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Market analyst Gul Teckchandani answers problems of MiD DAY readers on the current financial crisis
I have to pay EMI for a house in Nashik, which I purchased six months ago. Should I repay the home loan of Rs 37 lakh and reduce it to Rs 20 lakh and then give the house on rent, which will fetch me Rs 20,000 per month? Or should I utilise the Rs 17 lakh which I would have used for of the loan for investments elsewhere?
Swati Mudliar, Pune
Interest rates are expected to move south and therefore you should renegotiate your loan on better terms. Irrespective of your decision to prepay the loan, you must give your house on rent. If you lock in
Rs 17 lakh in fixed deposits at banks like the HDFC or State Bank, you would earn 11 per cent on the amount.
I have Rs 3 lakh in fixed deposits as I am a hesitant investor. As of now, I have invested Rs 50 lakh in life insurance. Where and how much should I invest?
Ashish Gadave, Kalyan
This is a good time to invest. Consider a medium-term plan of not less than a year and ideally between one to three years. If you are the hesitant sort, avoid the stock market since it will sorely test your nerves.
I am an investor who prefers safe options and I'm unsure whether to invest in mutual funds. Can you give suggestions on investments?
Soubhik Chatterjee, Delhi
If you are inclined toward 'safe' options, invest in fixed deposits, property, gold, debt funds and even stocks. But, expect very little activity in the stock market.
How is your Wealthbeing?
The where, what, how and when of investments and planning your money with financial guru, Gul Teckchandani every Wednesday. Write in to wealthbeing@mid-day.com. | 
