SUDEEP MUKHERJEE OF TRILOK INVESTMENTS KOLKOTTA REPLIES TO QUERIES ON INVESTMENTS

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Prasad Rao asked, Which is the best insurance policy for children
Sudeep Mukherjee,I don’t recommend any insurance policy for children. Rather invest in equity funds and build the education and marriage fund.
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Venkat.Kumar asked, I have taken a home loan of 18 lacs and my ROI is 10.00 %. My current outstanding is 16 lacs and balance term projected is 115. 1) Is it good to preclose the loan? 2) Is it good to convert the loan to current interest rate (8.75 %)?
Sudeep Mukherjee, Foreclose the loan. Saving on EMI should be channelised in to investment in equity funds by way of SIP to build your corpus for retirement or another objective you may have set for yourself.
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Shekhar Bellare asked, Sir i am investing money in birla sunlife equity fund growth on a sip base i just wanna ask can i use same folio number to buy and sell any other company mutual fund or i can buy and sell same company mutual fund
Sudeep Mukherjee, The folio no can be common to that fund house only which generated that folio. One folio no cannot be applicably to all fund houses. So, Birla folio no can be used for any Birla Fund but not for any other fund house.
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Raghu Ram asked, sir, i am making sip investment in hdfc top200,hdfc equity,rel power sector& growth fund,sundaram select midcap ,templton prima plus,sbi tax gain in each 1000Rs(among templton prima fund prima plus & blue chip which is good to invest)can u suggest any further & for children which plan is suitable
Sudeep Mukherjee,except for Reliance Diversified Power Sector Fund, all funds are good. Both Franklin India Bluechip and Prima Plus are good funds. You can consider both the funds in your portfolio.
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Pal Anand asked, I have invested 2 lakh rupees in ELSS funds and 3 year lock-in period is completed, is it better to continue with them or re-invest in good funds like the ones you have suggested(HDFC Top200 etc)
Sudeep Mukherjee,continue with the investment if the funds are doing well. If the ELSS fund is under-performing non-ELSS equity funds, then it is a good idea to redeem ELSS and invest in fund like HDFC Top 200 fund.
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Karan K asked, Please recommend funds to invest Rs 60,000 for a 3 year period.
Sudeep Mukherjee,Balanced Funds are ideal for you - HDFC Prudence Fund and DSP BlackRock Balanced Fund.
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Sourav asked, HI. WHAT IS THE BEST OPTION IN INVESTMENT IN GOLD BETWEEN THE TWO. 1) GOLD ETF 2) SIP THROUGH MUTUAL FUND IN DSPBR WORLD GOLD OR AID WORLD GOLD. WHICH ONE WILL YIELD BEST RETURN AFTER 10 YEARS.`
Sudeep Mukherjee,if you are willing to invest in gold then Gold ETF is the answer. DSP World Gold Fund and AIG World Gold Fund invest in stocks of gold mining companies and not directly into gold. If you are looking at higher returns then DSP World Gold and AIF World Gold Fund are likely to deliver higher returns compared to Gold ETF.
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Vithal Kamath asked, Please advice financial planning for my father. He is retired last year. He has a corpus of 50 Lacs.
Sudeep Mukherjee,you should definitely get retirement planning done for your father. The most important aspect is the post-retirement cash flows and management of corpus of Rs 50 lakhs to ensure that it remains intact and continues to grow while at the same time generating regular income to meet the day to day expenses.
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Meher Randhawa asked, Why do you advise Gold ETFs against physical Gold? I'd like to know the disadv for physical gold apart from safely holding on to it and its quality
Sudeep Mukherjee,According to me investment in gold should be through Gold Exchange Traded Fund (ETF). Every unit of Gold ETF is backed by half or one gram of physical gold. The unit of gold ETF are held in demat form. Hence, there is no botheration about safekeeping of gold that is associated with physical form. Also, the gold held by Gold EFTs are backed by physical gold of 0.995 fineness which is secured and insured. Gold ETF score on the wealth tax front too. Gold ETF are not considered as wealth for Wealth Tax purpose. Physical gold is considered as for wealth tax purpose. Also, gold ETF are treated as long term capital assets if held for more than 12 months from the date of purchase. One can avail of the indexation benefits claim concession from long term capital gains tax, if any.
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Shweta Palak asked, Please tell me some good tax savings mutual funds which gives good dividends also
Sudeep Mukherjee,in the ELSS category, you can consider funds like HDFC Tax Saver, Franklin India Taxshield and Fidelity Tax Advantage Fund. All these funds have a good dividend track record . Opt for dividend payout
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Jasmine Tordie asked, Hi I want to invest 50000 per year which is best option for me? i am 25 year old my View is entirely Longterm
Sudeep Mukherjee,assuming you are willing to take risk, given your time horizon, you should be investing in equity funds. I am sure if you continue with the practice of investing Rs 50k p.a. and hopefully increase the amount as you progress in life, you will make wealth for yourself. Avoid greed and fear. Develop Patience and Discipline to be a successful investor.
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Shreyas asked, hi,i have rs 15 lacs which i need to invest for a span of one month only, as there after i need the money to buy a land. where can in invest for one month to have some gains
Sudeep Mukherjee,in your case safety of capital is of paramount importance than the gains. Simply because equity markets are doing well doesn’t mean that you will make gains. Stay away from equity markets. Invest in liquid funds instead and be happy with 4%-5% returns p.a.
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Rajiv Betalwas asked, How is Gold as an investment now, and how should that be invested ?
Sudeep Mukherjee,invest in gold over next 6-12 months. opt for Gold Exchange Traded Funds (ETFs). Its easy to buy and sell Gold ETF. You have to have a demat account and share trading account with any stock broker. Avoid buying physical gold for 2 main reasons - its too much of botheration to as far as storage is concerned and it is definitely sold by banks/jewelers at 4-5% premium to market price.
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V R Jani asked, Debt options (PPF, LIC) etc give only a maximum of 8%. However, SIPs (in good times only) have given more. Are SIPs advisable for long term. Also what is the right time to redeem units from an SIP. Are LIC's pensions plans any good (They grow at 6% pa)
Sudeep Mukherjee,You are mixing equity and debt over here. both equity and debt are must in your portfolio. While equity have the potential to deliver higher returns with higher risk, debt provides safety and stability to your portfolio. SIPs are no substitute for FDs/PPF. Yes, SIPs are the best way to invest in equity fund but that does not necessarily mean that you will make money in equity funds. your selection of fund has to be right and need to monitor the portfolio regularly. Insurance plans are not ideal investment products. Term plans is the best type of insurance.
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Avinash Godbole asked, i have invested 5000 in reliance natural resource fund is mutual fund before 2 yr ,but it is in not a good position.
Sudeep Mukherjee,exit this fund and invest in diversified equity fund like HDFC Equity Fund.
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Sneha Sonpar asked, i want to invest 30000 for 5 year , which fund is best Birla Top 100, DSP BLACCK top 100, HDFC top 200
Sudeep Mukherjee,all the 3 funds are good. Go ahead and invest.
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Sarsubra asked, I want to generate a regular fixed income of Rs.30,000 per month. How much money/capital I need to make this ? Also I want the returns should be very conservative & do not make any risk. May be a small risk is OK.
Sudeep Mukherjee,Assuming your post tax return is 5%p.a., you need to have a corpus of Rs 72 lakhs. Also, here I have not assumed inflation which will definitely erode your capital over long period of time. If you have the requisite capital invest in a bank FD and try and get atleast 5% post tax. Any amount over and above should be invested in equity funds to ensure that your overall capital grows and you are able to beat inflation.
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Dheeraj Kumar Brhamabatt asked, I have invested 52,000 rupees for my son who is 7 months old now in LIC - Marriage and education plan. It is a 18 year term. Is it a good plan for Child's education?
Sudeep Mukherjee,I would recommend that you take on a slightly higher risk as far as your son's portfolio is concerned. This is mainly because you have time on your side. 18 years is a long enough period to get good returns from investment in equity funds. Insurance policies are not the right approach. Get the education and marriage plan made for your son with the help of a professional financial planner.
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Bhavik Shah asked, Hi..i have a home loan of 38lacs..recently i sold a plot for 32 lacs..how should i use the money? i need to buy a car costing 9 lacs..should i prepay my loan or should i invest in another property/equity with the cash?
Sudeep Mukherjee,I personally fee that one's personal balance sheet should be debt free. From that perspective, I would recommend that you repay your loan. I am not sure about keeping aside the money for car. That is your personal decision. Try and repay the loan first, the balance can be used to buy the car even if it means reducing the budget.
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Aninda asked, which is the best mutual fund to invest as SIP in this present market scenario
Sudeep Mukherjee,among the funds I like, Franklin India Bluechip fund, HDFc Top 200, sundaram Select Midcap and DSP BlackRock Equity Fund.
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Karthik Iyer asked, I'm buying a home and the EMI is 27,000 for 20 years. My intention is to pre-pay this loan as soon as possible to save interest. I will need lump sum amounts for this in coming years. What type of investment do you suggest for this?
Sudeep Mukherjee,since you want to repay the money, I would advise you to invest in a bank FD or liquid funds. I would not recommend an equity fund for the purpose as it is high on risk and requires you to be invested for over 3 years atleast.
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Lenin Karuappanan asked, Hello Sir, Gold is doing low now in shares. Do you see any chances that the prices will go up?
Sudeep Mukherjee,Gold is a must in every portfolio as a hedge against inflation and as an insurance in times of financial crises. Allocate 10% of your portfolio to gold. The problems in the financial markets are far from over especially in the US and Europe. I would advise that you invest a small sum in gold every month. But cap your exposure to 10%
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RN RAO asked, SIR, I HVE INVESTED IN EQUITIES IN 2007 DEC@ 21000 SENSEX ABOUT 7.0LAC AT VARIOUS SCRIPTS 15~20 . AFTER SLASHING THE MARKET I HAD AVERAGE AND NOW 1.O LACS IN LOSS WHAT SHOULD I DO OR I SHOULD INVEST IN MUTUAL FUNDS
Sudeep Mukherjee,assuming that you are invested in companies whose prospects look promising, you should remain invested. I would advise you to invest in a equity fund if you are not able to manage the stock portfolio on your own.
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Durgaprasad Shukhtankhar asked, is this the right time to enter the stock market? Can u suggest any stocks?
Sudeep Mukherjee,India looks a very promising destination for investment from long term perspective. If you are willing to invest for 3 years and above and believe in the India story, then time is ripe of investment in equities. Don’t times the markets. Invest in a diversified equity funds. Leave the job of identifying the right stock and timing the market to professional fund managers
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Dollara Sutari asked, What is your view on Debt Funds ...do you see Short Term Debt as a good option in the current scenario and if so why ..thanks
Sudeep Mukherjee,Short Term debt funds are ideal for investment horizon of less than a year. These funds lag in performance when the interest rates are likely to move up. given the fact the RBI is most likely to increase the rates when it reviews the monetary policy next month, I would like to avoid these fund until further clarity on the interest rates. I would recommend a liquid plus fund instead.
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Laxmi Shukla asked, which is the right investment for 3 years for 1Lakh?
Sudeep Mukherjee,for 3 years you can consider balanced funds that invest 65% of their corpus in equity and balance in debt. You can consider funds like HDFC Prudence and DSP BlackRock Balanced Fund among others.
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Kunte Santosh asked, i want to know about PPF a/cs
Sudeep Mukherjee,PPF is a Public Provident fund A/c. You can invest up to Rs 70,000 in a year. The rate of interest currently is 8% p.a. and the interest is tax-free. the tenure of this fund is 15 years and you can renew if for 5 years after maturity. The investments in PPF qualify for deduction under section 80C of the income tax act
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Bhanu Singh asked, Hi what is best short term investment plans you can recommend if you want to invest around 10-15 lacks Thanks
Sudeep Mukherjee,if your investment horizon is less than a year, then liquid plus funds are the best. these score high on safety and liquidity. If your investment horizon is between 1-2 years then bank FDs are the best. If your investment horizon is 18-24 months then Monthly Income Plans are the best
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Amreetesh asked, i have invested 30000 in icici infra mutual fund before 2 yr ,but it is in not a good position.
Sudeep Mukherjee,infrastructure funds are thematic funds. They do well when the sectors that constitute the infrastructure theme do well. Also, stocks in the infrastructure sector are highly volatile. I would recommend that you redeem this fund and invest in a well managed diversified equity fund.
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Bannerjee asked, Would you recommend retired people to invest in MIP Mutual funds. How do they differ from other mutual funds. Any recommended ones
Sudeep Mukherjee,Monthly Income Plans (MIPs) are offered by most mutual funds in the country. MIPs are hybrid funds with 10%-30% exposure to equities and balance to debt. While the debt portfolio is designed to generate regular income and add stability, the equity portfolio aims for increasing the overall returns. Since there is an equity component, the investor should be willing to take some degree of risk. Also, the returns are not guaranteed or assured unlike a bank fixed deposit. Although the name Monthly Income Plan, monthly income by way of dividend is not assured. Dividends are paid subject to profits made by the fund. If you are opting for dividend option, then quarterly dividends are ideal. If you are not aiming at generating regular income, then growth option is the best. These funds are treated as long term capital assets if held for more than one year from the date of investment. You can avail of indexation benefit to reduce your long term capital gains tax on the appreciation, if any. The ideal investment horizon to reap the benefit of investing in an MIP is 18-24 months. Expected returns should be in the range of 8%-10% p.a.
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Madhavan asked, for one time investment as on date of 500000 whether equity/mutual fund OR GOLD etf is better?
Sudeep Mukherjee,in my view you should divide the amount between equity, debt and gold. Allocate 10% to gold. If you are willing to take high risk and remain invested for 5 years and more then allocate a higher amount towards equity and balance in debt. If your investment horizon is less than 3 years then allocated more towards debt. As far as equities are concerned, equity funds are the best option. For debt bank FD is ideal. For gold, avoid buying physical gold. Invest in Gold ETFs
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