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 with 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
ImIN asked, ICICI Prudential Focused Bluechip Equity is it good fund to invest?
Sailesh answers, at 2011-08-25 15:59:40Hi, I would prefer Franklin India Bluechip Fund over ICICI Focussed Bluechip Fund. Franklin Bluechip has been a consistent performer for more than 15 years.
Nag asked, what is the ideal investment at the current scearino is it EQUITY, COMMODITY, CURRENTY, ASSET
Sailesh answers, Hi, the ideal asset allocation depends on your investment objective, risk tolerance and investment horizon. Your investments should be dependent on these parameters as against the flavour of the season. Dont buy gold simply because it has done well in the last one year. Gold should be bought as an insurance in your portfolio more than anything else. Similarly, equity is good if you have an appetite for risk and investment horizon exceeding 5 years.
Priyanka asked, Shailesh sir, I want to invest in GOLD instead of Physical gold I want to invest through SIP, in which fund I have to invest?it required demat account?
Sailesh answers, Hi, if you want to invest in Gold Exchange Traded Fund then demat account is compulsory. SIP is not available under ETFs
ashish asked, is hdfc equity fund id ok for 3-4 years
Sailesh answers, hi, this is a good fund to invest for 3-4 years
raja asked, Is investing in MF the sip route still a good startagy for current market
Sailesh answers, Hi, SIP is the best strategy for investing in equity markets. It is observed that investors like to time the entry into the equity market. Market timing is a matter of luck. There is no science that can help you time the markets perfectly. SIPs take away the botheration of timing the markets. It also brings in a sense of discipline to the whole investment process.
bipin asked, Dear sir, Is it a good time to enter into staock market?? how the gold prices will be in future ???
Sailesh answers, hi, if you are willing to invest for 5 years and more and have an appeite for risk then you should not miss the opportunity to invest in equity markets at the current levels. Political and economic problems are part and parcel of this modern world. They will continue to exist in some form or other. These should not act as a barrier for investing in equity markets. Equity markets move in cycle. Therefore, it makes sense to invest when the cycle is changing. May be there is some more downside but in my view one should start investing. Gold will be in demans till the western economies come out of the woods. Gold is likely to continue its journey upwards. There will be periods of sharp rise and fall but overall the trend looks upward. Gold should not occupy more than 15% of your overall portfolio.
dharmesh asked, what is the strategy to invest in fluctuated market
Sailesh answers, hi, I recommend investments in well managed and diversified equity funds through the SIP markets to beat the fluctuations
curious asked, I have 4 lacs rupees, how do I invest over the 5 years for 20% returns?
Sailesh answers, hi, the ideal investment for 5 years to earn a return of 20% is diverisified equity funds. Please bear in mind that equity as an asset class is risky. Therfore you should be able and willing to take the risk associated with it. If you can reduce the return expectation from 20% to 12-15% then you will have fewer ocassion to be disappointed.
sunil asked, Is this right time to invest in GOLD? OR Does I need to wait some more time?
Sailesh answers, hi, gold has corrected sharply (11%) in the last one week. One can buy some gold at the current levels. Buy some more if it corrects further. Dont rush into buy gold. There will be plenty of opportunities to buy gold at lower levels. Plese make sure that your allocation to gold is capped at 15% of the overall portfolio.
Achyut asked, Is it right time to buy equity and mutual funds? If yes,which are the best shares to buy and which mutual schemes to buy? Investment amount is around 3 lakhs for a period of 2-3 years?
Sailesh answers, hi, if you are investment horizon is only 2-3 years then you should aim at investing in a mix of Bank Fd and Balanced Funds. Bank FD will bring in stablitiy and Balanced Funds will bring in extra returns because of the equity component.
jaknap77 asked, Sir, i have a home loan with an EMI (10 years 30lac loan amount) of 40k (rate of interest 10.5%), I have FDs around 10 lacs (avg 7% rate of interest). I can payoff 10lacs, but I want liquidity as well...can u suggest a way to close that gap of 10.5% and 7% please?
Sailesh answers, hi, I am not sure why are you still invested in FD that fetches you 7% p.a. Once year FD rate for any bank is close to 9.5% to 10%. Please visit the websites of private and public sector banks to see which one is offering you the best rate.
Bangari asked, I am investing 10K in SIP for the past 18 months. pl advic shoul i continue to invest or redeem
Sailesh answers, hi, please continue with your SIPS. Also ensure that you are invested in well managed and diversified equity funds. SIP by itself doesnt ensure wealth creation
Narendra asked, Which stocks are good specially midcap at present level to buy for 2 year period
Sailesh answers, hi, I would not be in a position to recommend any midcap stock. I can recommend midcap fund - Sundaram Select Midcap and DSP BR Midcap Fund.
Pritam asked, Hi, I wish to invest 20k per month for the next 15/20 years for my pension and investment purpose.Pls suggest which pension fund or Mutual I can invest.
Sailesh answers, hi, you are basically planning your reitrement. The best approach to plan your retirement is to get a retirement plan made with the help of a financial planner then invest in line with the financial plan. The retirement plan will tell you how much corpus should you accumulate by the time you retire and how should you go about building that corpus
Prakash9829012915 asked, Mr.Multani .. i am investing 4000 per month each in three fun hdfc equity , hdfc top 200 and sundarma bnp .... from jan 2011... should i put more money in the same while Nifty is 4500-4800 around........
Sailesh answers, hi, you can invest in HDFC funds at the current level. You havent mentioned then name of sundaram scheme... therfore cant comment on the same.
sdfasdf asked, I am investing 4k each in HDFC Top 200 and HDFC Equity and 2K each in IDFC Premier Equity and Sundaram Select Midcap. I want to keep invested for 10 yrs is it a good choice of funds?
Sailesh answers, hi, your portfolio is very aggressive. unless you are worried about too much volatility in your portfolio. you can continue with your current portfolio.
ATUL asked, presently am investing in SIP from last 3 yrs still unable to fetch good returns funds selected which are -HFDC TOP 200 / RELIANCE GROWTH / SBI MAGMUM CONTRA CAN I Switch to other fund
Sailesh answers, hi, yout portfolio is bound to underperform because of two underperforming funds - Reliance Growth and Magnum contra. You can replace them with DSP BR Equity and Fidelity Equity Fund.
skk asked, Hi, I want to secure future of my 4 months old son, for which i want to invest in best equity diversified funds, I have also taken a term plan of 50 lacs. Currently I am investing in following funds through SIP DSP BLACKROCK BALANCED FUND - GROWTH HDFC PRUDENCE FUND - GROWTH PLAN HDFC TOP 200 FUND - GROWTH PLAN HDFC MIP-LTP-GROWTH RELIANCE MONTHLY INCOME PLAN - GROWTH PLAN RELIANCE REGULAR SAVINGS FUND-EQUITY PLAN Please let me know if i continue in these funds or replace these funds with others, please suggest some good funds.
Sailesh answers, hi, I like your investment planning. I even like your mutual fund portfolio with the exception of Reliance Funds. You can replace the Reliance Regular Savings Fudn with Fidelity Equity Fund.
skk asked, Hi, I had taken reliance market return plan ULIP(regular) having premium of 25k per annum 5 years back, I just checked on their website that they have now withdrawn this plan, so what should I do now, shall I continue to pay premium or exit from this policy or stop paying premium and stay invested in? If I exit from this plan any other better option to invest this amount?
Sailesh answers, hi, I m not sure what would be the surrender value of this ULIP. If it is marginal then you may come out of it and invest in diversified equity funds recommended by me at the start of this chat.
Mahendra Pitroda asked, Is it worth taking LIC Jeevan Anand Policy at the age of 51 years?
Sailesh answers, hi, you should only take a Term Plan at this stage as you will save on premium. Also the term of this policy should correspond to the time left for your reitrement.
skk asked, I'm 39 and have a 2 months old son, I want to plan for his future as well as for my retirement, my current invesments are like this 1) Reliance market return ULIP-25k/yr-investing last 3 yrs 2) PPF-10K- last 5 yrs 3) HDFC term insurance-30Lacs 4) Mutual funds- 2 Lacs[dspbr balanced, hdfc pru, reliance regular saving,hdfc top 200]- 1k/month - last 3 years 5) Reliance healthwise policy-4 Lacs- Family floater 6) Stocks- 2Lacs 7) I also have to pay EMI of 30k/
month. I also want to include Child Plans like "AEGON Religare Rising Star Plan", please advise if it would be a good option. Also please suggets if I should continue with Reliance Ulip and also which funds to replace with other good one.
Sailesh answers, hi, very lengthy portfolio. Please mail me at : sailesh.multani@gmail.com
Vijayakumar asked, hi im 34yrs, im investing monthly 2k in 2 taxplanning MF's and paying 5500pa insurance installment, recently invested 25k in gold etf. Further i can invest 10k/month, pls suggest how to invest that 10k.
Sailesh answers, hi, you can start a recurring deposit of Rs 5000 and SIP of Rs 5000 in diversified equity funds.
abi asked, i am an NRI , where should i invest for a steady returns if i plan to shell around INr 15000 monthly for 5 yrs ??
Sailesh answers, hi, you may start SIPs in the funds recommended by me at the begining of this chat.
priyankaa asked, what would u recommend - Gold etf Vs Debt funds for 2 years holding period.
Sailesh answers, hi, certainly short term debt fund.
Gauravfzd asked, Sir, How are Franklin India Prima Plus, HDFC Equity, Reliance Regular Savings, Reliance india Growth and DSP BR Top 100 Fund? I am running SIPs in all of them and have a long-term horizon.
Sailesh answers, hi, all are good funds with consistent track record. Continue with the same.
opince asked, HOW DO U RATE TATA MAHALIFE GOLD PLAN with a view of pension returns
Sailesh answers, hi, when it comes to insurance I recommend only Term Plan. I dont research insurance plans, therefore, I will not be in a position to give you my view on Tata Mahalife. I dont recommend any pension plan if you are planning your retirement.
ssn asked, Sir, i am asking this question fo so many times please answer, I have BSL - 96 ELSS fund and HDFC long term advantage fund which is for tax purpose, this august i have completed 3 years of MF enrollment with SIP of Rs. 2000 in each fund , please advise are these good fund or should i discontinue? pls help
Sailesh answers, hi, I would prefer Fidelity Tax Advantage Plan 1996
SM asked, I am invsting in PPF and i intend to open a NPS account. Will that e gud option? Wat % should be invested in gold and for how much time?
Sailesh answers, hi, continue with the PPF. I would not recommend NPS at the moment. Add gold to your portofolio whenever it falls by 5%. Hold gold forever. I dont recommend trading in Gold. I prefer gold ETF over physical gold. Allocation to gold should be capped at 15% of the overall portfolio.
Solaskar asked, Sir,I want to invest Rs.100000/-what would be the better option by Which I can get min.12% guaranteed interest? with Nil Risk Regards, Solaskar DS
Sailesh answers, hi, there is no investment instrument that can give your guaranteed return of 12% without any risk. 12% return p.a. can be expected only from equity funds which carry maximum risk and require an investment horizon of atleast 5 years.
sdfabc asked, Sir i have invested in monthly 1K SIP with HDFC Equity Fund (G) and Reliance RSF EQuiqty (G) since last 12 months, but returns are not good. Pl.suggest
Sailesh answers, hi, its only been 12 months and you are already running out of patience. Please wait for 4 more years. I am sure your funds will not disappoint you. Please reivew your portfolio once every 6 months to ensure that there is no underperformance on account of fundamental reasons.
wet asked, Hi, I want to secure future of my 4 months old son, please suggest me some best plan available in market?
Sailesh answers, hi, you should aim at building a portfolio of diversified equity fund for your son. You may start SIP in the funds recommended by me at the start of this chat. Even Fidelity India Children Plan is a good fund to plan your son's education and marriage.
rinku asked, is sip of 2000 in DSP BR Top 100 to invest for 5 years
Sailesh answers, hi, continue with the same.
Yunus asked, I have ICICI plan Gold plan for this I am annually paying 50000 , its for 10 yrs ? shall continue this plan
Sailesh answers, hi, currently I have no view on these types of plans. Please mail me your query at sailesh.multani@gmail.com. I will get back to you on this.
tyututyutyu asked, Hi Mr. Multani, I am investing in Birla Sunlife Frontline Equity Fund (Div Reinvestment) for the past 2 years through SIP. I wish to continue for a year and then have a period of 5 years before redemtion. Is t his strategy ok?
Sailesh answers, hi, if this is the only fund in your portfolio then it is time for you to stop this sip and invest in some other fund to diversify your portfolio. If this is one of the several funds in your portfolio then you may continue the SIP in this fund.
IAMApollo asked, What is the return opportunity for JM Basic Equity fund Growth?
Sailesh answers, hi, I dont expect this fund to do well. You would be better off investing in funds like HDFC Equity and DSP BR Equity Fund.
sharad para asked, your opinion on quantum equity fund !
Sailesh answers, hi, this is a well managed fund with a history of consistent performance. You can add this fund to your portfolio.
sopan asked, can you tell me about dsp worldgold fund
Sailesh answers, hi, this fund invests in equities of gold mining companies. Therefore, this is a equity fund as against the popular belief of this fund being a pure gold fund that invests directly into Gold.
RAKESH GUPTA asked, I want to start SIP and I want Rs.10 Lacs after 10 yrs from now. How much and should invest p.m. And in which MF should I invest. Pls suggest.
Sailesh answers, hi, assuming that your money grows at an average rate of 10% over the next 10 years, you need to invest a sum of Rs 5000 per month into a mix of equity and debt to accumulate Rs 10 lakhs
guldu asked, Sir, What is the future in MF investments? Investments in "good Funds" by SIPas sugested by you have yiedded negative returns in last 24 Months? What is your sugession sir,
Sailesh answers, hi, equity markets have been subdued for the last 24 months with a small rally in that started in Aug 2010 and ended in Nov 2010. Therefore the returns are negative. Equity markets can remain in bear phase of 2-3 years. Therefore, it requires patience to make money from this market. Hence, I always advise investors to have a 5 year investment horizon if they want to invest in equity markets. if you are invested in fundamentally sound mutual funds then there is no worry. Wait for the bear phase to get over and you will definitely see profit in your portfolio
sainath asked, at current price, HDFC TOP200, FIDELITY EQUITY FUND are good? I have ivested in these when the Fund NAV is Rs.212, 34.50 RESPECTIVELY. WHAT SHOULD i DO nOW?
Sailesh answers, hi, these are among the best funds in the equity fund category. Hold on to these funds. Redeem these funds only if you need money
kamal asked, I have a home loan of 20L, equity portfolio of 1.1 Lakh(current value 95K), doing SIP of 2K in HDFC top 200, spare cash of Rs. 2 Lakhs for emergency in FD's. where should I invest I can invest 4-5K/ month....equity/ SIP/ Gold???
Sailesh answers, hi, you havent specified your time horizon and risk appetite. Cant comment on the best investment for you. Pleae mail me your query with more details.
manoj1179 asked, Hi, is PPF a right investment for me keeping in mind the long term gains? Lets say if I invest 70000 every year?
Sailesh answers, hi, PPF is certainly among the best debt investment. It offers you 8% tax-free interest which is compounded annually. Plus the section 80C benefit.
jj asked, please explain the different kinds of debt funds. if i have bulk money in the current scenario, where can i put it in the debt category? liquid funds vs ultra short term funds vs income funds vs fixed deposits?
Sailesh answers, hi, mail me your query.
Bharat asked, Dear Mr. Sailesh what will be your recomendation for me to break FD and invest in Equity/MF thru STP at this point of time with in next 2 to 4 months
Sailesh answers, hi, if you want to break your FD hoping to make quick money in the stock market then I would not suggest doing so. Plea.se dont change your asset allocation because a particular asset class looks more attractive than the other. Invest only if your risk profile and investment horizon permit so
Bharat asked, Dear Mr. Sailesh what will be your recomendation for me to break FD and invest in Equity/MF thru STP at this point of time with in next 2 to 4 months
Sailesh answers, hi, if you want to break your FD hoping to make quick money in the stock market then I would not suggest doing so. Plea.se dont change your asset allocation because a particular asset class looks more attractive than the other. Invest only if your risk profile and investment horizon permit so
avin asked, I have invested 30k in Fidelity Tax Advantage Fund and my locking period is over, what is the good time to withdraw?
Sailesh answers, hi, hold on to this fund.
arup_jana asked, sir tell me about ICICI Pru Discovery FUnd Growth
Sailesh answers, hi, this is a good fund but the allocation should be capped at 5% of your total equity portfolio.
Somi asked, I have HDFC tax saver fund, for which three years term has been completed. So instead of redeeming them if I keep them, will I be eligible for tax saving on it or do I need to redeem them and apply it again to get tax benefit
Sailesh answers, hi, you need to redeem this fund and then reinvest to be eliginle for tax benefit this year.
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.
