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Invest smart and be rich: Here's how!

June 30, 2011 16:56 IST
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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 rediff.comfinancial planning expert Sailesh Multani offered some valuable tips. Here is the transcript: 

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

bhaskar asked, hello sir, Is it the right time to invest in share market...? I want to invest 2 Lac for 1 year period. Plse advice.
Sailesh answers,  at 2011-06-30 16:00:33Hi, if you are willing to take risk and invest for the long term, say 5 years and more, it makes sense to invest in equities. Waiting for market to correct, for political situation to improve, etc would mean waiting forever. It is only a matter of time that foreign money will soon start coming to India. India is among the fastest growing economies. Money goes where there is potential for growth. The best way to invest in equity market is through the equity funds and that too by starting SIPs in diversified equity funds
red asked, i want to start investement in gold etf. can u suggest me which to buy , kotak etf or gold bees?? also is it better to buy these online or to ask my agent to do sip?
Sailesh answers, Hi, I recommend Benchmark Gold ETF. These have to be bought through your stock broker. Demat account is must for investing in ETFs.
bhaskar asked, hello sir, Is it the right time to invest in share market...? I want to invest 2 Lac for 1 year period. Plse advice.
Sailesh answers, Hi, for one year the best investment avenue is bank FD. If you are investment savvy then you can consider short term debt funds. Please bear in mind that returns from these funds are not assured but they have the potential to generate returns equivalent to FDs.
hee asked, is HDFC Top 200, DSPBR TOP100, Birlaforntline equity good MF ??
Sailesh answers, Hi, all these funds are good. You may continue with your investment in these funds.
red asked, Shailesh, the markets are goin down and the mutual funds suggested and bought by me also goin down. kindly suggest wat to do ??
Sailesh answers, Hi, equity funds invest in stocks and therefore the NAV of these funds move up and down depending upon the price movement of the stocks in which the fund is invested into. If you have invested in a well managed fund with a good track record then you don't have to worry about the NAV of the fund going down with the market. As soon as the markets move up the NAV too should look up.
aaa asked, Last three years mutual funds has not shown the great results which was earlier. So question is it better to continue it or say to invest in much more reliable and effective investment like bank FD or Recurring Deposite.
Sailesh answers, hi, if your objective is to create wealth then you have to invest in equities. there are several funds that have done better than the SENSEX or NIFTY. You should look at the fund's performance vis-a-vis its benchmark index and accordingly take a call. If your portfolio return is less than the market return then it is time to evalaute the same with the help of a competent investment advisor.
SURI asked, Sir, I have purchase Sbi infrastructure series I Growth fund in 2007 but the performance of funds below expectation. Suggest the right way.
Sailesh answers, hi, please exit this fund. Instead consider investing in HDFC Equity Fund. I am sure you will never have any reason to be disappointed in the future.
mahesh_2871 asked, what willbe the proper way of planning investment
Sailesh answers, hi, the best way to plan your investment is to link it to your investment ojective. First decide what are you investing for - retirement, buying a house, car, etc. According to your investment horizon build your investment portfolio. If you horizon is 10 years then you could invest 70% of your savings into equity funds and balance 30% into debt instruments. Accordingly you can decide your asset allocation.
jan asked, good stocks to buy now. wich r the best sip funds
Sailesh answers, hi, in the equity fund category I like HDFC Top 200 Fund, fidelity equity fund and DSP BR Equity Fund.
Durgaprasad asked, Sir,I want to buy some tax gain MF.which one you recommend.
Sailesh answers, hi, in the ELSS category, I recommend Fidelity Tax Advantage Fund and HDFC Tax Saver
shalabh asked, hi sailesh. what is your take on Quantum log term equity fund. What i have researched is that its a good fund. please advise
Sailesh answers, hi, this is a good fund. you can consider adding this fund to your portfolio.
prashanthshetty asked, Hi Shailesh, I am confused between ULIP's and MF's for investments. The plan is for long term. So would you like to advise amongst the 2 or any other... Thanks, Prashanth
Sailesh answers, hi, I can make the matter simple for you. Simply strike out the ULIP from your list of investments. ULIPS are not the ideal investment or insurance instrument. I dont recommend it to any investor.If your objective is to grow you money then equity funds are best. If you wish to insure your life then TERM Plans are the best.
Munish Daga asked, Between HDFC Equity and HDFC Top 200 which do I choose to invest as they are both funds with large corpus and same Fund Manager and both are highly rated
Sailesh answers, hi, honestly speaking I would invest in both the funds. According to me HDFC Equity is more aggressive compare to HDFC Top 200 Fund. I am personally invested in both the funds.
nag asked, My current Agent 35. I am expecting around 60k at the age from 55 years. Can you please guide me good and guaranteed pension plan.
Sailesh answers, hi, I am not in favour of buying a pension plan to plan retirement. According to me one should calculate the retirement corpus one should have by the time he/he retires. The corpus should be large enough to generate regular income to meet all possible post retirement needs and last one's life time. Simply buying a pension plan from any insurance company does not ensure a comfortable retired life.
nag asked, My current Agent 35. I am expecting around 60k at the age from 55 years. Can you please guide me good and guaranteed pension plan.
Sailesh answers, hi, I am not in favour of buying a pension plan to plan retirement. According to me one should calculate the retirement corpus one should have by the time he/he retires. The corpus should be large enough to generate regular income to meet all possible post retirement needs and last one's life time. Simply buying a pension plan from any insurance company does not ensure a comfortable retired life.
BBT asked, HELLO SIR, INVESTMENT IN EQUITY V/S INVESTMENT IN PROPERTY WHICH IS BETTER IN YOUR OPINION
Sailesh answers, hi,in the current scenario my vote is for equities. I have for long maintained that property prices in India are in bubble zone. I still maintain the same view. I would not advise anyone to invest in property at the moment. Investment in equity funds through the SIP route makes more sense.
venky011 asked, Over a 5 year horizon with money available to get locked in, is the Shriram Transport NCDs better or the equity market?
Sailesh answers, hi, in my opinion Shriram Transport NCD is a good investment. I would not treat it as an alternative to equity funds. I would rathe invest in this NCD for diversification of my debt portfolio.
Sailesh asked, Shailesh sir plz ans- WHICH IS BEST FOR INVESTMENT OF 70,000 PER YEAR-SIP OR PPF
Sailesh answers, hi, i would advise you invest in both - PPF as well as ELSS via the SIP route.
sudeep asked, hells sir , i have investing 10k every month on SBI tax gain , magnum global fund , magnum central funds umbrella contra , sbi psu FUND .. IS IT GOOD GO WITH IT ???
Sailesh answers, hi, just wondering why are you investing only in SBI MF schemes. there are lot better schemes than Magnum schemes. I would advise you to redeem your entire portfolio and reinvest in the funds recommended by me.
saaa asked, I have invested some amount in JM BAsic and ICICI Services industries fund. Is it good to Hold or encash it now?
Sailesh answers, hi, redeem these funds. Not at all good performance. You may consider investing in the funds recommended by me.
Munish Daga asked, I have got some lumpsum funds and have to invest in equity funds. Do u think now is the right time to invest or will the market correct significantly in the next 2 to 3 months
Sailesh answers, hi, please go ahead and invest. Only till last week pople were talking of sensex touching 15,000. suddenly the market has gone up by 1000 points in a week. We are back to where we started. Dont go by the noise in the market. Be convince that if you are a long term investor, equity markets will certainly reward you.
nilesh_mundale asked, Hi sir should I invest in ICICI Pru discovery fund?
Sailesh answers, hi, you can invest in this fund.
kapoor asked, hello sir presently i am planning to invest in MF through SIP...into following funds ICICI focus blue chip 1000 HDFC mid cap 1500 DSP Black rock top 100 1000 Kotatk ETF 1500 Golde Bse 1000 Hdfc top 200 1000 Feditlity tax 1500 is it right choice please guid
Sailesh answers, hi, instead of ICICI Focussed Bluechip Fund I would recommen Franklin India Bluechip Fund.
nm1 asked, Sir, I have Sundaram & HDFC tax saver through ELSS for more than 3 years. Shall I redeem this money or still continue? Pl advise.
Sailesh answers, hi, redeem Sundaram Taxavr. Hold HDFC Tax Saver
suzuki asked, hi i want to invest 5 lakhs. can i invest in bond market and equities
Sailesh answers, hi, dependingupon you investment horizon and risk appetite you should divide the money between equity fund and Bank FD or short term income funds.
beekannan asked, Is it right to buy a house Considering the rise in interest rate regime (in the coming years)?
Sailesh answers, hi, if you are buying a property for investment then i would not advise you to do so. In my opinion property prices will fall sharply in coming months. there is no reason for the prices to remain at astronomical heights. They have to come down.
rahulk asked, Sir, I have been in investing in SBI Contra fund Rs 1000 everymonth from 2 years in SIP. I dont see any growth in that fund. I am planning to invest for another 8-10 yrs. Do you think any sense in continuing it . I have another 8 SIP a/c , HDFC Equity, Franklyn Primaplus, Reliance growth, DSP top 100, Birla fronline equity, HDFC TOp 200, Franklyn bluchip.
Sailesh answers, hi, except for SBI Contra, all your funds are good. Stop the SIP in contra fund. Start in fidelity equity fund.
NAVNATH asked, Hi..Shailesh, I just now starting my investment. To save tax & to beat inflation how should I make my debt fund portfolio? I'm considering ELSS & FMP. Also I want to increase my EPF or should I open PPF acount?
Sailesh answers, hi, you cannot beat inflation with the help fo debt instruments like Bank Fd and FMP. You will have to invest in equity funds. you can invest in ELSS funds as well. that will take care of your tax planning to an extent. Between PPF and EPF you can choose EPF as it has a higher rste of interest.
Pandit asked, I am 36 and working as Finance Controller in Goa.I have 15000 per month surplus at my disposal.I want suggestions on investments to take care of retirement planning and buying of a house.
Sailesh answers, hi, you have multiple objectives to be mt. The best approach according to me would be to get a financial plan made for yourself and invest according to the same. The financial plan will serve as a road map and help in guiding you as to how should you go about investing so that you are able to meet all your goals on time.
BBT asked, SIR I HAVE INVESTED RS 1 LAC FIVE YEARS BACK IN HSBC INDIA ADVANTAGE FUND PERFORMANCE OF THE IS DISAPPOINTING PLEAS SUGGEST.
Sailesh answers, hi, exit this fund and invest in any of the funds recommended by me.
myself asked, Hi, What about Fidelity India growth, ICICI Pru Focussed Equity, DSP ML Top 100, DSP BR Equity funds and Reliance Equity Opportunities fund ?
Sailesh answers, hi, among all the funds I only recommed fidelity India Growth and DSP BR Top 100
NAVNATH asked, So for building debt portfolio, how & where should I invest? Do u recommend short-term FMP?
Sailesh answers, hi, at the moment short term FMPS are good but please check the portfolio quality before investing in them. I would also recommend short term debt funds
Freddy asked, Shailesh, could you suggest your best recommended MF's to invest for long term and short term. Currently the info is very scattered. THank you in advance
Sailesh answers, hi, my recommended fund include HDFC Top 200 Fund, DSP BR Equity Fund and Fidelity Equity Fund.
Skat asked, Which is better? ULIP or SIP?
Sailesh answers, hi, ULIP and SIP are not comparable. ULIP is an insurance plan while SIP is a style of investing into mutual funds. I dont recommend ULIPs at all because of their very high charges. SIPS are ideal for investment into equity and balanced funds.
kois asked, RELIANCE REGULAR SAVINGS FUND-EQUITY PLAN-GROWTH OPTION, BIRLA DIVIDEND YIELD PLUS - GROWTH, UTI OPPORTUNITIES FUND GROWTH, HDFC TOP 200 FUND - GROWTH PLAN.... i have to renew on july1 which one to strike off and which all to add suggest invested in SIPS... i have principal tax saving fund for last 3+ years bought at 109 should i redeem now at 71 have SBI magnum tax saving for 3+ years should i redeem giving me 36% profit
Sailesh answers, hi, dont renwe Birla Dividend Yield. also redeem SBI Magnum and Principal Tax Saving Fund.
254 asked, Sir....I am 37 and have 60 lakhs as savings after relocating to India. i earn 45k per month and spend 30 k. my wife is a homemaker. i have 5 year old kid. i want to retire by 47. please advise any good invesment options for long term investment
Sailesh answers, hi, you have to meet various goals at different intervals. The best way to meet you goals is to get a financial plan made for yourself. the plan will guide you as to how should you go about investing your monthly savings so that you are able to meet all your goals on time.
hkm asked, Hi, i want to invest 15000 P.M.for 5 years which will be better plan, equity or sip.
Sailesh answers, hi, for 5 years Equity funds are certainly the best bet. Invest in them via the SIP route.
surajitg asked, Sailesh, what is your view about NPS ? I am 39, working in a MNC, married with 2 child. Should I open an account ? If yes, then on which tier - I or II ?
Sailesh answers, hi, currenly I have take a wait and watch view on NPS. I would not advise investing one's saving into NPS unless there is an established track record of atleast 3 years. Till then investors would be better off investing into conventional tax savings avenues like PPF, ELSS, EPF, etc.
viswanath asked, can i claim tax deduction on interest on housing loan on renting my house and claim tax benefit on HRA while staying in a rented house?
Sailesh answers, hi, you can claim deduction for interest on home loan while staying in a rented apartment. You can also claim HRA exemption for the rent paid.
rsreed asked, Hello Sailesh, Could you list 5 funds that I can invest Rs.5k each through SIP. I am expecting an annual return of 22% for my investment. If you would suggest, I could do 10k in each Fund. Please advise.
Sailesh answers, hi, i have given the name already of the funds recommended by me. In my view you expectation about 22% return is on the higher side. you should try and bring it down to between 12-15%.
Sailesh says, We have run completely out of time. If you wish to get answers to your queries which were not answered during the chat, you may mail them to me at sailesh.multani@gmail.com. Please don't forget to mention your age and current asset allocation

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