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Should One Invest In ULIPs?

And other such questions answered by Dhirendra Kumar on Fund ka Funda, a financial show on Star News

I have invested in money plus plan of LIC (Rs 10000 pa). Is it a good investment?
LIC's Money Plus plan is a ULIP. Such plans have high associated initial charges which eat up your return. You should now remain invested for the mandatory period of three years and then take a call.


I invest in funds through CITI Bank. Is it right? Or should I invest through a broker? Please suggest.
-Javed Ahmed. Thane

If you are investing in mutual funds through CITI Bank, the bank is acting as a broker here. Other option is to choose an individual broker. You can choose any of them, depending on who is providing satisfactory service.


Which fund is good for one time investment of Rs 3 lakh.
-Furqan Mumbai

If you are investing for the long term, opt for well performing equity diversified funds which have performed well in the past. Choose a maximum of 4 or 5 funds for your investment. Some good choices can be Birla Fronline Equity, Sundaram Select Focus, HDFC Top 200, DSP ML Top 100 or Reliance Vision.


I want to invest via SIP in Franklin India Flexicap for minimum 5 years. Is it ok?
-Ritesh patel, mumbai.

Yes. Franklin India Flexi Cap is a well performing equity fund. You can initiate your SIPs in the fund. Do review the performance of the fund every 6 months.


Is there any fund which will give monthly or quarterly income?
Yes. MIPs (Monthly income plans) which are debt oriented funds with some equity exposure, could give you a monthly/quarterly income in form of dividends. But these are not guaranteed. You must not rely on such funds for your monthly income.


What is a Demat account? What is Nifty? Please Explain.
A demat account is an account in which one can keep his equity shares in a dematerialized form. Nifty is one of the stock market indices in India. The index comprises of 50 stocks and gives a broad idea about stock market movements.


I want to invest Rs 3 lakh in stock market. Can you suggest me the best among 3 options 1) SIP 2) Direct investment in MF 3) Buying shares. -Sanjay. Mumbai
Invest directly in shares if you have the expertise of researching about stocks and managing a stocks portfolio on your own. Investing directly can also be more risky when compared to mutual funds.When it comes to investing in mutual funds, SIP is the best way. SIP helps you average the cost of purchase over time. It also is an hassle free way of investing in stock market.


Which Is Best Mutual Fund For Tax Saving? Should I Go For Growth Or Dividend Payout?
Some of the best tax saving funds are Birla Sun Life Tax Relief 96, SBI Magnum Tax Gain, Sundaram Tax Saver and HDFC Tax Saver. If you are investing for a long term and do not require money in-between, opt for the growth option. If you want to liquidate some part of your investment before three years (if dividends are declared) then you can opt for dividend payout option.


I want to make my future secure. Where and how should I invest on a monthly basis? My age is 37 and I have a son and a daughter
To secure your and your family's future, you must have a life insurance which covers the risk of your life (Buy a simple term plan). After that you can invest in equity diversified mutual funds via monthly SIP. Some good options can be Sundaram Select Focus, HDFC Top 200, Reliance Vision or Birla Fronline Equity.


I have invested in the following MFs. Birla Sunlife International Equity fund-Plan B Growth @Rs.10.25/unit 2.Sundaram BNP Paribas Capex Opportunity Fund - Dividend Reinvestment @Rs.24.92/unit 3.J.M.Contra Fund-Dividend Plan @Rs.13.27/unit. All are showing loss. Please advice whether I should quit or continue.
- Dr.N.C.Saha, Jammu
The stock markets are going through a bad phase and most equity mutual funds have fallen sharply. Moreover, your portfolio consists of sectoral funds like Sundaram Capex (which are more risky) and the other two are relatively new funds. Right now, you should remain invested in these funds. Be patient and let the markets recover.