Rustagi advises that with a time-frame of around 15 years, you can place your bet on diversified equity funds.
Below is an edited transcript of his interview with CNBC-TV18. Also watch the accompanying video.
Q: An investor can invest Rs 2,000 per month. How should she allocate the money? She has a time horizon of 15-20 years and a goal of Rs 20-25 lakh. Is Rs, 2,000 per month sufficient for her?
A: If the time horizon is around 15 years or so, she can get around Rs 10-12 lakh. It would be very difficult to maybe reach to that level with an investment of Rs 2,000. I think she needs to invest more money than what she wants to invest right now. The right thing would be to begin the process now with whatever money she has. As the time goes by, if she is in a position to invest more money, she should add to that.
Since she is investing for the first time, the time horizon is around 15 years, she can also look at equity funds. She can also look at well diversified equity fund, maybe a pure large cap fund and also at equity oriented balance fund. So she can consider two funds - HDFC Prudence Fund, which is a balanced fund, and DSP Blackrock Top 100. This fund invests only in the top 100 companies in terms of market cap; these are generally the blue chip companies. So she can invest Rs 1,000 each in these two funds. The key factor, of course, will be to continue the process. As I mentioned earlier, as and when possible, try and increase the amount to achieve the target in mind.
Hot Restaurant Companies To Own In Right Now: McDonald's Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.
Advisors' Opinion:- [By Andrew Marder]
Unlike J. Crew and Tory Burch, the reason I want in on Five Guys is for the beautiful simplicity of the business. Murrell now oversees a business that should generate over $1 billion in revenue in 2013. While the company is still far short of McDonald's (NYSE: MCD ) $6.6 billion, Five Guys seems to be managing a feat that McDonald's has failed at over the last few quarters: growth.
- [By Anna Prior]
McDonald's Corp.(MCD) said same-store sales rose 1.2% in April, with stronger results in China offsetting flat sales in the U.S.
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Hot Blue Chip Stocks To Watch For 2014: Visa Inc.(V)
Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.
Advisors' Opinion:- [By Steven Russolillo]
Visa(V) is the only Dow component that currently has a stock price above $200. Eight companies have stock prices above $100 as of Thursday’s close.
Hot Blue Chip Stocks To Watch For 2014: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By Steve Heller]
JP Morgan's Christopher Danely believes the foundry market is worth $38.4 billion a year and Intel could capture about 11% of that market. The catch is that Intel would have to land the highest of high-profile clients, Apple (NASDAQ: AAPL ) . Since Apple designs custom processors based on ARM designs, it's highly unrealistic that Intel would just give up the goods to Apple.
- [By Chris Hill]
In an appearance at the All Things Digital Conference, Apple (NASDAQ: AAPL ) CEO Tim Cook said that his company has "some incredible plans" and that his staff "has several more game changers" in the pipeline. Is Cook smart to raise expectations? The Apple CEO also said that he's not a fan of Google (NASDAQ: GOOG ) Glasses. Will Google Glasses catch on with consumers? In our lead story on Investor Beat, Motley Fool One's Jason Moser and Motley Fool Asset Management's Tim Hanson weigh in on the battle between Apple and Google.
- [By Travis Hoium]
Playing from behind
Up until now, ARM-based� (NASDAQ: ARMH ) �chips have dominated tablets and Intel has been shut out. Apple's (NASDAQ: AAPL ) newest full-sized iPad uses an ARMv7-based A6X chip�and the iPhone 5 runs a less-powerful A6 chip. Apple's giant market share in both product categories means ARM has a large market share in both tablets and smartphones.
Hot Blue Chip Stocks To Watch For 2014: Colgate-Palmolive Company(CL)
Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:
- [By Motley Fool Staff]
Andres Cardenal:�Colgate-Palmolive (NYSE: CL ) , generates most of its sales and cash flows from its leadership position in the oral care industry. Management estimates that the company owns a global market share of 44.4% in toothpastes, 33.2% in toothbrushes, and 38.9% in mouthwashes.
- [By Dan Caplinger]
Moreover, it's starting to appear that Clorox has weathered a tough part of its business cycle. Throughout the industry, Procter & Gamble (NYSE: PG ) , Colgate-Palmolive (NYSE: CL ) , and Clorox all had to deal with rising costs for the inputs they needed to make their respective products. The companies responded by implementing price-cutting measures and passing on part of their higher costs to their customers. For its part, Clorox was able to expand its gross margins by a full percentage point, with a worse-than-normal flu season contributing to sales. Now that input-cost inflation is easing, P&G and Clorox expect to see better profitability, with growth starting to approach the faster rates that Colgate has enjoyed.
- [By Dividends4Life]
Memberships and Peers: KMB is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Dividend Champion. The company's peer group includes: The company's peer group includes: Procter & Gamble Co. (PG) with a 3.1% yield, Colgate-Palmolive Co. (CL) with a 2.3% yield, and Clorox Corporation (CLX) with a 3.4% yield.
- [By Travis Hoium]
Colgate-Palmolive
Toothpaste and toothbrushes may not be exciting business, but it's consistent and consumers tend to develop habits they rarely break. Once they find a toothpaste brand they like, it could be years before they try another one. That leads to another incredibly consistent business for Colgate-Palmolive (NYSE: CL ) , one that has paid back investors with a dividend since 1895. �
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