A journalist calls to ask “are we not in difficult times”….and there are many more questions which I get asked. At the end of the article I will tell you how I answer them…

  1. Will a SIP work for 5-7 year targets..I mean SIP in equity funds?
  2. What rate of returns will equity give over say 30 years?
  3. Is there any risk in Gilt funds? All are government bonds no?
  4. What is the risk in the fund management of NPS?
  5. Is NPS fund management not the cheapest in the country now?
  6. I have a 16 year goal…is PPF not the best place to invest?
  7. What is a good sector to invest in for the next 3 quarters?
  8. My IFA tells me he can get me 20% cagr over 20 years..is it possible?

 

and many more. I have a simple answer: “I do not know”. Will post more questions.

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  1. I can’t resist answering !
    Talk of devils rushing in where angels fear to tread!
    1) Equity is meant for long term goals. Equity for a goal 5-7 years away is dicey. At present equity investors 5 years into SIPs are quite upset.
    2) Depends on opportunity cost and equity returns.
    Nobody can predict for period 10 years away ,leave alone 30 years.
    3) Sovereign debt has no risk (I hope)
    4) Errr
    5) Ummm
    6) 16 years is long term goal. It is right into equity territory. The excess returns from equity can be booked into fixed income .
    PPF in isolation is a no no for 15 year goals.
    7) I don’t know (finally)
    8) Get rid of him

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