Financial planning. You have heard of it but have no idea how to go about it. Well you are not the only one.
If you are at a loss as to where best to park your money, which mutual fund to buy and how to choose the right MF, here is help.
Personal finance expert Irfan Rupani, answers some oft asked queries...
irfan says, hi good afternoon everyone lets begin
rajusan2004 asked, how to invest in mf
irfan answers, at 2008-08-06 13:28:13hi, you can invest in two ways. you can either approach a qualified investment advisor or you can invest on your own. in the former case, you will have to bear an entry load for the advice/service; in the latter you will save on the entry load but will lose out on advice and services.
pradeept asked, hi I want rs. 1 corore in 15-20 years horizon , what should I invest right now in SIP. I have already invested in SIP franklin flexi cap-rs. 1000 birla fronline equity -1000 reliance vision fund -500 reliance diversified fund-1000 what Other fund I should invest
irfan answers, hi, your choice of mutual funds depends on your risk profile and investment objectives. if you have a high risk profile and sufficiently long investment horizon, you can consider investing in aggressive equity funds. however, if you have a moderate risk profile then you can consider investing in a portfolio of equity funds and balanced funds.
prateek asked, what is ETFs
irfan answers, hi, an etf (exchange traded fund) is a mutual fund that is traded on the stock exchange. so instead of investing/redeeming at the fund house, the investor must invest in an etf through a registered stock broker.
SandeepKumar asked, What are Good FMP's available now or may open in few days?IS Lic FMP and Tata ones are good?
irfan answers, hi, we recently wrote an article on fmps. please click here: http://www.personalfn.com/detail.asp?date=7/25/2008&story=2
Nagaraj asked, Hi Sir, Pl give basic tips to invest in MF. Pl guide with precautions to be taken as well, Thanks in advance.
irfan answers, hi, before investing in mutual funds, you must determine your investment objectives (retirement, child's education, etc) and risk profile and investment tenure. once you have decided on these, you should go about selecting investments/assets (including mutual funds) that can help you realise your investment objectives.
Yogi asked, Hi Irfan, i want to invest 50,000 for the Tax exeption for whole one year could u please advise me for the options , should i start investing now or should wait for further market fall?
irfan answers, hi, all tax-saving products have a lock-in of more than a year (elss is 3 years, nsc is 6 years, etc). assuming you have the risk appetite for equities and the necessary time frame, we recommend that you go for well-managed elss via sip route.
drmanian asked, hi i read an article which says investing in mutual fund is not worth as companies charge expense ratio every year, which in turn will affect returns when investor stays for long. i plan stay invested for 15 yrs. investing 15k per month. my consultant asking to switch over to shares in same sip manner to get more returns as i need money only after 15 yrs. advise me.
irfan answers, hi investing in mutual funds and stocks are two different things. in a mutual fund you have the benefit of the expertise of the fund house and fund manager, which is why you pay the expenses. over longer time frames well-managed funds outperform the benchmark index which justifies the expenses. you can invest in stocks if you can handle the risks and complexities of direct investing. we have written an article on stocks vs mutual funds, please click here: http://www.personalfn.com/detail.asp?date=4/9/2008&story=2
wardboy asked, Hi! Wanted to know a good tax-free mutual fund for NRIs?
irfan answers, hi, there aren't any tax-free mutual funds specifically for nris. you can invest in some of the better managed tax-saving funds like franklin taxshield and fidelity tax advantage.
vashishth asked, Hello Mr.Irfan, Can u guide me ,which funds are best if i wish to invest Rs.50000/-in this week.. Vashishth
irfan answers, hi, there is no best fund of the week or even a best fund for that matter. we recommend that you select a mutual fund based on your risk profile and investment tenure.
Yogi asked, Hi Irfan..could u advice which sectorial Mutual fund would give us more growth?
irfan answers, hi, if you are not sure which sector is best placed to deliver growth, you are probably better off by investing in diversified equity funds like hdfc equity, dsp ml opportunities, etc.
shikha asked, sbi infrastructure fund How is the fund \
irfan answers, hi, sbi infrastructure fund's performance is linked to the performance of the infrastructure sector. when infrastructure theme does well, the fund will do well. when there is a downturn in the theme like at present, the fund's performance will also decline. this is the typical performance pattern of a sector/thematic fund.
H asked, what are gold funds?
irfan answers, hi, there are two types of gold funds. one category of gold funds are passively managed and listed on the stock exchange (gold etfs). the second category of gold funds invest in companies that mine/produce gold; these are actively managed gold funds. if you wish to invest in gold, then you can consider gold etfs. if you want to invest in gold as a sector/theme then you can consider investing in actively managed gold funds.
advise asked, Hi Irfan, Please guide me for the sip OF 20000/Rs. What do you think of 1)Sundaram select Focus 2)Reliance Growth 3)HDFC Growth and 4)HSBC Growth. Which two of these will you prefer for 10000 Rs.each. Please answer as I am in great need of your opinion. Thanks
irfan answers, hi, many of the funds you have chosen are managed aggressively. if you have the risk profile for the same, i would recommend sundaram select focus.
Mutuallyurs asked, when markets are down is investing in MF's a good option
irfan answers, hi, sure, being market-linked investing in a mutual fund at lower levels is always a good idea. provided you are going to be invested for the long haul.
Gauravkumar7 asked, I have been inversting in tax saving schemes of SBI, HDFC and ICICI for the pat 3 years. Now I want to diverisfy and invest more in non tax saving mutual funds. Which funds would you suggest for the same considering I can invest about 10,000 per month through SIP for the same. Also for Tax saving mutual funds are ICICI, SBI and HDFC best or could you please suggest mutual funds better than them. Thanks
irfan answers, hi, you can invest in the better-managed funds from sundaram mutual fund, dsp ml mutual fund and fidelity mutual fund.
pradeep asked, Hi,i want to invest in mutual funds,but i am a layman in this field,where do i get the knowledge abt it..
irfan answers, hi, to know more about mutual funds, please download the free guide - Definitive Guide to Mutual Funds by clicking here: http://www.personalfn.com/investment/ms/AllPrevIssues.asp
anandloya asked, Many Thanks for the answer.You said 'Hi, many of the funds you have chosen are managed aggressively. if you have the risk profile for the same, i would recommend sundaram select focus.' Shd I invest whole 20000 in Sundaram Select focus or also in some other fund.as asked before like 2)Reliance Growth 3)HDFC Growth and 4)HSBC Growth. Can you please suggest some less aggressively managed funds also.Please answer.
irfan answers, hi, you can consider hdfc top 200 and dsp ml top 100
Abhijity asked, Hi Irfan I have been investing in HDFC tax saver and Reliance tax saver since June 07. Both have lock in of 3 years. From Julu 08 I have started an SIP of 2000 each in DSPML Top 100-Growth, Kotak 30-Growth and Sundaram BNP Select Focus for 3 years. Please comment on this portfolio as I am targetting around Rs.7L by end of 2011?
irfan answers, hi by and large your portfolio seems fine. i will need more details about your investment plan. please write to me at info@personalfn.com
Amar asked, Hi Irfan, I plan to start an SIP, preferably in a balanced fund. I have identified HDFC Prudence (G) for the purpose. Kindly let me know the following: 1) idea of investing in a balanced fund is correct or not considering the present circumstances 2) whether HDFC Prudence (G) is the right choice for the investment
irfan answers, hi, hdfc prudence is a good balanced fund. investing in balanced funds is always a good idea given the asset allocation benefit they offer.
rameshbabu asked, hi, my CA is asking me to invest 10k in mutual funds in order to save Tax, could u suggest me in which company i have to invest ?
irfan answers, hi, i am assuming that you have the risk profile for equities. if you do have the risk profile, you can consider investing in schemes like franklin taxshield and fidelity tax advantage.
irfan says, hi looks like we have run out of time, please write to me at info@personalfn.com with your queries.
