MITESH BHATT REPLIES TO QUERIES ON INVESTMENTS

________________________________________
Tejas asked, Is there SIP available in any Gold ETFs?
Mitesh Bhatt, hi, there is no SIP facility in Gold ETF. you will have to be a little bit more disciplined and buy a fixed amount worth gold very month
________________________________________
bbassocaites asked, i have 5 lac rupees i want invest for short term please advise
Mitesh Bhatt, hi, if by short term you mean less than a year, then liquid plus funds are an ideal option. If you are looking for guaranteed return, then bank FDs are the best.
________________________________________
Manjunath asked, Hi, I wanted to know what is tax treatment proposed for insurance, PPF, mutual funds, and shares in new tax code and what about existing products in these categories.
Mitesh Bhatt, hi, the new tax code is in draft stage, hence I would recommend that you wait and watch till the bill is actually passed by the parliament.
________________________________________
Xyz asked, I am 31. What is best as per your advice. Pure equity based mutual fund or Balanced with a mix of both since balance funds typically put only 10-15% in debt instruments? Investment horizon 3 years.
Mitesh Bhatt, hi, if your investment horizon is 3 years then balance funds ( funds that invest min 65% in equity and balance in debt)are the ideal option.
________________________________________
Rupesh kumar asked, Hello Sir, I am 30 years of age. i have my own house, car and all the basic things that are required. I invest 40,000 in mutual funds every month. 20,000 in Fixed Deposits. Apart from it i put up approx amount of 5,00,000 in properties in small towns every 6 months. My investment horizon is for 10 to 15 years. Do i need to correct myself somewhere or is it fine?
Mitesh Bhatt, hi, from your question I assume that your investment decision is ad-hoc and not in line with a financial plan that will help you achieve your various financial goals. I would recommend that you get an investment plan made for yourself and invest accordingly.
________________________________________
Bhaskar_girish asked, Hi Mitesh , I regularly invest in equities and there are times when I would be waiting for months for an opportunity to invest. During this time, what is the best instrument to invest in which would be liquid and also provide reasonable returns in the short term?
Mitesh Bhatt, hi, you are trying to do something which no investor has been successful with - timing the markets. If you are investing directly into stocks and do not find opportunities, I would advise you to start an SIP in diversified equity funds. In this way you leave the job of stock selecting and market timing to professional fund manager
________________________________________
Mustafa asked, Hello sir, I am planning to invest Rs.2500 p.m. for period of 10 years. Which is the best option?. Whether R.D or SIP of MF. Pls. advise
Mitesh Bhatt, hi, the best option is to have a mix of equity and debt in your portfolio. Hence, both SIP and RD are advisable.
________________________________________
Sai asked, If i will invest 4000 in MF via SIP how much return i will get in next 5 years.
Mitesh Bhatt, hi, assuming that your investment earns you 12% p.a., your value of investment at the end of 5 years is likely to be Rs 3.25 lakhs
________________________________________
Faiz asked, hi , i am planning to invest in gold, what u say about this also i am planning to invest in forex ,all i have is very little money and i am planning to utilize the credit facility provided by brokers..what is ur opinion ??
Mitesh Bhatt, hi, I would strongly advise you against investing using the credit facility offered by brokers. If you have small amount of money to invest, be satisfied with the same. Start small, invest judiciously with care. I am sure you will build wealth over the long term. Please avoid credit facility offered by brokers.
________________________________________
amitjain1100 asked, Sir, I am always at the loosing end of money , be it mf , stocks , s/b a/c , fd , nse. Ihave tried Sip & others. I am Invested in Stock Market for 11 Years as of Now. Regards Amit Jain
Mitesh Bhatt, hi amit, in my view you should definitely take help of a honest and competent investment advisor. Maybe its time to change your existing advisor. To be a successful investor, you need to follow the rule of the game - invest according to your risk appetite/tolerance and investment horizon.
________________________________________
gautam asked, Mitesh ji,i don’t need insurance cover n pls advice me where to invest rs 20000 monthly, from which i can get maximum returns for 10 yrs. thank u
Mitesh Bhatt, hi, the ideal investment for investment horizon for 10 years is definitely equities. However, please note that equities are high risk investments with the potential to generate above normal returns.
________________________________________
Rajj asked, Hi Mitesh , Which is the best ELSS in the current period to save Tax? Thank you.
Mitesh Bhatt, hi, you can choose to invest in Franklin India Tax shield Fund among others for your ELSS investments. This is a predominantly large cap fund with small exposure to midcaps
________________________________________
NB asked, hello, could you suggest any good pension plans, which will give me a decent monthly payment after I retire. I am 35 and do not want to invest in risky MFs. Thanks
Mitesh Bhatt, hi, the answer to your question does not lie in identifying a pension plan but in creating a customized retirement plan for you. I would recommend that you take help of a financial planner who will help in this regard. The best ways of providing for post retirement expenditure, is to build the necessary corpus comprising of various investment instruments like equity, debt, gold and insurance.
________________________________________
Vikrama asked, My salary is about 85k and most of it goes away in taxes. What should I do? Please guide me. I am very depressed.
Mitesh Bhatt, hi, I would advise you to get in touch with a tax consultant to help you with your tax planning. Tax planning will not only help you reduce your tax liability but investments done for the same will also aid your overall investment planning to meet your financial goals like retirement, child education, etc.
________________________________________
Sindhi asked, Can I approach to Certified Financial Planner (CFP)for my financial goal setting?
Mitesh Bhatt, hi, it is advisable to seek help of a investment expert to understand your financial goals who will suggest investment options accordingly.
________________________________________
KBS asked, Am an NRI NOW. I opened PO MIS and PPF when I was working in India. Can I continue to invest in my PPF account and also open fresh PO MIS accounts in my current status?
Mitesh Bhatt, hi, as an NRI you cannot invest further in PPF and POMIS
________________________________________
aj asked, can u please suggest any retirement plan?
Mitesh Bhatt, hi, according to me every retirement plan is unique to the individual. It is advisable to consult a financial planner to get a retirement plan made for yourself.
________________________________________
Amar asked, Hi Mitesh , I am considering investing in MIPs as an alternative to FDs. My investment horizon is 3-5 years. My primary reason for doing this is tax efficiency and possibility of higher returns. Can you share your thoughts on this?
Mitesh Bhatt, hi, MIPs are essentially debt funds with a mandate to invest 20-25% in equities. While the debt portfolio provides stability and regular income, the equity portfolio has the potential to increase the average returns. IF you are willing to take some risk and your investment horizon is more than 2 years, then MIPs are ideal for you. Please be aware that returns from MIPs are not guaranteed unlike the bank FDs.
________________________________________
Ramasamykuppusamy asked, What is the best way to invest in India for NRIs like me?
Mitesh Bhatt, hi, as an NRI, you can invest directly into stocks. You can even invest in mutual funds without any restrictions. However, you cannot invest in post office savings schemes or 8% Taxable Govt of India Bonds and PPF. Also, if you have a NRE A/c you can invest in NRE Bank FDs.
________________________________________
justin asked, Hello Sir, What all Options in gold we have for investment as less as 1000 Rs per month?
Mitesh Bhatt, hi, you can consider buying Gold ETF. You can buy as low as 1 unit of Gold ETF.
________________________________________
PKAgarwal asked, One of my friend died recently. His wife( 50 yrs) has to invest his retirement benefits(over 20 lacs)
Mitesh Bhatt, hi, since its retirement money and sacred, my advice would be to put aside this money in safe and guaranteed return yielding investments like bank fixed deposits. You can even consider investing a portion of the money in Post Office Monthly Income Schemes
________________________________________
Geer asked, what is a good investment option for a new born kid per month investment around 2500 is what can plan for?
Mitesh Bhatt, hi, assuming that your investment for your child is to meet his/her expenditure on higher education and marriage and building a seed capital, then allocate higher percentage of your investments to high risk investments like equities. Equities need time to grow and if you have 10-15 years on your side, then equities would be the ideal option.
________________________________________
Dinar asked, Hi Mitesh , I am able to save 10,000/- per month. How should I go about my investments? (insurance, healthcare components are taken care, expecting the first child by end of Jan 2010) Please let me know
Mitesh Bhatt, hi, the ideal way to invest your savings of Rs. 10,000 would be to link it to your financial goals. I would rather recommend that as a first step get a financial plan made for yourself and invest in line with the same.
________________________________________
Siddharth asked, as a small investor can i invest in G-sec
Mitesh Bhatt, hi, as a retail investor, you cannot directly invest in G-Secs. You can however, choose to invest via the G-sec funds.
________________________________________
Nikhil asked, Hi Mitesh , Good afternoon. I have started investing in Mutual funds from this month. Investing in Rs. 9000/- pm in HDFC Top 200 -Rs.2500, DSP Black Rock Equity Top 100 - Rs.2500, Reliance Diversifed Power & HDFC Sensex Plus - Rs. 1500 each and SBI Contra - Rs. 1000. Kindly advise if these funds are good as i have started SIP in these funds for period of 3 years... Thanks
Mitesh Bhatt, hi, While your choice of funds are good, I would prefer not to have exposure to sector fund like Relianc Div Power Sector Fund. Also, you can give SBI Contra a miss. Rather consider a large cap diversified fund like Franklin India Bluechip Fund.
________________________________________
Jigar asked, I want to invest around 50,000 for short term and with highly liquid instrument
Mitesh Bhatt, hi, the best investment option for you would be liquid funds. These are highly liquid, you get the redemption proceeds within 24 hours. There is no penalty in the form of entry/exit loads.
________________________________________
Alan asked, I would like to invest 50000 Rs, which is better one ? ULIP, Mutual fund, FD ?
Mitesh Bhatt, hi, if your objective is capital preservation, then FDs are best. If you are looking at growing your capital and willing to take risk, then equity mutual funds are the ideal choice. IF you are looking at ULIPs from insurance perspective, then Term plans are even better option.
________________________________________
ZENU asked, Hi Mitesh , I want to enter for HDFC TOP200/DSPBR100 for 5yrs. Is it right time or wait for consolidation?
Mitesh Bhatt, hi, there is never a right time for investment. IF your investment horizon is 5 years then go ahead and invest the funds you have mentioned. Invest via the SIP route.
________________________________________
Raj asked, Mitesh , what would be a better option (a) SIP OR (b) Purchase MF Units at my own free will (monthly or a few times in a year) ?, with respect to charges etc. ?
Mitesh Bhatt, hi, SIPs in a way are a programmed way of investing, You do not have to bother about timing the market or hunt for an opportunity. If you are not a disciplined investor, then SIPs are the best way of investing.
________________________________________
Sb asked, what are the best mutual funds to invest at present.
Mitesh Bhatt, hi, there is no such thing as a best mutual fund. You will have to select the fund that meets your investment objective, risk tolerance and investment horizon. For e.g. if your investment horizon is more than 5 years and you are willing to take relatively higher risk, then equity funds are the ideal option.
________________________________________
Asan asked, what will be the income tax deduction in my salary exceeds 1,00,000
Mitesh Bhatt, hi, income tax act provides for basic exemption of Rs. 160000 for individuals (male). IF your total salary for the year is within the limit of Rs 160000, then no tax will be payable by you.
________________________________________
Rajinder asked, what is best Recurring deposit or SIP of 1000 for at least 5- 10 years
Mitesh Bhatt, Hi, Recurring deposits (RDs) are a way of investing in fixed income asset like bank fixed deposits. RDs suffer from lack of liquidity. SIPs on the other hand is the facility to invest a small portion of your investible surplus in various mutual funds which can include equity and debt. It pays to have a balanced portfolio comprising of equity, debt and gold.
________________________________________
Saurabh asked, If i do the investment for the Gold would be benefited. if yes then what is the procedure.
Mitesh Bhatt, Hi, it is always better to have a small allocation to gold, say 5%-10% of your overall portfolio. Invest in gold via the Exchange Traded Funds (ETFs)
________________________________________
Sindhi asked, Is it better to invest in ULIP or (term+Mutual Fund)?
Mitesh Bhatt, ULIPs combine insurance with investments. If you are looking at insurance, then Term plans are the best as they give you maximum coverage for relatively lower premiums. For investments, Mutual Funds are the best options. Please be aware that a majority of your initial contribution in ULIPs would be appropriated towards various administrative and management charges.
________________________________________
Bans says, Mitesh , so far i have bank balance of 20lac, without any investment, except one lic money back policy. as an nri i don’t have to pay any tax in India. now i m thinking to invest my money, but don’t know how and where? please suggest..
Mitesh Bhatt, You have not mentioned your age . Since you are an NRI you need to follow Govt regulations and guidelines as far as investments are concerned. You need to contact a financial adviser in India who will do the needful.
________________________________________
tusshar says, hi, which of the FD give tax benefits?
Mitesh Bhatt, Bank tax saving FD s give tax benefit but the lock in period is 5 years. Also the interest earned is subject to tax
________________________________________
shah says, Hello Mitesh , Im planning to invest in shares 4,000 as an SIP. I’m bit worried about the market scenario. So what would you suggest, should I continue the same or look for any other options?
Mitesh Bhatt, Anytime is a good time for investing in the market. Since you have not mentioned your risk appetite it Is advisable to choose a balanced fund for your investment purpose.
________________________________________
Soumini says, I am investing 13K every month in SIP would that be beneficial, how much returns I can expect 5 years or 10 years down the lane..
Mitesh Bhatt, You have not mentioned the schemes you have invested into so it is difficult to give you a correct perspective ________________________________________
sankhadeep says, is there anyway I can get a good ROI of around 20-30% on an investment of 20k in 3-5 months time frame?
Mitesh Bhatt, At least not of now , I am aware of any schemes which could give you such a high rate of return in this little time
________________________________________
Kesh says, what is the future of rel diversified power fund
Mitesh Bhatt, This fund has been disappointing after the promise it showed in 2006-2007 as of now it has failed to beat the market growth and if invested it is better advised to exit this fund and invest in a more diversified fund like dspr top 100 , hdfc top 100 , idfc premier to name a few
________________________________________
Jay says, Do you think Real Estate in India is a good investment option at this point of time. Or, should we wait for some more time to invest in Real Estate?
Mitesh Bhatt, It is better to wait and watch in the current scenario
________________________________________
anki says, Hi Mitesh , I am 26 years old, Unmarried.i Can invest around 5000/- every month for long term (more than 25 years)Which is the best options. I don’t have any insurance policy. I have not invested in any MF, SIPs or anything. Just do some small time intra day trading. Please advice
Mitesh Bhatt, Buy a vanilla life term policy and avoid ULIPs, again invest in two or more well managed funds via SIP route to get advantage of cost averaging.
________________________________________
Rajj says, Hi Mitesh , Is ELSS redemption taxable? Thank you.
Mitesh Bhatt, As of now yes .
________________________________________.
jsme says, : dear sir, could you please suggest as to how somebody earning just about 30K a month could invest wisely?
Mitesh Bhatt, Start a SIP in well managed funds if you wish to stay invested in the markets for at least 5 years and you have not mentioned your age so it becomes difficult to suggest .
________________________________________

Maverick says, Dear Mitesh , Can you suggest some diversified equity funds to start SIP with for 5000 a month with 10year horizon. My risk appetite is good
Mitesh Bhatt, HDFC top 200 , DSPR top 100 , IDFC premier to name a few are well managed diversified funds .
________________________________________
manoj8383 says, Hi Shaliesh, i want to know about Birla sun life policy....my one friend came to me with policy.....he told me that i have pay 500. p.m for 25 year & in between this year if i would die by accident they will pay me Rs. 20 lakhs & for natural death its 14 lakhs and after maturity of policy they will pay 2.75 or 3 lakhs depend on market, so my question is should go for it? Is there ant kind policy exists in birla?
Mitesh Bhatt, Well you need to look at the brochure for details
________________________________________