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 replied to many such queries. Here is the transcript:
vicky says, hi, good afternoon everyone. let's begin the chat session.
HARISH asked, hI vICKY, I WANT TO INVEST 4-5 LACS FOR 6 MONTHS KINDLY LET ME KNOW WHICH PLAN WILL BE MORE PROFITABLE
vicky answers, at 2009-02-11 12:58:01hi, given that you have an investment horizon of 6 months, you can consider making investments in fixed deposits or short-term debt fund offerings.
vijaynsy asked, Hi Vicky, I need to investment around RS.20000 for tax savings and i have planned my marriage this year shall i take this invested amount within 6 to 8 months.Thanks
vicky answers, hi, most investments that are eligible for tax-benefits are also subject to a lock-in for instance PPF, ELSS, NSC. if you wish to liquidate your investments within 6-8 months, then tax-saving investments wont fit the bill.
vijaynsy asked, Hi Vicky, I need to investment around RS.20000 for tax savings and i have planned my marriage this year shall i take this invested amount within 6 to 8 months.Thanks
vicky answers, hi, most investments that are eligible for tax-benefits are also subject to a lock-in for instance PPF, ELSS, NSC. if you wish to liquidate your investments within 6-8 months, then tax-saving investments wont fit the bill.
vasu asked, Hi Vicki, i heared suggestions from several people about SIP? can you provide details how to do SIP?
vicky answers, hi, investing in a mutual fund via the sip mode entails making investments in a staggered manner as opposed to making one-time lump sum investments. among others, it is pertinent that you invest in a well-managed fund and that your sip runs over a sufficiently long period for it to be effective.
sudip asked, I want to invest for my little daughter for her fture study,Please advise which one will be the best considering present situation.
vicky answers, hi, while planning for a child's education, it is pertinent that your investment plan should comprise of various asset classes like equities, debt and gold. also, the allocations to the same should change over a period of time. to know more, please write to me at info@personalfn.com
Srinivasa asked, Could you advice me in tax saving investments?
vicky answers, hi, would recommend that you keep an eye on your risk profile while making investments for the purpose of tax-planning. for instance, if you are a risk taker, a larger portion can be held in tax-saving funds. conversely, you could predominantly invest in nsc, ppf and 5-yr fixed deposits.
rash asked, should one have a systematic investment in gold fund or wait for gold prices to fall and then take it.
vicky answers, hi, think you are referring to making investments in gold etfs. the facility for investing via an sip is not available therein.
sudheeren asked, Sir I have invested in reliance gsec fund. but now it is showing negative return. how is it possible?
vicky answers, hi, gilt funds are not risk free investment avenues. while gilts (government securities) do not expose investors to any credit risk, they are certainly vulnerable to interest rate risks. several fund houses and investment advisors have been misleading investors into believing that gilt funds offer assured returns. to know more about this subject, please click at
http://www.personalfn.com/detail.asp?date=1/22/2009&story=1
ac asked, hi vicky i nedd both insurance as well as long term investment-so should i go separately in ULIP & Term plan or only in ULIP
vicky answers, hi, term plans offer you the opportunity to avail of substantial insurance cover at low premium. would recommend that you first buy a term plan, other insurance products like endowment and ulips can find place in your portfolio at a latter stage, when you need to increase the insurance cover.
mitesh asked, Hi, it is a good time to invest in gold market,as gold prices are rising day by day
vicky answers, hi, gold should find a place in your portfolio from an asset allocation perspective. gold etfs are an option you can consider.
maheshjayaraman asked, hi vicky: Is this the best time to invest in otherwise good perfromance ELSS mutual funds like Fidelity Tax Advantage and SBI Magnum? They are at all time low NAVs...thanks
vicky answers, hi, for risk-taking investors with a long-term investment horizon, this is certainly a good time to invest in tax-saving funds. would recommend that you opt for the sip route. tax-saving funds can offer a dual benefit of tax benefits under section 80c and capital appreciation.
vikasgarg asked, hi vicky! which is better option : a) Endowment plan with sum assured of Rs.10L; b) Term plan with Rs.10L + RD/MF
vicky answers, hi, that would depend on your risk profile and needs. the option with term plan and mutual funds is theoretically equipped to offer better returns than an endowment plan with a sum assured of rs 10 laks. but then, the former can also expose investors to higher risk on account of the market-linked investment i.e. mutual funds.
viks asked, hi vicky. i have been investing in Mfs through SIP since last 4 years. Now my portfolio's net value is approx 40% of the amount invested. Do you think I should keep on investing through SIPs and not stop and instead go for PPF etc?? I am investing approx 30,000 per month in various schemes of Reliance, HDFC, Birla Sun Life and Templeton in both ELSS and equity.
vicky answers, hi, we have dealt with such a topic in an article on www.personalfn.com. to read the same, please click at
http://www.personalfn.com/detail.asp?date=1/28/2009&story=5
vikymehata asked, This is the Tax Saving Season. Please suggest some good ELSS Funds which includes large and mid cap investment. I have a long horizon of 5-10 yrs.
vicky answers, hi, there are several funds like franklin india taxshield and hdfc tax saver which have the mandate to freely invest across market segments and have delivered an impressive showing over longer time frames.
9410 asked, what is the best time to invest in MF
vicky answers, hi, for risk-taking investors with a long term (at least 3-5 yrs) investment horizon, now is not a bad time to invest in mutual funds. instead of trying to time the markets and waiting for "the best time", would recommend that you select a fund with a proven track record and invest via an sip.
av asked, Hi Vicky.. I want to understand what are the drawbacks of an ELSS plan over the Tax saving MFs
vicky answers, hi, tax-saving funds are also referred to as elss (equity linked savings schemes). these are simply different names for the same investment avenue.
micey asked, hi vickey,As i start investing in SIP HDFC TOP 200 GROWTH & RELIANCE RETAIL GROWTH PLANS Incvestment date 15th Dec 2007,so pls suggest shall i continue Amount in each sip Rs 2500
vicky answers, hi, hdfc top 200 is among the better predominantly large cap funds in the country. for risk-taking investors who wish to invest in the mutual funds segment, it is certainly an option.
jayu16 asked, Hi Vicky, I am investing for last 3 years Rs. 10,000/- every month in Franklin india opp fund, reliance india opportunity, hdfc equity fund,icici pru dynamic plan,jm basic,reliance diversified power and sundaram select mid cap Pls tell me if i must switch from any of the above scheme and any good new mutual fund to ivnest with horizon of 3 yrs
vicky answers, hi, hdfc equity, icici prudential dynamic and sundaram select mid cap are certainly among the better managed funds in their respective categories and have impressive long-term track records to show for.
vicky says, hi, 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