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Dear Rdadhe, Yes PPF & PF r the only debt products which r tax free as per current Tax law. But once the new Direct Tax code `ll take place, the things `ll not remain same.
Now to answer how much one should invest in these debt products & how much in Eq. the answer `ll depend upon several factors -
1. Age of investor
2. Risk appetite
3. current portfolio structure
4. Time remain to retirement
5. Financial liabilities
6. Over all time available for investment to grow
To name a few.
After identifying the above & some other factors an investor may decide her own split of Eq. & debt.
Thanks
Ashal
...
Yes, as dear Ashal pointed out, these are all debt like investments and should be clubbed together with other market linked debt instruments.
Regards,
Wadia...
Dear Ashal,
I was just wondering. It make a long term sense to max your PPF each year. Along with PF & Superannuation, it is the only tax free investment avaliable at the moment. (not sure for how long)
After this, normally working people find it very difficult to find large amount of cash to save in other avenues. Is it not therefore best to focus on a % split between Debt & Equity for your age and profile and then allocate the investible cash accordingly? Mostly, this will mean that major portion of your disposable income should go in equity related investments.
Regards...
Dear Rdadhe, PF, PPF & superannuation corpus along with ur normal FDs & debt funds all form the debt part of ur portfolio. Even one may consider the traditional life insurance policies under debt category.
Yes ur observation is correct that in all the above investments the underlying assets are debt.
Thanks
Ashal...
Dear wadia,
Is it proper to consider your PF/PPF/Super-annuation as a debt investment along with FD`s & debt funds when you calculate the net portfolio exposure to debt? After all these increase at similar rates and their underlying assets are debt.
Regards
...
Hi,
My wife started investing in gold when my daughter was born. I could only buy 1 gm per month. We started with 1 gm per month of the gold wire rings every goldsmith sells as pure gold. As our buying power increased, we kept on buying more every month. Now for last few years we have found that there is a sort of Bhishi, where you give 11 cheques,one per month & the goldsmith will put the 12th installment. You buy gold at market rate from the shop. This gives about 8% rturn, higger than your FD`s and allows me to buy gold biscuit. I suggest you buy real gold instead of ETF`s & Gold funds. I prefer buying gold in 50 gm or higher size biscuits. These are guaranteed pure form and can be sold or used for ornaments later.
You can look at gold as a parallel investment, just like bonds or stocks. Steady and sure returns.
Regards...
Dear Friend, As not much info is there in ur post so in my view in general u may start ur SIPs in following funds.
HDFC Top 200
DSP Top 100
REl. RSF Eq.
Thanks
Ashal...
Dear AVSing79, For the kind of return u r asking for within such a short term (1-2 years), in my view plz. don`t invest at all in Eq. MFs. The reason is simple, within next 1-2 years the market volatility may throw all ur plans of a high returns out of the window.
Invest in Eq. MFs only if u r ready to commit money for at least 4-5 years & that too with a conservative returns expectations of 12-14% only.
Thanks
Ashal...
It is always wise to keep some portion of your assets in debt funds and never
sport an all-equity portfolio.
With rates set to rise, there is no point in taking any interest rate risk right now.
Avoid long-term duration funds.
Investors should now consider short-term bond funds.
Consider long-term debt funds when interest rates are at a high or have
peaked.
When interest rates do rise next year, more fund houses will come out with
Fixed Maturity Plans (FMPs), which can also be considered.
2010 will be far more volatile for the debt market than 2009 was. The RBI will
start with a CRR hike before moving on to a rate hike.
Courtesy: Mutual fund Insight Magazine Nov. Issue
Regards,
Wadia...
In a 1-year time frame (as on October
31, 2009), AIG World Gold Fund has
been the best performer, followed by
DSPBR World Gold Fund. Not surprising,
looking at the way the price of gold
has rallied. However, if the funds’ performance
is taken in view of the bull
rally, then AIG World Gold Fund has
delivered a mere 29.37 per cent return
while DSPBR World Gold Fund has
returned 27.45 per cent.
The largest fund is Reliance Natural
Resources Retail (Rs 4826.70 crore),
the smallest is ING Global Real Estate
(Rs 2.06 crore).
Among Fund of Funds (FoFs), ICICI
Prudential Indo Asia Equity has delivered
the highest with a performance of
87.47 per cent during the bull rally. But it
fell 50.89 per cent during the bear run.
Templeton India Equity Fund has benefited
the most from the bull rally.
The asset management company (AMC)
with the most international schemes is
Birla Sun Life Mutual Fund.
In the 1-year period between October
2007 and October 2008, 19 international
funds were launched in India.
Courtesy: Mutual fund insight Magazine Nov. issue
Regards,
Wadia...
selling 35% stake is good or bad news for suzlon...
Select the top 5 Equity Diversified Funds and invest in all 5 funds @ 20% in each fund. Suppose you want to invest Rs. 5000 per month then invest Rs 1000 per month in each fund ranking top 5 but only rated funds no unt rated one. Never invest in a single fund....
dear guest, you can invest in reliance growth ...
i wanted to invest in SIP for my kids career for long term, recommend which mutual fund i have to invest...
I had switched over from ICICI Pru Dynamic to Pru Infra thinking it to be more versatile. There is hardly any rally in it. It has proved to be a dud since last six months. Any othe plan of ICICI which csn give me better returns....
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