Personal Finance

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Book Profit or Keep

Posted by :

sp.palo

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

27 Nov 2009 18:24

Religard Agile & JM emerging

Posted by :

pcspune

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Redeem both Funds one by one.

Invest Proceeds of Religare Agile Fund in HDFC Top 200 / DSPBR Equity Fund.

Invest Proceeds of JM Emerging Leader Fund in Principal Emerging Bluechip Fund/ IDFC Small & Midcap Fund.

P.C.Sharma...

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In reply to:

Religard Agile & JM emerging

Posted by :

Guest

I have invested 100K in Religar Agile Fund & 90K JM emerging leader fund, allmost 50% lost on both funds, please advise....Can i stay with both funds or switch over on other scheme. 4-5 years i can stay with funds.

27 Nov 2009 18:15

Book Profit or Keep

Posted by :

pcspune

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One has to be Dynamic in every FIELD of Life including Investment Decisions.

I offer my Comments on case to case basis.

There may be a Person who has no Time to monitor Investments. There may be some other Investor who may have TIME as well as interest to actively monitor & manage Portfolio & open for learning & EXPERIMENTING.

There may be a Person who wants to Invest 5-10 Lacs & other who want to invest only Rs.1000 - 2000 per month.

Same Rule may not be applicable for all Investors.

If you are well informed Investor & Actively Manage your Portfolio there is no harm in IMPLEMENTING Asset Allocation / Rebalancing & Churning the Funds(from Under
Performing to Better Performing Funds).

I believe in EFFECTIVE Monitoring & Dynamic
Balancing of MF Portfolio / ULIPS etc.

You have to finalise your Stratagy considering availailability of time &
willingness to learn/Experimenting.

By under Performance,I mean Below Average Returns for 2-3 Quarters continuously.

I dont see anything WRONG in HOLDING underperforming Funds for 2-3 years with the hope that these Funds are Capable to outperform in Near Future. HDFC EQUITY Fund is one such Example.It under Performed
in 2007-2008 but Out Performed Recently.

I even Prefer SIP in Volatile Funds(Midcap
/ Small Cap Funds).

P.C.Sharma.

...

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In reply to:

Book Profit or Keep

Posted by :

zapper

Dear Ashal & Sharma ji,

Thanks ashal for the clarification. If you can add some of your invaluable advice regarding redemption of MF when the fund starts underperforming then it would help me in future planning and rebalancing of my funds.
Sharma ji pls give your comments on this.

thanks once again.
wishes
zapper

27 Nov 2009 17:45

Suggest

Best Funds to Buy

Posted by :

pcspune

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Performance of IDFC Premier Equity is very good since last 3 Years. But Minimum SIP amount is Rs.2000 per month.

You may Invest in IDFC Smalll & Midcap Equity Fund ( Very Good Fund by same Fund Manager) @ Rs.1000 P.M.

You may Invest Rs.500/- P.M. or more in
Reliance Regular saving Fund Equity.

You may avoid SBI Magnum Multiplier Plus.

P.C.Sharma

...

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In reply to:

Suggest

Posted by :

cshah

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

27 Nov 2009 17:44

adjustment of STCG

Tax Planning & Help

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Dear Mitesh, U can sell ur original RIL shares now any day, as the same r now @ ex bonus price.

Depending upon ur sell price there `ll be a STCL which u can adjust against ur STCG of 15K & in all probability, u w`d have a residual STCL which u can carry over for next year to adjust against ur STCG if any in that FY.

Thanks

Ashal ...

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In reply to:

adjustment of STCG

Posted by :

mit_esh

i have bought 18 RIL shares in last 1month@average cost of Rs 2000/share. after getting bonus of 18 shares tomorrow can i sell original 18 shares at loss so that my STCG of Rs 15000/- of current year is squared up.
What is law? will this amount of evading tax or stripping of profit? if yes, then what is the min period after which i can sell original 18 shares

27 Nov 2009 16:26

selection of good mutual funds

Posted by :

netdo

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Yes, rip off funds exist in the US too but I do not think many buy them. At least I did not buy any load fund in my 35+ years in the US. Aso, I doubt very many pay exit fees. Operatng expenses in the range of 1.75 to 2.5% are open robbery and average expenses from giant und houses like Fidelity, Vanguard and T Rowe Price funds will put Reliance, TATA and SBI to utter shame.

To each his own of course. I repeat. Mutal fund investors in India are ripped off. I hope SEBI will put an end to this robbery soon. ...

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In reply to:

selection of good mutual funds

Posted by :

vvrk

Dear Netdo,
I just visited the Morning Star website and checked its top performing funds for three years horizon. The following is what I found.

1 - USAA Precious Metals and Minerals
=================================
Load - None
Expenses - 1.31%
Returns - 20.28%
2 - AIM China A
===========
Load 5.50%
Expenses 1.75%
Returns 19.53%
3 - Dreyfus Greater China A
=======================
Load 5.75%
Expenses 1.94%
Returns 19.36%
4 - Matthews China
==============
Load - None
Expenses 1.23%
Returns 19.21%
5 - Van Eck Intl Investors Gold A
=============================
Load - 5.75%
Expenses 1.45%
Returns 19.04

Of the five funds I have come across the following is what I found.

Three funds charge entry load is more than 5.50%
Two funds have operating expenses is more than 1.75%

Now if I compare Indian funds right now
Load = None for all funds (with abolishment of entry load)
Expense Ratios = (1.70% - 2.50%)

I am no expert on US funds, but the initial look tells me the picture there is not all that rossy as you portray. Second, India funds expense ratio are a little higher (by 0.5%), but they are in very acceptable range. They are not as expensive as you potray.

I think you are living in denial mode about the charges out there in the US. Second, you are also living in the past when you come to Indian mutual funds. Currently online brokers are emerging where you do not pay any entry load and at the same time can transact online with most fund houses. I request you to do a fair comparision with facts from the present and not the past.

Thanks,
Raj

27 Nov 2009 15:22

selection of good mutual funds

Posted by :

vvrk

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Dear Netdo,
I just visited the Morning Star website and checked its top performing funds for three years horizon. The following is what I found.

1 - USAA Precious Metals and Minerals
=================================
Load - None
Expenses - 1.31%
Returns - 20.28%
2 - AIM China A
===========
Load 5.50%
Expenses 1.75%
Returns 19.53%
3 - Dreyfus Greater China A
=======================
Load 5.75%
Expenses 1.94%
Returns 19.36%
4 - Matthews China
==============
Load - None
Expenses 1.23%
Returns 19.21%
5 - Van Eck Intl Investors Gold A
=============================
Load - 5.75%
Expenses 1.45%
Returns 19.04

Of the five funds I have come across the following is what I found.

Three funds charge entry load is more than 5.50%
Two funds have operating expenses is more than 1.75%

Now if I compare Indian funds right now
Load = None for all funds (with abolishment of entry load)
Expense Ratios = (1.70% - 2.50%)

I am no expert on US funds, but the initial look tells me the picture there is not all that rossy as you portray. Second, India funds expense ratio are a little higher (by 0.5%), but they are in very acceptable range. They are not as expensive as you potray.

I think you are living in denial mode about the charges out there in the US. Second, you are also living in the past when you come to Indian mutual funds. Currently online brokers are emerging where you do not pay any entry load and at the same time can transact online with most fund houses. I request you to do a fair comparision with facts from the present and not the past.

Thanks,
Raj...

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In reply to:

selection of good mutual funds

Posted by :

netdo

I have nothing agaianst the procedural details for this mn to invest in 5 different funds but it is all so sad and so unfair. The system is set up to screw him from the git go.

Eiither he spends time fillig up paperwork to open direct account with each of these joker funds or use a middleman, pay him on Rs 10,000 on a 5 lack investment. Allow the AMC`s to bleed yet another Rs. 12,500 as operating expenses and on redemption ater 366 days pay yet another Rs. 5000 to the same crookish AMC. The guy is out Rs 25,000 before he sees a paise of profit from his 5 lack investment!!

No Siree, unless SEBI steps in and stops this open rip offf, mutual fund investing is a blatant fraud againat poor investors. Skip them and stick to ETF in the stock markets.

27 Nov 2009 12:08

adjustment of STCG

Tax Planning & Help

Posted by :

subasu

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Your plan is perfect and can be executed to precision. You can square up your short term profits with this (!) loss and still have all the money to yourself.

Only thing you need to keep in mind is do not sell your RIL bonus shares before the period of 12 months is completed.

...

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In reply to:

adjustment of STCG

Posted by :

mit_esh

i have bought 18 RIL shares in last 1month@average cost of Rs 2000/share. after getting bonus of 18 shares tomorrow can i sell original 18 shares at loss so that my STCG of Rs 15000/- of current year is squared up.
What is law? will this amount of evading tax or stripping of profit? if yes, then what is the min period after which i can sell original 18 shares

27 Nov 2009 10:21

Divindend Sweep

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Dear Ashport, I checked with only 2 AMCs, Reliance & HDFC, both r offering this Dividend sweep facility.

Thanks

Ashal...

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In reply to:

Divindend Sweep

Posted by :

ashport

Dear Experts

I just wanted to know which of the AMCs/Funds are providing the facility of dividends SWEEP option (from equity funds to other debt/balanced funds)under divident payout plan? I cross chechecked with sone of the AMC website but apart from Birla Sun Life, I could not not find any.

Regds

Ashport

27 Nov 2009 09:26

selection of good mutual funds

Posted by :

netdo

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I have nothing agaianst the procedural details for this mn to invest in 5 different funds but it is all so sad and so unfair. The system is set up to screw him from the git go.

Eiither he spends time fillig up paperwork to open direct account with each of these joker funds or use a middleman, pay him on Rs 10,000 on a 5 lack investment. Allow the AMC`s to bleed yet another Rs. 12,500 as operating expenses and on redemption ater 366 days pay yet another Rs. 5000 to the same crookish AMC. The guy is out Rs 25,000 before he sees a paise of profit from his 5 lack investment!!

No Siree, unless SEBI steps in and stops this open rip offf, mutual fund investing is a blatant fraud againat poor investors. Skip them and stick to ETF in the stock markets....

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In reply to:

selection of good mutual funds

Posted by :

ashport

Dear jainindu

Congrats! You are spot on the target and have a clear vision.If your time horizon is about 5 yrs just invest equal monthly via SIP in following Eq diversified funds:

DSPBR Equity
HDFC Top 200
Birla SL Fr Line Eq
Magnum Contra
Rel RSF Eq

opt diff dates of SIP for diff funds. Revisit your portfolio after every yr and take corrective actions for underperformer.
invest rrgularly and reap the benefits.

regds

Ashport

27 Nov 2009 03:42

Book Profit or Keep

Posted by :

zapper

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Addressed to ashalanshu

Dear Ashal & Sharma ji,

Thanks ashal for the clarification. If you can add some of your invaluable advice regarding redemption of MF when the fund starts underperforming then it would help me in future planning and rebalancing of my funds.
Sharma ji pls give your comments on this.

thanks once again.
wishes
zapper
...

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In reply to:

Book Profit or Keep

Posted by :

ashalanshu

Dear Zapper, If u r following my posts on MMB u may notice clearly that i never advise to have a long term SIP/STP of 5-10 or 15 years.

I always prefer a 1 or 2 year SIP/STP. Relook the performance of the fund & make corrective action if required.

I hope, I`m clear to u on this front.

Coming to ur individual portfolio, I `m also agree with the view that we should give time to our funds but in ur case I advised to redeem only those funds which r not suitable (reasons i already mentioned in my prev. posts) to ur portfolio.

Otherwise I `m also recommending to stay invested in some of ur funds . Be it HDFC Top 200, DSP Top 100 or DSp Eq. etc...

Thanks

Ashal

27 Nov 2009 01:01

Suggest

Best Funds to Buy

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Dear Cshah, I `m sorry to say that u can`t invest in IDFC Prem. Eq. within ur overall budget of 2K Rs. as the minimum SIP amount is also 2K Rs. in this fund.

In ur case plz. invest in following funds.

DSP Eq. - 1K Rs. SIP
Rel. RSF - 500 Rs.
SBI Mutiplier plus - 500 Rs.

Thanks

Ashal...

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In reply to:

Suggest

Posted by :

cshah

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

27 Nov 2009 00:49

Religard Agile & JM emerging

Posted by :

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Dear Friend, Plz. redeem ur money from these funds immediately & invest in following funds.

HDFC Top 200
DSP Top 100

Invest equal amount in above funds.

thanks

Ashal...

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In reply to:

Religard Agile & JM emerging

Posted by :

Guest

I have invested 100K in Religar Agile Fund & 90K JM emerging leader fund, allmost 50% lost on both funds, please advise....Can i stay with both funds or switch over on other scheme. 4-5 years i can stay with funds.

26 Nov 2009 23:56

Religard Agile & JM emerging

Posted by :

ashport

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Dear Guest

I am really sorry for you for the losses you have incurred.You should switch from Religare Agile fund to Religare Contra which has performed well in recent times. Please book losses in JM Emerging Market fund and invest the proceed in the following funds:

HDFC Top 200
DSPBR Equity

in equal amounts. Invest via SIP and monitor your investment regularly. You probably invested in your funds during NFO. That is why we suggest to steer clear from NFOs.

Regds

Ashport...

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In reply to:

Religard Agile & JM emerging

Posted by :

Guest

I have invested 100K in Religar Agile Fund & 90K JM emerging leader fund, allmost 50% lost on both funds, please advise....Can i stay with both funds or switch over on other scheme. 4-5 years i can stay with funds.

26 Nov 2009 23:43

Book Profit or Keep

Posted by :

View full thread (19 messages)

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Dear Zapper, If u r following my posts on MMB u may notice clearly that i never advise to have a long term SIP/STP of 5-10 or 15 years.

I always prefer a 1 or 2 year SIP/STP. Relook the performance of the fund & make corrective action if required.

I hope, I`m clear to u on this front.

Coming to ur individual portfolio, I `m also agree with the view that we should give time to our funds but in ur case I advised to redeem only those funds which r not suitable (reasons i already mentioned in my prev. posts) to ur portfolio.

Otherwise I `m also recommending to stay invested in some of ur funds . Be it HDFC Top 200, DSP Top 100 or DSp Eq. etc...

Thanks

Ashal...

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