Chat Transcript

Commodities | 01 Sep - 10:00hrs

Know more about Mutual Funds


Mehrab Irani | General Manager, Tata Investment Corporation

guest: Is the current situation favourable for entering in mututal funds?
Mehrab Irani: Any time is a good time to invest and start building your wealth. The question is not whether it is a good investment or a good time to invest; rather it is whether you are a good investor. Almost 90% of portfolio variability is due to asset allocation while only 10% of the variability in portfolio performance is due to market timing and stock selection. So, rather than on trying to time the market or concentrating too much on stock selection, aim to do proper asset allocation. And market correction is the best time to invest as you get the same stocks at cheaper prices – its like a “sale” on good quality stocks and managements. Remember that recession is too costly to be wasted, instead use it to get rich. Recession allows you to acquire assets at discounted prices.
guest: Dear Mr.Irani , I am looking to invest in mutual funds through an SIP , which ones would be advisable with a view to create wealth for the long term. Also, I have read your latest book ` Mad Money Journey` , I thoroughly enjoyed it , please let me know how can we contact you or any other social media through which we can be in touch. Many Thanks, Umita
Mehrab Irani: SIP is one of the best methods of investing in mutual funds as it helps to acquire good assets at the best possible average price through ups and downs in the market and is instrumental in building long term portfolio which would eventually create wealth. I am happy to note that you liked my book “Mad Money Journey” which is India’s first finance thriller and has already become a “National Bestseller” as well as appeared in various other bestseller charts and in talks to be converted into a Bollywood movie. “Mad Money Journey” combines the principles of money, finance and investments on one side and of life and its wisdom on the other side in an inspirational, motivational and intuitive manner bringing out the relationship between man and money, entertaining in a thrilling suspenseful manner, promising to be a page-turner, helping and guiding its readers on a new path towards self-discovery, a financially free life wherein everybody, rather than being slave to money is actually able to live a happy successful life achieving their highest self and fulfilling their very mission on coming to this planet. My social media address are as follows:
sanjeev2481989: Hi Mehrab, Sanjeev this side I have invested in 2 MF in yr Jan month as I am new 25 yr of age and started working last yr since Aug, 2014: Franklin India Prima Plus Fund (G) & ICICI Prudential Regular Savings Fund - Direct Plan (G) . Please advice me should I stick to them or change the house . And my second question is I want to buy one more SIP , with Moderate to Bit low risk in Equity segment. Please advice.
Mehrab Irani: If you want to buy SIP with moderate to low risk than I would advise to go with an Index Fund which will give you market return along with market risk with minimum expenses and volatility.
eejmar: What are the best mutual funds to buy, as the markets are on a slumping mode :(
Mehrab Irani: Since markets are correcting, the best investments might be to invest in Index or large cap funds. If you want to assume some risk then you may consider small allocation to mind or small cap funds. However, I would advise you to refrain from investing in any sector or theme based funds as these funds are launched during exuberant times by fund houses and heavily marketed by distributors to collect large funds from the gullible investors. Sectors go out of flavors, markets forget themes and so does evaporate investor money as well as confidence. Simple things are the best in the world of investments.
poojab1102: gm sir... i want to start sip for my mom ... she is senior citizen... monthly 10000 she wants to invest in sip ... please suggest me scheme to invest.her age is 66 years.i read your book mad money journey.. best book i have ever read.. i acme to know that you have conducted workshop for females on finance. i want to attend that,kindly share upcoming scedule..
Mehrab Irani: Since your mother is senior citizen and has limited source of income as well as risk taking ability, I would advise you to create a portfolio of fixed income funds, Balance Funds as well as a small portion in an Index or Large equity fund. The fixed income fund will give stability and income, Balance Fund will protect her from inflation and give superior after tax returns while equity will add some flavor of growth to the portfolio. I am happy that you liked my bestselling finance thriller “Mad Money Journey”. Yes, I do conduct workshops specifically for women because even in today’s modern society women are not necessarily made of financial decisions and independence. It’s the birthright of each individual to achieve financial freedom. And it’s more so for a women who even today in a liberalized Indian society might be educated and working but is primarily expected to take care of the family and house. When we ask a woman that what you are doing with your money the typical answer is that, “I don’t know, my husband or father is looking at it”. Even a working women earns money but is seldom part of the financial decision. A woman, whether working or not, is always made to depend on male for her financial needs. A woman takes care of her work as well her house, a woman attends to her husband, children as well as the adults, a woman keeps the house as well as the image clean, a woman perfectly blends and unites the family with her love, dedication and sacrifice. But then why the same woman is denied financial freedom? Is it not her right to live a financially free life wherein she can also explore her dreams, listen to the calling of her soul and fulfill her higher self-actualization goals? Yes, women, even the educated and earning ones, do shy away from taking financial decisions and besides other factors the primary reason is that somewhere deep within her mind, body and soul it has been incorporated from childhood that she is not supposed to be part of the financial decision. To find more about them you may write at or or or
guest: which mutual fund we can invest now
Mehrab Irani: Rather than asking which mutual you can invest, find out your long term investment goals, what you plan to achieve through your investments, how will you create wealth for yourself over the long term, how will you ensure that you make your family’s financial future secured over the medium term and how will you yourself achieve financial freedom so that you can then concentrate on fulfilling your dreams and achieving your higher self-actualization goals.
kank20: sir pls advice if i can suggest some ultra short term funds for investment of 2-4 months from ICICI Prudential or any other? Is DHFL safe for FD deposits for senior citizens? thanks
Mehrab Irani: In a falling interest rate environment, you might consider investing in ultra-short term plans or better in short term plans with a maturity of around 12 to 18 months which will help you to ride the interest rate curve, provide you with accrual interest along with some scope of capital gains with reasonable risks. Company FDs are unsecured and hence you have to be very careful when you do deposit with any company. Debt Mutual Funds might be a more safer, liquid and tax efficient instrument.
guest: I invested in Birla sun life mutual fund Value discovery fund 3000/per month, for 10 years . So u can suggest this is the right fund or any one better than this
Mehrab Irani: While evaluating any mutual fund scheme, always give due credence to the promoter company, the fund manager and the time period for which the fund exists. Generally, evaluate the Fund Manager as well as the fund performance for a long period of around 10 years during which time the markets would have passed through bull and bear phase, interest rate hikes and reduction and other volatility and turmoil.
Mehrab Irani: I think most of the fund houses and schemes are reasonably good. Take care not to over diversify. Always maintain balance between large cap, mid cap and small cap funds with maximum allocation to large cap funds.