Your Questions About Purpose Of Investing

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Thomas asks…

What are some basics to consider when investing?

I have a small amount of money I want to invest or set aside I am not sure which (it depends on what is most profitable) but I am completely in the dark about anything investment wise. Should I go the route of a Cd., what is a cd, or should i just drop it in a savings account and then which one?… Thanks for the help.

Justin answers:

Hi, Elizabeth,

What is your purpose for this money?

Long term? To start saving for retirement? Put it into a tax-deferred account such as IRA.

If you want to use it within 5 years, place it into a CD or money market account. You cannot depend on the stock market in the short term.

If you owe money, paying off debt, especially high interest credit cards, is always a good thing to use money for.

Best, Rick

Steven asks…

Which of the following is not one of the recommended questions to ask yourself prior to investing?

Which of the following is not one of the recommended questions to ask yourself prior to investing?

A. Have I paid off all my credit cards?
B. Am I living within my budget and meeting my basic needs?
C. Do I have adequate insurance?
D. Have I established my financial goals?

Justin answers:

The answer is probably C. But I would say you should ask all 4. You need adequate insurance to protect your assets otherwise you’re defeating the purpose by risking loss of your assets.

Mark asks…

How is it possible to invest in a Mutual fund apart from SIP?

Most of the MFs show an option of investing through an SIP.I want to invest money once, and then again whenever i want to.Is there a way?If yes, also please suggest some MF’s with their portfolios as 75%- Eqiuty & 25%-debt.

Justin answers:


It is definitely possible to invest in Mutual Fund with a ‘lump sum amount’.

There are 6 important areas to be looked at before choosing a scheme for investing. You can see the blog in the link below for the purpose.

Also, you may like to analyse the performance of the schemes based on the tools available on various MF information platforms like Value Research or PowerMF.

Happy Investing

Fundu Vishy – Your ‘Mutual’ Friend
Follow me on twitter @funduvishy
I blog @

William asks…

How many funds should one have if investing Rs 13000 in different indian funds Via SIP for 15 yrs?

How many funds shoud one consider if investing Rs 13000 via SIP in differnt Indian mutual funds for 15rs? i want to have a balanced portfolio,thats why my funds will increase.

Justin answers:

You really need to read some valueresearch articals so that you can take a informed decision.


Invesing for long term is an good idea. You should have about 4 funds. Not more as it will not yield any purpose.

Have a mixture of Large cap & Equity diversified funds. Also include debt in your portfolio to give it a stability.

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