A New Year brings renewed hope and goals, especially when it comes to finances. The fresh start can provide the motivation you need to make it your best financial year ever.
And it's here that you need the help of an expert. Which are the best avenues of investment?
When the global financial sector is in turmoil, is it safe to invest in mutual funds? If so, which funds to invest in? How to evaluate the best best mutual fund?
Investment expert Vinay Mahajan offered some valuable investment tips during a chat on Tuesday. Here is the transcript:
vinay mahajan says, Dear Surfers, Welcome & thank you for login into this chat sesion.
ssss asked, Hi Vinay, if I have a long term view, what will be the best MFs to invest in?
vinay mahajan answers, at 2009-02-10 13:51:58It is better to have a long term view in the present market scenario. It is suggested to go for well diversified large cap funds. large cap firms have better access to funds and these are expected to perform better. historically large cap firms have performed better post correction. you may select funds which are in existance for over 3 years and based YoY return. Like HDFC top 200, Relaiance Vision, DSP top 100, K-30 to name a few..
VIKRAM asked, HI VINAY IF I WANT TO BECOME A CROREPATI IN ANOTHER 15-20 YEARS.WHAT IS THE BEST OPTION FOR ME.I AM 22YEARS OLD AND IN SEARCH OF A JOB
vinay mahajan answers, Mutual Funds can help you in achieveing your objectives. SIP in into equity funds with allocation of 50%-75% in large cap and 20% - 25% in mid cap funds and remaining in thematic funds can work for you
pavan asked, i wanted invest Rs.25000/- for term , where we invest?
vinay mahajan answers, Investment should have clarity in terms of 1. Objective 2. Tenure 3. Risk appetite and 4. Liquidity needs. based on these you may select Equity or Debt funds
VIKRAM asked, WHAT IS THE BEST OPTION FOR 5 YEARS SIP IN MUTUAL FUND OR EQUITY?
vinay mahajan answers, you may opt for large cap equity funds
Adesh asked, My Mutual Fund Holding has gone down about 44.65% from my investment level.. I dont mind holding my investment for another 10 years also. My question is should i stick with the mutual funds or is there a better investment opportunity for such a term ?
vinay mahajan answers, Investment in equity is a risky affair. However the risk reduces significantly if the investment horizon increases. You may revisit portfoio and replace underperforming funds and investment themes which are out-of-favour
Leo asked, Hi Vinay, What is the liquidity for income and liquid plus fund?
vinay mahajan answers, for liquid plus funds lockin is 0-15 days with an exit load ranging from 0.2-0.25% and income funds have lockin of 6months - 1year with exit load ranging from .5-1.0% in case of early redemption
yogesh asked, hi vinay my nett take home is 1.5 lacs per annum , 1 have 3 sip of rs.10,000 each of reliance vision, hdfc growth and sbi contra umbrella fund for a 10 year period.. additionally i have lic jeevan shree and jeevan anand for which for both i pay rs.125000 yearly . my insurance cover is 20 lacs and accident cover is 50 lacs. should i invest in sbi ulip which is giving good growth on a 10 to 20 year horizon and also i get insurance cover of 50 times annual premium. if not what do i do. thanks.
vinay mahajan answers, revisit your insurance plan. Provide for contigency funds if not done. If you are planning for investment opt for equity funds
maya asked, i want to take sip for 15000/month.which funds shall i look for.?whether there is any escape from being paying the entry load? alsois this right time to invest in income funds?
vinay mahajan answers, You may opt for diversified large cap funds for SIP. to save entry load directly approach the AMC however you should be sure about the fund. If you have horizon of 6-9 months you may go for income funds
king asked, is PPF a good investment option or should I go for FD.
vinay mahajan answers, Investment products are for your benefit understand the product profile to get the maximum benefit. PPF limits investment upto Rs 70000 in a FY If you are opting for tax benefit FD has to be for 5 years period but intrest will be taxable. if you are early starter you may opt for ULIP with debt option with options to swith to other funds
shri asked, which is debt oriented Tax saving mutual fund?
vinay mahajan answers, none
mysimcard asked, Hi, I Invested in Bond Funds. Should i hold or exit?
vinay mahajan answers, you may hold for another 6-9 months
jagan asked, Sir, I can save around Rs.2000 per month. which I want to invest in MFs. I already have LIC,Healthpoliciea. Please suggest.
vinay mahajan answers, you may opt for SIP in ELSS if you have not coverd the entire deduction amount u/s 80CCC or you may go for diversified large cap funds
siva asked, sir, at these levels can we expect 500% returns over the next 5 years timeframe.
vinay mahajan answers, set the realistic targets. you may expect 20% p.a. return over next 5-7 years
subbs asked, Hi Vinay, what should the ideal split (%) of investment in to 1. real estate, equities, MF, gold, Fixed Dep/Debt
vinay mahajan answers, Good one! However selection of asset classes depend on tenure, financial objectives, liqidity requiremnets, Risk appetite and tax aspects etc. Also do not forget to include cash.
mark asked, Hi - Short term investing what are the options - below 1 year - 50,000 per month - can stop/withdraw easily.
vinay mahajan answers, Income funds
bala asked, Hi Vinay, i am doing SIP (1000 on monthly basis) on below mentioned schems .. what is your say, whether i opted for best schemes whether i should continue or hold for now .. i am long term investor Reliance Diversified Power Sector (G) Reliance Equity Fund (G) HDFC Top 200 Fund (G) HDFC Growth Fund (G) DSP ML India T.I.G.E.R. Fund (G) Sundaram BNP Paribas Select Focus - (G) Reliance Regular Savings Fund - Equity (G)
vinay mahajan answers, You may switch to DSP top 100 from TIGER rest you may continue
ars34 asked, which is the good --invest in real estate or mutal fnd at this point of time?
vinay mahajan answers, Mutual Funds, however it depends on financial objectives and risk appetite
tarun asked, 1. How to find out a good investiment advisor in Delhi? cos my concern is advisor is working for my benifit or his own perks.. he may sell me any product that offers him/her better incentives
vinay mahajan answers, advisors are better informed and trianed to advice based on the latest info. They offer what is in the best intrest of his / her clients.
peter asked, Does investing in gilt funds helps in the down trend as some websites show that they perform better
vinay mahajan answers, you may opt / swith to income funds
Anju asked, hello sir pls help me i'm really scared & tense i'm investing some amt in mutual fund thru SIP pls tell me is this gud fund 4 how long i can hold this fund Reliance equitty Advt fund-500/- Reliance diversifd power - 250/- Reliance Regular Saving - 250/- Reliance Natural Resources - 250/- Franklin Templeton Flexi cap - 500/- Sundaram Capex Opportunity - 500/- many many thnx in advance
vinay mahajan answers, focus on few funds. rebalance your portfolio and swith to diversified large cap funds
mark asked, I have SIP of 7000 in the fololowing JMF Emerging Leaders(SIP of 2000), Franklin India Flexi Cap(SIP 1000) , Franklin Equity Income Fund(SIP 1000) and IDFC Premier Equity(SIP of 3000) -
vinay mahajan answers, you may go for large cap funds.
Manish asked, Dear Sir, I have a private ltd firm with some 50 lacs cash surpless. I had previously invested the same in FMP for 3 months with a return of arounf 9.75 percent post tax. However with decline of sensex and recession, interest rates offered by banks have gone down . What can be the best option now for placing my money for a period of around 6 months???
vinay mahajan answers, you may opt for Income funds
richa chadda asked, i am earning around 3.5 lakh..but not able to save .so,what should i do
vinay mahajan answers, decide financial objectives, identify needs and allocate prioirty that may arise in future savings would happen
aaaa asked, What is income funds, how will get them. What is entry or exit loads or minimum limits, maturity expectation, who can opt for this
vinay mahajan answers, these funds invest in corporate debt with long maturity retunrs from these funds increase in a falling intrest rate scenario.
vinay mahajan says, thanks for participating and all intresting questions that you have asked. Happy Investing Bye...
