Where to Invest ?

Q. I am a house wife and save Rs. 200 per month. Instead of saving this in a bank account, where else can I invest?
- Sonika
A. If you have a PAN card, you can invest in mutual funds using systematic investment plan (SIP) for as low as Rs. 50 (ICICI Prudential)/ Rs. 100 (Reliance Mutual) per month. Choose from well rated funds like like Reliance Vision, Reliance Growth, or ICICI Pru Dynamic.

Q. I have 3 daughters, aged 10, 13 and15 years. I am having Rs. 1 lac. Where to invest? Please advise me.
A. Invest in well diversified and performing equity funds like HDFC Equity, Reliance Vision, Franklin Prima Plus or Birla Frontline Equity. Spread your investment over 6-12 months.

Q. My monthly saving is Rs. 20000. What should be my investment portfolio
- Gopal, Hyderabad
A. You can make a well diversified portfolio of mutual funds with the correct balance of equity and debt, according to your goals. Invest in some large and mid cap funds like Reliance Growth, HDFC Equity, Sundaram Select Midcap and DSP ML Top 100. For debt, invest in Kotak Flexi Debt or ICICI Pru Long Term.

Q. What is the difference between a ULIP and Mutual Fund?
A. A ULIP is a combination of life insurance and mutual funds. After deducting high initial charges, the remaining is invested in stocks as in a mutual fund. ULIPs prove to be costly products due to their various charges.
A mutual fund is a pure investment where you pay the money to a fund house, which in turn is invested in stocks. No life insurance is given but the charges are on the lower side.

Q. What is the difference between growth and dividend options of a fund? Which one is better for growth of my invested money?
- Lakshmikant
A. In the growth scheme, all the profits of the fund are invested back into the scheme. This is reflected in the growth of the scheme's NAV. Under dividend option, profits made by the scheme are distributed in the form of dividends from time to time. Growth option is ideal for long term investors, who do not require money in between.

Q. When is the good time to buy equity funds, and what are the best funds to buy now. I want to invest in equity mutual funds. I have a kid (3 months old) and want to take insurance for him - please suggest which is the good plan to opt for which will good returns for 20 years
- Sridhar
A. There is no good or bad time to invest in funds. Invest in mutual funds with a long term view through a systematic investment plan (SIP). Choose from five or four star rated diversified equity funds like Franklin Prima Plus, HDFC Equity, Sundaram Select Focus, or Reliance Vision. For life insurance, buy a term plan, which is the simplest form of insurance.

Q. I have Rs 30000. In which mutual fund should I invest
- Pintu Rourkela, Orissa
A. Invest in top rated five or four star mutual funds like HDFC Equity, Reliance Vision, or Birla Frontline Equity. Opt for a SIP and avoid one time investment.

Q. I have invested in Lotus India AGILE on 23rd Nov. 2007. Is my investment right or wrong?
- Praffful, kota , Rajasthan
A. It is a new fund which has been introduced recently. Wait for some time now and then evaluate its performance.

Q. Which is better - Bajaj Unit Gain Gold or HDFC Growth Fund. I have a seven year goal target and can invest Rs. 15000 per year.
A. Both of these are different products. Bajaj Unit Gain Gold, is a ULIP plan, which proves to be costlier than a mutual fund scheme like HDFC Growth. It is always advisable not to mix insurance and investment. Opt for a term plan for insurance, and invest the remaining amount in diversified well performing mutual fund like HDFC Growth.

Q. I have Rs. 50000. Please let me know in which mutual fund should I invest?
Manoj, Ghaziabad
A. Invest in five or four star rated, diversified equity funds like Birla Frontline Equity, Sundaram Select Focus, HDFC Equity, Reliance Vision or Franklin Prima Plus. Opt for a systematic investment plan (SIP) and invest the amount over few months.

Q. I want to invest Rs. 5000 in mutual funds. Which fund would be ideal for investing?
Mukesh Aamghe, Nagpur
A. Invest in any of the top rated and well performing equity funds like Sundaram Select Focus, Reliance Vision or Franklin Prima Plus.

Q. I want to invest Rs. 10000. Where can I double this money quickly?
A. There is no quick way to double your money. You should invest in some well diversified equity funds and expect a return of 15-20 per cent annually.

Q. Is it wise to invest in a Max New York ULIP for 5 years?
A. It is better you opt for some well diversified equity mutual funds for investment rather than a ULIP plan. ULIPs are not smart investments and have high associated costs.

Q. I have Rs 35,000. Please advice where to invest.
Sudhir
A. Invest in top rated well diversified equity funds like Sundaram Select Focus, HDFC Equity, Reliance Vision or Franklin Prima Plus.

Q. I would like to know whether investment in ULIP for 5 years is safe or not.
Abid Churu, Rajasthan
A. There is no guarantee of return in a ULIP or a mutual fund. Still, it is advisable to invest in equity diversified mutual funds like HDFC Equity, Reliance Vision, or Birla Frontline Equity and buy a term plan for insurance. Do not mix insurance and investment.