1. When is the good time to exit?
The good time to exit any investments is when you have made your money and achieved the target you had set for yourself.
2. What are the ways to identify a good fund? Any checklist is there?
A few pointers would be - a) Consistent Performance, b) Funds that follow its mandate to the dot, c) Process oriented organization and finally good post sales service.
3. What percentage of investment would be ideal for Mutual Funds
For people who do not have time to follow and look after their investments, MFs is the best suited product. I would suggest highest portion of Financial Investments into MFs.You get professional management, tax advantage, diversification and host of other benefits.
4. what is difference between open ended fund and an close ended fund?
An open ended fund can be bought and sold on any working day, whereas a close ended fund can be invested only during the NFO (New Fund Offer) period and redeemed on maturity.
5. With the markets going down, do you think that mutual fund investment is good? If yes, which mutual fund/term will be good?
All investments should be planned with the right need in mind. Generally I suggest investors to look at the following points before investing - 1) required return 2) risk appetite 3) liquidity requirements 4) time horizon for investment.
6. Anything coming on Silver ETF considering the jump in the metal in last one year
We dont have Silver ETFs in India. I dont expect a Silver ETF coming into India soon. Though a few funds have applied for this prod with SEBI, but no clarity there. Apart from that I find the current frenzy in Silver a bit scary for common investors.
7. I bought Reliance Gold ETF in NFO though ICICI direct. I got 4.84 units. Now ICICI direct is allowing selling only 4 units. How I can sell my fractional .84 units. Please guide.
The additional units can be sold directly to the mutual fund. In any case I doubt if the MF can allot Gold units in decimal places, if they have done so. You can sell them directly to the AMC and not in the open market.
8. I am newbie to invest in MFs. what kind of MFs i should choose to achieve income tax benefits
If your main objective is to save tax, do read up on our blogs and earlier discussions on the subject. In case of MFs - ELSS is the investment to get tax benefit with a 100% equity exposure.
9. Gold price is high now. Is it a right time to buy Gold ETF?
In India people buy gold for 2 reasons - primarily for consumption and now slowly for investment. If your question is from an investment perspective, I think of gold as insurance for a portfolio.Everyone should have 5-15% of his financial assets in gold. I don't expect gold to be a great return earner, but rather a portfolio stabilizer in times of stress. If you don't have exposure to gold, I would suggest to build it slowly.
10. I have a sip in the following mutual funds:HDFC Top 200 (g) ,HDFC Equity (g) ICICI discovery(g) Fidelity Tax Advantage (G)i invest about 5000 each in every MF, is it a good portfolio, can you suggest any good gold ETF?
All your investments are in Equities, the schemes are fairly good. I don't know your circumstances so can't comment on the 100% equity allocation. But the schemes are good, on Gold ETF you can look at buying Gold Bees from the market. All Gold ETFs are the same and will track gold prices internationally.
11. I have invested in Reliance funds which ULIP & when checked two months was having a return of 12%. The term is for 10 yrs. is it worth continuing in the scheme
You are talking about a ULIP policy. Looking at only returns, might not be the right way to judge this prod. As there are lots of other expenses and features in the product and should be matched to one's need.
12. Why Gold ETF is better? We donâ€™t know where they invest our money. Do they also buy gold.
Gold ETFs have to keep equal amount of Gold under a trustee for the Gold units they have issued in the market. This is enforced by SEBI. Therefore everyone unit is backed by equal amount of Gold. Gold ETFs provide better liquidity, lower cost of purchase and more tax efficient.
13. I have invested in Max New York ULIP. Currently its 4 yrs old and i still can pay for one moreyr. but my question is do i have to really pay for one more yr or can i close this ULIP please advise me on the market's current condition
Regarding your query on the Max ULIP policy, I will not be able to comment until and unless I have the specific policy details. ULIPs are long term investment commitments, and that should be done if for the long term if you want to extract full benefit out of the same.
14. Ideally what should be the target return % over 1 yr, 3 yrs and 5 yrs?
You are asking for target on which category of funds. MF's have option from liquid funds (that are for 1-3mths) to equities (Which are long term investments.)
15. Can you please suggest a good fund/s for tax saving? Also, Please suggest some good equity mutual funds for a medium risk/return profile
For ELSS you can look at Fidelity Tax Advantage Fund. For equity MFs for limited risk - restrict investment to large cap and index funds. HDFC Top 200 Fund, ICICI Focused Bluechip Fund could be good start.
16. What is FMP?
Fixed Maturity Plan - FMP - is like a FD in a mutual fund. These are debt funds with a fixed lock in period and invest in debt securities maturing in that period. They are more efficient on tax as compared to FDs.
17. What is main work for Fund Manager? Simply sitting on the money and they will never advise to our poor guys on time.
The main work of the fund manager is to follow his mandate. An equity fund manager would invest in equities and debt fund manager in debt. You need to sit with your advisor to plan your allocation based on your goals, fund manager is going to do that.
18. Which is the all-time top performing Debt?
Sorry to make it sound all too complicated. But debt has far many options as compared to equity. You have funds that you can invest in from 1 month to 2 years plus. FMPs are a great replacement for FDs for highly taxable investors.
19. I have invested in SBI Magnum Tax Gain 3 years back....the lock in period over....and fund value has come down drastically...should I withdraw it...continue with it
SBI Tax Gain is not doing well now. In case you want to continue to remain invested in equities, I would suggest you redeem the funds and invest a better performing equity diversified fund.
20. Can I do hedging in MF?
You can't to hedging within the MFs. But you can do in the equity markets for your MF portfolio. A bit complicated concept for this session.
21. In private FDs too, high CRISIL rated with high interest bearings are good like United Spirits
I am a bit varying of putting money in private debt for the lure of higher interest. I personally believe that investors should seek growth from equity and stability and safety from debt.
22. Is there any mutual fund scheme related to investing on Silver?
There are some funds that invest in gold mining and silver mining cos. Though the performance is not directly related to gold n silver prices always. There are no schemes directly linked to performance of silver.
23. I have a query on diversification in MF. If I can invest monthly 4000INR, how should I divide this to multiple funds. There are too many AMC and each one has so many funds, it is literally quite confusing
The first thing to figure out is why you r investing, once you answer that question you will find the option of finding alternatives easier.
24. I've been told by one of the financial advisor that...There is a policy where if i invest for 20years sum of Rs.25000 pa... i would get return of 18%...
I won't fall for a 18% pa return, too good to be true!
25. I have invested in following mututal funds: HDFC Long Term Advantage Fund - Gr,HDFC Taxsaver Gr, SBI Magnum Tax Gain Fund Div, Prudential ICICI TaxPlan-Gr, Birla Sun Life Tax Plan - Gr,Tarus(Libra) Tax Shield(Pay) . should i keep or sell this?
If your lock in period is over, I suggest you move the funds to regular equity diversified funds.
26. Do you recommend equity MF for short term goals? (<5 yrs.) ?
Yes and no. Depends on the clients overall financial situation. But a 3+ year horizon is must for equities.
27. Where should I invest, if I want good return for my child education in next 15 years and for kids marriage in 20 years
Your requirement is to provide for a goal, which should be funded irrespective of you being there or no. Ideally you should choose an investment / insurance option. You can do this by investing in MFs and buying some insurance separately. You can also invest some of that money through ULIPs. But do understand ULIPs are long term investments that require active management.
28. How about the Sundaram Equity Plus NFO? What's your opinion?
I am generally against NFOs, if I don't see anything new on this. With the current hype on Gold, it's just another product with gold mixed. I would recommend avoid.
29. FMPs are not safe as FDs you can lose your principal as well...
I don't completely agree. But they are a great substitute for FDs. Loosing principal has been a rarest of rare case.
30. FMP's are they pure Debt Funds - so capital is safe? or is there a risk
Yes, 100% debt. But there are lots of variants, these are generic names and not necessarily followed strictly by all MFs.