“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. For everyone who asks receives; the one who seeks finds; and to the one who knocks, the door will be opened. Matthew 7:7-8

14 Apr 2017


Hi Friends,  Today I am trying to clear the following doubts of share investors.

Mr. A.  Hi , I invested  in equity , out of  5 lakh I lost  1 lakh.  How to recover my money?  
Any investment in Equity if held for a long term (over 5 years) has the potential to generate real returns and beat all other asset classes.  Would suggest to stay invested in Equity markets,  You may have to reallocate your current investments to mutual funds with a superior track record.

Mr.B.  Dear Sir,  I want to invest in ELSS mutual fund,  kindly suggest me can I go with SIP with one MF or 03 MF and which one?
In case you have liquidity, I would recommend you invest a lumpsum in ELSS, if you invest via SIP route, the last installment will have to stay invested till 3 year, you can invest in Axis Long Term Equity, HDFC Tax Saver or Reliance Tax Saver Fund.

Mr.C.  How to utilize this newly added NPS limit?  Also PM announced more of these Rail Bonds.  So will these bond investments will be a part of 80 CC?
As per the new budget, you can invest an additional Rs.50,000/- in NPS schemes which you can use for retirement planning.  As far as the rail bonds which would be issued in the form of tax free bonds will not be eligible for deduction under section 80 C, but the interest income you will receive will be tax free.

Mr.D.  I want to put 1,00,000 rupees in mutual fund , can you suggest me in which fund to invest?
You should invest in funds such that you have a good balance of large, mid and small cap companies.  You can invest an equal amount in mutual funds in  five star rate given by Credit Rating Agencies like CRISIL,  CARE, etc.

Mr.E.  Hi,  I have monthly gross income of about 1,00,000/-  rupees,  from which I am serving a home loan with monthly EMI of Rs.38000/-.  Kindly suggest the investment so that I can build up my corpus for retirement and daughter’s marriage.
Since you are looking at a long term horizon, I would suggest you to invest in Equities through Mutual funds.  You can invest in diversified funds like – HDFC Equity Fund, and SBI Blue Chip .  I would recommend to increase allocation to Equities now as the outlook is positive with macros improving and earnings cycle expected to pick up gradually.  If you have invested in 2009, you should review your portfolio and see if you need to switch to better funds.

Mr.F.  I would like  to invest in Reliance Retirement Fund launched recently, whether it will be eligible  US  80 CCD?
As of now, Retirement fund is eligible for deduction under section 80C, Similar to your ELSS scheme.  Further , the retirement fund has a lock in of 5 years and the exit load is applicable till you reach the age of 60 years.  You may want to opt for an ELSS scheme, in case you want the flelxibility to redeem early without any costs.

Mr. G.  I want to invest in MF.  Suggest some large cap, mid cap, small cap for long duration with exposure in equity.
Large Cap –  ICICI Pru Focussed Bluechip.  Mid Cap -  HDFC Mid Cap Opportunities Fund,  SBI Mid Cap Fund, Diversified – Reliance Equity Opportunities Fund.

Mr.H.  Is this time right to enter Indian Markets or should I wait for a correction?
This is definitely the right time to invest in the market as the markets are at reasonable valuations and with macro improving, corporate sentiments are improving, the expectation is of an at least 18-20% in the coming few years.  RBI reduced interest rate.  This would expect to  take market to double from current levels.  Also you need to note that time in market is more important than timing the market.  Investors should always think positively.

Mr.I.  Kindly let me know some points to select shares for long term investment?
Now the share markets are in corrective mode.  When Nifty goes beyond 8000, you buy Index shares or mid cap index shares.  If you are not experienced in share market, invest through Mutual Fund (SIP) route is better for 3 to 5 yrs.  When buying shares, you can select debt free companies and also high dividend yield shares.  Sufficient articles are available for reading in this website.

Good Luck.                                                        See You Later.

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