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. Here is the transcript:
Sailesh says, Goodafternoon everyone, lets start the chat session
ARUN asked, Hi Shailesh..How long should I wait before I decide to sell my mutual funds? I have them with me for over an year
Sailesh answers, at 2009-06-24 12:36:11hi, the decision to withdraw / redeem any investment will depend on 3 factors. One, the objective for which you have invested has materialised,second your asset allocation has changed over a peirod of time and to balance it you may have to sell few of your investments, third - you may have invested in a stock/mutual fund sceheme with an expectation of a particular return but the stock/fund may not be performing well. Hence the need to sell/redeem
hi asked, i want to invest money with tax excemtion
Sailesh answers, hi, you can consider investing in schemes like PPF, NSC , tax saving bank deposit with 5 year tenure and Equity Linked Savings Scheme (ELSS) under section 80C of the income tax act
hi asked, suggest one Fixed deposit for 15years
Sailesh answers, hi, I would not recommend that you lock in your money for 15 years in a FD. Rather, you invest in FD with one year time frame and reinvest every year depending upon the most attractive option available
swadhin_2000 asked, I would like to know that "is maturity value of LIC is taxable" ????
Sailesh answers, hi,life insurance maturity proceeds are exepmt from tax
chintum asked, I have scheduled SIP for 3 Top Mutual funds since last 2 years but it is still giving me loss. Can you please suggest on whether I should continue or withdraw?
Sailesh answers, hi, I would recommend that you get your mutual fund portfolio reviewed through your investment advisor. It may so happen that you many not be among the better performaing funds. I would recommend that you should consider funds with long term track record of atleast 5 years
agri_amit asked, what is best way to park money for short time say 1 week to 1 month.f liquid Fund, then what it may be?
Sailesh answers, hi, yes liquid funds are the best investments for investment horizon of 1 week /1 month. Opt for the daily /weekly dividend reinvestment option
babu asked, How is DSP Black Rock Tiger fund Growth SIP?? what returns can be expect in next 2 years from this fund
Sailesh answers, hi, this is a thematic fund that invests maninly in sectors forming a part of the infrastructure theme. This fund offers high risk high return proposition. Any well diversified equity fund should give you post tax return of 15% p.a. over 5 years. Thematic funds should ideally out perform diversified funds.
vrin asked, Hi, good afternoon. i paid insurance premium for the financial year 2008-09 in april of 2009. can i claim this premium amount for that financial year under tax savings scheme (ie assessment year of 09-10.thanks in advance
Sailesh answers, hi, you have paid the premium in financial year 2009-10. Hence you cannot claim the tax benefit for 2008-09.
Shaji asked, Which is the best equity based SIP MF scheme of HDFC available with 3-5 years period investment idea.I plan to go for 20000 Rs SIP in HDFC MF,pl advise.
Sailesh answers, hi, you can consider fund like HDFC Top 200. It invests mainly in large cap stocks with some exposure to midcaps. The fund is no doubt the best performing fund in the diversified equity fund category
joe asked, Hello, PPF is a "debt instrument"? Many financial advisers gives advice to have debt instrument in portfolio. What all comes under debt instruments?
Sailesh answers, hi, yes PPF is a debt instrument. Any instrument that offers fixed income classifies as debt. Also, mutual funds that invest in debt securities fill qualify as debt funds even though the returns are not assured. Bank FDs, NSC ,KVP, 8% Taxabale Savings Bonds are few examples investment in debt
ritu asked, Hi Sir, i want to invest in DSP BR TOP100, HDFC TOP200, Can i wait till budjet,what will be impact,pl ans
Sailesh answers, hi, both the funds are good. They have a well diversified portfolio. In my view do not time the markets to invest in these funds. If you are a long term investor, with high risk taking ability, with time horizon of 3-5 years, then go ahead and invest.
omega asked, Dear Mr. Sailesh, How do u do? Pls. give me some good ELSS and Diversified Equity Funds to invest in.
Sailesh answers, hi, in ELSS you can consider funds like Franklin India Taxshield and Fidelity Tax Advantage. In non-ELSS category, you can invest in Franklin India Bluechip, DSP BR Top 100 Equity Fund.
rkindia007@rediffmail.com asked, Hello Sir, Yesterday I have invested Rs. 75000 in Reliance Infrastructure Fund. Is it a good investment?
Sailesh answers, hi, Infrastructure funds offer high risk high return proposition. They can only invest in secotrs that form a part of the infrastrucutre theme. Normally, these funds cannot invest in secotrs like Pharma and FMCG. These are considered to be defensive and if the going gets tough for infrastructure, the fund manager cannot turn to the defensive sectors.
rajkumar asked, can you suggest me few mid cap and small cap equity for 6-9 months time. And offcourse should be in profit...
Sailesh answers, hi, as discussed earlier, invest in equities with atleast 3-5 years. The probability of making money is higher if your investment is for longer duration. Investing in midcap and small cap stocks with 6-9 months horizon would not qualify as investments but will be more of a speculation. I would not recommend midcap investment for 6-9 months
Its me asked, Hi Sir, Could you please give me the detail of all about gold investment? Thanks
Sailesh answers, hi, gold is an important asset class to diversify into. I would recommend every investor to have atleast 15% exposure to gold. Gold is considered to be an hedge against inflation and is the most sought after asset in trouble times. I would recommend that you invest in gold only via exchange traded funds (ETFs). It is the most easy and convenient way of investing in gold.
rajuu asked, which gold ETF to invest in Kotak or GoldBeES ETF???
Sailesh answers, hi, I would recommend Gold BeES and Quantum Gold ETF among others for their low expense ratio and tracking error
rajuu asked, Of these or any other top 3 diversified funds, psl suggest : HSBC Equity Fund Franklin India BlueChip Fund DSP BR TOP 100 Fund BSL Frontline Equity Fund Magnum Contra Fund HDFC Top 200 Fund Kotak/DWS Investment Oppurtunities Fund
Sailesh answers, hi, except for DWS Opp and Magnum Contra,all your funds are good and you should continue with the investments.
dev asked, I am single and my age is 25 and annual ctc is 5.5 lakh.. pl suggest a good pension policy.
Sailesh answers, hi, rather than going for a pension policy, I would recommend that you make a retirement plan for yourself. The plan will help you ascertain your post retirment expenditure and the amount of money you should have when you retire. It will also help you in deciding the asset allocation to buld your investment corpus. In my view you should not opt for any pension plan
subrata asked, can I withdraw entirely my investment in ELSS scheme Div reinvestment option after 3 years? or each div reinvestment will be traeted as new investment with 3 years lock-in? If yes, then how can I close the account given every year it is providing dividend.
Sailesh answers, hi, yes - each dividend reinvestment option will be treated as a separate purchase and will be subject to lock in of 3 years.
mike asked, hello sir, I am 50 yrs old. Please advise my fund portfolio selection and qty is okay for the long term. They are fidelity equity, franklin flexicap, hdfc equity, hdfc top 200, hsbc equity & reliance vision. Many thanks.
Sailesh answers, hi, your mutual fund portfolio is good. Ensrue that you are well diversified and that you have exposure to debt as well.
SP asked, Should i invest in new infra. fund of reliance??
Sailesh answers, hi, in my view avoid investment in Reliance Infrastructure Fund
Anand asked, Hello, I plan to put 2,00,000 every year in Kisan Vikas Patra every year now going forward. The investment will double in 8 years and 7 months Is the return taxable on maturity ? If yes is there TDS ?
Sailesh answers, hi, yes the return from KVP will be taxed on maturity
Sailesh says, Thank you all for participating in the chat session. If you have any further queries, you can write to me at : info@personalfn.com