Incase you want to ask any personal finance question, please ask it directly on our forum : http://www.jagoinvestor.com/forum/ . Please use the form only if you want to contact for other reasons.
Incase you want to ask any personal finance question, please ask it directly on our forum : http://www.jagoinvestor.com/forum/ . Please use the form only if you want to contact for other reasons.
{ 105 comments }
Hi
I came across your site for the first time today and am impressed with the clarity in it .I am on the lookout for a Financial Planner for a long time. I am 32 years old based out of Bahrain and would appreciate if I could avail of your services or if you would recommend someone to me.
Thx much for the information. Have a question about Chit funds, how do they work and how to calculate the ROI ?. Is it worth considering as investment option at all ? Thx much in advance -Suresh
Hi Suresh
I was for SHRIRAM LIFE INSUARNCE which is part of SHRIRAM GROUP. SHRIRAM CHIT FUND IS A FLAGSHIP company of this group.
1 What is a Chit?
It is a CONTRACT between the foreman, as the Promoter is called, and the subscribers, who join voluntarily. It is a FINANCIAL SYSTEM under which the periodical and regular savings of a group of subscribers are made available to each subscriber, a SPECIFIED AMOUNT every month (instalment) for a SPECIFIED PERIOD.
The Pooled funds every month are offered to the subscribers at monthly AUCTIONS and the subscriber who BIDS for the highest DISCOUNT is declared the PRIZE WINNER and given the PRIZE AMOUNT on proper security. A Prized subscriber also should continue to pay the subscriptions till the termination of the chit. The amount foregone as discount, less foreman’s commission is distributed among the subscribers as dividend.
2. What is a Chit group?
A Chit group refers to a specified number of members agreeing to subscribe a specified amount for a specified period. For example, 40 members, 40 months, Rs.500/- a month. The number of members and the number of months are to be the same.
3. Who is a foreman?
Any person under the Act responsible for the conduct of the chit and includes any Person, such as branch manager, discharging his functions.
4. Is the contract of the subscribers with the foreman valid for an indefinite period?
No. It is valid only for the duration of a CHIT GROUP and until the liabilities of subscribers to foreman or vice versa are discharged or paid in full.
5. What are the benefits of chit Subscribers?
a) To save in small amounts to receive a lump sum during the period of chit.
b) To borrow the future savings in advance. Some subscribers join chit funds to borrow and others to save.
6. What is Chit agreement?
The Chit agreement is a contract between the foreman and the individual subscribers to a chit group. It is a set of bye-laws or regulations dealing with the procedure for the conduct of chits. It will be signed in duplicate, duly witnessed. The chit agreements shall contain the name and address of the subscriber, the number of tickets allotted to him, the number of instalments and the instalment amount payable, the interest/penalty for delayed payment, the probable date of commencement of chit and its duration, the manner of deciding the prize winner at each instalment, the maximum discount to be foregone at each instalment, the mode and proportion of dividend and foreman’s commission, the date, time and place of auction, the instalment at which the foreman is to get the chit amount, the name of the bank, the security to be furnished by prized subscriber etc., Though each subscriber is supposed to sign the chit agreement, in practice, each subscriber signs a declaration in the application form that he has read and understood the terms and conditions of the Chit Agreement. The declaration of all the subscribers are detached from the application form, pasted in a piece of paper and filed with the registrar.
7. How are the subscribers enrolled for a group?
The subscribers have to fill in an application form furnishing particulars of their names, residential and office addresses, approximate gross monthly salary, names of nominees and their relationship to them. They also have to sign the declaration that they have read and understood the terms & conditions of the Chit Agreement.
Respected Sir,
i read your articles about nifty its fantastic i am newly in this market Pl recommend someone me
I came across your blog when visiting Deepak Shenoy’s blog. I’d like to get in touch with you.
Manish,
Keep up the good work.
I think you have great clarity and purpose.
I wish you all the best.
Thanks
@Suresh
Dont go with Chit funds .. I have no much idea , so i cant recommend or review.
@Rajaram shelar
What recommendation you want ?
Manish
@Anand
Thanks . I guess we were suppose to talk some time in Bangalore , Lets meet up sometime
Manish
Hi…excellent work. I stumbled upon your blog while looking for some material on financial planning. I am a Banker turned bureaucrat and an avid blogger too. I am impressed by the way you moved to wordpress.
Please give me your mail id. I want to email you regarding a presentation i need make to my colleagues on financial planning.
i would be grateful for your kind help.
Cheers….
Nagarajan
@Nagarajan
Thanks , Contact me at manish.pucsd@gmail.com
manish
Hi Manish,
Thanks for providing Mr.Guru Prasad’s number. He is a very knowledgeable person and explains the concepts thoroughly.
Please continue your good work.
Thanks again
Priya
@Priya
Great , I am sure this will be helping a lot .
Manish
Dear Manish,
I am impressed by the content of your web site jagoinvestor.com and is following it since last 6 to 7 months.
By the way, I came upon a web site (www.topfiveinvestments.com) which claims that SIP is a myth and in practice it does not give high returns even in a long term basis. They have projected a table of analysis. PLease click on the link :
http://www.topfiveinvestments.com/TopFive-Investments-Special/Systematic-Investment-Plan-SIP-The-Myth-Unfold
Can you please let the readers of jagoinvestor know, whether SIP is a myth or in deed it is boon to people is general over a long term ?
Awaiting your response and analysis,
Thanks,
Jitendra
Idiotic
the guys has taken the best case which suits his statement .. I agree that for that time frame SIP has given less returns than One time , and I am not claiming that SIP is always better .. SIP has other good things which he has not considered .
Here is a reply I have posted on this article ..
——————————————————–
”
I dont think you have taken full picture .. What time frame have you taken ? Last 5 yrs ?
2004-2007 .. when market went up and up and only up to fall back in 2008 and then again rise to near earliar levels in 2009 .
What is the justification for SIP is not bettter ? I am not saying if it is or if its not .. but I am asking for the reason …
What do you think about SIP started in Feb 2007 and ended at Feb 2008 , has that given less returns ?
Or SIP started in 1998 and continued for next 10-11 yrs , What about that case ?
please share your views on manish@jagoinvestor.com
Manish
”
Manish
Hi,
What’s ur opinion on Axis Equity Fund?
Thanks
Prajesh
This is an NFO , and the AMC is brand new . No experience in this field . So Its not a good idea to go with this . Avoid .
Manish
Hi Manish,
My day start at office with punching the previous days activity in timesheet and then getting to your site for gya..gyan and more gyan…
Yaar I was just confused abt calculation for Market Linked Health Insurance Plan…PLease get something on this…Hope this part is missing for all we audience of Jago Investor…
KUDOS for ur post…they are simply gr88..
Greetings
Abinash
For now hold off to Market Linked Health plan , Let not market decide how your Health should be . Let me review some … I will take time to publish anything on this , because I am super busy with other things and need to prioritize things
For now , take a simple Health plan (Family floter) .
Manish
Hello Manish,
Your site is good. I have subscribed to your blog. I too have one financial blog like you. If you have time please visit here:
http://www.thinkplaninvest.com
Thanks,
Krishna
Krishna
You have a nice looking blog , I have joined through google friend connect
Manish
On checking up with RBI and several other sources, I learn that there has never been – and now there is no – such 8.5% Tax Free Bonds. As a matter of fact, now there is no Bond scheme of RBI. It is Govt of India 6 year 8.00% taxable bond administered by select branches of SBI. I would like you to verify and correct your comments.
Which post are you reffering to ?
Manish
Hello Manish,
Thank you for the reply.
Thanks,
Krishna
Hello Manish,
When you are replying to comments, the from address showing as “jagoinve@box668.bluehost.com”. Change that to good email id like manish@jagoinvestor.com.
Thanks,
Krishna
Hello Manish,
I would like to write a guest post on your blog. If you are interested please let me know.
Thanks,
Krishna
Hi Manish,
I was looking for investing in jeevan Tarang (LIC), but your working was excellent and it showed me the difference of investing in PPF and MF instead of Jeevan Tarang.
Thanks for such type of insights.
Currently i am also looking out for a Health Insurance policy for my in-laws who are aged 57, 52 and 23 (S-I-L).
so could you please suggest a good policy.
regards,
Vinod.M
Hi Vinod
Nice to know that you understood how better MF +Term is . NIce
You should look at apnainsurance.com and choose a policy for yourself .
Manish
Hello manish,
Hope you’ll be doing great.
I’ve observed that you have not yet addressed the topic of “Automating the Financial Matters”. Please try to cover this topic in your coming posts. In case if I’ve missed it then please forward me the link.
Thanks.
Zamil
i will do in future
Hi Manish,
You are doing an incredible job out there. I have been following your articles since 2 months. I was desperately looking for some knowledge on financial planning. I never had any idea on how the insurance and other investments work. I have blindly got into some junk policies. Only after going through your articles, I have opened up all my insurance documents and started thinking and calculating. I have called up the insurance agent to find out the facts and figures.
Then I started some R&D based on your guidance in your articles. Now I realized that my hard earned money is not working for me but for somebody else.
Now I am 31 and married. After reading your articles, I am aware what I need to do exactly. Its better late than never!!!
Also when I started talking about investments with my friends and colleagues, I am surprised to know that most of them are just like me. I started referring your blog to all of them. Soon your blog will be flooded by them:) ……keep up the excellent work.
Thanks
Prashanth
Nice to know this
Welcome to This blog , we are going to do lot of incredible stuff out here .. dont forget to subscribe through email so that you dont miss out on anything
Thanks for reffering this blog
Manish
Hi Manish,
My age is 29 maried and 6 months daughter. My take home salary is 29K/ month. I have taken term insurance of 30 lakh from SBI. I want to invest for my baby future 25K/Yrl. I have looked child plan’s available in the market. HDFC young star super , ICICI smart kid & kotak – long life secure plus. Should I buy child plan? If yes which one is better? or Should i buy retirement plan?
No you should not .
These child plans are nothing but ULIPs . Better plan it using Term Insurance + Mutual funds + PPF .
that would be more flexible , simple and more returns
Manish
Hi,
I would like to invest in MIP. pls let me know how to invest in that and what things need to be take care such as TAX and other.
MIP are nothing but mutual funds . So you need to make sure if you want risky and high return ones or stable and low return ones .
you dont get tax exemption by investing in MIP .
Manish
Hi Manish,
Appreciate your efforts on educating one and all on the art of investing through your sincere efforts, please accept a big thank you.
Was wondering if you could please throw some light on what would be a good MF portfolio. Unfortunately, have never invested being 5 years in the IT industry. Wondering if there are some MFs which could be looked at in terms of investing a lump sum amount if you have surplus funds parked in your Savings Account and FDs. Have learned from your reviews about Equity Diversified and Debt funds, and have started SIPs worth 3000 each of DSPBR Equity G and HDFC Top 200. A mid cap fund as well – Reliance Growth with a SIP of 4000, and a debt fund – Canara Robecco Income with a SIP of 4000. Also, have a PPF account open and plan to invest 70000 every year from now onwards. Going by your advise of not to mix investment and insurance, have taken a term plan from LIC. At this time, most of the money is in FDs. Could you please advise on what else should I be looking at.
Hope all is fine. Appreciate your time and help in advance.
Mohit
Mohit
thanks for your comments .. A good mutual fund portfolio happens with its small (4-5) , alligned with your risk appetite and when they are bought with some goal in mind .
Your overall portfolio is good .. what you should do is put most of your money in a debt fund and transfer it to equity funds every month through STP .
Manish
hi manish.. i came through this website today via google search while i was looking for diff b/w dividend n growth MF and i found clear info from this site and also all the forum was gud.
Now i want ur suggestion.. i am planing to invest in MF for long term abt 7-10 yr via SIP up to 5000, but a hv no much idea regarding MF.It would be whery helpful for me if u suggest me abt some best MF available in market.I hv relaigare dmat acount, can i buy a mutual fund thru this if not what shud i do for buying a mutual fund.
waiting for ur reply. thnx in advance.
Kamlesh
For good funds see this : http://www.jagoinvestor.com/2009/08/list-of-best-equity-diversified-mutual.html
SIP for long term is the best way a person can make money without understanding much about stocks and mutual funds .. you can buy from your demat if they assist or try fundsindia.com
Manish
Hi Manish,
Came across your site while looking for investing and using a CP in India. Great site with excellent content. I had a quick question. Can a person with an OCI (US citizen) staying in India invest in Monthly income scheme like offered by POST office of India (NSC, Kissan Vikas Patra..).
Also what are the other schemes available where close to 50-60 Lakhs can be deposited to get Monthly income and how much would it be.
Regards,
oops .. I am not very sure about this .. Will have to find out . Can you please post this on forums on this blog .. I will make sure some one answers it ..
As per my thinking it should be available to Indian residents .
Manish
hi manish……
just got through this site while doing some investment decisions. great site and thanks for the information u provided here. I need some advice from u. I am NRI and want to make some investments in FDs for short period. Which Bank is preferable? The returns on the FDs are taxable for NRIs? Please clarify.
If its really short term like 1 yrs or less , then you can go with any nationalised or private sector one .. Check http://www.way2goals.com/Project2/chooseBank.html to find which pays maximum interest for your case .. Interest on FD will be taxable .
Manish
Hi manish,
Are you not having any program for guest blogging?
I am interested in publishing my blog articles here on JagoInvestor.
Also, I would love if you would like to write for EquiTipz.
Waiting for a favourable reply from your side..
Aman
I dont have an official program like that, but mail me the topic and bullet points on the content . I would prefer something on Credit card or some tutorial on “How to ..” . I anyways write content on Financial planning and similar things , Also note that you should not provide any duplicate content , You should write original first hand content for guest blog which should not exist anywhere on net .
Manish
Dear manish ytou are doing a great job, I recently attended a seminar of kotak, they were telling that 10 percent of investment should be in gold, promoting to buy kotak golf etf, they mentioned that I can buy gold in demat form like any other share through online from demat account, historically gold is safe and expected return is 10 percent, iplease advise me the merits and demerits of gold etf, how is gold etf, since you are having wide knowledge you can advise, kotak they won’t tell about demerits , eagerly waiting for your advise, john m varkey dubai uae mobile 00971504291656
John
Depends on for what time frame are you investing in gold etf , if its long term , then you can expect 7-10% return in long term .but over short term you can not tell what will happen .. given that gold has moved so up , prices can fall back and anything can happen .. SO not sure of short term
Hi John,
You can apply for a gold etf fund through an SIP much like an normal equity fund SIP. This will take care of the averaging the cost incase there is a too much of volatility in the prices of gold. The options available in case of ETFs in India (apart from Kotak) are
BENCHMARK GOLD ETF
QUANTUM GOLD ETF
RELIANCE GOLD ETF
UTI GOLD ETF and offcourse finally
KOTAK GOLD ETF
Having 10% of your investments in gold makes sense at this point of time coz the rise in inflation and the fall of the dollar versus the basket of other currencies will only push gold up in the near future.
Best Regards
Gopal Gidwani
Really ? Are you sure ?
Can we do regular SIP’s with gold etf ? I never knew this
Manish
Hi Manish,
Right now Kotak Securities offers AutoInvest Gold – This is an Online Trading Account based on Systematic Investment Planning in Gold ETFs, Equities and Mutual Funds.
In this product based on the profile choosen by the investor the investments are suggested. If the profile selected is Aggressive Gold then entire monthly investment is made only in Gold Exchange traded funds (ETF).
If the profile selected is Aggressive Gold Moderate Profile – then investment is made in Equity (30%), Diversified MF (50%) & Gold ETF (20%) proportion. Likewise you have other profiles for various investment combinations of Gold ETF, direct Equities and Mutual Funds.
So this comes with a pure gold ETF SIP or a combination of Gold ETF as well as Equities and Mutual Funds.
Reliance Mutual Fund was offering SIP along with Gold ETFs but has withdrawn the facility since 31st October 2008.
Alternatively for exposure to gold stocks via Mutual Funds: SIP is available in AIG World Gold Fund and DSPBR World Gold Fund. But these funds invest in international funds that buy into stocks of mining companies involved in gold and precious metals.
I have read at few places that investments in Gold Bees ETF can be done via SIP route, although not too sure of this as I am not aware of this.
Finally the person (if very disciplined) can start his own SIP for investing in Gold ETF by buying atleast 0.5 grams of gold in case of Quantum Gold ETF or 1 gram of gold every month in case of any Gold ETF and progessively increase his gold purchases in grams via SIP amount depending on the monthly investment amount available.
So Kotak Autoinvest is surely available for SIP investments in Gold ETF.
Best Regards
Gopal Gidwani
Hi,
I invested 30k in ICICI RGF. I wanted a short term tax saving option. As RGF was 3 year, it was short term than NSC and PPF. I was thinking about ELSS but then decided against it. I read your post about RGF later. Well, I want to know what could have been a better option to invest (should be short term) and relatively safe for tax saving under 80C
Aman
there is no short term safe option in Tax saving . All safe bets start from 5 yrs . 5 yrs for Tax saving FD’s . Anything for 3 yrs would be either risky (ELSS) or costly (ULIP) .
Manish
Manish
I read some where on you blog that you do paid financial planning services. Can you let me know how much is teh charges and all .. I am intrested in getting it done by you . you can mail me in abygeorge.invest @ gmail .com
Thanks
Aby
Aby
I mailed you
Manish
Hello Manish,
Your site is really helpfull to everybody who are planning and doing investments. Please keep up the good work in helping others in this regard.
I must admit my knowledge about mutual funds is very limited and i have been doing more reading recently. I have read in many posts over net where people are saying – “If a person invests in equity diversified mutual funds for a period of 15-20 years, he or she would make a good retirement corpus”.
Please pardon my ignorance if my question is silly. My question is how does a persons money get compounded if he or she is investing in a equity diversified mutual fund. Suppose i pick 3 of best equity diversified mutual funds and should start investing in them as SIP for a period of 15-20 years. Or should i invest in them for a period of 3 years and leave my units there for 15-20 years and find other equity diversified mutual funds that may be performing well at that time and start investing in them similarly.
My age is 30 years now, and i have been investing in SBI magnum tax gain growth fund for last 3 years as an SIP for an amount of Rs 5500. I came to knew about this fund from my friends and followed their suggestion at that time.
But i wanted to learn more about how a long term SIP approach should be taken for equity diversified mutual fund and some secure bonds to build a corpus for retirement. Assuming i can invest for another 20 years and would have to build a corpus of 2 Crores. Please suggest me what approach should i take or please direct me to some material where i could learn more about this. And also please let me know your personal financial advice cost.
Thanks in Advance,
Sridhar.
Great … So the thing is that when we say investing in Mutual funds for 15-20 yrs .. It does not mean same funds . We have to review it once a year or once in two years and then decide if the fund is still good or we need to swtich . This is not a big deal as we have to do this 8-10 times in 15 yrs .
Also SIP in mutual funds is the best way a person can invest in equity if he does not want to get involved much .So just start a SIP in MF and forget it .all what is expected from you is discipline in investing and once a two year review . thats all ..
You need to invest 20k per month to make 2 crores in 20 yrs at 12% return (which is safe return from 20 yrs point of view)
You need to invest 13k per month to make 2 crores in 20 yrs at 15% return (which is again possible , but with some level of risk , risk means that you might not be able to reach 2 crores but less)
Better thing would be to contribute more in start and gradually decrease your contribution in coming years
.
I have mailed you the cost details for financial planing ..
Manish
Hello Manish,
Please let me know about your personal financial planning service charges at my email address. karanamsridhar@gmail.com.
Thanks in Advance,
Sridhar.
I mailed you
Hi Manish,
Thank you very much for your suggestions.
I would like to know your view on the Bajaj allianz TLC Plan.
Today I came to know about this plan. Product detail is :
Products:
NEW FAMILY GAIN (NFG) Policy/UNIT GAIN PLUS GOLD Policy
1) Invest yearly premium for Rs.5000/halfyr,Rs.10,000/yr, Rs.12,000/yr..by taking Demand draft in favor of Bajaj Allianz Life Insurance Co. Ltd payable at Bangalore .
2) Invest Rs.500 for first year only along with first premium amount by taking Demand draft in favor of TLC Insurance India Pvt. Ltd payable at Bangalore or Salem.
3) Maximum Premium – No Limit
4) Minimum Payable – 3 Years
5) Age of Entry – 0 to 50 Years
6) Coverage – Up to 70 Years (Minimum fund value to be maintained above 150% of Annual premium)
7) Funds Available (Liquid Fund, Bond Fund, Equity Growth Fund, Equity Index Fund II, Accelerated Mid Cap Fund)
How is the plan?
Sachin , I cant see anything of value or uniqueness in this policy
So please stay away
Dear Manish,
I have recently done a S.I.P. in DSP BR Equity Fund in the Growth option. But later on I noticed that the present NAV value for the fund is more for the Dividend option that that for the Growth option. Does the performance of a fund differ for the Growth option and the Dividend option? Have I done a mistake in choosing the Growth option for this fund? Is it possiable to change the option?
Anwesha
Anwesha
You have not done any mistake .. Chill
Dividend and growth option work in differnet way and should not be compared to each other and please forget NAV . Its not more than a number . Read :
http://www.jagoinvestor.com/2008/04/mutual-funds-options-growth-dividend.html
Btw , there is no way to switch from growth to dividend or vice versa .
Manish
Hey Manish,
Great website with good info. I am a regular reader of your articles. I notice that you have changed the background color. Not sure what your intension was but I feel the text is not clearly visible with this background, at least I am struggling to read. Especially the red color of text is simply not legible. May be a lighter background should make it much easier to read but white would be the best without a doubt. This is just a suggestion.
Thanks
Errrrrrrrrrr… how are you seeing different background ?
the background is white and the text is black , links are blue . What browser are you using ? I am not sure if many are facing this issue ?
Manish
Hello Manish,
Hope you are doing great, and thankyou very much for posting all this valuable information.
After going through one of your posts regarding the best equity diversified mutual funds of 2009, i have decided to do SIP’s in the below three mutual funds. The reason i selected these mutual funds was because more than 50% of there market capitalization is in large and giant companies, so risk would be less when compared to those funds concentrating in mid cap and small cap companies. And they have been consistently providing good results over a period of 5 years and they belong to reputed fund families.
1) DSPBR Top 100 Eqt Reg-G
2) HDFC Top 200-G
3) Magnum Contra
I have also done some study about there sharpe ratio, alpha value, r squared valued, PE and PB ratio. And these values appeared to be fine as mentioned in one of your posts regarding how to select mutual funds.
Please correct my choice if you think i can pick some other fund in place of the above mentioned. My investment is from a long term perspective.
I am planning to invest a total of 10K in these three funds, can you please suggest me what should be the division. For Example 3.5K in DSP, 3.5 K in HDFC and 3K in Magnum. Is this division fine or else please correct me.
And thanks again for all the great work you are doing to help other investors to make good financial decisions for themselves.
Best Regards,
Sridhar.
Sridhar
Your analysis and choice of fund is great. .. I would prefer to put more in HDFC top 200 like 5k . and rest 5k divided in other 2 ,
Manish
Just happened by the blog via deepak shenoy, was going to speed browse !, ended up spending half of the day here, addictive !, great stuff.
Although do have one criticism, the damn “tweet/facebook/rss feed etc..” keeps following me on the left hand side, making it bloody difficult to read & not mention the irritation, (Ps: i’m in Chrome
)
cheers once again…
Nice
Thanks for stopping by . I am sure you will be happy to spend more time regularly here .
You are the second reader who complained about the social icons on the right , I would be happy to remove it one i get the chorum of 3
. thanks for your feedback . Everything thing counts .
I want you not to loose any future post on this blog , just register here to get posts in your inbox http://feedburner.google.com/fb/a/mailverify?uri=FinanceAndInvesting .
U can unsubscribe anytime you want
See you around . .
Manish
Hey Manish,
I have a question about MF entry loads. I understand that SEBI has abolished the entry load charged by mutual funds (MFs) effective August 1, 2009. If one has a few SIPs set up before August 1st, do such SIPs continue to incur the old entry load or SIPs after Aug stop incurring the entry loads? Is it better to stop old SIPs and start again? Thanks.
err .. thats a good doubt ..
I am not sure on this .. To be safe its good that you restart your SIP .
Manish
Hi Manish,
Can you shed some light on NPS? Please post an article on this topic.
Mukul
Did you try searching for “NPS” on right hand side search box or look are archives section . I have already written about it . http://www.jagoinvestor.com/2009/05/nps-new-pension-scheme-detailed.html
Dont you think there are better altrernatives that NPS right now ?
one doubt, if i take magnum contra- D, can i switch to G option
No , you cant .
you have to sell it and then again buy G option . Not sure if there is some exeption funds which allows , but in general its not the way it works .
You have bought this one for long term , correct ? Dont go for short term .
Manish
Thank you for prompt reply, I was thinking of keeping contra for around 7 or more years. What do you say? I think i made a mistake by taking Dividend reinvestment option. I should have gone for growth.
About NPS, I am not really aware of strong points and weaknesses of it, so i cannot comment on alternatives part of your ans.But yes, I am reading abt it.And yes, i did find that article on NPS by you. helpful like always.
I am looking for investing around 1k p.m. for 3-5 years. what do you suggest? I am checking out SBI magnum tax gain and UTI mahila scheme,(ideally i will like less risk exposure. still in analysis and comparing phase.)
You can try out balanced funds or debt oriented funds . However considering current scenario , some of my stock analyt friends are extremelly bullish on stock market . So you might want to take a chance by taking risk , on your own
manish
Dear manish,
I think by pure luck I came across this site,when I need the most. I have been working in Saudi arabia for more than 13years, and Now I am planning to leave this place once for all.I have made some investments in Mutual fund for my kids future. Now I am going to get the final settlement ( about 10 lacks). I want to invest this amount for my retirement. How can I do that. I will invest again in mutual fund or is there any other better option left me. I am 35years old . And I have some expenses for kids which needst to be taken care after 15years. So please advice me.
I mailed you
Manish
Manish hey!
My hearty new year wishes.
I am a first time reader of your blog…by the way i like your hairstyle!
I am 30 years, i have a savings of Rs. 7000 per month, where can i invest into…i have not invested so far in any financial aspects nor do i have any knowledge.
Cheers!
Thileeban
Thanks
Generally I tell people that investing depends on some factors . however , if you have no knowledge and have a long term view . you can invest in Equity funds for long term through SIP .
Manish
dear manish
in MF’s investments
1) can we change the SIP’s after some time suppose nw i m investing in HDfc equity 1000/-sip per month and after 5 months i want to increase it to 3000/-PM then waht we have to do?.Can we change it online or have to go to AMC’s office/
2) other things is is there any term duration in mutual fund investment?..means if i thought i will do it for 20yrs. but at any time i need money so at dat time can i stop it.?..what happens if for any month’s sip lapses?..
regards
varun
Varun
1. No you cant change SIP amount . its is generally not allowed , however there can be very very few MF who may allow this . General answer is NO .
2. Duration for SIP is minimum 6 months , you can stop the SIP payment after 6 months anytime .
Hi Manish,
I want to invest in life term insurance policy with bonus & interest benefits, I am single, 30 years of age, which policy you recommend. Thank you
It is not recommended to go for money back plans . Better to go for plans where you get nothing , they are cheap plans
Manish
Hi Manish,
need a small suggestion. I have recently sold my flat and have some surplus amount with me. I am confused where to invest it.. I will buy a house again after 2 -3 years and need to invest around 7 lacs in right way. can you pls suggest some way…
Hi Ankit
For how long did you hold your last flat ? If it was less than 3 yrs , then you have to pay tax on that profit . If you have sold it after 3 yrs , then you can save tax by two ways
1. Reinvest that profit in some other real estate within 2 yrs .
2. Invest in NHAI or REC bonds which have lock in period of 5 yrs .
manish
Hi Manish,
I sold it within 3 years (3 yrs not completed). is there any way to save tax on this.. If not, then pls suggest some good funds wherein I can dump this money for good returns.
If its less than 3 yrs , then you have to pay the tax . It will be added to your salary and taxed at applicable slab . You can use some good funds like http://www.jagoinvestor.com/2009/08/list-of-best-equity-diversified-mutual.html
What is your time frame for investment and return expectations ? Are you not interested in Debt funds .
Manish
Hi manish,
me again !
have a query, if one does not invest in REC / other tax saving bonds, takes the tax hit, invests the funds across multiple options would this be advisable ?
as CAGR for REC approximately 5%
ps: do you render financial services ? if so could let me know how this arrangement will be conducted ?
Mohan
Very nice question
See .. the thing is you are going to lock your money for 5 yrs .. so with REC , you can earn money at 5% and then you just have to pay tax on the interest you earn , thats all .. So if you have 10 lacs profit from real estate , you have two options , lets consider you come in 30% bracket and your profits will be taxed at that rate .
1. Invest in REC
>>> 1000000 * (1.05)**5
1276281
276281 is your interest , on which you will pay tax of 30% of 276281 = 82884.
Total profit = 276281 – 82884 = 193397
So at the end you have 10 lacs + 1,93,397 = 11,93,397
Case 2 : you pay tax and then invest .
In this case you first pay tax of 30% on 10 lacs which will leave you with 7 lacs . Now you need to grow this 7 lacs to more than 11,93,397 to beat option 1
>>> 100* ((1193397/700000.0)** (1/5.0) -1)
11.259570824725706
You need to earn atleast 11.25% return in 5 yrs which is tax free . This is possible with equity with some element of risk .
So you have both the options in hand. I would like to go for combination of both option.
What about you .
Regarding Financial services , I just do financial planning , nothing else .. contact me if you need anything .
Manish
Manish,
When is the right time to sell a stock? I have some stocks that have made 50-80% gains since last March (mostly large caps) and some have made hardly 2-3% and some are in negative. Is it better to sell those that have made this huge profits and buy them again later when they correct 10-15%? I dont feel like parting from these large caps as they are ‘must have’s in a portfolio but I also think that it is stupidity to not book some profits. Even though I believe in investment for long term, isnt it better to sell such stocks with in a year or two and make 50%+ profits than keeping them for long term (7-10yrs) and make only 10-12% profits? Your thoughts please…
Katsy
You are moving from “long term investment choice” to “trading in short term” . Yes , the option you gave makes sense , but then you also have losses chances too .. It all depends on what is your return expectations ?
If its 12-15% ,, then long term is good .
If its more than that , then what you are thinking of doing is good . .Short term profit booking is essential for making more returns , its like portfolio rebalancing
Manish
Hi manish,
In my case it is LTCG, so it makes even more attractive for the hit, allthough relative short time frame 3 years might pose a issue.
I do agree that it should be a combination of both depending on your existing allocations.
as for financial planning do you offer whiz bang / secret stuff not present on your site currently
will definitely get back to you on this.
Mohan
I do provide financial planning services to very carefully selected clients only . As far as education is concerned .. everything is on this blog . nothing special to come one ..
Manish
Hi there,
Can u xplain me one thing…I have made an investement in HDFC young star super plan by investing 5k per month or 60k per annum for 20 years(which is a ULIP plan)…Now i feel like to keep the investement going for 5 years then i shall forget it for 20 years then I shall take the settlement option and extend the plan for more 5 years;;Why so…because the plan which the HDFC representative shown to me said if i shall invest in till 25 years I shall get only 59Lk in return and if i do it for 5 years and keep the investement for 25 years I shall get 24Lk in return at the rate of 12%…hence I thought why not go for 20 years plan and then keep the investemet for 5 more years as my money shall be in market only and the charges which shall apply to my fund shall be FMC only…Advise me have done correvt thing..
Vikash Sharma
Your Fan…
Vishal
Its always advised that you do the investment for long term .. however the initial investments will actually make the majority of your final corpus , so what you pay for initial 50% time will actually make 90% of your final amount because of compounding .
manish
so wot shall i do….
Vishal
you should keep investing for long term without stopping the investments , However incase you need to stop in the second half of the investment period , thats fine .
I would be more comfortable with mutual funds rather than a ULIP .
Manish
Thanks For the advice…..I m grateful….
in which web page or web site can i Nifty PE ratio?
Mohan
You can see that here : http://nseindia.com/content/indices/ind_pepbyield.htm
Manish
It has been a delight to read your site.
Would be really helpful if you can help demystify the tax implications of ESOPs also.
as a beginer i v been enriched a lot withy this blog. more over I request u to let me know how can I use RSI(nifty) chart to long /short in nifty.
thanks a lot
soumen mazumder
Hi Manish,
Your blog ROCKS!!!
Let me know charges for FPA services. I would like to give my best shot now and avoid shooting later
Regards,
Satish KO
Satish
Thanks , I mailed you
Manish
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