You have Rs 20 lakhs in shares and a home loan of Rs 22 lakhs. Should you sell your shares and repay the home loan?

How should you plan your investment so as to get maximum returns? What percentage of your investment should be risky and what percentage should be safe?

Which are the best mutual funds to invest in now? How will systematic investment plans help you in generating wealth?

Do you know which is the best city to invest in to get good returns in terms of real estate?

Get Ahead money expert Sanjiv Mehta answered these and other wealth-related queries during a chat with Get Ahead readers on April 16.

For those of you who missed the chat, here is the transcript.

Part I -- Are there any shortcuts to becoming wealthy?

Ramkumar asked, I have Rs 20 lakhs in stocks and taken a home loan of Rs 22 lakhs last year. Should I close the loan with the money in stocks or I should continue with the EMI? What is the best investment strategy?

Sanjiv Mehta answers, Diversification is good and both are good asset classes. If you have a 10-year or longer horizon for your EMI, this balanced approach will work nicely for you.

v asked, in terms of real estate investment, which is the best city to invest now?

Sanjiv Mehta answers, Tier 2 and 3 cities will be good as the Indian development spreads. Especially with technology, growth will be increasingly widespread rather than depending only on mega cities.

Hitesh asked, I am 26 and can invest Rs 1lakh every year. I can also take risks. Can you suggest what should be my investment allocation to get maximum returns?

Sanjiv Mehta answers, You should have liquid funds to cover 6 month expenses. Then given that you are quite young at 26 years, only 10% of your portfolio could be in absolutely safe instruments. Rest could be in stocks with a long-term horizon. Also go for acquiring real estate for year own usage. Indian art is coming up nicely and also provides aesthetic pleasure. After accumulating some money, you could consider that option too.

kris asked, Is it a good idea to invest into new Fidelity Global Opportunity Fund to the advantage of other Asian emerging markets?

Sanjiv Mehta answers, A small proportion, yes, since it does provide diversification and Fidelity has good international credentials.

dev asked, Dear Sir, Looking for a good child wealth creation plan. I have a 15-year investment horizon after which I would want Rs 25 lakhs. Suggest me how should I go for it. I am 36 years. I have taken a home loan of Rs 450,000. I am saving Rs 5,000 in post office, Rs 5,000 in ICICI Pru Mutual Fund plus Rs 5,000 in FDs monthly. I have insurnace from LIC yearly and pension policy and ULIP from ICICI. Suggest something so that I can get Rs 25 lakhs after 15 years for my child.

Sanjiv Mehta answers, You need a higher return as compared to what you are getting presently. You should allocate more to good equity funds -- should move money from post office and FDs to diversified and well-regarded mutual funds.

Mahendra asked, How SIP is useful for creating wealth?

Sanjiv Mehta answers, SIP is very useful since you are not timing the market and overriding the short-term fluctuations. Also in a way it gives rise to disciplined savings.

Inba asked, I am concentrating more on real estate investment rather than stocks or mutual funds. Is it okay to continue or do some investments in mutual funds and stocks? Advise me.

Sanjiv Mehta answers, Diversification is important. Real estate is also very cyclical -- in the years 1996-2003, there was sharp decline in real estate prices. These are also very sensitive to higher interest rates and those are creeping up. So some investments in stocks will be a good idea.

sammy asked, hi this is Sameer. I am 21 years old earning Rs 15k per month but not able to save anything. Can you tell me some good ways to invest in stocks?

Sanjiv Mehta answers, It is important to save at least 10% of your earnings right from this age. Because of compounding, if you start earlier, and invest well, you are on the road to be wealthy. Investing in good diversified equity funds from Templeton, HDFC, ICICI Prudential, Reliance, SBI could be a good start.

Gaurav asked, Hi Sanjiv, can you help us to identify the new areas where small investors should invest for coming 3 years. Like in past 2-3 years real estate and share market were the buzz words, but now they are going down. Then what should be upcoming areas?

Sanjiv Mehta answers, These are still good alternatives considering that the Indian economy is still growing at a good rate. The only thing is that you have to be careful and selective at these levels. Also be on the look out for structured products, which combine safety with good returns.

sandip asked, Hi Sanjiv, if we can look at the current market scenario from inflation to life style, what would you suggest for a middle class person to sustain in his life successfully and maintain his growing family with the increasing needs? What would be your directions to create wealth not in the fixed asset manner but with growing needs? Looking for your response.

Sanjiv Mehta answers, That's the essence of wealth management -- to generate wealth on a portfolio as a whole and not on 1 or 2 stocks -- a healthy return better than inflation. Saving at least 10% of your monthly income and investing in good assets like stocks and real estate will make you lot more comfortable in taking care of your growing needs.

Sanjiv Mehta says, Really enjoyed chatting with you and taking part in a conversation with diverse areas. Looking forward to interacting again with you soon.

Part I -- Are there any shortcuts to becoming wealthy?