Chat Transcript

  • Amit Trivedi

    Feb,08,2016, 11:00 hrs

    Equity investments simplified

    Amit Trivedi , Author & Founder, Karmayog Knowledge

  • guest: Should I sell my House and invest in equities ?

  • Amit Trivedi:

    The one you are living in? Never. If you have a property you have invested in and asking whether you should sell it and buy equity, my questions would be (1) trying to time one market (entry or exit) is extremely tough, shifting from one (housing) to another (equity) is doubly tough; (2) at the same time, please consider the lack of liquidity in housing market coupled with the inability to break the investment in case you need some money.

  • guest: should i close my home loan & invest the EMI in equities

  • Amit Trivedi:

    How will you close your housing loan? Do you have surplus money? Will you be selling equity for that? And do you want to shift the EMI to equity? At the same time, please consider the question, whether you are comfortable servicing the debt, i.e. your home loan. If you are not, close the loan ASAP. However, if the loan is not very high and the EMI is a small part of your monthly salary, you may be mentally and financially comfortable.

  • guest: I am 25 and have just started working . I would like to invest in a mutual fund as my work hours do not permit me to continuously track the market and invest in it directly. I am planning to do an SIP of about 8000 a month . My risk taking ability is moderately high . This will be my first ever investment in to a mutual fund . Which type of fund do you suggest for me . I was thinking about small/mid cap as they seem to out perform their counterparts. tax saving is an option but the lock in period of 3 years is what is holding em down. Funds shortlisted : 1. Can Robeco Emerging Equities 2. DSP BR Micro fund 3. Axis long term equity (ELSS). Would really appreciate any advice . Thank you , Sankalp

  • Amit Trivedi:

    Hi Sankalp, your age, i.e 25 years, is a good time to start investing in equity. Since you are in your earning years, you can afford to invest regularly in a mutual fund through SIP. I would suggest you keep increasing the SIP amount as and when you get a salary hike. Before you start writing the cheque, please identify the financial goals for which you want to invest. For all your very long term goals, beyond 15 to 20 years, SIP in mid / small-cap funds could be a very good idea. Please do not look at the immediate past performance for the purpose of selecting the scheme or the scheme category. ELSS, the tax-saving scheme, is a good choice as it allows you to invest for long term and also reduces your tax liability. Do not worry about the lock-in as investments in equity should be for much longer period than the stipulated lock in for ELSS, i.e. 3 years. You have made a good choice to go with mutual funds in stead of direct equity considering the limitations you have mentioned.

  • guest: I\`m planning to buy gold for investment purpose. I\`m already invested good in equities. But I think the gold prices may go lower. Should I wait or buy now?

  • Amit Trivedi:

    I have no idea how gold prices would move.

  • guest: Is this a good time to invest in equties, I\`m a fresher in investments

  • Amit Trivedi:

    If you are asking whether the market prices would move up or down from here, my guess is that either is possible. I do not know the probability. Identify your financial goals and invest for long term goals in diversified equity mutual funds through SIP

  • guest: I have invested in equities and with current scenario I have sold all scripts at loss. Can I claim the loss amount while calculating the IT returns on short term capital gains? or can I adjust the profit I made on trading equities?

  • Amit Trivedi:

    Losses booked on equity are available for certain set-offs. I would recommend you consult a Chartered Accountant or a tax advisor for the tax related advice.

  • guest: i mm 28 yrs old and have a keen interest in investing in equities market please advice how to start ?

  • Amit Trivedi:

    Identify your financial goals and invest for long term goals in diversified equity mutual funds through SIP

  • guest: I am 42 years old and in the initial stages for retirement planning. I am confused on where to invest, either life insurance and retirement planning. I already have investments in MFs, Equities and PPF. Please suggest.

  • Amit Trivedi:

    At the outset, you cannot invest in life insurance policies. You can buy life insurance as a protection against an untoward event. It is a different matter that insurance companies have hybrid products that combine both insurance and investment. Buy those only if you need additional insurance cover, but before that please compare the expenses and certain other features like lock-in or inability to shift your money. My suggestion would be to invest your money i open-ended mutual fund schemes even for the purpose of retirement planning. Keep accumulating till your retirement and then find solutions for getting regular income from investments.

  • guest: Canara Robeco Emerging Equities Fund is it fine to do SIP in this mutual fund? My age 25 investing 2500 per month is it fine?

  • Amit Trivedi:

    It is a good idea to invest in an equity fund for meeting your long term goals. SIP is a very good route in your earning years, when you have regular saving. SIP allows you to channel these regular savings into investments. As far as the scheme is concerned, please pardon me as I do not comment on any specific scheme.

  • guest: Canara Robeco Emerging Equities Fund is it fine to do SIP in this mutual fund? My age 25 investing 2500 per month is it fine?

  • Amit Trivedi:

    It is a good idea to invest in an equity fund for meeting your long term goals. SIP is a very good route in your earning years, when you have regular saving. SIP allows you to channel these regular savings into investments. As far as the scheme is concerned, please pardon me as I do not comment on any specific scheme.

  • guest: I am 42 years old and in the initial stages for retirement planning. I am confused on where to invest, either life insurance and retirement planning. I already have investments in MFs, Equities and PPF. Please suggest.

  • Amit Trivedi:

    I think I already answered this. Repeating the answer for your reference: At the outset, you cannot invest in life insurance policies. You can buy life insurance as a protection against an untoward event. It is a different matter that insurance companies have hybrid products that combine both insurance and investment. Buy those only if you need additional insurance cover, but before that please compare the expenses and certain other features like lock-in or inability to shift your money. My suggestion would be to invest your money i open-ended mutual fund schemes even for the purpose of retirement planning. Keep accumulating till your retirement and then find solutions for getting regular income from investments.

Sections