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MF Investment Help
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Dear Ashal...Thank you much for the reply. The Company deposit generates Rs 15500 (pre Tax....but will be 0 Tax liability) monthly for next five years....with a return of 69% pa for the 1st 4 years...and 107% the 5th Year....This is only partially committed to the additions to MF Investments from Sep 08 onwards.....if I am able to add another 7000 from Oct 08 onwards for next 5 years...I think I may have slightly a better chance towards 1Cr in may be 7 yrs or so....wonder if that is realistic.I would also be grateful for your input on revamping the folio (You may review Ashport's reply on this)......considering I am ok with 20/80 ratio rather than 30/70. But at my age (53) I wonder whether sticking to 30/70 may be wise. Besides I may have longer than 5 years before I may need income from the corpus. Thank you...Radnar33...
In reply to:
MF Folio evaluation help
Posted by :
ashalanshu
Dear radnar33, Either prune down ur return expectation from 1C to 50-60L or invest for next 10 years to have a corpus of 1C, with following conditions.
Debt part in absolute no. term \\`ll remain as it is. hence due to future SIPs ur Eq. debt ratio \\`ll move away from current 67:33 to 80:20 or even 85:15 over the period.
1. Return on Eq. MFs & direct Eq. = 15% over all CAGR. assumed
2. Company deposit = 11% (pre tax return)
3. Bank FDs = 10% (Pre Tax return)
4. P.O. = 8% (Pre Tax return)
ur current portfolio of 22L \\`ll be appx. 41.3L as per above returns after 5 years. Ur SIP in Eq. MFs of 17500 from Sept. 2008 to next 5 years \\`ll generate a corpus of appx. 15.43L. total corpus at the end of 5 years from now onwards appx. 56L Rs. If u stick to to ur future investment in a Eq. debt ratio of 70:30 as u desired ur actual returns may be around 48-50L Rs. only.
first decide on the above matters then only decide to restructuring of ur portfolio as per ur future financial requirement.
Thanks
Ashal 
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Dear pankaj8er
You can choose from the following list:
1) Sundaram BNP Paribas Taxsaver
2) DWS tax savings( Free Insurance is an added advantage)
3) DSPML Tax saver
Try to invest thru SIP and opt for Growth or Dividend Payout option.
happy Investing.
regds
Ashport...
In reply to:
invest in mutual fund
Posted by :
pankaj8 er
please suggest the best tax saving mutual fund
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Thank You Raj for an honest evaluation....Helps me assess the situation.....either I will have to increase number of years of Investment before the expected goal or increase amount of monthly SIP to help reach it may be in 7 to 8 years....or work with the corpus accumulation as is in 5 years. This def helps....Thank you....grateful for your reply....Radnar33...
In reply to:
MF Folio evaluation help
Posted by :
vvrk
Dear Radnar33,
If I understand correctly, your current networth is Rs.22 Lakhs. You want this to be Rs.1 Crore in a span of 3 to 5 years. Translating it to actual returns, your expectations are between 33.56% to 65.65%. Your expections are more on the unreasonable side. Assuming returns of 15 to 18%, your networth will be 1 crore in a span of 9 to 11 years.
My first advise is to have a more reasonable expectations. Building castles in the air might actually crash your dreams.
Thanks,
Raj
Thanks,
Raj
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Dhirendra Kumar, CEO of Value Reasearchonline feels that though investing in SIPs (Systematic Investment Plan) is a good idea, one should do a periodic review every year to keep a sense that his investments are still on tracks. He thinks the most impressive fund from the Reliance stable is the Reliance Growth Fund. ...
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please suggest the best tax saving mutual fund...
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Hello,
I’m a long term investor with a perspective of at least 10 years. How many Large Cap funds should one have? Sundaram Select Focus, DSP Top100, HDFC Top 200 & Birla Frontline Equity - should one have all these 4 Large Cap Funds or any 1, 2 or3? My Portfolio comprises 2 Large Cap Funds - Sundaram Select Focus & DSP Top100 (out of total no. of 6 funds). If I add HDFC Top 200 & Birla Frontline Equity to my Large Cap funds, wouldn’t it be like buying the same shares; bcoz the FMs of these Funds might have bought almost similar shares. Kindly advise.
Long Term Investor
...
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why-not-to-invest-in-reliance-sipinsure-plan
7 Reasons for not investing in Reliance SIP+Insure Plan.
1] The type of Insurance is Group Insurance Policy. The cheapest and easiest form of insurance policy available with any insurance company.
2] Only the 1st Holder is insured. So, in case, a couple subscribes to SIP +Insure then only one person can avail of the insurance benefits.
3] The Sum Assured, in case of death is not paid to the nominee, but shall go back to the scheme of the AMC(Reliance Asset Management Company). Remember, the scheme benfits more than the dependents of the deceased in case of death of the holder.
4] Huge exit load of 2% for discontinued SIP. If you agree to pay your SIP for 11 yrs but pay only for 10 long and tiring yrs, still the scheme charges you 2% for the remaining 1 yr which you do not wish to continue.
5] No insurance upto 90 days (exception to it is accident cases only) , i.e 3 months. In case of death within 3 months, except of accidental deaths, the scheme shall not pay the dependents a penny.
6] The dependents will end up paying the scheme 2% back if the death occurs within 3 months due to reasons other than accidental death.
7] Minimum period of investment is 3 yrs and Rs 2,000 for each installment, i.e totalling to Rs 36,000 for Group insurance worth less than 10 lacs.
There are group insurance polices availables at a very low costs, which can be availed of for insurance requirements. Insurance worth of Rs 10 lacs may or may not be sufficient for your entire family’s needs.
The Exit loads are relatively very high even if investor is paying his SIP for a long period, if he discontinues even 1 day prior, he ends up paying 2% Exit loads.
Sunny Side to life :
SIP is also available without this offer....
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Dear wadia, nice to hear u again after so many days. Just relax n enjoy ur holidays with ur family.
Happy Investing.
thanks
Ashal...
In reply to:
A break from MF & Market
Posted by : wadia
Hi, Dear all.
Well, I was away from this message board for a few weeks as I with my family had come down to Mumbai from Dubai and were quite busy with travelling and meeting relatives and friends.
Hi, Mr. Ranjan, Ashal, Sharmaji and Shrikanth, Hope things are going as usual with you all helping hands of MF investors. I can also see some changes in the way this message board has been modified for better ease of communication. I still though have to get used to it.
Pls. feel me in of any new devolpments in the world of MF. I would start actively participating in this board once I am back in Dubai. Till then I intend to enjoy my remaining 2 weeks of holidays to the fullest.
Regards,
Wadia
Tracked by: 0 Boarder
I would like to start a SIP of Rs3000 per month for my year old daughter. Pls suggest if I should go in for a childrens plan, ULIP or MF & which one. I also want to invest a sum of Rs one lac for her. Pls help as I am confused with all these investment plans....
Tracked by: 0 Boarder
Dear radnar33, Either prune down ur return expectation from 1C to 50-60L or invest for next 10 years to have a corpus of 1C, with following conditions.
Debt part in absolute no. term \\`ll remain as it is. hence due to future SIPs ur Eq. debt ratio \\`ll move away from current 67:33 to 80:20 or even 85:15 over the period.
1. Return on Eq. MFs & direct Eq. = 15% over all CAGR. assumed
2. Company deposit = 11% (pre tax return)
3. Bank FDs = 10% (Pre Tax return)
4. P.O. = 8% (Pre Tax return)
ur current portfolio of 22L \\`ll be appx. 41.3L as per above returns after 5 years. Ur SIP in Eq. MFs of 17500 from Sept. 2008 to next 5 years \\`ll generate a corpus of appx. 15.43L. total corpus at the end of 5 years from now onwards appx. 56L Rs. If u stick to to ur future investment in a Eq. debt ratio of 70:30 as u desired ur actual returns may be around 48-50L Rs. only.
first decide on the above matters then only decide to restructuring of ur portfolio as per ur future financial requirement.
Thanks
Ashal...
In reply to:
MF Folio evaluation help
Posted by : radnar33
Dear Experts out there
I have been investing in to Mutual Funds for past 5 years and following is my porfolio built largely on SIP. Although the funds are distributed among 3 of us, I realise its a collection of far too many funds. I would be grateful for a Portfolio evaluation and suggestion for change towards Growth. My target is maximum growth possible ( Rs 1 Crore). I have 3 to 5 years time frame affter which I may need income from the funds. Total vested corpus is Rs 2200000. I am currently investing Rs 9500 a month in the way of SIPs till Mar 09 and am able to add another 8000 more from September 08 onwards.Grateful for guidelines. I would like 70 Equity & 30 Debt Allocation. Thank you. My funds are as follows.
EXISTING FOLIO as on 31-Jul-08
Mutual Funds - 66.92 %
Company Deposits 11.96 %
Post Office 7.48 %
Bank Fixed Deposits 13.64
Mutual Funds & Shares
DSPML Equity - DR – SIP 2000 3.33
DSPML Opportunities - DR 3.40
DSPML T.I.G.E.R - 3.40
DSPML TIGER 3.40
Fidelity Equity - 1.63
FIBCF 4.48
Franklin India FlexiCap Fund 7.02
Franklin India Prima Plus - 3.98
Franklin India Prima Plus 2.04
HDFC - Equity – SIP 1000 7.75
HDFC Top 200 - 1.37
HSBC - Equity - SIP 1000 1.83
ICICI Infra Struc -SIP 1000 0.27
Kotak 30 - SIP 1000 0.27
Kotak Opprtunities - 2.20
SBI-Magnum Contra-SIP 1000 1.09
Reliance Equity Oppor 0.82
Reliance Growth - 2.58
Reliance Vision - SIP 1000 6.39
SundaramCapex Oppor-SIP 1500 6.43
Sundaram- Energy Oppor 3.40
Sundaram Select Focus - 6.46
Sundaram Select Mid Cap 9.51
TempletonIndiaEquityIncome 7.64
Tata Infrastructure Fund 1.36
Tata Equity Opportunities 3.40
REL PETRO (400) 3.92
REL POWER (24 Shares IPO) 0.44
UCO BANK (100 Shares ) 0.21
Tracked by: 0 Boarder
A lot of us think that an entry load of 2% is reasonable but an exit load of 2% is expensive. Our reasoning is simple. The exit load of 2% is charged on the accumulated fund value (including returns earned) whereas the entry load is only paid on our initial investment. Lets us delve deeper by looking at the below two examples.
Example 1:
I invested Rs.1,00,000 in a fund XYZ. It charges an exit load of 2% but does not charge any entry load. Let us assume the fund gave a return of 18% over 20 years.
Net Amount Invested = Rs.1,00,000 (no entry load)
Rate of Return = 18%
Number of years invested = 20
Fund value after 20 years = Rs.27,39,303
Exit Load = 2% * Fund Value = 2% * 27,39,303 = Rs.54,786
Example 2:
I invested Rs.1,00,000 in a fund ABC. It charges an entry load of 2% and does not charge any exit load. Let us assume the fund gave returns of 18% for 20 years
Entry Load = 2% * 1,00,000 = Rs.2,000
Initial Interpretation : At the first glance one will obviously think that entry load of Rs.2,000 is reasonable but an exit load of Rs.54,786 is expensive because it is charged on the investment plus accumulated returns.
The Bigger Picture
==================
Now lets take a look at the bigger picture and revisit the same examples.
Example 1: I invested Rs.1,00,000 in a fund XYZ. It charges an exit load of 2% but does not charge any entry load. Let us assume the fund gave a return of 18% over 20 years.
Net Amount Invested = Rs.1,00,000 (no entry load)
Rate of Return = 18%
Number of years invested = 20
Fund value after 20 years = Rs.27,39,303
Exit Load = 2% * Fund Value = 2% * 27,39,303 = Rs.54,786
Redemption Value = Fund Value - Exit Load = Rs.26,84,517
Example 2: I invested Rs.1,00,000 in a fund ABC. It charges an entry load of 2% and does not charge any exit load. Let us assume the fund gave returns of 18% for 20 years
Entry Load = 2% * 1,00,000 = Rs.2,000
Net Amount Invested = Investment - Entry Load = Rs.98,000
Rate of Return = 18%
Number of years invested = 20
Fund Value after 20 years = Rs.26,84,517
Redemption Value = Rs.26,84,517 (no exit load)
The redemption value in both the cases are exactly the same. What this tells us is the impact of an entry load of 2% is equal to an exit load of 2%.
My Conclusion
=============
It is essential to look at the bigger picture to understand numbers related to investments. Like in our example an entry load of Rs.2,000 turned out to be equal to an exit load of Rs.54,786....
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Dear radnar33
you have accumulated too many funds which you are also realizing now.
My suggested portfolio would be:
DSPML Equity....Continue SIP
DSPML Opportunity....Switch to DSPML Equity
DSPML TIGER..........Switch to DSPML Equity
Fidelity Equity......Stay invested
Franklin India FlexiCap Fund...Swich to Templeton India Eq Income
FIBCF................Switch to Templeton India Equity Income
Franklin India Prima Plus...Switch to Templeton India Equity Income
HDFC - Equity –...stop SIP & switch to HDFC Top 200
HDFC Top 200 - ........stay invested
HSBC - Equity - SIP 1000 1.83...continue SIP
ICICI Infra Struc -SIP 1000 0.27...continue SIP
Kotak 30 - SIP 1000 0.27 .....continue SIP
Kotak Opprtunities - 2.20.....Switch to Kotak 30
SBI-Magnum Contra-SIP 1000 1.09 ...continue SIP
Reliance Equity Oppor 0.82.......Switch to Reliance Growth
Reliance Growth - 2.58...........Stay invested
Reliance Vision - SIP 1000 6.39...Stop SIP & switch to Rel Growth
SundaramCapex Oppor-SIP 1500 6.43...Switch to Sundaram Select Focus
Sundaram- Energy Oppor 3.40.....Stay invested, but monitor regularly
Sundaram Select Focus - 6.46.....Stay invested
Sundaram Select Mid Cap 9.51.... Switch to Sundaram Select Focus
TempletonIndiaEquityIncome 7.64....Stay invested
Tata Infrastructure Fund 1.36 ....Stay invested
Tata Equity Opportunities 3.40...Switch to Tata Infrastructure
While switching from HDFC Equity and Reliance Vision, switch after completing 12 months of your last SIP only. while switching just take care of exit loads and STCGT .Now your portfolio consists of 12 funds which is somewhat manageable.I have not suggested for staying invested in Sundaram Energy fund as it is anew fund. Just watch its performance and then decide after 1 yr.
Monitor ur investment after every 2-3 months and rebalance as per ur asset allocation.
Happy investing
Regds
Ashport
...
In reply to:
MF Folio evaluation help
Posted by : radnar33
Dear Experts out there
I have been investing in to Mutual Funds for past 5 years and following is my porfolio built largely on SIP. Although the funds are distributed among 3 of us, I realise its a collection of far too many funds. I would be grateful for a Portfolio evaluation and suggestion for change towards Growth. My target is maximum growth possible ( Rs 1 Crore). I have 3 to 5 years time frame affter which I may need income from the funds. Total vested corpus is Rs 2200000. I am currently investing Rs 9500 a month in the way of SIPs till Mar 09 and am able to add another 8000 more from September 08 onwards.Grateful for guidelines. I would like 70 Equity & 30 Debt Allocation. Thank you. My funds are as follows.
EXISTING FOLIO as on 31-Jul-08
Mutual Funds - 66.92 %
Company Deposits 11.96 %
Post Office 7.48 %
Bank Fixed Deposits 13.64
Mutual Funds & Shares
DSPML Equity - DR – SIP 2000 3.33
DSPML Opportunities - DR 3.40
DSPML T.I.G.E.R - 3.40
DSPML TIGER 3.40
Fidelity Equity - 1.63
FIBCF 4.48
Franklin India FlexiCap Fund 7.02
Franklin India Prima Plus - 3.98
Franklin India Prima Plus 2.04
HDFC - Equity – SIP 1000 7.75
HDFC Top 200 - 1.37
HSBC - Equity - SIP 1000 1.83
ICICI Infra Struc -SIP 1000 0.27
Kotak 30 - SIP 1000 0.27
Kotak Opprtunities - 2.20
SBI-Magnum Contra-SIP 1000 1.09
Reliance Equity Oppor 0.82
Reliance Growth - 2.58
Reliance Vision - SIP 1000 6.39
SundaramCapex Oppor-SIP 1500 6.43
Sundaram- Energy Oppor 3.40
Sundaram Select Focus - 6.46
Sundaram Select Mid Cap 9.51
TempletonIndiaEquityIncome 7.64
Tata Infrastructure Fund 1.36
Tata Equity Opportunities 3.40
REL PETRO (400) 3.92
REL POWER (24 Shares IPO) 0.44
UCO BANK (100 Shares ) 0.21
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Dear Radnar33,
If I understand correctly, your current networth is Rs.22 Lakhs. You want this to be Rs.1 Crore in a span of 3 to 5 years. Translating it to actual returns, your expectations are between 33.56% to 65.65%. Your expections are more on the unreasonable side. Assuming returns of 15 to 18%, your networth will be 1 crore in a span of 9 to 11 years.
My first advise is to have a more reasonable expectations. Building castles in the air might actually crash your dreams.
Thanks,
Raj
Thanks,
Raj...
In reply to:
MF Folio evaluation help
Posted by : radnar33
Dear Experts out there
I have been investing in to Mutual Funds for past 5 years and following is my porfolio built largely on SIP. Although the funds are distributed among 3 of us, I realise its a collection of far too many funds. I would be grateful for a Portfolio evaluation and suggestion for change towards Growth. My target is maximum growth possible ( Rs 1 Crore). I have 3 to 5 years time frame affter which I may need income from the funds. Total vested corpus is Rs 2200000. I am currently investing Rs 9500 a month in the way of SIPs till Mar 09 and am able to add another 8000 more from September 08 onwards.Grateful for guidelines. I would like 70 Equity & 30 Debt Allocation. Thank you. My funds are as follows.
EXISTING FOLIO as on 31-Jul-08
Mutual Funds - 66.92 %
Company Deposits 11.96 %
Post Office 7.48 %
Bank Fixed Deposits 13.64
Mutual Funds & Shares
DSPML Equity - DR – SIP 2000 3.33
DSPML Opportunities - DR 3.40
DSPML T.I.G.E.R - 3.40
DSPML TIGER 3.40
Fidelity Equity - 1.63
FIBCF 4.48
Franklin India FlexiCap Fund 7.02
Franklin India Prima Plus - 3.98
Franklin India Prima Plus 2.04
HDFC - Equity – SIP 1000 7.75
HDFC Top 200 - 1.37
HSBC - Equity - SIP 1000 1.83
ICICI Infra Struc -SIP 1000 0.27
Kotak 30 - SIP 1000 0.27
Kotak Opprtunities - 2.20
SBI-Magnum Contra-SIP 1000 1.09
Reliance Equity Oppor 0.82
Reliance Growth - 2.58
Reliance Vision - SIP 1000 6.39
SundaramCapex Oppor-SIP 1500 6.43
Sundaram- Energy Oppor 3.40
Sundaram Select Focus - 6.46
Sundaram Select Mid Cap 9.51
TempletonIndiaEquityIncome 7.64
Tata Infrastructure Fund 1.36
Tata Equity Opportunities 3.40
REL PETRO (400) 3.92
REL POWER (24 Shares IPO) 0.44
UCO BANK (100 Shares ) 0.21
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No need. It is there in my profile for everyone to see.
...
In reply to:
A break from MF & Market
Posted by : Hira07
u never told that you are placed in dubai
Tracked by: 0 Boarder
u never told that you are placed in dubai...
In reply to:
A break from MF & Market
Posted by : wadia
Hi, Dear all.
Well, I was away from this message board for a few weeks as I with my family had come down to Mumbai from Dubai and were quite busy with travelling and meeting relatives and friends.
Hi, Mr. Ranjan, Ashal, Sharmaji and Shrikanth, Hope things are going as usual with you all helping hands of MF investors. I can also see some changes in the way this message board has been modified for better ease of communication. I still though have to get used to it.
Pls. feel me in of any new devolpments in the world of MF. I would start actively participating in this board once I am back in Dubai. Till then I intend to enjoy my remaining 2 weeks of holidays to the fullest.
Regards,
Wadia
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