Should you Invest in ULIPs ?

I want to invest Rs 40,000 for 2 -3 years. Which mutual funds will be good?
- Dinkar Jha, Patna
A. You can choose from top rated equity funds like Reliance Vision, Franklin Prima Plus, Birla Sun Life Equity, HDFC Equity.

I saved Rs 1500 from my salary. How can I utilise this money in share market and mutual fund? I have no idea abut share market and mutual fund.
- Satish Parmar, Surat
If you are a novice in this field, its best to opt for some good equity diversified mutual funds. Start investing some amount monthly by opting for a Systematic Investment Plan (SIP) in a well rated balanced fund like HDFC Prudence or Magnum Balanced.

I am a new investor and wanted to invest Rs 15000 in UTI Mutual Fund. But after watching your program I invested in Reliance Vision @ Rs 278. Please tell what is growth prospect of Reliance Vision

You have selected a good fund. Remain invested in it.

I want information about shares and mutual funds as I am completely unaware about the two. Which 1 is better?
- Kuldeep Negi
As you are investing for the first time, opt for mutual funds. Start investing in a balanced fund like Magnum Balanced or HDFC Prudence on a monthly basis

I have bought the Reliance Equity Advantage fund for Rs.12000 at Rs. 12.79 per unit. How much return I can expect in the next eight months? Reliance Equity Advantage has been launched in July this year. It is tough to predict it's returns as of now. Stay invested for some time and then evaluate its performance.

I have a six year old daughter and I want to save around Rs 20 lakh for her higher education and marriage. How much should I invest every month? Assuming a return of 15 % per annum from a good diversified fund, you need to invest Rs. 5500 per month for 12 years to get the required amount when your daughter is 18 years old.

Which should I choose - dividend option or growth option?
-Shyam Babu, Nainital

Choose Dividend option if you require money in-between from your investment when a dividend is declared. Growth option is ideal for a long term investor who does not require the invested money in near future.

Which is the best infrastructure fund
- Anil, Kotputli

DSP ML TIGER and UTI Infrastructure are two top performing and well rated infrastructure theme funds. You can choose from them.

I want to invest Rs.20000 in ICICI Pru Life Time Gold for 5 years. Is there any better tax saving fund? Please suggest.
-Pradeep, Bangalore
ICICI Pru Life Time is a ULIP, which are not smart investments. For tax saving, invest in a ELSS (tax saving) mutual funds like HDFC Tax saver, Magnum Tax gain, Birla Sun Life Tax Relief '96, Sundaram BNP Paribas Taxsaver.

Is it fit to invest in a real estate fund like ING Real Estate global fund
- Shish
ING Global Real Estate Fund is the first real estate investment avenue for individual investors. Its can be a good fund for portfolio diversification. As it's a new fund, with no track record, invest only a part of your investment amount in this.

I am 35 years old. How is ULIP policy of UTI?
Avoid investing in ULIPs as they have high associated costs. Choose a term plan for life insurance and invest the balance in equity diversified mutual funds with a long term view.

How can I invest in mutual funds?
-Sarfaraz, New Delhi

You can invest in mutual funds through a mutual fund distributor. You can also approach the asset management company (AMC) directly for investing.

I am a student. I want to invest Rs 500 monthly for superior returns. How can I do that?
-Neeraj
Invest this amount on a monthly basis in a well rated equity diversified mutual fund. Choose from Franklin India Prima Plus, Birla Sun Life Equity or HDFC Equity.

I am a new investor and I want to invest Rs. 20000 in equity mutual fund. Which fund would be ideal for me?
-Hussain
Invest in any well performing equity mutual fund which has a good track record. Choose from HDFC Equity, Reliance Vision or Birla Sun Life Equity.

I want to invest one lac for 10 yrs for my daughters studies. Suggest me and also how can I invest myself.
-Satbir

To invest yourself, approach the AMC directly. Choose from some equity diversified mutual funds like Reliance Vision, Franklin India Prima Plus, Birla Sun Life Equity or HDFC Equity.

I have invested in UTI Infra Advantage fund. What are its prospects?
-Ashish

It's a new fund which has just been launched. Remain invested now for some time before evaluating its performance.