Do things like mutual funds baffle you? Are you aware of the investment options they provide? What are the best mutual funds available in the market? Which funds accrue maximum profits? What are the crieria for evaluating a fund?
Which funds provide the best SIP options? Are SIPs the easy way of making quick bucks? When and how should one buy mutual funds?
To get answers to your queries, speak to mutual fund expert
Rahul Goel on
November 15 at 1 pm.
Rahul Goel says, Good afternoon! Welcome to the financial planning discussion!
arun asked, Hi Rahul I have package of 5.5lacs how i can save my tax
Rahul Goel answers, at 2007-11-15 12:55:03arun, hi. well there are several things you can do. apart from ensuring that your salary is structured well, you can under section 80C invest rs 100,000 in designated investment schemes; the tax beenfit on this rs 100,000 will be equivalent to your marginal rate of tax. so if you are taxed at 30%, you will save rs 30,000 in tax! there are ofcourse other tax saving options as well. Best is to consult your CA on this.
arun asked, At this moment will it be good option to invest in Tax saving mutual funds? Tell me the name of some gud fund.
Rahul Goel answers, hi. you need to invest in tax saving funds for a need you have i.e. save tax. and this you need to do before 31st march 2008. so in that sense you have little option with regards to when to invest. best would be to put in 25% at a time, in four installments, over this period. go in for funds like hdfc taxsaver and franklin taxshield. but remember, you can achieve a lot more with the money you invest under section 80C than just saving tax. your finanical planner should be able to guide you on this.
jatin asked, Hi there, I has invested 48000 in sip and got around 19% return during past year. Want to invest more, around 80000. Is it the correct time to do so?
Rahul Goel answers, jatin, hi. you should evaluate the performance over a 3-yr period. if you can average a return of 15% pa, that would be great! in terms of investing a lump sum in present times, it may be wise to split the money into 4 installments and invest it over the next couple of months. this will average out your cost of investment. but it is important that you put the money in the schemes which are best suited to you.
mike asked, Hello Rahul. I find both hdfc equity and hdfc top 200 to be good. Please advise on what basis I must select any of these funds.
Rahul Goel answers, mike, hi. indeed both these funds are very well managed and have great track record. between the two, hdfc equity is a more aggressive fund if you will and its portolio is a lot more concentrated. hdfc top 200 has a more diversified portfolio. invest in the scheme which suits your appetite best. but own it in the right allocation in your portfolio.
Vishal asked, Hi RAHUL..could you pls advise whats the best way or strategy to decide for a retirement plan?
Rahul Goel answers, vihal, hi. making a retirement plan is not really a very difficult exercise. if you are clear in terms of where you stand financially and where you want to be in the future, then the entire process should not take more than a couple of hours. but you will need the help of an honest financial planner. maybe if you can write in to info@personalfn.com with your contact details i can have one of my colleagues at personalfn meet you and do this exercise for you.
vimal asked, I hv invested 1.5 lakhs in Unit linked insurance scheme..I understood that it is a big money that i hv commited to insurance policy. How can i come out from this mess? The policy that i hold are hdfc youngster plan and SUn birla cash flow
Rahul Goel answers, vimal, hi. it is unlikely that you can come out from this. and even if you do come out, it will be at a very heavy price. best is to pay the minimum number of permiums and then let the policy fund itself. by the way you should question the agent who sold you the policies that it appears you did not want in the first place.
Rubina asked, Hello, I have to invest in Bajaj Alliance Insurance Co. Company policy is as, You have to invest total 3 years Rs. 36,000(Rs. 12000 /- per year). After 15 years you have to get Rs. 10.00 Lac. It is safety to invest. Awaiting your reply.
Rahul Goel answers, rubina, hi. if you are investing then you shoudl have opted for instruments like mutual funds. and if you wanted insurance, you could have gone in for a term plan. a ulip is a combination of the two. ulips if not seleted well can prove to be very expensive over the long term.
mahi asked, hi rahul, please guide me on short term investments. I have around 50,000 in hand and I have to pay for the college fee. Before paying I wish to invest in the market and at the time of dead line will pay the. That's why please suggest me the best short term investiment shares for fornight or month
Rahul Goel answers, mahi, hi. if you wish to invest for the short term, and that too 30 days or less, it is best you stick to fixed deposits. if you can take on the headache of paperwork, put the money in a liquid plus fund. do NOT invest in the stock markets else you stand a chance of losing your capital... forget earning a return.
Patience asked, I have a long term perspective (10 years) and want to start SIP of Rs 7000 per month in a diversified equity fund and Rs 3000 per month in a midcap fund. Please suggest which funds I should consider.
Rahul Goel answers, hi. you can opt for funds like hdfc equity and fr india flexicap. overall have about 5/6 funds in your portfolio. avoid investing in NFOs and remain disciplined to the invest plan that you have drawn up, preferably in consultation with an honest financial planner.
amit asked, hi rahul , i wanted to invest in share market . till date i had not invested in sahres but had buied Mutual funds . what you suggest?
Rahul Goel answers, amit, hi. if you have a couple of hours a day to dedicate to investing in the stock markets, then maybe you can allocate some money. even in that instance you will need to be sure you have access to the right recommendations (as against tips). if you do not have the time, stick to well-managed mutual funds.
neeraj asked, pls advice investment 2 years old daughter
Rahul Goel answers, neeraj, hi. its great that you are starting early for your daughter! best would be to invest in mutual funds on the lines i have suggested earlier in this discussion. also, take a term policy for yoruself... this will secure your family's future.
amitabh asked, Hello Rahul . I am interested in investing in Mutual funds which I am doing. But Iwant your recommendation on MF's. Would you please suggest me five mutual funds of medium risk cataegory (Through SIP) for time horizon of 5-7 years. Amount I want to invest is 5000 per month.
Rahul Goel answers, amitabh, hi. if you are inevsting for 5 - 7 yrs you should opt for well managed funds. you can consider funds like hdfc top 200 and fr india flexicap. the entire portfolio can be recommended only once your entire exposure to mutual funds has been evaluated.
dkh asked, hi rahul do u think one shud keep a mix of mutual funds and direct investment in shares
Rahul Goel answers, if you have time to spare, and access to honest recommendations, you can hold some portion of your assets in direct equities.
Ravi asked, Hi Rahul, I have been investing 3000 Rs in ICICI Pru Life insurance, 2500 Rs in SBI Magnum Tax gain and 2500 Rs in Fidelity Tax Advantage funds for Tax savings through SIP. Is my portfolio is good? Plz give ur valuable suggestions. I want to buy few more tax savings which will be good Birla sun life tax releif 96 or DSP ML Tax saver fund.
Rahul Goel answers, ravi, hi. ideally you do not need more than 2/3 funds for your tax planning portfolio. also, rather than investing in a ulip for tax saving, you might as well take a term insurance and still ave on tax.
arif asked, Hi Rahul, I have a query, if you can pls help- How the ULIPs are better than any Mutual funds + a Term Plan to take the life cover. thnx
Rahul Goel answers, arif, hi. mutual funds + term in most instances is a better option than ulips. at personalfn we have done a lot of research on this. request you to vist the site and read the detailed note (should be in the archives)! apologise for this short cut!
nita asked, Hello Sir, I have SIP's of Reliance Growth, SBI Blue Chip, BNP PAribas Select MIDCAP Growth, Birla Top 100 Growth. I wanted to discontinue SBI Blue chip as it is not performing so good. pls advice on these? Want to start SIP of Fidelity Growth Fund.
Rahul Goel answers, nita, hi. i think you can do a lot more to improve your portfolio. notice you do not have any schemes from hdfc or franklin templeton, which in our view, are the most credible fund houses in india today!
amitabh asked, Can you tell me few parameters on the basis of which Mutual fund can be evaluated to certain extent.
Rahul Goel answers, amitabh, hi. you should look at parameters like whether the fund is sticking to its mandate at all times; is team managing the money or a star fund manager; how strong is the process followed at the fund house; how cheap or expensive is it to own the fund; also, its past performance to some extent, as compared to benchmark and its peers. if you want to read in more detail, pl download the Money Simplified guide from personalfn.com.
rudra asked, I wants to invest Rs 50,000 for my 1.5 yrs son future.pl suggest which is btter option.
Rahul Goel answers, rudra, hi. the answer is well managed diversified equity funds. pl invest in line with the suggestions given earlier in this discussion. best would be if you can employ the services of an honest finanical planner.
rvcat asked, Hi Rahul-I have SIP's based on your finacial planners recommendation. I invest in HDFC Equity 5K every month.If i split it to 4 instalments will i have to pay entry load every time?
Rahul Goel answers, hi. whether you invest one time, or in multiple installments, the entry load will be the same. the load is charged on the value of the investment. the money is invested in installments so as to average out the cost of acquisition of mutual fund units. this minimises the risk of mistiming the market.
monika Garg 14 asked, Hi Rahul, i am new in this field. I would like to ask that which thing is best to save the tax and good returns- ULIP plan or Mutual funds with tax benefit
Rahul Goel answers, monika, hi. the accurate answer to your question would depend on your present asset allocation and future needs. however, in most instances mutual funds suit the investor better.
shikha asked, Hi rahul , i m having 40000 to invest, should i go for one time payment in mutual fund and whether hdfc