SRIVIDYA RAO OF PAGE&RICE REPLES TO QUERIES ON INVESTMENTS

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SEEMA asked, MADAM, I HAVE TAKEN SOME LOAN FROM MY RELATIVE. SO TEL ME PLS CAN I CLOSE MY PF ACCOUNT FOR PAY MY RELATIVE LOAN
Srividya Rao,hi, if repayment of loan is urgent and cannot wait then there is no option but to liquidate your current investments, in your case withdrawal from PF. Withdrawal from PF will be subject to tax. If it’s not urgent, then pay a mutually agreed fixed sum every month from your monthly savings. Dipping into your PF is not a good idea.
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Praveen asked, Madam, i am drawing per month 80,000 RS .I am now 26 year old unmarried. Now i having saving is 2-LIC , 1-Muitual Fund and i took house loan from SBI bank 12 lks which i have repay 16,000 per month . So these all my saving at present . But i need to save for my future , i mean to say if i save now i should get good returns after 5 years of time . So please advice my where i can invest .
Srividya Rao, hi, its good to read that you are building your assets at a young age. I would recommend that you get a comprehensive financial plan made for yourself. IT will help you identify and prioritize your financial goals. It will also tell you how much you should save for each goal and in what instruments.
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Srividya asked, Dear Madam, Please suggest us the 2 good fund which can giving me good return in next 5 years. Srividya
Srividya Rao, hi , i have given the names of schemes in my earlier answer
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Ravish asked, to save tax where should i invest
Srividya Rao, hi, you can invest in PPF, NSC, ELSS among others to save tax.
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robinmazumdar asked, Hi, What are that factors to consider before investing in MF? Thank You
Srividya Rao, hi, you should always look for funds with track record of at least 3 years to show for. It is important to know the fund management team and their track record. Choose the funds with low expense ratio. Choosing funds based only on their performance may not be the right approach.
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Subrat asked, Is opening a PPF a/c is better then invest in a mutual fund
Srividya Rao, hi, you cannot compare PPF with any mutual fund, PPF offers guaranteed tax free return of 8%p.a. compounding annually. It also qualifies for deduction under section 80C. Mutual funds are market linked instruments and hence there is no guarantee of return. Also, there is a select category of equity funds call the Equity Linked Savings Schemes (ELSS) that qualify for deduction under section 80C
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hari1 asked, Hi Srividya, Just let me know about Gold ETF ? Is it safe to buy gold ETF? Which is best among UTI, DSPBR & Quantum? All offers minimum 1 Gm except Quantum which offers half gram? Please suggest.
Srividya Rao, hi,yes, Gold ETFs are the best way of investing in gold. Among UTI and Quantum, I would opt for Quantum on account of its low expense ratio and tracking error
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Neeraj asked, I have a small income of Rs 20000 a month. I have an SIP of Rs 5000 a month. Is the decision OK in the current market scenario?
Srividya Rao, hi, the more you save the better it is. The decision to save more hold good in very market scenario. If you can save more and invest your savings wisely, I would encourage you to do so.
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rahulsolanki1 asked, Dear Madam my age is 19 .i save Rs.10,000 per month and i have Rs.50,000 to invest.plz tell me where to invest.
Srividya Rao, hi, it’s good to know that you have developed the habit of savings at an early age. If your investment horizon is more than 5 years then, invest majority of the savings in high risk investments like equities. I would rather encourage you to start an SIP in 2-3 equity funds. Choose from well managed diversified equity funds like HDFC Equity and Franklin India Blue-chip among other. Continue with this habit and I am sure it will create wealth for you.
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Apurva asked, Hi Srividya I am 30 years old and I want to invest Rs.30000/year for my retirement at 55. What is the amount that i will get after 25 years if I keep investing in MF?
Srividya Rao, hi, rather than calculating the amount that you will have in hand after 25 years, it is better to work the other way. Rather calculate the corpus you will require at the time of retirement and the amount you need to save every month to reach the target. It is quite possible that you may have to save more than Rs 30000 per month.
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Raman asked, Hi Madam, I am a retired person and i want to invest 1 lakh rupees which is the best investment option?
Srividya Rao, hi, if you want safety of capital with guaranteed returns then opt for bank fixed deposits. If you are willing to take some risk, then invest in Monthly Income Plans (MIPs). MIPs are debt funds with 15-25% allocation to equities, Its ideal for investment horizon of 18-24 months.
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ponraj asked, Good short term investment plants..... Whether we can invest in shares, mutual funds... Please suggest
Srividya Rao, hi, if you are thinking short term, you should safely ignore equity linked investments. Equities are best if your risk appetite is high and investment horizon 5 years. IF you are looking at options for investment horizon of less than a year, then liquid / liquid plus funds are the ideal choice.
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Msn asked, I want an investment option for 10 Lakhs. I have exhausted PPF, MIS, couple of NCDs, Stock market and real estate. Don’t want to invest further on these. What are the options?
Srividya Rao, hi, you seem to have invested in all possible avenues. If you still have money, add to the existing investments, you can invest in mutual funds. Except for gold, I can't think of any other suitable option.
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PP asked, I m planning to invest Rs1000/- pm via sip in HDFC Top 200, BSL frontline,DSPtop100, SBI magnum contra,HDFC balanced fund, please suggest...
Srividya Rao, hi Avoid Magnum Contra. opt for HDFC Prudence as against HDFC Balanced
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kijhagfdsa asked, Investment through Insurance is good? OR taking Term plan is better?
Srividya Rao, hi, if your objective is to insure yourself, then Term plans are the best. IF you wan to grow your money, then mutual funds are the best.
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Shripad asked, Which is the safest way of investing the money
Srividya Rao, hi, if you are looking for safer avenues, then post office savings schemes and bank fixed deposits are the best. These offer guaranteed returns with no risk of capital erosion. However, the returns in this case will low and at times the real return could be negative i.e. the inflation may be more than the rate of interest.
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kumar_rajiva asked, I have @5 Lakhs to invest . Can some strategy be suggested?
Srividya Rao, hi, you have not mentioned your age and risk appetite, hence it is difficult to suggest an appropriate asset allocation. I would recommend that you have a mixer of equity, debt and gold in your portfolio. IF your investment horizon is more than 5 years then allocated more to equity. If you need the money in less than 3 years then invest more in debt. Allocation to gold should be restricted to Gold.
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vishal asked, Madam, I'd invested a sum of about 2.5 lacs in the share market around the peak time last year. Have met with the same destiny as everyone else has. As on date many of my shares at a loss of 50% to even 80%. I can't dream of even loss booking as 50% of my capital will be eroded. What should I do? Wait and watch game is leading no where and the uncertainties of a bear is predicted by the pundits once again. Many thanks for your advice
Srividya Rao, hi, in my view you should book your losses if the fundamentals of the companies in which you have invested have eroded. If that is the case you cannot expect the share price to go back to its original level. Book your losses and reinvest the proceeds in companies with strong business model and growth potential. You can choose to invest in well managed diversified equity funds
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Pankaj asked, I am 33 years old and want to purchase retirement plan. Please suggest which plan will be better. I want to invest not more than 30K in a year and want the pension after 55 years of age.
Srividya Rao, hi, my advice to you would be get a retirement plan made for yourself. The plan will help you know how much money you will need at the time of retirement to live a happy and comfortable retired life. It will also help you in deciding the investment instruments that are ideal for your plan based on your risk appetite and investment horizon. Do not opt for a retirement plan that are offered by insurance companies.
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iamkurias asked, what are the options of investment for NRIs?
Srividya Rao, hi, as an NRI you can invest in stocks, mutual funds and bank fixed deposits. You need to have a NRE/NRO account in India to make any investments mentioned above. It is always preferable to have a NRE A/c. Also opt for income tax PAN, its compulsory for investments in India. Please note that you cannot have a savings bank a/c in India. Hence, convert your savings bank a/c into an NRO A/c
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Santanu asked, Hi Srividya, I have put my money in FD and MF now. What else are the good options except equity market and Land?
Srividya Rao, hi, you can allocate a small portion, 5%-10% to gold via ETFs
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Narssimha asked, hello which is best retirement plan
Srividya Rao, hi, there is not such thing as a best retirement plan. Every retirement plan is unique to an individual based on his corpus requirement, investment horizon and risk appetite.
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Mohan asked, How can i invest in gold?
Srividya Rao, hi, the best way of investing in gold is through the Exchange Traded Funds (ETFs). All you have to do is to open a demat account and register with a share broker to buy and sell units of gold ETF. Units of Gold ETFs are backed by physical gold of the highest purity.
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Rajiv asked, i have 80k so how can i invest in equity with good return?
Srividya Rao, hi, equities have the potential to deliver higher returns with higher risk. However, you need to have long term view of at least 5 years. These investments are volatile and you should not panic if the investments turn negative in the short term.
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QWERTY asked, I am having tax saving mutual fund since last 3 years. I am worried about my investment after new TAX code April 2011, which says EET. Does it mean my 4-5 years investment will be wasted and I need to pay tax after April 2011 on withdrawal?
Srividya Rao, hi, as per the provisions of the draft direct tax code, all investments in tax savings made on or after 1st April 2011, will be subject to tax at the time of maturity. Investments made prior to that will attract the provision as they exist now.
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ABC asked, Is HDFC Equity good for 3-5 yr period?
Srividya Rao, hi, HDFC Equity funds have a concentrated portfolio of large cap and midcap stocks. The fund has the tendency to take higher exposure to midcaps and hence can be a candidate for higher volatility. The fund has an impressive track record of over 10 years and is definitely worthy of being a part of any investor's core portfolio.
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sderfsdf asked, HI MADAM. IF I INVEST HDFC TOP 200. CAN I GET TAX EXCEMPTIONS
Srividya Rao, hi; HDFC Top 200 Fund is not an Equity Linked Savings Fund. It will not be eligible for deduction under section 80C. You can invest in HDFC Tax Saver if you want to avail of the Section 80C benefits.
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shoker asked, Hi Srividya, I have invested in Birla Frontline Equity, DSPBR Top100, Franklin Prima Plus, HDFC Top 200, Reliance Growth and Sundaram Select Focus. I plan to continue investing in these 6 funds. My goal is to have a corpus of 1 crore. Is my selection good? Do I need to invest in more funds? Thanks
Srividya Rao, hi, the number of funds in your portfolio are adequate. Also, the schemes which you have invested in are top of the line. You can continue with these funds. I am sure you will achieve your goal of becoming a crorepati!
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sderfsdf asked, SUNDARAM NEW LAUNCHED PSU NFO. HOW IS THIS FUND FUTURE GROWTH?
Srividya Rao, hi, this is a thematic fund with PSU stocks forming the theme. Given the fact that PSU stocks do well on the news of their probable disinvestment, the opportunities the fund manager may have post disinvestment may be limited. This restricts the universe of stocks available to choose from. In my view, opt for a diversified equity fund as against thematic fund which give more flexibility and hence more opportunities to the fund manager to choose from.
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