TARUN MITRA OF QUANTAM FINANCE REPLIES TO QUEIRES ON INVESTMENTS

Rajeev Pai asked, Sir, I'm 30yrs old & I save about 25K per month after all my expenses. I continue to invest in LIC,ICICI Insurance,NSC Savings & Bank FDs. Now I would like to start investing in gold. Could please suggest some MF which invest in gold?
Tarun Mitra of Quantam Finance answers, hi, its good to read that you are investing a good sum of money at a young age. You seem to be risk averse investor and hence all the investments are in low risk schemes. It’s a good idea to invest in gold. Consider quantum goldETF. They have the lowest expense ration which matters the most in gold ETFs. Also, try and increase you investment in equities. Equities are known to create wealth in the long term if invested in the right companies or funds.
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rajj asked, Hi, Is ELSS redemption taxable? Thank you.
Tarun Mitra of Quantam Finance answers, hi, as per the current tax laws, long term capital gains arising on the redemption of ELSS is exempt from tax.
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steve asked, hi mr. Tarun Mitra of Quantam Finance, i am investing Rs 70K p.a in ppf every year for the last 8 yrs. Is it really beneficial in the long term or do you suggest an alternative plus lucrative schemes for long term
Tarun Mitra of Quantam Finance answers, hi, if you are investing for tax savings then PPF is best. You can invest the balance Rs 30,000 in ELSS which is a diversified equity fund. A combination of Equity (ELSS) and debt (PPF) in tax saving portfolio is ideal. IF you are young then invest more in ELSS. As you grow older, increase your allocation to PPF.
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vaidy asked, Mr. Tarun Mitra of Quantam Finance, I am a senior citizen who is looking for a steady income. what is the right type of investment which would give me a monthly income with an investment of about Rs. 5,00,000
Tarun Mitra of Quantam Finance answers, hi, if you are looking for assured monthly return then Post Office Monthly Income Scheme is the best option. It offers interest @ 8% pa payable monthly. The interest is taxable. IF you are ok with quarterly income then opt for 9% Senior CItizens Savings Scheme. The interest is payable quarterly and is taxable.
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Kasinath asked, Due to unavoidable circumstances, I have closed my PF account and have the money out of it in my Savings Bank account. I would like to invest part of it (say around 1 lakh) in the share market / mutual fund. Let me know the best way to invest the same. The remaining part I will be depositing in my PPF account.
Tarun Mitra of Quantam Finance answers, hi, you can invest in equity funds but bear in mind that you are changing your asset class. You are shifting your money from safe and assured returns to high risk high return asset class. Higher risk does not always entail higher returns. Invest in equity markets via the mutual fund route. Invest for long term - at least 5 years and be ready for volatility. Invest only in well managed diversified funds with track record of 5 years to show for. Avoid sector funds. Avoid ULIPs
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0071acb asked, Hello sir, How is Gold as investment option?
Tarun Mitra of Quantam Finance answers, hi, I recommend every investor to have alteast 5-10% of their portfolio in gold. Gold is traditionally considered as a hedge against inflation as the historical returns of gold have been higher than the inflation. Also, in times of crises like the one we saw last year, gold becomes the most sought after asset class. In my view invest in gold via the Gold ETFs.
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asfddddd asked, I have currently 60000 rs as spare cash, and I want quick returns as I am going to start a new business within 3-4 months. Please advise. Can I opt for Futures and Options, otherwise please advise Tarun Mitra of Quantam Finance answers, hi, futures and options are means of hedging your portfolio against possible loss from the adverse movements in the equity markets. Do not use it to speculate in the fine hope of making quick money. For your investment horizon, the best investment is liquid plus funds. Your objective here should be to preserve capital rather than chasing returns.
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rajj asked, Hi Tarun Mitra of Quantam Finance, I have invested in the ELSS Reliance TaxSaver, Fidelity Tax Advantage and HDFC TaxSaver in 2006. Now, there is no more 3 yrs. of locking. Should I redeem the units and invest again in the same respective fund to get the Tax Benefit? Thank you.
Tarun Mitra of Quantam Finance answers, hi, yes you can redeem the funds since they have completed the lock-in period of 3 years. You can use this money to reinvest in ELSS funds and claim the deduction under section 80C of the Income Tax Act. The benefit is capped at Rs 1 lakh.
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pinak asked, Good afternoon, I am new to all this. May I know, what is the difference between MFs, SIPs and ULIPs?
Tarun Mitra of Quantam Finance answers, hi, MFs stand for mutual funds. They allow you to invest in stock and debt market indirectly. This way you can enjoy the benefit of returns from these markets with the help of professional fund managers. SIPs are a way of investing in mutual funds. Basically, you can invest a fixed sum of money into a specified fund on a specified date through the SIP. ULIPs are Unit Linked Insurance Plans. These are a combination of investment and insurance. You have the option to invest in equity, debt or both. In my view invest in mutual funds through the SIPs and avoid ULIPs.
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Bhanu asked, Hello Sir I have invested 75000 in ULIP for period of 3 yrs now the duration could you let me know is the right time to surrender Tarun Mitra of Quantam Finance answers, hi, in my view you should not surrender the policy immediately. The initial administrative cost will ensure that your surrender value is lower than the total premium paid. In my view, you should wait for at least 10 years to recover the cost. This will also give the fund some time to grow.
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Raghavendra asked, hi I am selling one of my flat and getting 5 lacs which I need in next 6 months time in partial usage basis for construction of my house... What r the ways to get some returns on this money apart from keeping it in FD with banks?
Tarun Mitra of Quantam Finance answers, hi; you can invest the money in liquid or liquid plus funds. These are ideal for investment horizon of 6 months.
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tanish asked, hi I want to invest in share market around 20 k will it be good idea , as if don't have any knowledge in it
Tarun Mitra of Quantam Finance answers, hi, since you are a beginner, I would not advise you to invest directly. Rather invest in equity funds. Equity funds take away the hassle of spotting good companies that have the potential to grow in future. Always invest in well managed diversified equity funds. Avoid sectoral and thematic funds.
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Swapnil asked, Hello Sir, I have a home loan and insurance cover against the home loan. I have LIC but no term policies. Still do u suggest that I should go for a term policy in LIC? Secondly, due to change in job, I have applied for PF withdrawal, can you suggest where do I incest the money that I get, it will be around 2L? Please help. Thanks in advance!
Tarun Mitra of Quantam Finance answers, hi, yes its important to have term plan. Term plans offer higher sum assured for relatively lower premium. Your sum assured should cover your dependent's future expenditure and outstanding liabilities. I would recommend that you transfer the PF to your new employer otherwise it will be taxed.
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murali3809 asked, Mr. Tarun Mitra of Quantam Finance can you revert with rs 50000 in hand what is the short term options available and what is the max return to expect
Tarun Mitra of Quantam Finance answers, hi, if by short term you mean less than a year, then the options are few. You can consider investing in liquid plus funds and expect returns in the range of 4.5% to 5%. You can also opt for bank FD. Banks are currently offering interest in the range of 6-7% p.a. Interest rates are likely to move up in the near future. Hence, in my view park you money in liquid plus funds until then.
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k asked, how much will I have to save towards children's (2 kids) education (in fields like medicine/engg/arch) & their marriage & retirement funds for a 20 yr period post 60 yrs(inflation factored) if I am spending 20K per month as expenses now
Tarun Mitra of Quantam Finance answers, hi, the answer to your question lies in doing a comprehensive investment plan for you and your family. The plan will give you an overview of the amount you need to save and invest for each goal. IT will also guide you in managing you asset allocation as you move towards your goal. It would be advisable to take help of an expert and honest financial planner
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Ankush asked, Hello Tarun Mitra of Quantam Finance, will it be advisible to go for Sundaram Paribas PSU thematic fund, I am planning for a SIP of 5000/- pm. into it to for say upto 10years, pleas advice.
Tarun Mitra of Quantam Finance answers, hi, Sundarama PSU Opportunities is a thematic fund and its performance will be closely linked to the opportunities arising out of the Government of India's disinvestment program. Also, the fund is likely to have concentrated portfolio and higher volatility. I would not recommend you to invest in the same. Rather opt for a diversified equity fund that will invest in PSU companies as and when the opportunities arise.
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matrim asked, Dear Tarun Mitra of Quantam Finance, I have a savings of 4 lakh rupees that I'd like to invest now for long term. Please advice.
Tarun Mitra of Quantam Finance answers, hi, it’s very difficult to give you a pointed solution to your question. I would recommend that you list down your objectives in the order of their priority. IF you have a long term goal which is likely to materialize over the next 5 years, then invest the sum of Rs 4 lakhs in a mix of equity and debt. A small allocation, say 10% to gold is also a good idea.
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rathish asked, Hi. I want to invest in gold. Can you suggest any good option other than buying gold coins
Tarun Mitra of Quantam Finance answers, hi, the best way of investing in gold is through the Gold Exchange Traded Funds (ETFs). It’s easy to buy and sell via the gold ETFs. For investing in these funds you need to have a demat account. You can buy these on the BSE / NSE, similar to buying stocks. All the units of gold ETFs are backed by physical gold.
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sdfsf asked, Hi, I want to invest 5k amount every month through SIP for my daughter for at least 15years. I am ready for high risk of amount 3k. So which mutual fund should I invest?
Tarun Mitra of Quantam Finance answers, hi, you can choose to invest in well managed diversified equity funds. Consider funds like HDFC Equity and Franklin India Blue-chip among others to start with
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financialplanner asked, Dear Mr. Tarun Mitra of Quantam Finance. Good Afternoon to you. How do you do? I just want to know, if I want to invest 15 - 20k through STP. Which fund should I select? I have four large cap funds in my portfolio right now. i.e BSL Frontline, DSP Top 100, HDFC Top 200, and Sundaram Select Focus.
Tarun Mitra of Quantam Finance answers, hi, all the 4 funds short listed by you have a solid track record. Their performance has been consistent. You can go ahead and start the STP.
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sandeep asked, want to invest 10000.oo equity or MF is better. What are the bright stock in equity to invest?
Tarun Mitra of Quantam Finance answers, hi, in my view invest in equities via the mutual fund route. You do not have to bother about tracking the companies. DIrect equity investing requires access to timely and reliable information on the companies you plan to invest in. You may not always have access to the same.
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Jagan asked, Hello sir, I am earning 60,000 Rs per month. and of this I will pay loan for 25,000 and 10,000 ,y expenses so per month I will save around Rs 20,000. So could you please suggest me a saving which will give good returns after 5 years?
Tarun Mitra of Quantam Finance answers, hi, you have an investment horizon of 5 years. In my view you can have an asset allocation of 50% in equity and balance in debt. Equties require time to grow and 5 years should be an ideal time frame.
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Sethu asked, Sethu: What is the best way to grow money to become financially independent
Tarun Mitra of Quantam Finance answers, hi, the best way to grow money is to start early, save more and invest with a long term view. You should have a diversified portfolio consisting of equity, debt and gold.
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Mahesh asked, I have holdings in JM Contra MF & JM Basic MF. NAV of both these have reduced to half. My investments have shrunk. Any chance that it comes up again or I should come out of it by selling at loss. Pl advice.
Tarun Mitra of Quantam Finance answers, hi, according to me you should redeem these funds immediately. Reinvest in funds with a solid track record like HDFC Prudence and Franklin India Blue-chip fund
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ghegade asked, can you help me with a good pension plan, I am 28 years old and wish to have my after job life secure
Tarun Mitra of Quantam Finance answers, hi, if your looking forward to plan for your secured retirement then pension plan is not the ideal avenue. In my view, you should get a retirement plan made for you by a financial planner and invest accordingly. Invest in a mix of debt, equity and gold. It pays to have a diversified portfolio. Pension plans are essentially debt instruments which may not counter the effect of inflation.
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k asked, Hello Mr. Mitra I am currently investing 10K per month in a Jeevan Shree policy which is likely to give me a 10% compounding over 24 years. Since it is a LIC scheme there is safety & a life cover of RS. 25 Lks. Is there anything better as a MF goes through a lot of ups and downs & there is not necessarily a fix on the eventual yield?
Tarun Mitra of Quantam Finance answers, hi, currently there is no investment scheme that offers guaranteed return of 10% compounding every year. You are lucky to have taken this policy. IF you are looking at higher returns, in excess of 10% then you will have to take risk. In my view there is not other option better than the equity funds. Yes, they are volatile but over the long term i.e. 5 years and more they can deliver returns in the range of 12%-15% p.a.
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Gaurav asked, Hello, this is Gaurav....Could you suggest which mutual funds are good to invest or suitable to pursue??? I have about 50K to invest annually...for say 20 years... Second: Do you recommend investing in LIC???
Tarun Mitra of Quantam Finance answers, hi, in my view you should look at investing in well managed diversified equity and balanced funds. Choose from funds that have a long term track record to show for. Invest via the SIP route. Also, your time horizon should be at least 5 years. As far as LIC is concerned, I would recommend only the term plan and no other form of insurance.
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AMIT asked, I want to invest for my child's education. His age is 6 Yrs. Where should I invest so that on maturity I do not have to pay any tax ?
Tarun Mitra of Quantam Finance answers, hi, you can invest in equity funds. Currently equity funds are exempt from long term capital gains. In my view, planning for your child’s future based on tax exemption of investments is not the right approach. Given his age and time horizon, you should definitely look at investing in higher risk investments like equities. Also, tax laws keep changing from time to time. What is tax free to day may become taxable when you withdraw the funds.
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