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 readers' queries. Here is the transcript:
vicky says, hi, good afternoon everyone... let's begin the chat session ..karthik asked, hi,which is a better investment option - Tax-saving FD or NSC?
vicky answers, at 2008-12-17 12:25:12hi, both have their unique set of advantages. for instance, at present most tax-saving bank fds offer a return in the range of 9%-9.5%, while nsc offers a return of 8% (compounded half yearly). also, the lock in bank fds is 5 yr, while its 6 yrs for nsc. but then, the annual interest in nsc is eligible for 80c benefits, bank fds dont offer this.
Urmi asked, Hi, Vicky Is best time to invest in gilt funds for two yr span?
vicky answers, hi, sure, while you can consider making investments in gilt funds, do remember that they are subject to interest rate risks. of course, protection from credit risk is a souce of comfort.
biru 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.
vicky answers, hi, investments in kvp double after 8 yrs 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 plans is quite different. pls make a choice between the two based on your needs.
raja asked, Hi Vicky ! Do let me know the best Mutual fund to go for which is availiable in market now.I am planning to buy one and my term is not less than 5 to 7 Yrs...
vicky answers, hi, there is no such thing as a best mutual fund. what you need to do is determine which fund is best for you i.e. which fund suits your risk profile and can help you achieve your investment goals.
kishu asked, hi if i want to invest in SIP what will u suggest Lumpsum / staggered? pls advise
vicky answers, hi, sip is not an investment avenue. its simply a mode of investing in mutual funds in a staggered manner. conversely, lump sum investing entails making one-time investments. i always recommend investors to invest via the sip route.
Gagan asked, Hi Vicky ! Is it good to go in for Bluechip funds or still wait some time?
vicky answers, hi, if you have the ability to take on risk and a long enough investment horizon, now is a good time to make investments via the sip route.
abhishek asked, Hello Vicky, how would you rate Post office Recurring Deposit in todays scenario
vicky answers, hi, for investors who desire assured returns and safety of capital, post office schemes (including post office recurring deposit) are a good option.
Prit asked, How can I do safe Invest in market?
vicky answers, hi, market-linked investments are subject to risk i.e. uncertain returns and capital erosion. if you wish to invest in a safe i.e. risk-free manner, then you should consider opting for assured return schemes like fixed deposits and small savings schemes.
palu asked, i am 40 +, and in pvt sec , where there is less security of job. i a want to plan my retire ment and safety. plz advice
vicky answers, hi, can you please write to me with more details like your risk profile, investment horizon at info@personalfn.com
Sagar asked, Hi Mr.Vicky, 1.Can we withdraw Interest earned on FDs every year? 2.Interest earned on FDs is taxable? Thanks and Regards, Sagar
vicky answers, hi, some fds offer an annual interest payout option. also, the interest is taxable.
rakesh asked, Now I m 30 yrs and my monthly income is 30k. so how can i plan for my future financial.
vicky answers, hi, would recommend that you start off by setting goals like buying a house, a car, retirement, among others. determine the time frame to achieve these goals and monetise them as well. then you should go about making investments to achieve each goal. a financial planner/investment advisor should be able to aid you.
vij asked, HI, BEEN INVESTING IN MUTUAL FUNDS THRO SIP FOR LAST 3.5 YEARS. SHALL I CONTINUE WITH THE SIP AS MY INVESTMENT IS DOWN BY 25% AT THE MOMENT. PLEASE ADVICE.
vicky answers, hi, if the funds you are invested in are well-managed ones and suited to your risk profile, then there is no need to discontinue the investments. at times like these, the benefits of an sip kick in, i.e. it can help you lower the average purchase cost of the investment.
john asked, hi vicky : what ate the sector or investment tools you suggest in investment portfolio. Give me in percentage of your ranks to get Maximum returns. example out of 100 % how much to investment in what sector wheather it is in post fixed deposit shares etc.
vicky answers, hi, while investing a 'one size fits all' approach cannot be adopted. you need to determine, what allocation pattern is right for you.
jiwan asked, hi wanted to know , wch one is the best MF product to invest in.
vicky answers, hi, have already replied to a similar query earlier in the chat, please refer to the same.
nicky asked, which investment avenue is better: mutual funds v/s ulip?
vicky answers, hi, mutual funds are pure investment avenues. conversely, ulips combine investments and insurance in a single avenue. their investment propositions are different and shouldnt be compared.
ruchir01 asked, hello sir, I am Ruchir Mehta and I have a saving of around 60,000 pm.. Can u tell me where to invest it so that i can save a tax also and can earn maximum out of it?
vicky answers, hi, ulips and elss (tax-saving funds) are market-linked investment avenues. they offer a high risk-high return investment proposition and 80C benefits as well.
amarakk asked, Hi Vicky, can you suggest some good child plans. My kid is one year old and want to invest in a child plan
vicky answers, hi, instead of opting for a child plan, would recommend that you make a plan that comprises of both equity and debt investments. and the allocations can change over a period of time as you close in on the target date. to know more, read, download for free - the money simplified issue of Guide To Planning Your Child's Future by clicking at http://www.personalfn.com/investment/ms/archives.asp
asdsad asked, What are the things that we need to consider for a financial planning ....How we can expect the future financial needs other than car,hse,holidays etc
vicky answers, hi, that will depend on the individual needs of each investor. for instance, planning for child's education, planning for child's marraige, providing for one's retirement are some of the common events that individuals provide for.
balakrishnan asked, how do you compare nifty etf with mutual funds investing in index
vicky answers, hi, generally, the costs involved in index etfs are lower than those in index funds. also, in etfs investors can do real-time buying and selling; conversely, in index funds, investments can only be made at 'end of the day' navs.
rajreddy asked, Hi Vivky. Is it the best to invest in PPF and FDs rather than Mutual funds?
vicky answers, hi, not necessarily. if you have the ability to take on risk, mutual funds should find place in your portfolio. in fact, you can consider investing in both m funds and fds, ppf. the allocation should depend on your risk profile.
vicky says, hi, thank you all for participating in the chat session. if you have any queries, please feel free to write to me at info@personalfn.com
