The correct answer is Option 1) i.e Naveen asked his brother if he was planning to invest some money in mutual funds. Key Points Let's look at the steps to change the sentence from direct to indirect speech: The tense of direct speech is changed only when the reporting verb is in the past tense. When the direct speech is in an interrogative form, we follow the steps given below: The reporting verb said is converted into asked. Connectors 'whether' or 'if' are used in place of comma and inverted commas. Change the part inside quotes/direct speech from interrogative to assertive. The personal pronouns will be changed according to the subject and object of the reporting verb. ​Second person pronouns in the direct speech change according to the object(his brother) of the reporting verb(said). Here the 2nd person 'you' will change into the 3rd person 'he' as per the object. Present continuous tense(are planning) in direct speech changes to past continuous in indirect: was/were + -ing form of the verb. Hence, the verb becomes 'was planning'('was' because its subject 'he' is singular). At last line up the remaining part. Only the 1st option follows the desired structure. Following these steps, we finally get- "Naveen asked his brother if he was planning to invest some money in mutual funds."