Ask our Experts- February 2022

Should I invest in global index funds during market dips? – Sourav B

Global funds gives extra diversification of geography and industries or innovative themes. At present it is predominantly tech heavy. The offering in this space by Indian fund houses has increased in the last two years. Such ideas offered in US dollar, had also kind of benefitted from rupee depreciation over years. The fund selection would depend on your understanding about the destination universe and the investment themes. We suggest you to invest after consulting a qualified advisor. You can contact your nearest Geojit branch.

Is investing in Sovereign Gold Bond a good option? – Nithin K

Yes, Sovereign Gold Bond (SGB) offers several advantages if you are planning on investing in gold. The bonds are government securities denominated in grams of gold. Among the various options that are available to invest in gold, by far SGB appears to be the superior option (probably across the world, available for Indians).It enables investors to participate in the price performance of the yellow metal, without having to physically handle or store it. Plus, it gives you interest of 2.5% p.a and you get Rs.50 / gm discount on the nominal value at issue (for online mode). Capital Gains tax is exempted at redemption / maturity for individuals.

 I started investing in stocks last year and got good returns. Do you think I should continue to invest more money and in which stocks? – Jinu Basil

2022 is likely to be highly volatile unlike 2021. Globally, central banks would be raising interest rates, negatively impacting equity markets. We suggest that will have to adjust to reasonable returns, going forward. Also, it is possible to generate superior returns if investors are smart to choose the right sectors and stocks. Do check the recommended list of stocks given in Geojit Insights or you may view investments ideas in Geojit Selfie.

I got a job recently and I am planning to invest Rs. 10000/month as SIP in ELSS. Please suggest some good funds. In your view, what are other tax saving investments? – Sanil Daviz

It is a good decision to invest in tax saving mutual fund scheme. ELSS Funds are a diversified mutual funds, that invests majority of the corpus into equities market. Investments have a 3 year lock-in period (in the case of SIPs, lock-in period is applicable to each instalment) and you can invest a maximum of Rs. 1,50,000. History shows that ELSS funds have given high returns in the long term compared to any other tax saving investment tool. You can choose to invest from Geojit’s list of ELSS recommendation.

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