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

This article was originally published on December 11, 2007.