Ask Mint | On Investments

Ask Mint | On Investments

Considering the bull run, is it the right time to invest and, if yes, what should I buy?

- Himanshu Jaggi

There is nothing like ‘right time to enter’ the market. Markets are full of opportunities. However, you need an eagle’s eye to spot the opportunity. Before taking any investment decision, you should know a few things. Your risk appetite, expectation of returns and time period of investment. You must define your parameter keeping in mind the fact that higher the risk, higher the return. You should plan your entry in markets once you clearly define your profile. As a new entrant, start with investment in IPOs and good mutual funds.

Could you comment on TVS Motor, Indian Hotels and Gayatri Projects?

- Sumedh

TVS Motor Co. Ltd has been in the news for poor financial performance for a few quarters now and has been in a downtrend since April 2006. In the long term the stock is still in down trend, but in the short run, it may see some positive movement, which may take the stock to Rs62. The stock has a strong resistance at Rs75, which if broken can take it to Rs86-90. You may exit the stock around these levels.

Indian Hotels Ltd is a good stock from the short-term perspective and you will see a small rally of 8-10% in coming days, taking it to Rs153. It is a decent bet for the long term. Gayatri Projects Ltd has a strong resistance at Rs330. If the stock closes above this level, then it may touch Rs365 in the medium term. Hold it now.

My husband is 40 and I am 37. Our son is four years old. We would like to invest some amount for our son’s education for about 12-13 years. Should we invest in mutual funds or unit-linked investment plans? Which company would you suggest we opt for? We also want to plan a retirement fund.

- Saroja Ramakrishnan

Before suggesting anything, I would need to know your investment corpus and expectations at the end of the desired period. Personally, I feel mutual funds (MFs) are better than insurance-based investment options, so you should plan to invest in MFs. For example, mid-cap funds and banking sector funds look good for the next one-two years. You can plan part of your investments for a period of one-two years and reshuffle as per the situation then. As a principle, you should make small plans to achieve your big goals. About retirement plans, I think it is better to opt for systematic investment plans (SIPs) offered by MFs rather than putting all your money in any insurance plan. As an alternative, you can distribute your money in SIP and retirement plans offered by insurance companies.

The answers are based on a technical analysis of 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 stock markets. Neither the paper nor the information provider will be responsible for any action and outcomes based on information provided here.