1)Greece issue – Consider this – a householder has expenses that are way above what he earns and he borrows to pay for these expenses and keeps on increasing his expenses as well as continues paying interest. He now has to borrow to pay even interest and cannot payback the principal. The only solution is cut back on expenses and earn more and use the surplus to pay off the debt slowly (with the creditors also agreeing to take less payment).
Earning more in government parlance is raising taxes and spending less is austerity measures – both are difficult and wildly unpopular.
2. If you are talking investment in equity then it should anyways be for the long term (10 years +) and should be invested systematically over a period of time. If you have a lump sum you wish to invest in equity I would advise that you put it into an liquid/income fund and systematically transfer to equity over a period of time rather than try to time the market.
3. I cant really speculate on the impact of Greece and I would think the long term investor too should not really worry overmuch about it.
4. If you build your equity portfolio systematically over a period of time and want to hold on to it for a long time then you should not really worry about momenatray impact on the equity portion. The only portion that you might seek to protect is your debt portion which you can move to the shorter end (liquid/Income) of the debt fund market. If a goal is due in the next few quarters you can hasten the tapering that might have already happened. These 2 (moving to shorter end of the debt market and hastening your taper for near term goal) is the only pro-active steps that a long term investor needs to consider , if at all.
5. Gold is like equity – build exposure systematically upto the asset allocation earmarked for it
6. & 7 – avoid knee jerk. Have an asset allocation strategy and you can rebalance at periodic intervals – say yearly – This off course is nearly impossible to do unless it has been planned in advance as it is scary for most people to invest more into equity when the equity markets are down . the standard re-action is to move to safety. That’s why a prepared financial plan with a prepared asset allocation helps you remain disciplined.
As I want to invest money on daily basis, where should i invest to earn maximum daily ?
Depends upon the amount in your bank account daily and depending on the amount you can do a SIP daily or monthly into an appropriate mutual fund. Your investment decision should be based on time horizon, goals, risk taking ability. You should have a realistic assumption. It is possible to invest daily by way of SIP in mutual fund. Please consult a certified financial Planner/ Investment Adviser before starting any investment.
MY SLARY AND INVESTMENT DETAILS ARE AS:-
DEDUCTION FOR NPS:- Rs.3431/ MONTH LIC POLICY:- Rs.1736/ QUATER
FIX WITH BANK:- Rs.1200000/-
I AM 28 YEAR OLD AND WORKING IN PSU UNIT. MY AIM ARE AS:- a) Rs. 40 LAC IN 10 YEARS for HOUSE b) Rs. 20LAC FOR CHILD STUDY
c) Rs. 4 CR. FOR RETIREMENT.
I can invest 15000 to 18000/- monthly kindly direct me where to invest such that liquidation may be easy and any time in case of any emergency. Blockage of mony should not be more than 3yr.
Also I want to take some money back type of policy kindly suggest.
Liquidity requirement is best met through a contingency fund which can be a short term or liquid fund. You should invest in balanced fund only if you have at least a 5 years time horizon.
Money back policy are offered by insurance company and which will generate a return less than inflation rate 8 %. Systematic Investment in mutual fund will be a good pathway towards achieving your goals.
You have mentioned that you want to generate a corpus of Rs 40 lakhs in 10 years for house goals. Assuming a return of 11.60% in balanced mutual fund to generate a corpus of Rs. 40 lakhs in 10 years you need to start investing Rs. 17000/- Monthly. Assuming inflation rate of 8%, 40 lakhs in after 10 years will be equivalent to Rs. 85 lakhs. Similarly present value of Rs. 40 lakhs is Rs. 18 lakhs in todays terms.
You have not mentioned the time horizon for both the other goals hence it will be not possible for us to analyse the same. Please consult a Certified Financial Planner or Investment Adviser before making any investment decision.
Recommended Balanced Mutual Fund: ICICI Pru Balanced Fund.
Recommended Liquid Fund: ICICI Pru money market fund.