Are 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.com financial planning expert Sailesh Multani offered some valuable tips. Here is the transcript:
Sailesh says, Hello & Good evening - welcome to this chat session
Sailesh says, For all those who are looking forward to recommendations on various types of mutual funds, here are my picks. In the equity fund category HDFC Top 200 Fund, DSP BR Equity Fund and Fidelity Equity Fund. In the balanced fund category, I recommend HDFC Prudence Fund. In the ELSS category HDFC Tax Saver and Fidelity Tax Advantage Fund
TARUN asked, SIR ARE FMP INVESTMENTS OK
Sailesh answers, at 2012-03-15 16:02:46Hi, FMP investments are ideal for low risk investor who are looking at fixed return from their investments. Before you invest in any FMP please check with your advisor the expected portfolio. A portfolio consisting of bank CDs is more safe compared to portfolio consisting of NBFCs. FMPs are much better compared to bank FDs because of their tax efficiency.
vss asked, Do I have to move all my bank balance to my mother's account to avoid paying taxes on savings account's interest?
Sailesh answers, hi, even if you move all your money in the savings bank account to your mother's savings account, you will still be liable to pay the tax on the interest earned on your mother's savings account because of the clubbing provisons of the income tax act
prabhat asked, which is best mutual fund in long term
Sailesh answers, hi, if you are looking at equity funds and long term means 5 years and more then you can invest in the funds suggested by me at the start of this chat.
RiteshVaswani asked, Which MF should I select; first time investor in MF
Sailesh answers, hi, since you are a beginner in the MF, I would advise you to invest through the SIP. Invest in well managed and diversified equity funds like HDFC Equity fund and Franklin India Bluechip Fund. Stick to 2 funds for the time being.
Meera asked, I am investing SIP in ICICI Bluechip,Discovery,HDFC top 200,Equety, and reliacnce Gold Fund is my port folio is divesified? I want to invest for 10-15 year
Sailesh answers, hi, overall looks ok but you should diversify your portfolio going forward. Add funds from DSP and HDFC mutual fund.
ragha asked, Sir, Can you enlightern us in case of home loan, which tenure is good long term or short term. Ex. 10 years or 15 years or so in case of Housing interest rate is 13% for a principal amount of Rs.15 lacs
Sailesh answers, hi, longer the tenure lesser would be the EMI but you will pay more interest. In my opinion your home loan term should be minimum
vijay asked, sir which is the best tax saving investment today and for another 3 years please let us know
Sailesh answers, hi, you can refer the funds recommended by me at the start of this chat.
Raje asked, I am investing in SIP, PPF, RD ,GOLD is any other invest to invest in for long term to create wealth?
Sailesh answers, Hi, your portfolio overall is very good. It is better to have a diversified portfolio always. To create wealth in the long run you should consider investing in diversified equity funds. Start SIPs in 2-3 well managed funds. You may refer the funds recommended by me at the start of this chat.
satish asked, I am at 32 yr and want to plan my retirement at 60 yr which MF i have to select ?
Sailesh answers, hi, you need to build a portfolio of well managed and diversified equity funds. the number of funds should be in the range of 5-6. Your retirement corpus should be well diversified comprising of equity, debt and gold. Gold can be 10% of your total portfolio.
Naveen asked, Hi What is the Best single Investment Plan to save tax?
Sailesh answers, hi, you need to have a portfolio of tax savings instruments like ELSS funds, NSC and PPF.
Jaskaran asked, Hello Sir, I am currently working in a private firm and earning a salary of Rs.29000/- per month. Currently i am putting Rs.5000/- in RD per month and it is for 5 years. Please suggest some low risk and high return investment plans
Sailesh answers, hi, high returns come only with high risk. If you are willing to take risk then you can aim at returns higher than FDs. Consider investing a small amount into diverisified equity funds. Get used to the risk and volatility associated with these funds and then gradually increase the allocation.
kprasad asked, Sir, I have invested Rs. 50,000 at the time of NFO of Sundaram Energy Opportunities Fund. Till date they have not given any dividend in last 4 years & NAV is around Rs. 7.5. Please advise the course of action.
Sailesh answers, hi, you should consider moving out of this fund immediately and get into well managed and diversified equity funds like the ones recommended by me at the start of this chat.
NoMore asked, GOLD fund is good to invest in?
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.
rs asked, I am investing in SIP ...what should be the time line one can think of
Sailesh answers, hi, SIP is a simple and tested strategy for creating wealth from equity funds. However, this strategy works in the long term and by long term I mean a period of 5 years
bvmallikarjun asked, between guaranted funds, tradiitoinal plans, endowmpment plans, money back plans and PF, PPF which is best
Sailesh answers, hi, if your question is with respect to the best form of insurance, then in my view Term plans are the best. these plans offer higher sum assured for relatively lower premium. I dont recommend anyother insurance to any investor. As far as PF and PPF are concerned, you should invest in the same.
kjl asked, Hi, what should one do with the amount accumulated through investing in a mutual fund through SIP? How one should ensure that the corpus provides returns after retirement and also grows with time? Thanks in advance
for your answers!!
Sailesh answers, hi, your post retirment corpus should consist of 15-20% of diverisified equity funds. This component will ensure that your average return from portfolio is equal to or higher than inflation thereby delaying the capital erosion. The debt portfolio should be sufficiently large enought to last your lifetime and generate adequate returns to meet all possible post retirement expenses.
abcxyz asked, Hi, i have invested in ULIP max newyork life maker unit linked investment plan (Like Maker) and i am paying the premium amount of 8334/- PM now its around 6 years and i am still making the loss of 42 thousand according to the current NAV. please advice shall i continue or exit from this ULIP. thanks!
Sailesh answers, hi, you should consider surrendering your ULIP and reinvest the surrender value into well managed diversified equity funds. For fulfilling your insurance needs, you should consider buying a term plan which offer higher sum assured for lower premiums.
uo asked, Sir, I am 31 yrs. old and investing 5k per month among HDFC top 200, HDFC equity fund, Reliance regular saving fund, UTI opportunity fund, DSPR top 100. currently, I am not getting good return. What should I do?
Sailesh answers, hi, you have invested in well managed funds. The funds have not done well because the equity markets in general have given negative returns for the last one year. You should hold onto your investments for the long term. I am sure you will see postivie returns from them.
ash asked, Dear Sailesh, I want to invest around 1lakh Rs and i would like to keep it for next 10-15yrs this is for my Daughters education/marriage what kind of investment would u suggest and what would be a probable returns on it.
Sailesh answers, hi, since your daughter's education and marriage are 10-15 years away you should consider investing a larger portion of your investment surplus into diverisified equity funds. SIP should be your preferred mode of investment. Also allocate 5-10% to Gold. Gold ETFS are better compared to buying physical gold.
sikkavikas123 asked, Hi Which Gold ETF fund......you have not mentioned any gold fund in start of you chat
Sailesh answers, hi, in the Gold ETF category, I recommend Goldman Sachs Gold ETF
hemang asked, i want to purchase a house and i need a money in next 1-1.5 year. i am earning now 15000/- per month and i had an sip of rs. 1000/- of birla sunlife frontline equity fund, so please guide me.
Sailesh answers, hi, if you are accumulating funds for your down payment, then you should start SIP in ultra short term income funds and not in equity funds. Equity funds are ideal for long term goals, goals which are 5-10 years away.
vg asked, would higher contribution in EPF provide better returns than PPF
Sailesh answers, hi, currently the rates for both the PF are similar. You should continue with investment in both the PFs
wali asked, dear sir i have a sip of hdfc 200. please advice should i continue with it. plzzzzzz suggest
Sailesh answers, hi, this is a well managed fund. Please continue your investments in this fund.
ben asked, Hi, I have SIP in Magnum TaxGain, Magnum Sector Funds Umbrella Contra, Reliance Gold and SBI gold. Which other MF's should i invest? I can spare about 3000/- per month. My tax bracket has already exceeded. So should I continue with TaxGain? If not which MF do you recommend for investing this amount?
Sailesh answers, hi, you can continue with the Gold fund. But I would recommend an exit from Magnum funds. You may choose to invest in fund recommended by me at the start of this chat.
Parvinder asked, what is best sell property and clear housing loan as i am paying 25,000 as EMI / month
Sailesh answers, hi, if you have the option of selling a property and clearing your home loan. then by all means do it. You will save on the EMI which in turn can be reinvested into equity funds to fund your long term goals.
Ramiz asked, Sir, Since last 4/5 years I am watching that Market is not giving any return, so why u advise to invest in MF, I invested 4 Lakhs now it has become 1.5Lakhs, if same I would have kept in Bank FD I would have got at least 6/7 Lakhs.
Sailesh answers, hi, I would advise you to get your portfolio checked by a professional investment advisor to ensure that the stocks/funds that you hold are fundamentally sound.
badribabu asked, I am having MF Reliance Vision Fund,Tax saver, Growth Fund,Div.Power Sector & banking fund. My value are not good showing except Banking fund. pl. advise whether shall i keep or quit my MF schemes.
Sailesh answers, hi, just wondering how come you have all the funds from same fund house! I would advise you to redeem all the funds and reinvest into well managed and diverisified equity funds. Please note that your portfolio has two sectoral funds - power and banking. These funds do well only when these sectors do well. Hence, more emphasis is on diverisifed funds.
SKD asked, Hi, I do a monthly SIP investment to the tune of 10 K on DSPBR EQUITY, Fidelity, Reliance Power diversified, ICICI equity etc. Plz suggest some good funds & is it okay to enter gold funds. regds, skd
Sailesh answers, Hi, you can exit Reliance Diversified Power Sector Fund. I cant comment on ICICI as you havent mentioned the complete name of the fund. Rest all funds are ok. You may continue with your investments in them.
Ramakrishna asked, Sir, Investment in property or shares or mutual funds, whuch is the best in the longrun.
Sailesh answers, hi, the choice between property, share and mutual funds will vsry from person to person. It will depend on what one is comfortable owing. I personally prefer stocks and mutual funds to property. It is easier to manage a portfolio of stocks and mutual funds compared to properrty.
sandeep asked, what is the maxi. limit of investment in ppf if someone has two account ,one in his name and another in child's name.
Sailesh answers, hi, in each account you can invest a sum of Rs 1 lakh every year.
MAYUR asked, Also Tell me about Pnesion Plan. I am regularly investing in F.Ds in Banks & Company.
Sailesh answers, hi, pension plans are insurance plans that offer guaranteed return from a chose date which could be your retirement date. Pension plans are normally suggested for retirement panning. I dont recommend pension plan at all to investors. IF one is planning for retirement then one needs to build a retirement corpus comprising of equity funds, debt funds, PPF, EPF, Bank FDs and Gold ETFs.
maxie asked, i am a sr citizen retired if i invest in fixed maturity plan is there chance of capital eroding ?
Sailesh answers, hi, FMPs are low risk investment. These is a risk of capital erosion if the fund manager invests in a security isssued by a bank or a company and the bank or the company doesnt return the money. So far the FMPs have a good track record and fund managers are very careful of the quality of securities they buy in their portfolio.
Sailesh says, We have run completely out of time. I thank you all for participating in this chat. If you have any questions which were not answered during the chat, please mail them to me at
sailesh.multani@gmail.com.
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