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Chat Transcript

02 Sep - 10:00 hrs

Gaurav Mashruwala | Certified Financial Planner


Should one invest in MF now?

Chat Transcript

jsssmk: sip-i want to invest 3000 each month in 5midcap mutual funds each for the next 10 years.PLease suggest names of 5 midcap mutual fund
Gaurav Mashruwala: Any particular reason for 5 mid-cap funds? While I do respect your decision to invest in mid-cap fund considering your time horizon of 10 years, it is not prudent to go beyond 1 mid-cap fund. At best opt for 1 large cap, 1 mid-cap and 1 international fund
meetchande11: what is the best time to exit from SIP?
Gaurav Mashruwala: Exit when you require money to fund the financial goal for which investment was started. However if the scheme is laggard then you may want look at SIP in other schemes but do not stop SIP completely. SIP is good habit. Never stop good habits.
guest: What would be the best investment according to this market, S.I.P or lump sum???
Gaurav Mashruwala: I do not understand `this` market. I do not know how to gauge market. I only about financial goals and investment. If you have lump sum park funds in debt instrument and move them to your desired asset class. If you do not have lump sum then any way you have to undertake SIP
guest: sir i came to knw thru moneycontrol that there are funds which gave returns of 100 %. in which fund should i invest to gain such returns .i want to invest i lakh. kindly guide.
Gaurav Mashruwala: I am not sure if moneycontrol or any other `RESPECTED` web site stated names of funds which guarantee 100% returns. If anyone can guarantee that then that person will be richest person on planet earth. earn to expect only normal returns.Typically equity portfolio will generate about 12%/15% annualised returns over 7/9 years and these are NOT LINEAR.
guest: I want to invest 10,000 pm for 3 yrs , What is suggestion..
Gaurav Mashruwala: Since your time horizon is 3 years, consider debt instrument like RD or SIP in debt fund. If you had lump sum I would encourage 3 year FMP to get tax advantage.
guest: I have earned more than 40% in MF, should I quit now or should I continue
Gaurav Mashruwala: If you have reached your targeted return to achieve your goal you may want to quit.
jalajjaiswal89: What is the best way to invest lumpsum money , right now I have parked it in FD ? I already invest in MF SIP ( 75% equity 25% hybrid)
Gaurav Mashruwala: This is dependent on your financial goal. If goal is less than 1 year away, you have to go for FD. Even upto 2/3 years FD is better bet. Beyound 3 year consider FMP. For goals beyound 7/9 years, park in debt instruments and move into equity funds.
guest: As marker has already appreciated too much should ii invest in equity mutual fund
Gaurav Mashruwala: `TOO MUCH` is relative. Focus on your financial goals. If your financial goal is 7/9 years away equity is a better asset class. If your financial goal is 2/3 years park in debt instruments.
guest: If any one wants to invest for minimum 3 to 5 years, then Which would be the suitable option, Open ended or close ended? Whats the difference between close & open ended?
Gaurav Mashruwala: There is no clear empirical evidence which suggest that close ended has `ALWAYS` yielded better returns. Therefore stick to open ended as you will be able to maneuver if need arises.
guest: I want to invest 2lac in equity which fund is better for at least one year, I have already invested in reliance small cap direct fund
guest: Hi, I am looking to invest Rs 20000 in SIP every month for 3-5 years suggest me some good funds.
Gaurav Mashruwala: For a period of 3-5 years, go for 20%/80% allocation. 20% in equity and 80% in debt. Various MIP schemes of mutual funds this kind of combination.
guest: Whats better ? ELSS or Simple Funds?
Gaurav Mashruwala: If you wish to get benefit u/s 80-C then go for ELSS, otherwise you are better off staying invested in simple funds which does not lock you money in.
guest: I am 60, and still working. I wish to put Rs.10 lakhs for my retirement. Should I go for FMP or Debt funds, given 3 years tenure.
Gaurav Mashruwala: If it is lump sum and if choice is between FMP and debt funds, go for FMP as they are tax favoured as per current provisions.
guest: I am looking to invest Rs 10 lac lump sum for next 3-5 years . Kindly advise.
Gaurav Mashruwala: If amount is lump sum then park in debt instrument and transfer systematically 25%/35% in equity. Rest of the funds can continue to stay invested in debt instrument.
guest: Hello. I am a NRI and interested in parking funds for 1 year in MF. Which funds are good considering new tax treatment.
Gaurav Mashruwala: This is difficult question. If you are looking at tax advantage then equity fund is option. However equity fund are not suited for 1 year horizon. You will have to decide whether you want better tax advantage or optimal returns over 1 year.
guest: i an the new use how to study the market and where to invest
Gaurav Mashruwala: There are several places like NISM who will teach you about investing in equity. Even BSE/NSE might have few options.
guest: Dear Sir, I somehow can invest Rs. 1000 to 2,000 per month as SIP. Would like to invest in mutual fund from small to medium term. Which mf you will recommend. Thanks
Gaurav Mashruwala: Any particular reason for mutual fund preference only? If your time horizon is upto 3 years go for debt fund. If it is 3/5 years make combination of debt and equity and for 5/7 years and beyound opt for equity fund
guest: Sir, in the year 2010 lumpsum invested by me into sbi Magnum psu (G),nav was 11.14 . pls advice will i exit or stay or switch ?
Gaurav Mashruwala: I would refrain from commenting on scheme specific question. However as a rule of thumb if you have achieved you targeted returns then move out. Also if you are unhappy with scheme performance for ling time, maneuver the scheme.