Investing: Rishi Nathany

I haven't invested in tax-free bonds. Would you suggest buying some of these in the secondary market?
All the primary issues for tax-free bonds for this financial year are over. You will now have to wait for such issues in the next financial year, as and when they come. Therefore, if you need to invest in these bonds at present, you will have to do so from the secondary markets. However, please invest in these only after reviewing your tax bracket and post-tax returns on comparable fixed income instruments. For example, if you are in the lowest tax bracket, it would be better to invest in, say, a bank fixed deposit at nine per cent, since you would get a better post-tax return of 8.1 per cent, than tax-free bonds, which are being issued at tax-free yields of around 7.5 per cent per annum.

I am 28 and have never bought stocks. However, I have systematic investment plan (SIP) investments of Rs 1,000 each in two mutual funds. Now, that I have accumulated some capital, I wish to take some risk to build a balanced portfolio. Would you suggest I buy some stocks or invest more in mutual funds only? I can afford to allocate Rs 5,000 monthly.
You should invest directly in stocks only if you have the time and expertise to do research on your own, as well as regularly monitor your stock portfolio. If not, you would be better off investing in an equity mutual fund and entrust this job to the fund manager. Since you are already investing in two equity mutual funds, you could allocate your surplus of Rs 5,000 a month to these SIPs, or start a couple of more SIPs in different equity funds.

Is the cement space a good investment bet? Which stocks would you recommend?
The prospects of the sector seem promising in the long term, though short-term visibility is somewhat uncertain. If our economy is to grow as planned, with increased investments in infrastructure, there will be good demand for cement. However, in the near term, this sector could face lower realisations due to excess capacity build-up.

I am being offered employee stock option (Esops) scheme by a company that has given me a job offer. It is a leading information technology (IT) company. Are these a good investment option? How do I take a call?
Normally, Esops are options offered to employees to purchase the company's shares at rates lower than the prevailing market rates, albeit with a lock-in period. In case you are getting a job at a leading IT company and it is doing well, you could consider buying its shares against Esops.

The views expressed are the expert's own. Send your queries to yourmoney@bsmail.in

Today, CEO, Dalmia Securities, Rishi Nathany answers your questions