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Chat Transcript
09 Aug 2012 - 16:00hrs hrs
Harshvardhan Roongta | CFP
Financial planning and asset allocation
Chat Transcript
| rnp_111: hello sir, i am planning to invest Rs 4000 per month (SIP) for next 10 yrs. Please give me some idea. |
| Harshvardhan Roongta: since the time horizon is 10 years, you can consider investing in Equities. Invest through SIP in Mutual Funds. Rs. 2000/- p.m can be invested in Franklin India Index Fund - BSE Sensex Plan and the other Rs. 2000/- p.m in HDFC Equity Fund. |
| 777.com: Which instrument will give me fixed returns? |
| Harshvardhan Roongta: Bank & Company Fixed Deposits, Saving Bank A/c, Bonds, NCD`s ( non convertible debentures )will provide you with fixed returns. |
| vivekrainainc: I am an amature investor and have been trying to create my own portfolio, i am right now into equities and gold only, i would like to know what do you consider while deciding asset allocation for a long run |
| Harshvardhan Roongta: Broadly there are four asset classes viz. Equity, Debt, Precious Metals (Gold etc) and Real Estate. The allocation to each asset class depends on multiple factors and differ with each individual based on their specific factors. In the absence of this data, one can use the thumbrule of 100 minus your age in Equity, 10% in Precious metals and the balance in Debt. Real Estate as an investment is a little complex hence is not included in the thumbrule application. |
| csannannd: Hello Sir, I am 3o years old, i can invest 10000 per month , kindly let me know the good long term mutual funds to invest. |
| Harshvardhan Roongta: It is very good that you have a long term view. Further, i would suggest if you can also identify a goal (for which you want to invest) such as retirement, purchase of a house, wealth creation etc, you would be more organised. Spilt your investment into 3 parts :- 1) 25% in Index Fund - Franklin India Index Fund - BSE Sensex Plan 2)50% in Mutlicap Fund - Hdfc Equity Fund and 3) 25% in Mid & Small Cap - SBI Emerging Businesses Fund |
| ashfak_1983: Hi sir, just need to know about financial planning.I am 30 years of age and dont have much investment in my life.I have two policies from LIc like Lic jeevan anand and money back policies at a sum insured USD 20000.Also around 800K investment in share trading.Started 7K sip 5 months back in HDFC top 200 and Axis income saver respectively.Need to know what I want to add to my portfolio.Also can you suggest me some other good investment plan for retirement too..Thanks in advance. |
| Harshvardhan Roongta: For long term goals such as retirement you can invest in equities, as equities give the best returns over longer periods. (Imp. Your share trading portfolio is not for this) Since you are comfortable with direct equity you should choose some very sound, fundamently strong companies and "invest" in them. Keep your trading portfolio seperate from this. |
| abhishek41: Sir my asset allocation is as follows: Equity 50%, fixed deposits 32% and 9% in MFs and 9% in others with SIPs of Rs 10,000 p.m. in MFS. What i needed to know, whether there is any need of re-allocation? I |
| Harshvardhan Roongta: Good to see that you keep a track of your investments and its respective weightage in your portfolio. at the face of it, this looks fine. However, i would be unable to advise whether this is the best for you as asset allocation depends upon many individual factors. You may consult a financial planner with the details and he / she will be able to help you. |
| pramod_rw: Hi ... I am finding difficulty in building contingency fund... kindly let me know which instrument i can use for it |
| Harshvardhan Roongta: You can start with simple instruments such Bank Recurring Deposits to begin with. Always remember, begin with what you understand clearly and then progressively move up with other financial instruments. |
| venki1976: pls provide best assets for 10 year long period |
| Harshvardhan Roongta: Equities, however, never invest all your money in any one asset class. |
