Where should I invest to gain tax benefits? Does it make sense investing in the stock market now? Which mutual fund do you suggest? How should I balance my portfolio? Does it make sense investing in gold?
As regards tax saving schemes, you could opt for systematic investment plans (SIPs) in SBI Magnum Tax Gain, Sundaram BNP Paribas Tax Saver and HDFC Tax Saver. With this, you will get a balanced portfolio with exposure to well-performing stocks.
Regarding stock markets, if you are a long-term investor, there are abundant opportunities. However, since we can’t say stock prices have reached the bottom yet, it would be wise to buy at declines in small lots. This way you not only make sound investments (given the long-term investment perspective), but also get advantage of different levels of stock markets.
Regarding the choice of mutual funds and also on balancing your portfolio, you have to clearly lay down the basic parameters of your portfolio—time horizon, risk profile, expectation of returns (whether periodic or lump sum), purpose of investment (tax saving, long-term capital appreciation), etc. Having clearly defined your investment objectives and other parameters, you may write back to us for suggestions.
Regarding gold, I recommended gold exchange traded funds (mutual funds that invest in gold) some weeks ago, and they offered fabulous returns in a short term. Now gold is likely to remain sideways for sometime. In my opinion, you should wait for a couple of weeks before taking a call. The best way to invest in gold is through exchange traded funds. But, depending on your need, you may invest in solid gold too.
Answers are based on a technical analysis of the markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and are provided for information purposes by Vipul Verma. Readers are requested to do their own research before participating in the stock markets. Neither Mint nor the information provider will be responsible for any outcome based on information provided here