CNBC Your Money: How to Invest for the first time investors

Question:

Dear Sir,

I’m new to trade in share market. I don’t know much about the discipline of this. I want to earn money with less amount of risk. Kindly suggest me top companies where I should invest. Also want to know how to multiply Rs. 1000.00 (thousand rs) to greater amount to invest in good company. I’m not in hurry and can wait for time.

Thanking You,
Gyanshu Kumar

Answer:

Dear Gyanshu Kumar,

It’s lovely to know that more and more people like you are interested in investing in equity asset class and participate in the India’s growth. What excites me more is that you have a long term outlook. However I would strongly recommend you to take the mutual fund route to do so. But first a few lessons would be in order:
1. You cannot get high returns without taking higher risk. The whole idea is how to mitigate the high risk inherent in any equity investment. First is diversification, second is long term holding and third is systematic investments. Equity Mutual Funds allow you to do all the three.
2. Don’t have an expectation of spectacular returns expectations. Even the best investment strategy in the world cannot turn “Rs. 1000” in to a fortune. The quest to spectacular returns leads straight to the poor house.

CNBC Your Money: where to invest for good returns?

This is Sandeep Mishra running business. My contact number is 9545457922. Currently living in Pune, MH. I done investment in
1. SBI 1.5 lakhs yearly for 10 years. Life Insurance – 5 years lock in.
2. LIC money back policy.
3. ICICI health insurance 8k yearly.
But I am very confused about where to invest and get protected or get good returns.

You should never buy a life insurance policy assuming that you will get good returns. Insurance policy are only meant to protect you and family in case of uncertainty happen to your life. Both SBI and LIC money back policy will not give good returns if you have invested with that intention. However no details of the policy have been given it will be difficult to analysis the same. You can investment in mutual fund schemes via SIP route but that too also need an expert view because before investment decision are based on your risk taking ability, no. of year you want to invest and for what purpose you are investing. Please take help of any SEBI registered investment adviser or Certified financial planner before investing in any investment/ insurance instruments.

CNBC Your Money: How can i achieve my goals?

Uti sip 1000/- per month, franklin india me sip 1000/- per month mujhe 15 saal baad 20 lac chahiye 25 saal baad 30 lac chahiye.
rakesh kumar gaya bihar

It’s good that you have started SIP investment in Equity mutual fund to achieve your long term goals.
You have mentioned that you want to generate a corpus of Rs. 20 lakhs after 15 years. Assuming inflation rate of 8%, 20 lakhs will be equivalent to Rs. 63 lakhs after 15 years. Similarly 20 lakhs of that will be equal to rs. 6 lakhs in today’s terms. Assuming return of 12.60% in equity mutual fund, you need to start a sip of Rs. 4,000/-

For the other goal which you will require Rs. 30 lakhs after 25 years. Assuming inflation rate of 8%, 30 lakhs will be equivalent to Rs. 2.05 crore after 25 years. Similarly 30 lakhs of that will be equal to rs. 4.38 lakhs in today’s terms. Assuming return of 12.60% in equity mutual fund, you need to start a sip of Rs. 1,500/-

You can continue and increase you SIP allocation in your existing two mutual fund schemes.

CNBC Your Stocks: Want to invest in pure debt funds for indexation benefits?

Name: Narasimmamurthy
Age: 57
City: Puducherry
Profession: Retired
Question: What are the type of debt funds suitable for a person in 20% tax bracket who wants to shift from Fixed Deposits to harness the benefit of indexation to reduce tax?

Details from Call: Want to invest in pure debt funds for indexation benefits, No dividend option,
You can invest in debt mutual fund which will provide you a risk profile like fixed deposit and but which may provide you better returns if you hold it for more than 3 years. So if a bank fixed deposit gives you a post-tax return of around 6.80% (8.50% less 20% tax) the pure debt fund 3 years returns maybe higher around at 8.5%-9% (which is also likely to be the post-tax return due to indexing). You can consider to invest in Income Fund category of Mutual Fund which is the pure debt category. It is within your debt allocation

Another option you can consider is long term gilt fund which may provide even better post tax return but carries interest rate risk (Relatively Higher Risk) or Arbitrage fund (Relatively Lower Risk).

Recommended debt (Income Funds) mutual fund: ‘Franklin India Income Opportunities fund’
Recommended Arbitrage Mutual Fund: ‘ICICI Prudential Blended Plan – Plan A
Recommended Gilt Fund: ‘’ICICI Pru Long Term Gilt Fund’’

CNBC Your Stocks: I have invested in HDFC equity fund. Have I invested in the right fund?

Name: Jaydev
City: Pune
Profession: Professional
Age: 30 Yrs
Question: I have invested in HDFC equity fund. Have I invested in the right fund? I can additionally invest 3000/month for short term. Which are the other funds I can invest in?

HDFC Equity fund is a pure equity fund and it is beneficial to invest in Equity funds for long term i.e. more than 10 years. You have taken right decision to invest in Mutual Fund via SIP route. Your investment decision should be based on the time horizon, risk taking ability and goals you want to achieve by investing. As you have mentioned that you want to invest per month Rs. 3,000/- for short term. Assuming you want to invest for 3 years, you can invest in less risky mutual fund schemes i.e. MIP funds.
Recommended MIP Fund: “HDFC Multiple Yield Fund – Plan 2005” and “Birla Sun Life Monthly Income Plan II – Savings 5 Plan”

Zee Business Money Guru: How do i do Financial Planning?

I am regular viewer of your show. Myself Rohit Kumar Tamuli a 36 years old married male working in
HAL and my yearly income is 3-4lakh..my investment is 1000 rupees SIP in reliance small cap, Rs.1000 in sbi emerging business fund, Rs. 1000 in kotak equity fund, Rs.1000 in Axis equity fund and Rs.1000 in Axis midcap fund. A total of Rs.5000 SIP in mutual fund. I also have some LIC policy. My daughter age is 4yrs old. My queries is about in my portfolio that how much I earn after 20yrs..and I also how much i have to invest to achieve 1crore for my retirement. And 50 lakh for my daughter marriage/education. Plz suggest.
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