Are you bad at managing your own money? Do numerous investment options baffle you? What are the best mutual funds available? Which funds accrue maximum profits? In an hour-long chat on rediff.com on Thursday, Rahul Goel, CEO, Personalfn.com, and financial planning expert, answered many such queries. Here is the transcript:

Rahul Goel says, Good afternoon, everybody! Let's start!

rahul asked, Hello rahul, Market is down 1000 point, is it right time to invest or u r seeing more correction?? wanted to invest 2 lakhs in mutul funds pls suggest so good MFs
Rahul Goel answers,  at 2007-08-02 12:58:46rahul, hi. i think it is best that you do not worry too much about the stock market index rising or falling. the stock markets by definition are a volatile investment avenue. so, my recommendation to you is to focus on fundamentals. what we are telling our clients at Personalfn is that the current fall is more 'technical' in nature; it has little impact on long term fundamentals. therefore one should consider investing in times such as these. do not put all your money in one go; invest it over several weeks/months.

dentistrytoday asked, Kindly provide some tips for financial planning for self employed professionals
Rahul Goel answers, get yourself an honest financial planner to start with. other than that, invest regularly, do not speculate and be discplined in the process you follow.

Anurag asked, Should I invest for my retirement in mutual funds
Rahul Goel answers, anurag, hi. your retirement portfolio should ideally have more than one asset class. you should have some money in gold, stocks (or eq mutual funds), real estate and maybe even some debt apart from other asset classes. the allocation between these assets however will be critical. this will depend on your current and planned profile.

ravi asked, sir, i have Rs.1 lakh in my hand and i want to invest in mutual fund. I am new to investing and know nothing about it. my plan for investing is Rs 1 lak for a period of 1 year. please suggest me good idea and best and safe return mutal fund.
Rahul Goel answers, if you are investing only for a one year period, go in for what is called a Fixed Maturity Plan. your financial planner will be able to explain you about the scheme. my suggestion is that you do not invest in any equity/balanced scheme.

pankaj asked, what is the best balnace for coming time for investing in mutual funds & stocks?
Rahul Goel answers, pankaj, hi. the ratio of money you invest in equity funds and stocks (that you manage on your own) will depend on how much spare time you have. if you do not have much time on you, then equity funds should form the bulk of your investments. remember, managing money is a time consumig activity.

p asked, i want to have around Rs 20,00,000/- after 15 years from now how to plan?
Rahul Goel answers, hi. if you wishto have about rs 20 lakhs, inflation adjusted value of rs 48 lakhs, fifteen years from now, you should be investing about rs 1 lakh a year in assets which return 15% pa.

govind123 asked, sir iam in late 20's iwant to earn 7 lakhs in two years i can afford 20K/month kindly advice where can i invest????
Rahul Goel answers, govind, hi. if you were to invest this money in assets which return you about 15% pa, then the maturity value would be rs 5.5lakhs. however, note that for a tenure of two years, it may not be wise to invest in risk assets. in any case as you approach two years, you will need to de-risk your portfolio. consider increasing the investment amount and/or lowering your expectations.

sasank asked, which one is better, midcap or TOP 100/TOP 200 funds? also if i have index fund do i need to have large cap too?
Rahul Goel answers, sasank, hi. which fund is better for you would depend on what your investment plan demands. a mid cap fund may be good for an aggrssive investor, but not for one who cannot take high risk. also, i would prefer to be in an actively managed fund as against an index funds.

JADA asked, Investing 50,000 in 4 fund each or 1,00,000 in 2 fund each is better?
Rahul Goel answers, hi, i would recommend that you have about 5 - 6 schemes in your portfolio. but the schemes should be selected very carefully.

Ranjan asked, Hi. Does this current fall of sensex make things bad for Mutual Funds SIPs?
Rahul Goel answers, ranjan, hi. such a fall will not have much of an impact on sips, which usually go on for long periods of time. yes, for the installments that go in now, the investor gets more units for the same amount of money.

Hari asked, I also want to know how to go about investing in stocks as an option to invest, suggest me some ways to start investing wisely and safely with medium to high returns as I can visualise myself as having medium to high level risk appetite. Also provide me with suggested readings on Stock markets to have a better understanding of the same.
Rahul Goel answers, hari, hi. you can read more about the stock markets on Personalfn's sister website www.equitymaster.com. as is the case with any investment, you need to have access to honest recommendations if you are to be able to make the desired returns.

atulbansal asked, i am Atul bansal from HYD india my salery is 9.5 lakh per year how i plan my savings and where should i invest
Rahul Goel answers, atul, hi. answering your query over a chat is very difficult. i recommend that you look for a financial planner who will, in a personalised session, guide you on your queries. in case you want to meet someone from personalfn, you can write in to us at info@personalfn.com. we do have an office in hyderabad.

govind asked, Sir iam an NRI i can save minimum 2.5L/year kindly advice which fund i can invest
Rahul Goel answers, govind, hi. which funds you can invest in will depend on your profile, your risk appetite and your expectation of return. if you are looking at an investment tenure of over 5 years, and can take near term risk, consider funds like hdfc equity, fidelity equity and franklin flexicap.

suresh asked, Sir, i am suresh, middle class family, i would like to invest some money for our child and us kindly let us know, which invest is good and short period.
Rahul Goel answers, suresh, hi. if your child has more than 5 years to to college, but less than 10, then avoid ulips. opt for mutual funds instead. our research indicates that one needs to be invested in a ulip for atleast 10 years to be able to outperform say an equity fund.. this is on account of its very high initial fee structure. When evaluating funds, opt for diversified equity funds like hdfc equity, fidelity equity, fr flexicap and dsp ml equity.

arun gupta asked, What is the best tax saving mutual fund at present? Is there any new good Tax saving mutual fund is coming in near future?
Rahul Goel answers, arun, hi. there are several. our preferred funds are franklin taxshield an hdfc long term advantage. you do not necessarily have to wait for a nfo; as you should be aware, nfos add little value to you. in most instances it is better to be in schemes with a track record.

pravin asked, hi Rahul! i have invested iin sbi gloabl growth & blue chip thru sip monthly since last dec what is the future how much return should i expect in dec07 what are other best sip options? or mf options?
Rahul Goel answers, pravin, hi. while sbi global has performed well, we have reservations about sbi blue chip. we recently posted a note on this scheme on personalfn.com. maybe you can read that. do not expect to make much money over a year. if you do, then great. but my recommendation is that you plan to make the return over 3 - 5 years. that is more predictable.

nizam asked, Hi Rahul, Please let me know how SIPS work. Also let me know if am investing 3000 rs per month, which MF i have to invest and which are the best in the market?. Appreciate your co-operation.
Rahul Goel answers, nizam, hi. in sips you commit to investing a fixed amount of money every month on a fixed date in a particular scheme. you specify for how many months this should continue. the advantage is that you invest in a fund through a time period thus buying at multiple levels. the result is that you have acquired units of a fund at an 'average' cost, and effectively ensured that you have not taken undue risk. howerver, in a persistently rising or falling market, the sips may not seem very attractive. that is why the view that you should evaluate sips over 3 - 5 yr periods, if not longer.

samkahu asked, i am 27 unmarried and i have 25000 to invest in mutual funds what should i do
Rahul Goel answers, hi. decide for how long you wish to invest the money, and how much risk you are willing to take. if you can put this money aside for 5 years, and have appetite for risk, then go in for diversified equity funds. if you are looking at a much shorter tenure, say less than a year, opt for fixed deposits or FMPs.

Anwar asked, Hello Sir. As per the latest market trend when can we expect our monies in Mutual funds (equity diversified) to double in amount.
Rahul Goel answers, anwar, hi. well managed diversified equity funds should deiver a compounded return of 15% over 5 years. that means in about 5 - 6 yrs you can double your money.

rutu asked, Hi Rahul..i wish to start investment in mf with SIP..can invest upto 7 per month..shall i put money in a single fund ? or multiple funds? when can i start ? when will i get my money back? i want annual returns around 30%
Rahul Goel answers, hi. have a portfolio of about 5 - 6 funds, in the right allocation. this is ideal in our view.

lb asked, Sir, I will be retiring after 5 yrs. Pl. suggest in which MF I should invest for Tax Savings?
Rahul Goel answers, for tax saving purposes, consider funds like fr india tax shield and hdfc long term advantage.

sree asked, Is it possible to top up payments in SIP. I mean, if 1000 is my regular payment, if I have 500 extra with me in a month, can I make the payment of 1500
Rahul Goel answers, sree, hi, no this is not possible. the sip amount is fixed. yes, you can invest more, but not as part of the sip. that would have to be a separate investment.

Sudha asked, How do you see mutual funds unvesting in global equity against indian equity ? In your view will the global fund better than indian equity?
Rahul Goel answers, sudha, hi. we recently put out our first note on a global fund. our view was to avoid it. i think that one needs to understand these schemes really well before committing monies to them. from a long term perspective, of course, it helps to have some money invested abroad. however, given that we are underinvested in domestic equities, we should first make up for that before exploring these new schemes.

mpremkumar asked, Hi Rahul, I am investing thru SIP in Tata Infrastructure Growth. My investment horizon is 10 years. Should I continue my SIP till then ?
Rahul Goel answers, hi. infrastrucutre funds have delivered brilliant returns in the recent past. however, in our view, investors should avoid such schemes as they carry very high risk. if you really wish to have such schemes in your portfolio, then allocate no more than 5% - 10%. we prefer diversified equity funds, which anyways have stocks from the infrastrucutre sector.

dayan asked, Hello Rahul - I am a Gulf NRI Age 33 2 KIDS, I save a tax free 6 lakh per year. I have a ULIP of 4 lakh cover and Money back of 2 lakh. Please suggest Mediclaim and Investment options
Rahul Goel answers, dayan, hi. now that you have taken the ulips, consider investing in pure 'investment' avenues like mutual funds / stocks. build a portfolio of 5 - 6 schemes for your children and put money into it regularly. select the schemes very carefully.

Abhirup asked, I want to invest around Rs. 50000 in ELSS this fiscal.How should i allocate the same, Funds wise, lumpsum or SIPor a combination and if so in which funds? This is my first job and my take home is around 28000.
Rahul Goel answers, given that there is time, i suggest you do a six-month SIP into two schemes. regarding the funds i have already suggested earlier... here they are again - fr india taxshield and hdfc long term avantage.

Asha asked, Hi Rahul, now that the stock market has slipped somewhat, do you think it is a good time for small investors to use the opportunity to buy some good mutual funds? Or should we wait and watch for sometime more? Also, we would be grateful if you could suggest a couple of good MFs to invest in -- with a 3 year perspective.
Rahul Goel answers, asha, hi. i suggest that you do not try and time the market. its an exercise in futility. best is to invest money in small amounts at regular intervals. from a 3-yr perspective, some funds you can consider are hdfc equity, fr flexi, dsp equity and fidleity equity.

Abhirup asked, I want to invest around rs 50000 in ELSS this fiscal.How should i allocate the same, fund-wise,SIP or lumpsum or both?
Rahul Goel answers, hi. to repeat, invest via six month sips; select two schemes and split the money equally. the schemes could be fr tax shield and hdfc long term advantage.

suhani asked, hi rahul - i am an nri and i save abt 6 lakhs per year - i am 30 yrs old - i want to retire at 40 with a good investment from which i can then get retirement earnings - how much do u think i shld invest in funds vis a vis direct equity and what kind of funds
Rahul Goel answers, suhani, hi. how much you invest in stocks vis-a-vis mutual funds will depend on the amount of time you can allocate to serious research. if you do not have time, do not invest in stocks directly. but if you have some time, manage some money on your own; put the rest in well managed funds.

meenal asked, Hello sir,my financial planner has suggested me three option for my starting investment first in MF-HDFC [Get Quote] top 200 5000/mon, 2nd is HDFC unit link Insurance-50000/annually & jeevan annad 15000/annualy. Pls tell me your take on this i have annual income of 1.9 Lk. is good time to invest in HDFC to 200. how much money should in vest in MF on SIP basis
Rahul Goel answers, meenal, i suggest you ask your finanical planner to explain you why the allocation to a ulip is the highest. here's a hint - he makes the maximum commission on it! of course, i am not saying that all financial planners are mis-selling. you probably have a need for such a large policy. but prima facie, i would be very cautious when acting on such recommendations.

sauvik asked, Hi rahul.. Currently i am investing Rs 3500 per month through SIP in different tax saving mF. I want to invest Rs 2000 more per month through SIP. Is it better to go with Tax saving funds or normal MF. Whats the basic difference between tax saving and normal MF which would give better return ?
Rahul Goel answers, sauvik, hi. tax saving mfs have a 3 yr lock in and entitle you to benefits under section 80c. if you can take that benefit, then inevst in such funds. otherwise you should go in for open ended equity funds, where there is no lock in per se.

saurabh asked, How to decide to invest in MF new launch or old stablished or 3-6months old to get best return?
Rahul Goel answers, saurabh, hi. in our view nine out of ten NFOs are marketing gimmicks to garner aum from unsuspecting investors like yourself. in almost all cases it is best to go in for existing funds.

VIJAY asked, IS THERE ANY SPECIFIC M.F. FOR CHILDREN (AGE BELOE 12 YEARS). THANKS.
Rahul Goel answers, vijay, hi. thre are funds dedicated for children. however i recommend you go in for the regular funds for your children. there is no evidence that children plans that exist will do better; infact the other funds have performed much better.

Naveen asked, Hi Rahul,I have a 2 year old daughter.And I want to do some good long term investments which will give me tax benefits also.What are the good options for this
Rahul Goel answers, naveen, hi. here's how you can do this. invest in instruments like tax-saving funds which will entitle you to benefits under section 80 c, while at the same time serving as a preferred investment avenue for your child who has about 14 years to college. you can have a small ulip and some amount in PPF too. but equities should form the largest chunk of your child's portfolio.

vipin asked, SIR i have a ULIP of max newyork.I want to know how it is profitable to me after a span of 3 yrs
Rahul Goel answers, vipin, hi. i do not think it will be profitable for you in 3 years when you compare it with say an instrument like a mutual fund. it will take about 10 years for the two to match up.

SKS asked, Hi Rahul,In a previous ans for investing Rs 1 lac, u said not to go for equity schemes..Can u explain why? what u say for tax saving schemes of ELSS?
Rahul Goel answers, hi. if you have a investment tenure of one year, you should not invest in equities. tax saving schemes, like tax plan funds, have a three year lock in.

niraj asked, HI Rahul, Between Fraknlyn India Prima plus and Franklyn India Flexi cap, which one is better for 3-5 years?
Rahul Goel answers, both are great schemes and have their unique characteristics. co-incidentally we have put out a note comparing these two schemes recently... you can read the same on personalfn.com.

deepak k asked, Is PPF interest taxable. Is invest in ELSS good as compared to ULIP
Rahul Goel answers, deepak, hi. the interest on ppf is not taxable presently. dependinng on what you are investing for, either elss or ulip may be suitable. in most instances however, elss (three year lock in) will score over ulips (min invest tenure should be 10 years).

arv asked, HI are ULIPS good for investment? IS AVIVA [Get Quote] a better option among them?
Rahul Goel answers, ULIPs are insurance + investment. Mutual funds are an investment. please keep that in mind when evaluating any commitment to a ULIP policy.

nizam asked, Hi Rahul, Is their any financial institution which will help in investing in SIPS or we should do it individually.. Thanks for your help..
Rahul Goel answers, nizam, hi. like i suggested, you can get yourself a financial planner. they can help you with all your queries, drawing up a financial plan, as well as the paperwork. at personalfn, we do help our clients with all this.

vikas721 asked, Hi Rahul, My mother in law is a widow now. and want me to invest her 10 lakh for her future needs . how i shud invest it in various instruments?
Rahul Goel answers, hi. assuming that she is looking for a monthly income, i recommend that you go in for fixed deposits from agencies like HDFC. if the need is monthly income, avoid risk investments like equities.

Rahul Goel says, Thank you all for participating in this discussion. I apologise for not being able to answer all your queries.

Chat with Rahul every week! To read more transcripts, click here!