Are you the one who doesn't understand much of finance? Do numerous MFs as well as other investment options baffle you? What are the best 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!

DINS asked, HI ANY GOOD MUTUAL FUNDS WHERE I CAN SAVE A LITTLE MONEY FOR MY KIDS
Rahul Goel answers,  at 2007-09-27 12:55:28hi, there are several good schemes out there in which you can invest for your child. but do you know how much you want to accumulate over time? its important to know what you are targetting.

rakesh asked, able to save rs.4000 pm.suggest me to investment these.
Rahul Goel answers, rakesh, hi. where to invest this money will depend on what objectives you have. unless i have that information, its difficult to guide you.

michael asked, Hello Rahul. If my current broker or advisor takes me on a ride that is to say recommends wrong financial instruments without looking my interests or future security then how can I switch the services easily to another reliable source such as yours? Besides, I am also very much skeptical even to bank relationship managers. I am reporting this to you because I have faced some problems. So, then what kind of assurance do you provide? Please comment.
Rahul Goel answers, michael, hi. its unfortunate but your experience is not unique. people write in to personalfn all the time with such queries/comments. its very easy to switch services to another entity. yes, you will need to invest time in identifying the right planner for yourself and then explaining him all about you, your needs, your current portfolio etc all over again. but this effort is well worth it, if you are able to identify an honest financial planner. how do you know if a financial planner is honest? well, talk to his existing clients; see whether he is pushing you to invest in nfos, which seem to offer no extra benefit over existing schemes; whether he is pushing ulips without being transparent about the cost and commission structure... well these are some way of shortlisting an honest financial planner. as far as personalfn is concerned, you are most welcome to talk to our clients. just send us your contact details and we will set up the calls!

michael asked, Hello Rahul. If my current broker or advisor takes me on a ride that is to say recommends wrong financial instruments without looking my interests or future security then how can I switch the services easily to another reliable source such as yours? Besides, I am also very much skeptical even to bank relationship managers. I am reporting this to you because I have faced some problems. So, then what kind of assurance do you provide? Please comment.
Rahul Goel answers, sorry... you can write to us at info@personalfn.com

Smitha Nair asked, What is ELSS funds and can you please suggest some good ones for me to invest money
Rahul Goel answers, smitha, hi. ELSS funds are equity funds which provide tax benefit under section 80 c. two schemes that we like are hdfc long term advantage and franklin india taxshield. if you are a first time investor, spend time with your financial planner to understand more about these schemes, and the risk you carry by being invested in them.

anil asked, what is good option for future safety
Rahul Goel answers, anil, hi. if you mean safety from the perspective of protecting your capital, then fixed income instruments are the way to go. but if you are looking to secure your future, then you may need to consider taking some risk and investing in avenues like shares because over longer periods of time such instruments do play a very important role in helping you not only maintain but also improve your standard of living.

aMIT asked, Do you think that ne should exit from mutual finds by paying some exit load at this moment since the markets are at a all time high & then reinvest when the markets come down again ? Should one treat & deal in Mutual Finds also like one deals with stocks may eb not buy n sell not so often but in circumstances like the current when the mkets are at a all time high.
Rahul Goel answers, amit, hi. the answer to your first question would depend on why you invested in the first place. if you had invested for your retirement 10 yrs down the line, then best is to stay invested. but if you need your money in the near term, then irrespective of where the markets are, you should be selling. i do not favour trading in stocks, let alone mutual funds!

Rafi asked, Hi Rahul, would like to know best yielding MFs for 3 years
Rahul Goel answers, rafi, hi. equity funds over three years could yield about 15% pa. this assumption is based on the average growth in corporate profitability over the next three years. the better managed funds will of course outperform the others... so be very selective when investing your monies.

Tuhin asked, Hi Rahul. This Financial Year I want to invest 1 Lac in ELSS. I can tak Risk. My Porfoilio is: 1. Principal Personal Tax Saver (G) - 50K 2. Kotak Tax Saver (G) - 25K 3. Fidelity Tax Advantage (D) - 25K Plz comment.
Rahul Goel answers, tuhin, hi. you already have several tax planning schemes! but you do not have the two schemes we prefer in this category!! there is little you can do since your money is locked in...

vaishnavsantosh asked, Hi, Rahul I had invested Rs. 25000/- In Icici [Get Quote] prudencial infrastructure fund & opened a SIP in Frenklin prima, kindly let me know how it is. Thnks.
Rahul Goel answers, santosh, hi. both are effectively sector funds. if these are the only schemes in your portfolio then you need to take corrective measures very soon! we would prefer you own diverified equity funds like franklin india flexicap or hdfc equity. plan to have about 5/6 schemes in your portfolio.

neeta asked, I can invest 30,000 per month tell me best option to invest shoild i go for diversified sip Please suggest?
Rahul Goel answers, neeta, hi. you have not mentioned your objective. but assuming you have a long term need, then diversified funds are best; and yes, go the sip route. to reiterate, select your schemes very carefully.

LEO asked, HI RAHUL I AM AN NRI PLEASE ADVISE BEST FUNDS FOR LARGE CAP FUNDS,MID CAP FUNDS AND BALANCED FUNDS
Rahul Goel answers, leo, hi. as mentione earlier in the chat some of the funds we like are hdfc equity and fr india flexicap. both are predominantly large cap funds. when it comes to balanced funds, you can consider dsp ml balanced and also hdfc prudence.

Benny asked, Now the market is bullish. Is it good to invest now or should i wait for the share price to come down. How do you find the global funds? Is it worth buying now?
Rahul Goel answers, benny, hi. in our view one should continue to invest in the stock markets via the sip route. that's a great way to build long term wealth. ignore the market movements per se. and, also ignore the index values. focus on valuations and the opportunity from a long term perspective. also keep in mind that sips effectively average out your cost of investment, so there is nothing to worry. well, global funds is an opportunity one should consider. however, we have not recommended any of the funds whcih have been launched so far to any of our clients at personalfn. we are hoping that some of the new launches in this category will measure up to our investment criteria.

manoj26 asked, Hi Rahul, I am earning 25K per month and able to save 12K pm.Please will you give your expert advice as to where and how can i invest.
Rahul Goel answers, manoj, hi. where you can invest will be a function of why you want to invest... the objective of investing. once that is known, the guidance can be a lot more specific. if you are saving for the long term, then opt for the SIP route in well selected equity funds (diversified). if you do not have the capacity to select the schemes on your own, employ the servcies of an honest financial planner.

Ghanshyam asked, Hi Rahul...What you thing better idea 1.Paying the home loan EMI of 25000 PM or 2.investing this amount in market I am from Bangalore
Rahul Goel answers, ghanshyam, hi. i have been asked this question very often. the answer to this however lies with you! depending on whether you are comfortable with the idea of carrying a liability on your books and also your ability to generate a consistent return which is higher than the rate of interest on the loan. think over it!

shobhana asked, hi mr.goel, gm to u. I am an NRI and recently invested in global mutual funds of around usd 100000/= and planning to invest another 60000.pl tell me as to whether it is safe and adviseable to invest hardearned money in global investment?
Rahul Goel answers, shobhana, hi. have you invested in the indian global funds? or have you invested in international funds? investing globally does make sense from a diversification perspective; however, you need to choose your investment vehicle very carefully.

manoj26 asked, Hi Rahul, Will you send me some usefull link where i can get knowledge of MF and its terminology.
Rahul Goel answers, manoj, hi. all you need to do is visit www.personalfn.com ! :-)

james asked, Hi Goel i am planning to invest in shares and mutual funds, How can i step for a better future tommorow as a fresher can i get help from sharekhan or indiainfoline etc etc ?
Rahul Goel answers, james, hi. of course you can get help from them. and you can also get help from personalfn (www.personalfn.com), the entity i represent! before choosing your financial planner, be sure to do your due diligence thoroughly!

Padma asked, What is the difference between buying mutual funds directly and through brokers?Can I buy them directly?
Rahul Goel answers, padma, hi. you can buy funds directly as well as through distributors. no difference as on date.

Rajasekhar asked, hi Sir, I invested 2000/m in HDFC [Get Quote] Equity, 2000/m in Franklin Flexi Cap and 2500/m in HDFC Tax Saver. I have capacity to invest 2000 more.. which fud should I opt for? Is it right kind of a start for long term investiment. Please advice.
Rahul Goel answers, rajasekhar, hi. maybe you want to consider a fund like dsp ml equity or quantum long term equity, both value style funds (Disclosure - Quanum Mutual Fund and Personalfn are founded by the same person - Ajit Dayal)

manish asked, Hello Rahul, I have got 4-5 different Insurance schemes (few are more than 10 years old). Is it wise to terminate them & go for one single "term insurance" & invest in Mutual funds
Rahul Goel answers, manish, hi. this will need to be evaluated in detail. talk to your insurance advisor on what you will get if you terminate. the extent of penalty will decide on what you should do.

manish asked, Hello Rahul, I have got 4-5 different Insurance schemes (few are more than 10 years old). Is it wise to terminate them & go for one single "term insurance" & invest in Mutual funds
Rahul Goel answers, manish, hi. this will need to be evaluated in detail. talk to your insurance advisor on what you will get if you terminate. the extent of penalty will decide on what you should do.

s asked, What is the best option to earn monthly income of min Rs.8,000?
Rahul Goel answers, if you are looking for an assured income, then fixed deposits and post office schemes are best. but if you can take some risk to earn better returns, consider monthly income plans from mutual funds.

lnk asked, HI Rahul...I am able to save 65,000 per month.What are the best options available to me.My name is Manoj
Rahul Goel answers, manoj, hi. the best options for you can be discussed only once we know more about you. actually a lot more about you!

nagesh asked, Hi Rahul, i am 25 years. Have an endowment policy for 1 lakh for 20 years which i have taken in 2003. Planning to take anmol jeevan -I (term) for 20 lakhs coverage and for 20 years. is it a good idea or r there any other better alternatives.
Rahul Goel answers, nagesh, hi. term insurance is best. but is Rs 20 lakhs enough. get a human life value check and then decide on how much you need.

Shailesh asked, Hello Rahul, I am IT professional earning @40K/Month kindly tell me the right proportion of investments
Rahul Goel answers, shailesh, hi. its difficult to guide you on allocation with only so much information. need more details about your profile, current needs, existing assets, cash flows, future needs etc.

chinmay asked, hiii rahul, i'm 21 yrs old into first year of mba. i'm expecting a package of around 4.2 l pa. I'm the only child and both my parents are working. I'm planning marriage by the age of 27. can you suggest me some investment avenues?
Rahul Goel answers, chinmay, hi. our recommendation - save as much as you can. and also, given that you probably have an appetite for risk, opt for instruments like equity funds. the earlier you start to save the better it is...

arora asked, i'm 34 year old married male with one 3 year old kid and monthly take home of 1.3 lakh. i am yet to own a house and my total savings amounts to not more than seven lacs that i have invested in mf. In other words, i am not habituated to savings. Please guide me. Thanks A Arora
Rahul Goel answers, hi. i think you should employ the services of a financial pplanner you can guide you on how you can set the situation right for yourself. but one thing is for sure - start saving!

Amol asked, Hi Rahul.I am planning to invest in Kotak Tax Saver, SBI [Get Quote] Magnum Tax Gain, DSPML Tiger, Templeton India Equity. Is this a right combi or i should make some modifications. Please suggest.
Rahul Goel answers, amol, hi. i think you need to re-evaluate the entire portfolio, and this time, maybe with some professional guidance. i think you can do a lot to better this.

hari asked, Hi, I want to have 2 crs at the end of 25 yrs from now. Pls suggest best possible way on monthly savings.
Rahul Goel answers, hari, hi. assuming that inflation will average 5% over this tenure, you will need to set aside about rs 25,000 per month.

hari asked, Hi, I want to have 2 crs at the end of 25 yrs from now. Pls suggest best possible way on monthly savings.
Rahul Goel answers, the money will need to be invested in instruments which yield about 15% pa.

raghvi asked, Hello Rahul I spoke to a Personal Fn Representative the other day, why is that PersonalFN only recommend/suggest only Mutual Funds dont, Life Insurance/Real Estate/Direct Equity should also form part of a goof portfolio?
Rahul Goel answers, raghvi, hi. for direct equity, we have a sister initiative - www.equitymaster.com. even here we sell investment newsletters; no personalised advice. when it comes to real estate, we are not capacitated to guide you on where to buy a property. yes, from an asset allocation perspective we can guide you on how much property you need to have. finally, with regards to life insurance - we do talk to our clients the importance of term insurance in a portfolio. however, we are unable to write the policy ourselves. we will get in touch with you again regarding this. thank you for meeting a personalfn consultant.

Raghupathy asked, Hi Rahul, me and my sife income is 9 lakhs put together, We have investment of 25K in SBI mutual, 25k in Birla in my wife name and 12K in LIC [Get Quote], 14K in ING and 18K in ICICI Pru. We would like to invest on mutual fund. Please suggest me a benefitial mutual fund
Rahul Goel answers, raghupathy, hi. i have already discussed the names of some of the schemes that we like earlier. however, before deciding on where to invest please be sure that the scheme suits your profile. for this you may require the guidance of a financial planner.

Nitin asked, Should one invest in Tata indo global infrastructure NFO?
Rahul Goel answers, nitin, hi. we are recommending to our clients that they avoid investing in this fund.

lucky asked, Hi.. I have somje fund for Short Term Investment.. I have chosen the funds as..Reliance [Get Quote],SBI,Tata Steel [Get Quote],Birla Your opinion please. I have another 1 Lac to invest in short, should i reinvest in the same?
Rahul Goel answers, lucky, hi. if you are investing for the short term, then you should not be investing in the equity schemes. opt for liquid or short term debt funds.

onlyme556 asked, Can Somebody invest in an SIP and expect the same advantage as he would have got if he invested in a normal MF.Is SIP better than the usual MF ?
Rahul Goel answers, an sip is a way of investing in a mutual fund. the scheme is the same whether you put money in lump sum or via sip. the benefit of sips is that it helps you average out the cost of your investment as the investment is made over time, and irrespective of market movements. the other advantage of sips is that it suits the cash flow of the salaried investors.

sandeep asked, Hi Rahul, I need to invest in mutual funds, and i am new in this can you suggest any mutual funds for me. Should i go for Tax saver mutual funds?
Rahul Goel answers, sandeep, hi. i recommend that you do not commit any monies to funds unless you have understood the product well. alternatively, you should employ the services of a financial planner. remember, investing is not a one time activity. you will need to track your investments and make decisions on where to put fresh surpluses. so, one time advice here may not help you much! havig said that i have discussed names of some funds that we like earlier in this discussion.

gayathri asked, Hi What I could do for my children for their betterment in education, any policy with insurance....
Rahul Goel answers, gayathri, hi. i would prefer you opt for pure savings instruments to start with. over time you could consider ulips. but to protect your child in case something were to happen to you, ensure you have adequate life cover yourself!

aradhna asked, what is the ideal distribution of investing considering age is 30.. and enough of current assets.. Is 30% in equity, 38% in property, 22% keep in banks, 10% in long-term savings correct? And how much distribution of equity we shud make in IPOs, secondary market, mutual fund - any thumb rule.
Rahul Goel answers, aradhana, hi. any particular reason you have so much money in the bank? also if you do not have the skill or the time to manage money on your own, avoid investing in stocks directly. opt for mutual funds instead.

anil m asked, do you advise to go for PMS or for mutual funds , I want to invest 10 lakhs , i dont need money for 3 years with medium risk
Rahul Goel answers, anil, hi. at personalfn we are just in the process of putting some notes on pms. read that before you decide! prima facie, i would go with a mutual fund...

Deepa asked, Which ones are better, NFOs or the time tested ones?
Rahul Goel answers, deepa, hi. the time tested funds are better. any day!

Swati asked, hi rahul i m a fresher so i hav very little idea about investments so can u please tell me where i shud invest to sav income tax?
Rahul Goel answers, swati, hi. you can invest in various instruments including tax saving funds, NSC, PPF, life insurance etc etc... invest in line with your risk appetite and future need for monies.

promod asked, Hi. I'll try and put this in a general form so that all could be benefited. If I can save an amount X per month. What percentage do you suggest to invest in various things? Asuming I have no liabilities and all important things are taken care off. My risk factor could be a little on the higher side?
Rahul Goel answers, promod, hi. if you have appetite for risk, and have a tenure in excess of 3 - 5 yrs, then the portfolio you construct could have a large chunk of equity/equity funds.

chand asked, Hi Rahul, Most people around seem to know be quite in the know of finance. I'm someone who doesnt know it from adams. Do you think I can get a crash course on investments somewhere?
Rahul Goel answers, chand, hi. yes you can... please visit our website - www.personalfn.com. here you will find all that you are looking for.

lop asked, Hi Rahul, I want to save money for my child's education & also wealth creation. Kid is 6 month old . Please advice
Rahul Goel answers, hi. its good that you are clear on why you wish to invest. since both these objectives are very long term, you should consider a portfolio that is predominantly equity funds. select the schemes well and also ensure you own them in the right allocation. once invested, review every three months to ensure you are on target.

Suneel asked, Hi Rahul, I want to save money for my child's education, Please suggest some good way of investment. I like the ULIPs, but I am afraid of its first year charges.
Rahul Goel answers, suneel, hi. well, you seem to have done your homework! indeed initial charges in ulips are high. i think you should go for mutual funds and maybe as an add on consider a low cost ulip. do take term insurance for yourself... you want to secure your child's future in case of any eventuality.

joy_butola asked, is there any possibility of bse to come down to 14k
Rahul Goel answers, joy, hi. to be frank we have no idea where the markets are headed in the near term. in fact, we do not pay much heed to the sensex as it is dominated by only a handful of stocks. we focus on fundamentals of companies and expect the same to reflect in their stock price 3/5 yrs from now. what happens in the near term is almost always difficult to understand and predict!

Rahul Goel says, Thank you all for participating in this discussion. See you next week!

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

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