DURING THE NEW YEAR MANY INVESTORS HAVE ASKED US MANY QUESTIONS ON NVESTMENT. WE FELT SOME OF THE QUESTIONS ARE COMMON AND IT SHOULD BE ANSWERED IN OUR BLOG. THE QUESTIONS CAN BE ANSWERED BY MUCH MORE KNOWLEDGABLE PERSONS. IT WOULD BE A SERVICE TO THE YOUNG GENRATION INVESDTORS. ALL KNOWLEDGEABLE PERSONS ARE REQUESTED TO ANSWER THE QUESTION IN CASE THEY FEEL LIKE. HERE ARE A FEW MODEL QUESTIONS ASKED AND THEIR ANSWER. IT WOULD BE APPROPRIATE INCASE PROFESSIONAL FINACIAL ADVISORS ANSWERS THESE QUESTIONS AS A MEASURE OF SERVICE TO NATION: HERE WE GO........

QUESTION:

WHETHER INVESTMENT IN DIVERSIFIED MUTUAL FUND IS BETTER THAN ULIP ?

ANSWER :

Ulip and Diversified Mutual fund are belong to two different class of asset base : Ulip is not an investment product.It is an insurance product.So itis a costly product compared to any mutual fund.Ulip is very good if taken for longer period say tfor ten to fifteen years.Itis ideal for saving money for children's educaation or marriage.In short term it does not give adequate return.So if ulip is redeemed within three to four years ,there is every possibility of incurring loss . Diversified Mutual fund is investment product and is less costly. Now a days there is no entry load. there are exit load if redeemed before one year. The administration charges are lower at around 2 to 2.%5 only. So somebody wnts to invest for four to five years only it should be Diversifed equity fund. Ulip also provide security which mutual fund doesnot give. ULIP is good for long term planning.

QUESTION :

SHOULD WE TAKE INSURANCE COVER FIRST OR INVEST IN MUTUAL FUND FIRST ?

ANSXWER :

tHIS ISSUE WOULD DEPEND ON THE REQUI8REMENT OF THRE PERSON CONCERNED. iN CASE THE PERSON HAS GOT FAMILYRESPOSNSIBILITY HE NEEDS TO TAKE INSURANCE SURELY. bUT IN CASE PERSON DOESNOT HAVE HAVE FAMILY OBLIGATION HE CAN OPT FOR INVESTMENT FIRST. iNSURANJCE IS NOT AN INVESTMENT .iT PROVIDES SECURITY AND SAFETY OF THE FAMILY. THIS IS VERY IMPORTANT SOCIAL REQUIREMNTS FOR A PERSON WHO IS 'kARTA". A BACHELOR, WITHOUT FAMILY OBLIGATION, CAN START HIS LIFE WITH INVESTMENT OPTION .BUT AS SOON AS HE GETS MARRIED AND CHILDREN ARE BORN HE NEEDS TO PROTECT THE FAMILY WITH INSURANCE OPTION.

QUESTION ;

FOR ANY INVESTMENT ON WHOM SHOULD WE DEPEND. ? SHOULD WE DEPEND ON AGENTS, BROKERS OR SHOULD WE STUDY OURSELVES ?

ANSWER :

The best thing is to study yourself. The money belongs to you. You are the best person to protect your own money. Knowledge is power. So you need to acquire knowldge. In case due your professional business or due to lack of opportunity you cannot study you should depend on educated and wise professional advisers. All regurlar brokers and agents may not be as reliable as you want.So you need to selct your own reliable professional adv8sors. Some of the good banks have their own investment department. You can depend on tem. You can depend on qualifed, knowledgabl;e Chartered accountant or economists. but the best is study and then to invest.

QUESTION;

HOW MUCH ONE SHOULD INVESDT ?

ANSWER:

tHERE IS NO DEFINITE ANSWER TO THIS QUESTION. aFTER MEETING YOUR FAAMILY OBLIGATION WHATEVER AMOUNT IS AVAILABLE CAN BE INVESTED AFTER SETTING ASIDE A PORTION OF IF FOR EMERGENCY REQUIRMENTS. mAY PEOPLE SAVE AROUND 30% OF THEIR ANNUAL EARNING.

QUESTION ;

WHERE SHOULD WE INVEST IN SHARES, MUTUAL FUND OR IN GOLD ?

ANSWER ;

EVERYONE SHOULD BEGING INVESTING REGULARLY IN BANK, FOLLOWED BY IN PPF AND SMALL SAVING SCHEMES. sLOLWY INVESTMENT SHOULD BE MADE IN DIVERSIFIED MUTUAL FUND AND LATER IN SHARES. NONE SHOULD BEGIN INVESTING IN SHARE MARKET.IT WOULD BE DANGEROUS.

QUESTION:

HOW LONG SHOULD ONE PLAN TO INVEST IN MUTUAL FUND OR IN SHARE ?

aNSWER:

nONE NEED TO INVEST IN EQUITY FOR A SHORT TERM. iT WOULD BE SUICIDIAL TO INVEST FOR ONE YEAR OR TWO YEARS. ANY NVESTMENT IN EQUITY SHOULD BE MADE IF THE PERSON CONCENRED CAN KEEP THE MONEY INVESTED ATLEAST FOR FOUR TO FIVE YEARS.

QUESTION ;

WHICH ARE THE BEST FUND WHERE INVESTMENT COULD BE MADE NOW:

ANSWER:

tHIS WOULD BE TOLD TO YOU BY YOUR PERSONAL fFNANCIAL ADVISORS. YOU CAN STUDY REGULARLY PERSONNEL FINANCE PAGE OF BUSINESS STANDARD, ECONOMIC TIMES AND IN ASSAM TRIBUNE AND IN THE HINDU. MOSTLY EVERY MONDAY ARTICLES ON INVESTMENT APPEARS ON THESE NEWS PAPERS. YOU CAN ALSO READ MONEY MAGAZINE OF OUTLOOK AND VIEWE CNBC TV. YOU CAN ALSO VISIT "VALUE RESEARCH.CM" AND 'MONEY CONTROL.COM" AND SELECT FIVE STAR AND FOUR STAR FUNDS.

---------------------------------------