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?
In an hour long chat on
rediff.com on Thursday, mutual fund expert
Rahul Goel replied to many such readers' queries. Here is the transcript
Rahul Goel says, Good afternoon! Welcome to the discussion on financial planning! Let's start!
Kaveri asked, Hi, I have reliance growth, HSBC advanced India growth fund,Biral sunlife infrasturcture fund 10,000 rupees each and SIP monthly 1000 rupees for reliance diversified growth from last month.Also have ICICI prodentialinsurance for 20,000 per year and Birla sunlife insurance 10,000 per year for IT returns. Is this portfolio enogh or do I have to maintain more?
Rahul Goel answers, at 2008-05-15 13:02:43kaveri, hi. your portfolio of funds does not have any of the schemes we consider to be 'core' in a portfolio with a long term outlook. we are referring to funds like hdfc equity. as we have often said, sector funds should not account for more than 5 - 10% of a portfolio.
vaishali asked, i have around 12000 - 15000 monthly to be invested. i already have a PPF, homeloan and LIC.What should be my next invest ment policy so that it earns me a good returns as well as tax benefit
Rahul Goel answers, vaishali, hi. its good to invest keeping the tax angle in mind. however, don't let that limit your investment options... if you have a long term investment horizon and have appetite for near term risk, then you should look at adding equity funds in your portfolio. the long terms returns from these incidentally as of now are tax free. but even if there were to be a tax, they may still make great investment sense for you. be carefull about how much savings based insurance you take... ideally you should be taking only term insurance to being with.
Suman asked, I wanted go in for a child insurance plan which is equity linked. Or should i just directly invest in a Mutual Fund via SIP for the same goal. Can you name a few insurance plans/MFs for this purpose that i can research on?
Rahul Goel answers, suman, hi. in our view, sips would work better. build a portfolio of funds suited for the purpose... and also, take a term insurance for the earning member/s of your family.
sujit asked, Hello Sir, I am 23 yr old. I want to invest 20000 monthly. Suggest me some good funds or shares so that i can get good return in long term. Also now i want to invest 100000 at a time. Where i ll invest?
Rahul Goel answers, sujit, hi. great that you are starting to invest early! i recommend that before you actually invest any money in funds or shares, you read our free guide on investing (for the the youth). its called the money simplfied and is available on www.personalfn.com
Tushar asked, Hello Rahul, I want to invest 20k per month in 4-5 MFs to generate 1 crore. How much period will it take to generate 1 crore. Please suggest some good MFs which will give good returns.
Rahul Goel answers, tushar, hi. that should take you about 14 yrs. and this is assuming an absolute value of rs 1 cr... not adjusting for inflation!
RK asked, Rahul, I have two questions. 1. I invested Rs.15,000 in SBI Comma Fund (G), Rs. 20,000 in SBI Magnum Tax Gain (D), Rs. 3000/month SIP in ICICI Infrastructure fund & Rs. 10,000/year in HDFC Young Star ULIP... How is my Portfolio and how can I improve. 2. I am 32 yrs Old and wanted to retire at 55 and if I wanted to earn around 3-4Cr by 55, how do I plan ? Please advise.
Rahul Goel answers, hi. your portfolio consists of thematic funds and ULIPs, aside of the ELSS that you have invested in. both in our view are not recommended as investments you should begin to build your portfolio with. coming to the goal... if you wish to accumulate Rs 4 cr, without factoring in inflation, you need to set aside about rs 20,000 pm in assets earning you 15% pa to achieve your goal; however if you assume inflation to be 6% pa, then you will need to set aside about rs 75,000 pm in 15% assets.
Nisha asked, Dear Rahul, I would like to visit a financial advisor personally..do they provide services only to HNIs only? How will they charge for a one time advise?
Rahul Goel answers, nisha, hi. this will depend on the financial planner. the policy at personalfn at present is to meet all prospects.
Prithanka asked, Hi Rahul, I am a 29 yr old IT professional with a take-home salary of 52K p.m. and an investable portion of around 15K from the above. My current investments include these - JPMorgan India Equity Fund (G), Reliance Diver. Power - RP (G), Sundaram Energy Oppor. (G) - with 15K invested in each of them (one time investment - long term horizon). I also have a home loan, with an EMI of around 15K. Please suggest me the funds which will build a good portfolio (preferably through SIP) looking towards a horizon of 3 - 5 years.
Rahul Goel answers, hi. not sure who has been advising you on the funds you own, but you can surely do a lot better. its time you had a long chat with your advisor... all you won is sectoral funds, and one fund which is from a newly floated amc. suffice it to say that if you were to come to personalfn, none of the funds you presently own would find a place in our recommended portfolio.
manojchawla asked, Dear I want to invest in SIP on monthly approx 5-10000 should i go with seperate Fin. Institutions or can go with anyone and which of the institution is best please tell me thank
Rahul Goel answers, manoj, hi. its good to have about 5/6 funds in total...some of which could be from different AMCs. however, the allocation between the funds will need to reflect your needs and profile.
ab asked, I want to start investing thru SIP for my daughters education. Please suggest some goods funds?
Rahul Goel answers, hi. build a portfolio of equity funds... about 5/6 schemes... have growth funds like hdfc equity and also value style funds like quantum long term equity (Disclosure: both personalfn and quantum mutual fund are founded by the same person). idea is to diversify among fund houses and also styles of management.
Gautam asked, Hi,
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