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 on Wednesday, financial planning expert Irfan Rupani replied to many such readers' queries. Here is the transcript:
manoharan asked, Sir, Floating rate fund and Liquid fund which is good. Daily dividend, Monthly, weekly which plan is good.
irfan answers, at 2008-06-25 12:57:05hi manoharan, both serve very different objectives. liquid funds are for short-term parking of monies, while floating rate funds can preserve your monies in a rising interest rate scenario, ideally for an investment time frame of at least 3 months (for a short-term floater)
piyal asked, I am already saving in PPF,NSC,FD,LIC, mutual funds etc all of which are giving negative return. What do I do with my money now? Please answer.I am worried about my retired time.
irfan answers, ppf,nsc, fd are assured return schemes that can give stability to your portfolio in volatile times like these. as regards mutual funds (assuming they are equity funds) so long as you are invested in the right funds and you have considerable time until you retire there should be no cause for concern
Animesh Kumar asked, Hi, I've 3 lacs to invest but not sure what I invest in?
irfan answers, hi animesh, please start off by setting yourself some investment objectives i.e. decide what you wish to accomplish and over what time frame. that is a good way to get started and investment avenues can come in at the next stage
shari asked, Sir i am earning arroun17k per month.... and i am having an SIP of 1000 in DSP ML TIGER..... please suggest me the right way to invest for the time horizon of 5 years
irfan answers, hi shari, dsp ml tiger is a thematic fund. such funds are high risk high return investments and suitable for informed investors. you need to decide whether you fit in that category
LightHouse asked, Sir How can I invest in Government Bonds?Are there Mutual Funds which invest in Bonds?
irfan answers, hi, as a matter of fact, there are mutual funds that invest only in government securities/bonds, this category is referred to as gsec/gilt funds
sunilbhai asked, dear sir, equity investment is not gambling and gives the best return in the long term. it also helps yr return to society by giving employment to others thru yr investment. looking at the above the best investment method of getting into equity is thru MF's. i want yr advise which AMC of MF's are ethically correct and are safe to handle my investment. i hv presently 3 HDFC, Fidelity & DSP Ml. are these meeting the above requirements and are there others similar good AMC's
irfan answers, hi sunil, at personalfn we like the AMCs mentioned by you among others. however, within these AMCs it is pertinent for you to select the right funds based on your risk profile and investment objectives
subrat asked, Interested to invest in a suitable SIP. Kindly advice which one to select at the present situation. Is it advisable to put Rs 5000 in a single SIP or distribute it in atleast two SIPs. Kindly advice some better options.
irfan answers, hi subrat, if you wish to invest rs 5,000 every month then having two funds with different styles/mandates should help from a diversification perspective.
vks asked, Please suggest some mutual funds to invest now.........whether lumpsum or SIP........ I am already holding Rel Growth, Rel. Div. Power, DSPML Top 100, HDFC Equity, Rel. Equity, Fidelity International. suggest some change
irfan answers, hi, you can consider changes in your mutual fund portfolio only if you believe that the present lot is not right for you or is not delivering results or if you have already achieved your investment objectives.
subrat asked, Paying premium of Approx Rs 62000 towards life insurance. Another Rs 30000 towards PPF & EPF. Rs 10000 (Single) is for LIC ULIP-Market Plus. After all these I want to Invest Rs 5000 per month. Kindly advice.
irfan answers, hi subrat, most of your investments are skewed towards assured return schemes. if this suits your risk profile then thats fine. if you can take risk then you consider mutual funds as a market-linked avenue
sachinrai asked, hi irfan,is this the right time to invest in stock market?
irfan answers, hi if you have the risk appetite for it and have the necessary time frame (we recommend at least 3-5 years for equities), then you can consider investing in stock markets in a staggered manner
Mayank asked, Dear Irfan, am investing 7000(SIP) in various mutual funds. Seeing the sensex I am worried about loosing money every month. Should I continue giving the SIP. My two funds-Reliance and SBI-have completed one year and one financial advisor told me to change these two with a new Reliance one which is giving a Life Insurance as well. Should I go ahead with it? Other thing to know is How profitable is it to trade directly?
irfan answers, hi mayank, now is a great time to invest in mutual funds through sips, the volatility means that you have a higher number of units credited to you every month and will lower your cost of purchase. ask your advisor why you should migrate to a new fund.
clement asked, My Fixed Deposit is maturing in Nov 2008, shall i renew further or invest in MF. Pls guide
irfan answers, hi clement, fds are low risk investments and assure a return. mutual funds are market-linked. your risk appetite will play a part in deciding where you should invest
KKK asked, I invested 80k in ULIP (LIC) without insurance scheme. Is it right. Or approxmitely how much loss I get if I invested the same in MF. Plz tell.....
irfan answers, hi, ULIP and mutual funds are different on account of the insurance component in ulips. mutual funds do not offer an insurance benefit. also their cost structures are different. the decision to exit a ulip is something you should make after consulting your insurance advisor.
clement asked, I am a NRI and want to invest IRS 5 lakhs in Mutual Fund. Which MF is best & how to go about for investment & how many years. Pls guide
irfan answers, hi clement, the principles of financial planning remain the same for all investors. so regardless of your status, we recommend that you define your investment objectives and investment time frame and select mutual funds accordingly. please note that some AMCs are offlimits for certain NRIs
KKK asked, Does Provident Fund contribution comes in 80C (1 lakh limit).
irfan answers, hi, it is included in 80c limit
manoharan asked, Sir, can we invest in single Mutual Fund in different schemes to spread our money. For example in Reliance MF Rs.10000 each in various equity schemes (RGF, RVF, Equity Advantage ..etc.)to benefit diversification.
irfan answers, hi, you will lose out on AMC diversification if you do that
essarcad asked, i am having 50000 . where can i invest for 6 months...so that i get good returns
irfan answers, hi, 6 months is too short a time frame for equities. you can consider short-term fds, debt funds
suresh asked, i am employee in well establish company in abroad...my income is equelent of Rs. 50000/- and almost same expenses also ...how do i maintain my financial need where i can save money for future
irfan answers, hi suresh, you will have to curtail your expenses and boost your savings. you are best placed to ascertain how that can be done. investing regularly is a must if you wish to provide for the future. write at info@personalfn. com to find out how this can be possible
salil asked, which option is better sip investment is MF or investment in Bluechip stock or MF like gold ...if u suggest all what should be %
irfan answers, hi salil, asset allocation is important and you must invest in all avenues that you have mentioned (gold, equities, etc) based on your risk profile and investment objectives
jayan asked, Sir, I am having the following funds through SIP route. DSPML Equity (G)Rs. 6000, TIGER Rs. 2000/- SBI Magnum Rs. 1500/-. I would to get into one more fund? Please suggest which one suits me. I have a long term horizon of approx. 10-12 yrs. Pls suggest a good fund?
irfan answers, hi jayan, we need to know your risk profile to better understand whats right for you. broadly speaking diversified equity funds like hdfc top 200 and dsp ml top 100 will make good fits in most risk-taking investors' portfolios.
manoharan asked, Sir, can we say Floating rate fund and liquid funds are capital protection funds
irfan answers, hi, these funds are not capital protection funds.
CHANDU asked, PLEASE EXPLAIN WHICH INVESTMENT GIVES MORE OUTCOME IN MINIMUM TIME
irfan answers, hi, on the equity side, it is important to have a long-term investment time frame (at least 3-5 years). always remember that risk and return are in proportion. risky investments like equities deliver over longer time frames.
sridhar asked, Wat is the best investment option for pensioners? I mean my mom gets 8000rs per month as pension. how to make investment plan for her
irfan answers, hi sridhar, assured return schemes like the senior citizen saving scheme is one option. write into info@personalfn.com to know more.
bhakti asked, Hi Gud Afternun,Is it ok to go for a MF with insurence? i am interested in BIRLA SUN LIFE CENTURY Plan. Kindly suggest.
irfan answers, hi bhakti, we prefer that both needs - insurance and investment be kept separately. one option you have is a combination of term plans and equity funds
jinesh asked, Hi Mr. Irfan, I am 32 married earning 55K pm. I have insurance policies on which I am paying premium of Rs 38K pa sum assured 6.5Lac,TERM Insurance 4k per annum cover of 10L,medi cliam2.6k . pa covering 2 lac PPF 10kpa . sbi tax gain 25kpa, Sundaram Tax Saver 20k ,hsbc tax saver 10k pa. I have a monthly SIP of 1000 in Rel.diversified power sector,1000 in ICICI pru infra,1000 in tata infrastructure. now i plan to invest 3000sip in ICICI life link super pension plan for 18 yrs to generate wealth for retirement. I am planning to purchase a 2BHK flat costing 20-25 laks in near future. keep1.6L as liquid for emergency. What do you suggest?Thanks for your advice.
irfan answers, hi jinesh, your mutual fund portfolio is lopsided in favour of thematic funds and tax-saving funds. there is certainly room for diversified equity funds in your portfolio. having your own property for residential purpose is important.
sridh asked, Hi Irfan, The way market moves now is worried a lot. Please suggest where the market is heading and is this the right opp to invest. Market leaders says it will drop up to 10000 level. can we wait and invest
irfan answers, hi, we are not equipped to offer a short-term view on stock markets. however, over the long-term we remain positive. since markets are low, you can consider investing in a staggered manner. we recommend sips running over longer time frames.
XMAN asked, Hi, I am going to be a father pretty soon. With expenses at such a rise, do we have any kind of insurance/fund where in I can invest a lump sum now..and I would be getting a big enuff amount to fund my son's/daughter's college education?
irfan answers, hi many congratulations. to know more about planning for your child's future, please read the money simplified on this topic https://www.personalfn.com/investment/ms/
gsag asked, how will you rate the performance of the following schemes HDFC Equity (GRowth)< Fedility Equity (Growth), DSP ML Equity ( Growth), DSP ML Opp (Growth), Sundaram Select Midcap and HDFC Top 200 (Growth) Thanks in advance. I have SIP lined in the above mentioned schemes should I continue the same or stop it now since Mkt is going down day by day.
irfan answers, hi, we like the funds you are invested in and believe they will deliver over the long-term.
malirambaswal asked, nowdays investment with insurance mutual funds are coming to market.whether these are similar to already existing mutual funds.
irfan answers, hi we have dealt with this topic on our website. please click at https://www.personalfn.com/detail.asp?date=2/7/2008&story=4
Hardikkdesai asked, Hi Irfan,May I know what is the best tax-saving investment?
irfan answers, hi, both assured return schemes (ppf, nsc, fds) and market-linked (mutual funds and ulips) have their benefits. the key for you is to arrive at a mix that is right for you.
venugopal asked, Dear sir can will you please suggest me where should I invest so that I can get fix amount every month say If I invest Rs 10000\ how much I will get every month is there any saving plan like monthly income plan
irfan answers, hi, post-office monthly income schemes (POMIS) offers an assured monthly return. MIPs also declare dividends at regular intervals but the same is not assured.
Inflation asked, Can you tell me which are the best options to invest in Mutual funds in this market
irfan answers, hi, its a question of whats right for you. one size does not fit all while investing.
bhaktidraut asked, hi Irfan, I have one LIC policy of 5 lacs. I do not want to continue with the same as i am more interested in MF. I have other policy which covers insurance. Shall I discontinue that? i have paid the premium of the sane for one year. Pls suggest
irfan answers, hi, i recommend that you consult your insurance advisor and understand the implications in terms of surrender value of your policy, etc and then take a decision.
ra asked, hi i wish to invest in gold etfs i know there r 5 of them available but don't know which one to opt for.
irfan answers, hi, while investing in an etf, tracking error and expenses are important parameters. select the one that qualify on these criteria.
Prashant1 asked, I have JM Basic- G. I had brought it at NAV of 36 (9 months back) Now NAV is 22. Can I hold considering that I may wait for 2 more years to get +ve returns
irfan answers, hi, jm basic is a thematic fund. such funds are high risk. you should consider staying invested in it only if you have a view on the underlying theme and can take on the above-average risk associated with the fund.
prashantt asked, whats an ideal amount one should invest in markets
irfan answers, hi, that would depend on the goals that you have set out to achieve and time on hand. for instance, saving for retirement may need higher investments in equities as opposed to saving for a holiday.
irfan says, hi thank you all participating in the chat. we have run out of time, for more queries please write to me on info@personalfn.com
Chat with Irfan every Wednesday, 1 pm
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