Dear pcspune, Is there weekly SIP?? Which AMC ???...

hi i am planning to start SIP for Next 1 yr in below funds Sbi- Mutiplier Plus IDFC premier RSF - reliance regulr saving can any one guide me above fund are ok and its adivisable to start sip Now and also i am small investor i want to distribute 2000 k in above three fund then plz give me sip sequence i gave 2k sip budget only no for each fund total 2k combining all 3...

26-11-2009 Dear Ashal and Sharma ji, Thanks for the reply and suggestions. Ashal, i agree with you. Why I asked sharma ji about redeeming coz he suggested to someone back in Feb in one of his posts to invest- -For 15 years, Sundaram Select Focus Fund is GOOD. -For 20 years, Kotak Opportunity Fund is GOOD. If we redeem funds say after 1 year like in my case then where is the logic of suggestions provided by experts who say to keep MF atleast for 3 to 5 years. I dont want to argue but i wish to understand the funda of rebalancing and the right time of rebalancing. I invested in Sund Select Focus when it was suggested and same for other funds and when they were doing good but now Sundaram Select, K-30, K-Opp, DSPBR-Tig, HSBC-Eq are not performing well. So what i understood is one should rebalance as soon as the fund starts to underperform. Is this correct? dear ashal, i clearly understood what you explained about K-Opp and DSP-tig. thanks zapper...

Thanks Sharma. But I have seen the portfolio of HDFC High Interest Fund Short Term Plan & ICICI PRU Income Oppotunity Fund where they have high allocation to GOI securities and currently there are lot of fluctuations on interest rates. Is it still advisable. But the rest of the funds which you have mentioned has very less allocation to GOI. Also what are your suggestions if the booked profits invested in MIPS from Reliance/HDFC/Birla considering investing for longer duration ignoring the monthly income option. Do you have think the MIP NAV`s are still high at the current market level or should I option via SIP ( weekly) because i am purcahsing through ICICI direct and can do the transactions on day-day basis ONLINE Feroz ...

Dear All, Thanks a lot to everyone for helping me out taking a decision. Yes, I am also thinking of DSPBR Equity (G). After taking a considerable look at the long term performance of Mutual Fund in VOL, I find long term consistent funds mentioned below. Equity Fund: HDFC TOP 200 , Debt Fund: HDFC Prudence , ELSS: HDFC Tax Saver So I will have to invest all my money in HDFC AMC for substantial return. Is there any alternative just to diversify AMC but there is no compromise on return on investment. ...

Dear Ashal,Sharma ji, Thank u very much for the suggestion. Why I should redeem the funds mentioned by you now and not wait for some more time? It would be very helpful if you both can justify your suggestions which will help me understand better in future. Is it the right time to redeem and invest when the markets are high? Thanks zapper...

Dear Srivatsa, In ur planning, I have a problem. Ur current age is 30Y. Expected Ret. age is 45Y. It means u have only 15 years to accumulate corpus. Now due to medical science`s advancement, ur life expectancy is already more than 75Y. It means u `ll live a minimum of 30 years on ur ret. corpus. Do u feel within next 15 years u `ll be able to accumulate the corpus which `ll be able to generate Tax as well as inflation adjusted returns for next 30-35Y? Think again regarding ur decision of retiring @ 45Y. In my view, at least extend it by 10 years for ur age 55. The approach taken by dear pcspune is excellent. Thanks Ashal ...

AVOID HDFC Tax Saver.

Following are Better Option

Sundarm Tax Saver Fund
Birla Sunlife Tax Relief` 96
Canara Robeco Equity Tax Saver Fund.

P.C.Sharma...

Your Planning is fine if he does not require money for next 4-5 years.

Investment in Following Funds by SIP is good Option.

Birla Sunlife Frontline Equity Fund

HDFC Prudence Fund / HDFC Top 200 Fund

IDFC Premier Equity/Small & Midcap Equity Fund

Principal Emerging Bluechip Fund

Reliance RSF Equity Fund

P.C.Sharma



...

Dear Feroz,

Your observations are correct.

You may Invest Profit Redeemed from Equity Funds in MIP. There is no need to BOOK Profit from MIP Funds untill you need money foe Expences.

I Prefer of Reliance MIP & HDFC MIP(LT)

I DONT give importance to NAV. However
if you feel market is likely to go DOWN, WEEKLY SIP/STP is preferable.

P.C.Sharma...

If you want to Invest for 10 years, DSPBR Equity Fund is Better Option.

It is multicap Funds & had generated Better Returns than Average Equity Fund in all CALENDER YEARS since 2003.

It Reshuffles Portfolio between Largecap & Midcap as per Conditions of Market.

P.C.Sharma


...

Invest in HDFC SHORT TERM Fund & OPT for Weekly STP to HDFC Top 200 Fund or HDFC Prudence Fund.

You may also Invest in other Funds.

P.C.Sharma...

I have Mentioned to Redeem one by one because
we DONT know when market will go UP or DOWN.

P.C.Sharma...

Dear Feroz,

You may Redeem UNITS just Equal to Profit only. Dont Redeem all UNITS.

Even Better Option is to OPT For Dividend PAYOUT & Switch Dividend in DEBT Fund directly.

Invest Profit Part in any one or more of Following Funds

- FT India Dynamic PE Ratio Fund of Funds

- Birla Sunlife Dynamic Bond Fund

- Canara Robeco Income Plan
- ICICI PRU Income Oppotunity Fund

- HDFC High Interest Fund Short Term Plan

- Reliance Short Term Fund


P.C.Sharma







...

If you want to Invest for 10 years, DSPBR Equity Fund is Better Option.

It is multicap Funds & had generated Better Returns than Average Equity Fund in all CALENDER YEARS since 2003.

It Reshuffles Portfolio between Largecap & Midcap as per Conditions of Market.

P.C.Sharma


...

Dear Mr. Kaushik,

You should ADOPT ASSET ALLOCATION. Try to achieve Asset Allocation of 50% in Equity & 50% in DEBT Mutual Funds(like HDFC High Interest Short Term Fund).

To start with,start booking PARTIAL Profit
in individual shares one by one if it gives you 20% above COST PRICE.

Continue Booking Profit for next 1-2 years
& keep Transeferring Profit in DEBT Mutual
Funds till it becomes 50% of your Investments.

NEVER Exit Equities completely.

Whenever Equities go Down,transefer money from Debt to Equity.

Similarly when Equities go up Book PARTIAL
PROFITS & switch the Profits to DEBT Funds
to make 50:50.

In this Process you DONT have to TIME the Market. It is Simple MATHEMATICAL Calculation of BOOKING PROFITS.

Best Wishes,

P.C.Sharma





...

You should study DEEPLY the Expences & Returns.

Following ULIP is Cheaper than most of the TERM Plans if CAREFULLY Planned.You can take Insurance Cover for Max. 25 Years.

Birla Sunlife DREAM Plan with MINIMUM 100% Guarnteed Benifit of Rs.75000/- only.

It is costlier if you select Higher GB.

P.C.Sharma


...

Dear mcee,

DONT Take any Pension Plan of any Insurance Company Due to higher Charges, Very POOR Annuity Returns(5-6% per year ) & Adverse Income Tax Laws.

Invest in Diversified Equity Mutual Fund by SIP & OPT for SWP after Retirement.

P.C.Sharma...

Dear RK & Sushant,

Please note that few years back, KVP were offering over 12% Interest ( Double in 5 years & 6 months).

Currently KVP offers 8% P.A.

In Future Returns on all Fixed Income Instruments, will go on Decreasing. After 5 years it may be 5-6%, after 10 years, may be 4-5% and so on. Currently Fixed Income Instruments does not GROW @ even
4-5% in USA / JAPAN.

After 10-15 years Return on Equities will also fall considerably( may be 10-12% per year as currently in USA).

We should Plan for Future Considering the Best Prevailing Opportunities & be Prepared for Lower Returns Scenerio & Increasing Cost of Living.

We should TRY to Capitalise on Best Options with OPTIMUM Risk/Reward Ratio & work HARDER for Retirement Plannibg.

KVP is not a GOOD Option. It can be PURCHASED Online by ICICIDIRECT. It can be Redeemed after completion of 3 Years with nominal Surrender Charges.

In Future, Govt.of India is Planning to start Pension Plans Under Regulations of PENSION Regulatory Authority of India with
very LOW Expences & optios of Switching between Equity/Debt Plans as well as Different Schemes.

DEBT Mutual Funds are Better Options for Conservative Investors.

HOWEVER these are not Suitable for Long Term Retirement Planning.

Birla Income Fund
ICICI PRU Income Fund.

For Long Term Retirement Planning Balance Fund ( Like DSPBR Balance Fund)may be OK.

For Conservative Investors UTI Mahila Unit Scheme or Templeton India Pension Plans may be Better Option than KVP.

Investment in Shares of Bluechip Companies/ Equity Mutual funds Remains the Best Option with Regular Monitoring as well as Suitable ASSET ALLOCATION on Monthly Basis.

P.C.Sharma...