SMART MONEY IDEAS - HIMANSHU THAKKER REPLIES TO QUERIES

qwe asked, I can invest 5000Rs/month, my goal is downpayment(2.8 lacs) of home. So how can I invest this amount?
Himanshu answers, hi, if you are saving Rs.5000 for 24 months, you will have saved 1.20 lacs. You need Rs. 2.80 lac. This means that your money should double in next 2 years. I would recommend that you invest in safe investments like Bank FD. Given the fact that your returns will be less then 6-7% p.a there will be a huge shortfall as far as your goal of Rs. 2.80 lacs is concerned. There is no option but to increase your savings by atleast Rs. 5,000
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chatwithme asked, My SIPs are in following funds. Kindly review my portfolio and suggest one more fund, if i want to invest. - Birla Frontline Equity - DSP BR Top 100 - HDFC Top 200 - Sundaram Select Focus (Growth Option)
Himanshu answers, hi, you have a very healthy portfolio. Continue with the same
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jatinshah asked, which is better option for Stable growth of money ? Bank FD, PPF or NSC
Himanshu answers, hi, banks are offering 7% for one year FD, PPF is offering 8% compounded annually (tax-free) but will be taxed after 2011. NSC is offering 8% for 6 years but offers tax savings. I would go for PPF and Bank FD
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sawan asked, Sensex is at approximate 16000. when it grow @ 15%, it must be at 28000 in 4 years. do u think it is possible?
Himanshu answers, well... if it grows by 15% over the next 4 years it will touch 28000. If India continues to grow at 6.5% and attracts foreign investment, then 15% is very much possible atleast over the next 2-3 years.
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prasadlavekar007 asked, hi Himanshu ! I have just planned for Invt . My wife salary we save & I spend my salary to Household , we save rs.20000 a month ,please advise how can we invest more efficiently
Himanshu answers, hi, make a comprehensive financial plan for your self that will help you achieve your financial goals. Divide the amount of Rs. 20000 towards each goal in line with the recommendation of the financial plan. I would recommend that you take help of a competent and honest finacial planner/advisor to plan for you
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Mayukh asked, Hi Himanshu, I have invested in 2 ULIP policies, one ICICI Life time Super and another TATA AIG Invest Assure2. They give me Tax benefit but the current value is too low for both specially TAT AIG. Can you please advise if I should pull out my money from them/close those policies?
Himanshu answers, hi, ULIPS are not the ideal investment/insurance products. I would not recommend that you pay any premium beyond the mandatory premium payment term. For insurance Term plans are the best and for investment build a portfolio of debt and equity funds. ULIPs combine both investment and insurance, have very high initial cost and hence not the best option
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pgr asked, I have currently having SIPs of 1500 in Franklin India Bluechip ( largecap, Franklin India prima fund (midcap), Reliance diversified power and Tata Infrastructure fund from last two years. I wish to continue for at least for next five years. Please tell whether I continue with these or switchover to other.
Himanshu answers, hi, Reliance Power and Tata Infrastrucue funds are not suitable funds for your portfolio as these are sectoral/ thematic. Opt for diversified funds instead
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sonali asked, Dear Sir, I HAVE INVESTED IN BIRLA MNC[D], TATAINFRA[D], UTI LOGISTIC[D] since oct 08 and got 17-30% returns though you advise not to invest in themetic funds, shall i continue or book the profit
Himanshu answers, hi, I would recommend that you redeem and invest in large cap biased diversified equity funds as discussed earlier in the chat
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asdf asked, I am S/W Engg. and earning around 2.5 Lac P.A. I want to know abt LIC plans.. which can be beeter one for me..??
Himanshu answers, hi, if you are taking an insurance policy for covering the risk in case anything happens to you then go for the Term plan. Term plans offer higher sum assured for lower premiums. I would not advise any other form of insurance for risk cover. If you are planning investments then mutual funds are an ideal option for you
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bhaskar asked, Hi Himanshu, i want to invest Rs.80K for shortterms ie for 6 months, can you suggest
Himanshu answers, hi, given the current interest rate scenario, I would recommend that you park your money in liquid / liquid plus funds.
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madhusudhan asked, Hi Himanshu, I want to invest pension cum investment plan of 10000 per year. I am already plan for my child.could you please suggest
Himanshu answers, hi, i would not recommend that you buy a pension plan. Rather work out a retirement plan for yourself and invest in mix of equity and debt as suggested by the plan. The corpus you save till retirement should be able to generate adequate income to take care of your post retirement needs
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sonali asked, Can we invest in HDFC TOP200, DSPBR TOP100 for long term at current level?
Himanshu answers, hi, you can invest in both thses funds at the current levels
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Ramachandra asked, Hi, I am 29 and I am planning to purchase a flat .Is it wise to save money in Mutual Fund every month and buy a flat after i collect the total money or should i take home loan right now and keep paying the EMI?
Himanshu answers, hi, the answer depends on when you want to buy the property. If its immedaite and you do not have adequated savings, you will have to go for the loan. If its few years away like 5-7 years, you can save towards the same in mutual funds and build the desired corpus. However, thisagain will be a funcion of your monthly savings and income and expenses. In my view saving for property aand keep ing the loan amount to the minimum would be more prudent though it may not always be the case.
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Amit asked, Hi Himanshu, Which will give better returns investing in buying a appartment in HYD [DP will be 6-7 lakhs rest bank loan of 30 lakhs] or invest in equity for next 3 years. I can invest 6-7 lakhs in equity.
Himanshu answers, hi, as far as returns from equity is concerned I expect returns in the range of 12-15% p.a. over the next 3 years. Not too sure how much your porperty will appreciate. Your real estate advisor should be in a better position to advise you on the same based on the type of property, location and overall development in the region
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sonali asked, Dear Sir, Can u pl tell on 'NEW TAX CODE'.It will restrict investment options, what happens to ELSS? Long term gain tax will be eliminated. pl tell how one shall plan investing according to NTC
Himanshu answers, hi, as of now going by the Direct Tax Code provisions, investment in tax savings schemes like ELSS and PPF may not be attractive post 2011. Its too early to take a call on how the strategy should be modified. Once the final code is in place the strategy can be revised
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pram asked, Hi I have planned this aggressive portfolio for next 1 year.... IDFC Premier Equity Plan A - 30% ( Aggressive Large Cap) DSPBR Equity - 30% ( Large Cap ) HDFC Top 200 - 25% ( Large Cap ) Sundaram BNP Paribas S.M.I.L.E. Reg - 10% ( Aggressive Small/Mid Cap ) GoldBeES ETF - 5% (Gold ETF ) Please share your feedback on these portfolio and how diverse the companies are in this portfolio
Himanshu answers, hi, you should add funds like Franklin India Bluechip to your portfolio. Restrict your exposure to Sundaram SMILE to 15% of your overall portflio. Overall your portfolio is good
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salaryslave asked, My current savings plan just about covers 1 lakh under 80c and nothing else. I plan to start investing in mutual funds. I can spare 15-20 k per month. Can you please suggest me a good place/fund to start with ? Thanks
Himanshu answers, hi, i would recommend that you make an investment plan for each and every financial goal you wish to achieve and invest in line with the recommendations of the plan. Do not save only from the tax savings perspective. Plan your investments for important goals like retirement, child education and marriage among others.
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kishurawat asked, Can you suggest some good mutual funds for regular income?
Himanshu answers, hi, Monthly Income Plans (MIPs) can be considered for investments to generate regular income. However, it should be noted that the dividends from MIPs are not assured or guaranteed. IF the equity / debt market do not perform well the fund may skip its monthly or specified dividend. If you are looking for assured monthly income scheme then go for Post Office Monthly Income Scehme (POMIS)which offers interest @ 8% p.a.
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venu asked, Could you please suggest which is the best Tax Saving MF(ELSS)..
Himanshu answers, hi, you can consider funds like Franklin India Taxshiled and Fidelity Tax Advantage Fund
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jude asked, is investment in UTI infrastructure advantage fund good
Himanshu answers, hi, infrastructure funds are thematic funds and hence restricted from investing in sectors that do no form a part of the overall theme. The perfomance of the fund is manily dependend on the few sectors that constitue the theme and hence the fund is high risk fund. I would not recommend any investor to invest in any sector / thematic fund. Diversified equity funds are the best option
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vikas asked, Hi Himanshu, I can invest 20k every month. Please suggest me good mid-cap/small-cap funds which can give me high returns. i am prepared to handle high risks.
Himanshu answers, hi, i have given the name of 2 large cap funds at the start of chat. In the midcap category you can conisder investing in Sundaram BNP Praibas Select Midcap
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shekhar asked, Hi, I want to save a corpus of 1 core for retirement. I have started investing in HDFC LT advantage sip of 4000 per month for the past 2 years and plan to continue it for the next 25 years. Please advice if this will help me achieve my corpus in 30 years.
Himanshu answers, hi, I appreciate the fact that you have developed the habit of regualr investing through the SIP. But do not invest only in one scheme. Diversify your portfolio to include equity funds that are not tax savings (i.e. ELSS)Have atleast 4-5 funds in your portfolio. HDFC Long Term Advantage is a midcap biased fund and hence may not be the ideal fund. Also it is a tax saving fund hence subject to lock in of 3 years. Avoid such funds in your portfolio and invest only to the extent required for tax savings purpose
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rahul asked, hi I want to invest 75 thousand for short term say 1-2 yrs wht r best options
Himanshu answers, hi, you can consider investing in Monthly Income Plans (MIPs)offered by mutual funds. MIPs typically invest 20-25% in equity and rest in debt. The returns however are not assured and linked to the performance of both the equity and debt markets. If you are looking for safe and assured returns on your investments, you should consider investing in Bank FDs
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raghu asked, i have spare 5 lakhs , which i want to invest now , could you please advice some good investing tools .. i can take moderate risks
Himanshu answers, hi, since your risk apetite is moderate you can ideally divide your portfolio 50:50 in debt and equity. For equity, you should consider investements in diversified large cap biased equity funds. For debt you can consider bank FD among other options like debt mutual funds which may not be the right choice as of now. Enusre that your investment horizon is atleast 3 years
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HimanshuMultani asked, Could you please suggest me the good return child plans in current market
Himanshu answers, hi, answer to your question lies in first determing the goals which can include higher education and post graduation. It may also incude pllaning for the child's marriage. In such a case you need to ascertain the cost of education and marriage in today's value and inflate it by atleast 10% for number years the goal is away. This will give you the amount required and then start saving in a mix of equity and debt depending upon the monthly/annual investment as suggested by the plan
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xavier asked, Sir, I want to invest Rs 5000/pm as SIP in mutual fund . Kindly sugeest some good fund. Also suggest which will be a good MF for th edivident payout options ( as a separate investment )
Himanshu answers, hi, you should invest in well diversified and well mangaed funds like Franklin Inida Bluechip Fund and HDFC Top 200 Fund. Ensure that your time horizon is atleast 3 years and risk apetite high. If you are not in need of regular income in the form of dividend, then go for the growth option