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Some golden investment tips

June 04, 2009 11:15 IST

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 investment tips. Here is the transcript:

Sailesh says, 
Goodafternoon everyone, lets start the chat session


NLDAS asked, Do u think this is the right time to invest in MF?
Sailesh answers,  at 2009-06-03 12:36:35hi, in my view this is the right time to invest in mutual funds. I am assuming that you are referring to investments in equity funds. I expect the economy to do well in the comong years and hence improved corporate earnings. core sectors have started to do well. Invest in well managed diversified equity funds with established track reoord to show for.
rkk asked, Which mutual funds I should invest?. I have never applied in MFs.
Sailesh answers, hi, if you are looking to invest in equity funds then go for diversified equity funds with track rcord of 5 years and more. Your investment horizon should be 5 years and you should be willing to take risk. You should not worry about the short term book loss.
subbu asked, what about Franklin prima fund. I have invested in this fund 3 years back and as of now it is still -ve about (5%). can I continue to hold this fund for some more time. please advise
Sailesh answers, hi, I would recommend that you switch from Primat to Franklin India Prim Plus or Flexicap fund
SoniaGandhi. asked, hello sir hw r u?? is it good for investing in PPF and NSC for long term investment..
Sailesh answers, hi, I would recommmend PPF for long term. PPF offers tax savings, interest is 8% p.a. compounded annually and the best part is that the interest is tax free.
ARP asked, Hi, I have inveseted in JM Basic Fund, DSMPL Tiger fund , Reliance Growth Fund and all are under loss as of now. What are the chances and the time frame when i can expect it to bounce back.
Sailesh answers, hi, I would recommend that you exit from these schemes. You have mainly infrastructure funds in your portfolio which are thematic. These funds will do well only if infrastructure sector as a whole does well. Rather, I would recommend that you invest in diverisified equity funds.
veenitbhayana asked, Hi Sailesh, I would like to know the best mutual fund for a chid of age 3 year for investment for15-20 years.I want to invest 20000 lumsump and then SIP of 1 year. which fund will be best suited :1. ELSS 2. EQUITY MF 3. Child MFs or any other please suggest Thanks
Sailesh answers, hi,given you time horizon of 15-20 years, I would recommend that you build a portfolio of equity funds. In my view go for diversified equity funds, you can give the ELSS funds a miss unless you want to save for tax. Ideally, you should have 4-5 equity funds. Also, have a mix of equity and debt in your portfolio. To give you an indicative asset allocation, you can have 70% in equity and rest in debt/gold
nitin asked, Dear Sir, I want to invest 1 lakh for the period of onw year.... pls suggest some instruments ind etails.
Sailesh answers, hi, if your investment horizon is 1 year then I would recommend debt as an instrument. You can invest in a fixed deposit or a liquid fund.
Nagaraj asked, which is best MF for Infrastructure
Sailesh answers, hi, infrastructure funds are thematic funds. Their performance is linked to the performance of the infrastructure sector as a whole. These funds offer high risk high return proposition and are suitable for investors who have a view on the sector. I would not recommend a thematic fund for core portfolio.
yogesh asked, sir i have lost about 2.5 lacs in share mkt now i want to start from very first with safe & well planned investment can u suggest something as i am an middle class person thank you
Sailesh answers, hi, to invest in equity markets you should be willing to have a long term horizon. Ideally your investment horizon should be 5 years. You should choose to invest via mutual funds rather than investing directly into the equity market. Equity markets offer higher returns with high risk. Hence your risk appetite should be high. If your portfolio is in the negative you should not panic. Equity markets fluctuate but reward long term investors.
sue asked, please suggest some good diversified equity funds
Sailesh answers, hi, you can choose from HDFC Equity Fund, Franklin India Flexicap, HSBC Equity Fund, DSP BR Equity Fund among others.
rekha asked, Sir, I have running SIP since last 2/3 years in following MFs: SBI Tax Gain, Frankling Blue Chip, Frankling Opertunities, HDFC Top 200. I want to continue these for another 3/4 years. please suggest whether these are OK or not.
Sailesh answers, hi, I would recommend that you replace Franklin India Opportunities with DSP BR Top 100 Equity Fund or any other dieversified Equity Fund with a track record of atleast 5 years.
abc asked, i have inversted in HDFC growth fund. reliance vision fund and reliance growth fund. should i continue holding or exit, please advice
Sailesh answers, hi, if these are the 3 schemes in your portfolio then I would recommend that you further diversify your portfolio by adding 2 more large cap funds like HDFC Equity Fund & Sundaram Select Focus
bprashant asked, Hi i hv invested during 2006 into SBI blue chip MF and Reliance Equity Growth.. seeing 3 yrs performance i barely getting 8% (2.5% yerly) unlike other MF.. shud i exit frm both funds. Other thing i want to start with ELSS thru SIP or Lumsup which ELSS and shud i go for Lumpsup or SIP.. please suggest
Sailesh answers, hi,I would recommend that you eixt from the 2 schemes. Reinvest in funds with long term track record like HDFC Equity / Franklin India Bluechip Fund. As far as investment in ELSS is concerned, yes, you can opt for SIP. It will ensure that your tax planning is more disciplined rather than the last minute rush in the month of March
ksurya asked, Hi,I subscribed to HDFC Equity fund in the form of SIP from last 3 years and accumulated around 2500 units, When i see the reviews on that fund some are giving it as 4star. Can you please let me know your openion on that fund, shall i hold it or see it off....
Sailesh answers, hi, I would recommend that you continue with your investment in HDFC Equity Fund. Star ratings can change from 4-5 or voce versa. That should not be a casue for worry.
tjethani asked, hi Mr.Multani. I want to invest only 30000 in equity. Should I go for mid, small or large caps ?
Sailesh answers, hi, I would recommend that you choose a fund that has the flexibiltiy to invest both in large and midcaps. Let the fund manager decide rather than you. You can choose HDFC Top 200 Fund to start with.
axy asked, which ELSS fund to go for????
Sailesh answers, Franklin India Taxshield and Fidelity Tax Advantage among others.
suhasl asked, I would like to invest 60% of my saviings into Equity SIP, please suggest top three SIP that i can invest in. Also wether my decesion of investing in SIP is correct in the growing market? i am 27 years old Thanks
Sailesh answers, hi, I have replied to a similar question earleir in this chat.
sanjay2988 asked, Hi sailesh i am investing 6000 per month via SIP in reliance growth, icici tax saver, HDfc taxsaver, Bur sunlife tax relief, sundaram select midcap and sundaram taxsaver. Till now a little profit say 1000 rupees. Should i stop SIP or continue What is your suggestion?
Sailesh answers, hi, in my view you are investing in too many tax saving schemes. I would suggest that you restrict the number of schemes to 2-3. You can consider HDFC Tax Saver and Sundaram Tax Saver. Continue with Reliance Growth and Sundaram Select Midcap.
anand jain asked, I have 8 months daughter and i want to save money for her marriage. can you tell me the best guarantee saving option. i can save Rs.30000/- per year for her.
Sailesh answers, hi, you have a very long investment horizon of aleast 20 years. I would recommend that you have combintation of equity, debt and gold in your portfolio. Equity are the best options for investment horizon of 15 years and more. Ideally you can invest 70% in equity, 15% in debt and 15% in Gold. If you are only looking at guranteed assure returns then bank fixed depsoits are the only option but then you will have to settle for less returns
mz81 asked, one of the most debatable topics is that should we go 4 a ulip or split it btw a term plan and mutual funds?? wat is your take on this???
Sailesh answers, hi, in my view one should choose term plan and mutual funds as against ULIPs. Term plan offer you higher sum assured with lowest premium. The saving on premium should be channelised into equity funds. ULIPs are costly and combine insurance with investments. I am of the opinion that insurance and investments should be kept separate
cdd asked, Sir I want to invest 35 K for 4 months please can you help me for the same
Sailesh answers, hi, given your time horizon of 4 months, the best option would be liquid funds.
khullar asked, Today i can invest Rs. 250000 in different instruments for achieving 2 future objectives: 1. i need Rs. 15 lakhs in 2022 2. rs. 10 lakhs in the year 2026. Can u suggest me the ideal way of putting my money in different instruments. Thanks.
Sailesh answers, hi, answer to your question lies in preparing a detailed investment plan for both your obectives. You can write to me separately with more details at info@personalfn.com
deepak123 asked,  I m an NRI person. Want to invest some money in MUtual funds via SIP. Please suggest some funds. I can take risk upto 70%
Sailesh answers, hi,you have mentione that you can take high risk with your money. If you are willing to stay invested for 5 years and more then I would suggest that you build a portfolio of well managed diversified equity funds. Preferably funds with large cap bias should be considered.
deepak123 asked,  I m an NRI person. Want to invest some money in MUtual funds via SIP. Please suggest some funds. I can take risk upto 70%
Sailesh answers, hi,you have mentione that you can take high risk with your money. If you are willing to stay invested for 5 years and more then I would suggest that you build a portfolio of well managed diversified equity funds. Preferably funds with large cap bias should be considered.
gsmallesh asked, Sir,i am investing thro SIP 5K in each HDFC TOP200,DSP BR TOP100,Franklin prima plus,kotak oppertunities,ICICI dynamic,Reliance Growth,NIFTY bees for 5 to 10yrs.kindly comment about these choise and suggest changes if any
Sailesh answers, hi, you have all the good schemes in your portfolio. you can continue your SIPs in the same
lalit asked, Hi, I have Rs.1000 SIP in HDFC core & satellite since July 2006 which wil close in coming July. Should I continue it or close it. I have also recently started SIPs in HDFC T 200, Franklin prima plus, Sundaram sel;ect Focus, Birla frontline equity....Plz suggest...............Should I exit from that fund now or should leave my units for few months to appreciation of NAV and then exit.....Pl suggest..Thanks
Sailesh answers, hi, if you have HDFC Top 200 then stop SIP in Core and Satellite. Rest you can continue with the existing schemes. Remain invested for 5 years but keep booking profits from time to time
Newbie asked, Hello Sir. I am currently servicing a home loan at a fixed interest of 8% p.a since 2004. I now have some spare cash available. I want to know if I should be partially prepaying this loan (does not incur prepayment penalty), or use this money to invest elsewhere, like MFs or stocks, or splurge it away on a new car ;) Please advise. Thank you
Sailesh answers, hi, in my view you should prepay your loan if you can. The saving in EMI can be channelised in to equity funds.
akshatha asked, Can u please suggest some balanced funds for a portfolio. What shuld be the percentage of total portfolio in balanced funds.
Sailesh answers, hi, you can consider HDFC Prudence and FT India Balanced Fund among others. The percentage of investment in balanced fund is a function of your risk appetite and investment horizon. If your investment horizon is 3 years and risk appetite moderate then balanced funds are the right choice for you.
Sailesh says, Thank you all for participating in the chat session. If you have any investment related queries, you can write to me at: info@personalfn.com