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 Vicky Mehta offered some valuable tips. Here is the transcript:
vicky says, hi, good afternoon everyone. let's begin the chat.
Kadir asked, Are ULIPs good schemes? Please suggest
vicky answers, at 2009-01-14 12:19:15hi, ulips offer investors the opportunity to opt for insurance and investment in a single avenue. rather than looking at them as good or bad, there is a need to understand the proposition they offer. for instance, typically the expenses deducted in the initial years can be quite high. the flexibility to invest in equity/debt markets (depending on the ulip chosen) needs to be judiciously used. also, being invested for the long haul is important. for those who can make an informed decision, ulips can be attractive options.
wwww asked, Is PPF better than KVS?
vicky answers, hi, think you are refering to kvp (kisan vikas patra). ppf and nsc are quite different in terms of their investment proposition. for example, investments in ppf need to be made on an ongoing basis for a 15-yr period; also they are eligible for tax benefits. investments in kvp are lump sum (one time) investments not eligible for tax benefits. also the invested amount doubles in 8 years 7 months.
Gujjar asked, Should one stay away from the stock markets at this stage?
vicky answers, hi, not necessarily. for risk-taking investors who are willing to stay invested for the long term, now is not a bad time to get invested in a staggered manner.
Help asked, hello sir pls help me i'm really worried abt abt todays market condition i'm invested some money in MF thru SIP is this a gud MF pls help me and guide Reliance Diver. Power Sect - 250/- Reliance regular Saving - 250/ Reliance equity Advantg - 500/- Reliance natural Resours - 250/- Franklin templeton Flexi - 500/- Sudnaram CApex Opp. - 500/-
vicky answers, hi, your portfolio is dominated by thematic funds. these are high risk-high return propostions, best suited for investors who can time their investments i.e. time their entry into and exit from the fund. if you wish to invest in a relatively passive manner, would recommend that you add some well-managed diversified equity funds to your portfolio.
Tilak asked, Is still SIP is good option
vicky answers, hi, yes it is. but the sip needs to run over a sufficiently long time frame and also, be in a well-managed fund.
milan asked, How to know that the fund is well managed or not? any instrument to measure? Thank you in advance
vicky answers, hi, check its performance on the risk and return parameters vis-a-vis peers. find out how it has performed over longer time frames. evaluate its investment style; find out if it adheres to the same at all times. these are some of the parameters to evaluate funds.
dhruv asked, HOW good are post office MIS?
vicky answers, hi, for investors seeking monthly returns, its a good option. it offers a return of 8% pa over a 6-yr period and a 5% bonus on maturity.
bobphil asked, How is DSP ML Equity-100 and Sundaram Select Focus Funds for investment over a 1 yr period starting now?
vicky answers, hi, they are among the better funds in the large/predominantly large cap space. however, 1 yr is too short a time frame. you should have an horizon of at least 3-5 years. also, would recommend investing via the sip mode.
Srikanth Krishnan asked, For a risk averse investor, what are good investment options available today to steadily build one's income?
vicky answers, hi, typically a risk averse investor would give more importance to safety of capital and assured returns. for such investors, small savings schemes and avenues like fixed deposits and bonds should dominate the portfolio.
mohit asked, Hi Vicky, my question is, how to calculate what Insurance cover you should have for your self .
vicky answers, hi, the concept of human life value can help you determine the right insurance cover. to know more, please click at
http://www.personalfn.com/calc/hlv.html
ayachit asked, Hi, I have been investing in SBI Magnum Tax gain, DSPML TIGER fund, Reliance diversified power sector funds through from 1 year. Do you suggest me to change any of these funds or should I continue. Thanks in advance.
vicky answers, hi, the funds mentioned by you fall in the high risk-high return category. also, apart from magnum taxgain, the other two are thematic funds. if these kind of funds suit your risk profile, you can consider staying invested.
jay69 asked, i think i have lost heavily in one of the ULIP of icici-prudential.Life pension.i had invested 5 lacs in the first year and discontineued the next year.What shouldi do,since the min.is 3 year continous investemnt
vicky answers, hi, we had dealt with this topic in an article. to read the article, please click at
http://www.personalfn.com/detail.asp?date=7/31/2008&story=3
suneel asked, which is the best investment plan that yeild more returns?
vicky answers, hi, stop looking for the best investment plan. it simply doesnt exist. what you need to do is devise a plan that is right for you, and then invest in line with the same in a disciplined manner.
anilkute2006@
rediffmail.com asked, hello can u suggest me good investment plan wirte now i m 23 yrs old
vicky answers, hi, please write to me at info@personalfn.com with information like your risk profile, investment horizon, objectives that you wish to provide for.
mayank asked, what is difference between DEBT fund & FMP..Which one is better?
vicky answers, hi, debt fund refers to the broader category of mutual funds that invest in debt securities. fmp (fixed maturity plan) is an offering from the debt funds segment.
Muhilan asked, Good Afternoon Sir. I am planning to buy a term policy in the current FY for furture saving. My current Sal is 30,000/Month. Which term policy is a good one?
vicky answers, hi, would recommend that you compare term plan premiums from leading life insurers and select the one that offers the highest cover for the requisite time frame at the least premium.
SonamKapoor asked, How 'long' is long-term? I invest heavily in SIPs, and I'm told that 5 years is long term. Can I continue investing say, for 15-20 years? Is that helpful or am I better of divesting after 5 years? Most of my SIPs are diversified equity funds - split between mid-cap and large-cap.
vicky answers, hi, while it is good to note that you wish to stay invested over 15-20 years, the importance of reviewing the performance of funds on a regular basis cannot be overstated. being invested in the right avenues is important.
Koushik asked, What is your opinion of World Gold Fund? And how does it fare against going for ETF's or buying gold bars?
vicky answers, hi, the dsp br world gold fund invests in stocks of gold mining cos among others. conversely, gold etfs invest in physical gold. if you wish to be invested in gold, then the latter or physical gold will be more suited for you.
vicky says, looks like we have run out of time. thank you all for participating in the chat. if you have any further queries, please feel free to write to me at info@personalfn.com