Money Tips For Investors: Zee Business expert reveals strategy to follow

Money Tips: For investors, is this the right time to invest in liquid funds? When should investors review their mutual fund investment? What should be equity investment at the age of 75 years? Can kids also invest in Mutual Funds? A number of Zee Business viewers called our newsroom and they wanted to know answers to these and many other money questions.

One Zee Business caller, Ashok Tingre had many questions including if it is the right time to invest in liquid funds. Is it safe to invest in liquid funds and do they give assured returns?

Our expert Kaustubh Belapurkar had some useful money tips for him, he said that liquid funds invest in debt funds which are a safe bet but their returns depend upon interest rates. The market movement has no impact on liquid funds.

Another caller named Vinay wanted to start investment in Mutual Funds via Systematic Investment Plan (SIP) of Rs 500. He wants to know if he should open an account online or visit a bank and if it is essential to consult a financial adviser?

Kaustubh Belapurkar says that new investors should consult an expert. Another tip for Vinay was to set a financial goal. He also said that Vinay should increase the SIP amount by 5-10% every year and create an emergency fund. Investment in equity funds for a longer duration is recommended. Portfolio should be reviewed on an annual basis, he added.

75-year-old Vijay Kumar Pandey has an income source from rental income. He has invested Rs 18000 in five mutual funds but the returns have not been good.

Expert's advice to him is that he should decide the duration and target of his funds. Kaustubh Belapurkar says that his fund selection is right.

Fund                                                Category           1 yr          3 yr          5 yr
Axis Long Term Equity                      ELSS                19.01         0.6           2.1
Axis Bluechip Fund                           Large Cap         15.78       4.34         3.78
ICICI Pru Bluechip                            Large Cap          32.1         5.91         0.87
HDFC Hybrid Eq                               Aggressive         26.81       4.44         0.9
SBI Equity Hybrid Fund                    Aggressive         17.43       0.65         2.98

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Another caller Milind wanted to know if his child can invest in Mutual Funds. 

Well, our expert said that Milind can invest on behalf of his son. The son can invest Rs 500 from his pocket money and operate his account once he turns 18 years. Funds recommended for his son are:
-- Mirae Asset Large Cap
-- Birla Frontline Equity
-- ICICI Prudential Bluechip