Nikhil Iyer of Diamond Investments Chennai replies to queries on investments

BHARATH asked, Sir, when I all set to do the redemption of my MF fund ,suddenly the market crashes, what to do to avoid losses. Kindly suggest a way out sir Nikhil Iyer answers, mutual funds allow you the benefits of returns with a relatively lower level of risk. They do not eliminate the risk factor altogether. The best way to avoid such pitfalls is to stay invested for atleast 3-5 years in a fund with a long term performance record. Prasad Murkute asked, I want to invest for my daughter education I have 4lakhs what should I do Nikhil Iyer answers, As i don't know how far is the goal or for how long will you invest. I would advise you to go for an equity heavy portfolio which would slowly move towards a higher debt component as you near the goal. Nagesh Tripathi asked, Sir, I want to generate cash for my retirement. pls suggest Nikhil Iyer answers, Get yourself a customized retirement plan made by a financial planner. It should account for your estimated monthly expenditure and certain items like medical and travel expenses which could occur on an annual basis. Sharad Kumar asked, With investment capacity of Rs.40000 per annum, what is your best suggestion to invest. Looking in to 10 years from now. Nikhil Iyer answers, Ideally your investments should be aligned to your goals. A safe bet for such a horizon would be into diversified equity funds with large cap bias like HDFC top 200 and DSP top 100. Shanawaz Khan asked, Hi, I am a beginner with 21k pm. I am having Aviva Lifelong ULIP of 20k pa with 7 lacs life cover. Other than that I have no investments. I am a father of 2-year-old son and yet another one next month. Can u suggests good investment options for me? Nikhil Iyer answers, Ideally you should get a financial planner to create a customized financial plan for your family, this would allow you to go for investments which are in line with various goals. As for the ULIP I would advise you to discontinue it and go for a pure term plan like Aviva Life Shield Plus. Amit Mishra asked, Where to invest to get maximum guaranteed funds in return other than any policies Nikhil Iyer answers, The best guaranteed returns investment as of now is the PPF which guarantees you an 8% return without asking for the charges, which seems to be the norm with the guaranteed return ULIPS Sameer mathani asked, I want to invest 2 lacs other than fds etc pls guide when and where Nikhil Iyer answers, you can go for diversified mutual funds like HDFC top 200, DSP Top 100 etc. Anand Haldipur asked, I want to invest Rs.9 Lakhs for a period of one year which I am planning to finance for my flat please, where should I invest Nikhil Iyer answers, I would advise you to go for a 1 Year FD as capital preservation is ultimate requirement for you. Daniel Mathai asked, what will happen to National Savings certificate which is going to expire in Financial year 2011 under new tax code Nikhil Iyer answers, A majority of the tax saving instruments such as NSC, five-year bank deposits, equity-linked saving scheme (ELSS), ULIPs and the senior citizen's scheme are not included under section 80C investments under the Direct Tax Code. The investments that are permitted under the new Section 66 (replacing Sec 80 C) are employee's provident fund, new pension plan, super annuation and pure insurance (if the premium paid is one-twentieth of the sum insured).