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 Wednesday, financial planning expert Sailesh Multani offered some valuable tips to our readers. Here is the transcript:
Sailesh says, Hi, goodafternoon everyone, lets begin the chat session
ssm asked, hi i want to have 30k after the age of 50. My age : 25. How to start with the same.
Sailesh answers, at 2009-04-01 13:08:59hi, assuming an inflation rate of 6%, your current expenditure of Rs 30k per month after 25 years will be approximately 1.30 lakhs. Assuming life expectancy of 80 years, you will need to have a corpus of approx. 3.60 crores. You need to decide your asset allocation and invest accordingly to accumulate the corpus of 3.60 crores
Utkal asked, In the present market conditions, is it safe to invest in mutual funds?
Sailesh answers, hi, assuming you are referring to equity oriented mutual funds, if you have the requisite risk appetite and willing to stay invested for a longer term (at least 5 years),then you should consider investing in well managed diverisified equity funds.
saraogi asked, What is the best way to invest? Shall we inest directly in stock market or go via Mutual Fund Investment? If mutual fund then SIP id better or 1 time investment is good?
Sailesh answers, hi,you can invest in equities either directly or through equity mutual funds. The choice will depend upon your ability to analyse each individual stock and the amount of time you are willing to allocate towards the same. Equity funds are managed by professional fund managers and are more easier way of investing in equities. SIP is a better way of investing compared to one time investment as it helps you average your buy value over the long term.
Ronen asked, Should I opt for Dividend or Growth option?
Sailesh answers, hi, the choice between dividend and growth option will depend whether you need any cash inflow at any regular interval. If you do not require any cash inflow then it is better to opt for the growth option.
asdf asked, Hi.. My annual income is around Rs.5lac. could u pls tell me how to plan investment?
Sailesh answers, hi, the choice of investment will depend upon your investment objective, risk appetie and investment horizon i.e. the amount of time you are willing to stay invested. For e.g. if you are willing to take risk and remain invested for atleast 5 years then you should consider investing in equities
sanjaykale asked, what is the best option for investment other than Stock market/mutual fund where we get max return in 3 to 5 yrs without tax burdon?
Sailesh answers, hi, currently the best investment avenue to earn comparitively higher return over 3 to 5 years is equity funds. However, you should be willing to take higher risk if you are consdiering investing in equities
vatsa asked, is it better to invest in different funds for different time horizons - for eg balanced funds for 3 years horizon, equity funds for 10 years from now?
Sailesh answers, hi, yes it is a good idea to invest in different funds with different time horizons. For equity & balanced funds your investment horizon should be atleast 5 years. For anything between one month to a year you should consider investing in fixed income instruments like fixed deposits or debt mutual funds
Suraj asked, I had a grand daqughter (3 months old). I want to invest (say about 2 Lacs) one time payment for a period of 20 years for her marriage & higher education. I want that this amount may become 15-20 Lacs in this period. Please advise, where I should invest the money.
Sailesh answers, hi, ideally for investment horizon of 15-20 years you can consider investing 80% of the money in equity funds. This will be the ideal investment for building the funds for your grand daughter's higher education and marriage.
ravin asked, I have 3 lakhs worth of FD, and I am 27 yr old, My monthly income is 60K, is it better to keep investing in FD, as i am not a risk taker.
Sailesh answers, hi, given the fact that you are not willing to take risk , you should consider fixed income insturments for investing your money. fixed deposits, PPF, post office savings schemes are few examples of fixed income instruments you can choose from.
ssd asked, hi I'm invested in equity mutual funds for atleast 7 years, is it time to make a profit booking, or should I hold on till I need it
Sailesh answers, hi, you should consider liquidating your investment when you need the money for the purpose for which it was invested. Second reason for booking profit can be when you have made more than expected returns and you do not wish to risk it further by remaining invested.
AMOL asked, which mutul fund is better today for investment
Sailesh answers, hi, there is no such thing as better mutual fund. what you need to do is determine which fund is good for you i.e. which fund suits your risk profile and can help you achieve your investment goals.
navin asked, Hi, How good is the KVP deposit in post office? Can I take every month this KVP instead of going for any pension plan? Please suggest.
Sailesh answers, hi, investments in KVP double after 8 years and 7 months. On the other hand, in a pension plan the intention is to create a corpus and provide the investor with regular returns on retirement. Hence, the investment proposition of KVP and pension plan is quite different. Please make a choice between the 2 based on your needs.
manish_infinity asked, Is it good time to invest in Fix deposits?
Sailesh answers, hi, fixed deposits are good for risk averse investors. Also, they should form a part of the portfolio from an asset allocation point of view
Arun asked, Does investment in Gold ETF at this point of economy is advisable? I am medium risk taker
Sailesh answers, hi, Gold ETFs offer investors a convenient way of investing in gold. Ideally 10-15% of investment should be in gold irrespective of the market conditions.
shekhar asked, I want to know wheter investing in ULIPS is good as compared to direct investment in MF's
Sailesh answers, hi, ULIPS and MFs aren't striclty comparable. For instance, ULIPs combine insurance and investments, while mutual funds are pure investment avenues.
Maruti asked, Can you suggest what will be the sensex level in next one or two years?
Sailesh answers, hi, it is very difficult to predict the sensex level for any number of years. If you want to invest in equities you should be ready for longer time frame of atleast 5 years.
Sailesh says, hi, thank you all for participating in the chat session. If you have any query please feel free to write to me at info@personalfn.com