years
shiv asked, is this a good time to buy DLF at 300 for 3 months?
Parag Parikh answers, am not positive on real estate companies because of high debt levels and corporate governance issues in many companies
Parag Parikh says, It was a very interesting chat. Thank you for participating. Good day