Dhirendra Kumar hosts a weekly TV programme where he answers questions related to mutual funds. We have briefly reproduced the transcript here.
Name of programme: Fund ka Funda
Time of programme: 1.30 pm/Sunday
Channel: Star News
Q Is it better to invest in a ULIP or a Mutual Fund?
Anil
Don't invest in ULIPs. They are not smart investments. Choose any equity diversified fund like Reliance Vision or HDFC Equity. For life insurance you can opt for a term cover from any company.
Q In which Mutual Fund should I invest Rs. 500 per month and Rs. 10,000 one time for time period of 6 years.
Sunil
Choose a 5 or 4-star rated equity fund for investing. My choice will include -- Magnum Contra, Reliance Vision, Franklin India Prima Plus, Tata Pure Equity and HDFC Equity.
Q: What is the future of Reliance Tax Saver? Sharad Wankhede.
Kalyan
There are better performing tax-saving funds available to choose from like SBI Magnum Tax Gain, HDFC Tax Saver or Principal Tax Savings.
Q I had invested Rs. 20,000 in both SBI Magnum Tax Gain & Reliance Tax Saver. Now I want to invest Rs 30,000 more. Should I keep the same portfolio or go for some other funds?
A Continue to invest in SBI Magnum Tax Gain. There are better options than Reliance Tax Saver like HDFC Tax Saver or Principal Tax Savings.
Q I want to invest Rs 10,000 in mutual funds for 10 years. Please suggest some good mutual funds to start with.
Choose from any 5 or 4-star rated funds like HDFC Equity, Reliance Vision, Franklin India Prima Plus or Magnum Contra.
Q I want to invest Rs. 10,000 in mutual fund but I also want life insurance. Should I opt for TATA AIG ULIP plan?
ULIPs are not smart investments. Choose a Term Plan for life insurance and invest the rest in a equity diversified mutual fund for long term.
Q I want to invest Rs 3,000 through SIP. Kindly suggest few good funds. What return should I expect after 10 years.
Dilip Kumar Parwani
Choose from funds like HDFC Equity, Reliance Vision, Birla Frontline Equity. It is difficult to predict returns post 10 years but you can expect 15-20 per cent per annum.
Q I want to invest Rs. 5,000 in Reliance Mutual Fund for one year. What is the guaranteed return of mutual funds?
Tarun Bhilai
A period of 1 year is not suitable for mutual fund investments. There is no guarantee of invested amount in Mutual Funds.
Q How about Reliance Diversified Power Fund?
It is a sectoral fund and has been doing well in the recent times. It can prove to be risky at times and is suitable for investors willing to take risk.
Q I am 20 years old and I want to invest Rs. 25,000 in mutual funds. I am new to all this. Kindly guide me.
Start with any balanced fund like HDFC Prudence or Magnum Balanced. It is better to start investing monthly rather than one time.
Q Can I start investing in Reliance Banking Fund and Reliance Power Fund at current NAVs?
Do not judge a fund's performance from its current NAV. These are sectoral funds and can be risky for investing. Choose from four or five star rated equity diversified mutual funds like HDFC Equity or Reliance Vision.
Q Which ELSS fund is better for tax purpose?
Suresh Arora Jodhpur(Rajasthan)
Choose from top performing ELSS Funds like SBI Magnum Tax Gain, HDFC Tax Saver or Sundaram Tax Saver.
This article was originally published on October 10, 2007.
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