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MF Investment Help
Tracked by: 3 Boarders
Dear Mayekar, The chosen funds by u r all star performers. From ur list, 2 r Large cap (TOP 200 & Top 100), 1 is mid cap (Rel. Gr.), 1 is Multicap (Contra), 1 is sectoral (Infra) & 1 is balanced (Prudence). This is a fair amount of diversification. However u may add 1 more large cap fund to give a more stable look & comfort for ur portfolio. For this - u may opt any one from - Sund. Select Focus, Birla Fr`line Eq., Kotak 30.
Invest on different dates thru SIP or if u do have a lump sum amount ready with u, investing thru Liquid + fund & STP route `ll be more beneficial. in case of ur lump sum amount lying in Liquid + fund, u may also transfer the same on heavy downfall days to ur targeted Eq. funds as i advised earlier.
Thanks
Ashal...
In reply to:
Learn to invest in equities without an iota of risk
Posted by :
Mayekar
Dear Ashal
My funds are
1. HDFC top 200
2. Pru ICICI Infra
3 Reliance Growth
4 DSPBR Top 100
5 HDFC Prudence
6 Magnum COntra
I am doing equal SIP amounts on all 4 dates of the month for each of the funds (Except magnum contra which offers 3 dates in a month)
thanks
-mayekar
Tracked by: 3 Boarders
Dear Ashal
My funds are
1. HDFC top 200
2. Pru ICICI Infra
3 Reliance Growth
4 DSPBR Top 100
5 HDFC Prudence
6 Magnum COntra
I am doing equal SIP amounts on all 4 dates of the month for each of the funds (Except magnum contra which offers 3 dates in a month)
thanks
-mayekar
...
In reply to:
Learn to invest in equities without an iota of risk
Posted by :
ashalanshu
Dear Mayekar, In my view u should adopt both options -
1. Increase ur SIP amount by 1.5 times but instead of increasing the SIP amount on same date, it `ll be better to have new SIP in same funds on different dates for the amount u want to increase.
2. At the same time, put ur lump sum in Liquid + funds & as & when there is a bottom as tested pre diwali, do make a lump sum investment of small quantities on those days also.
Had u mentioned ur funds, it `ll be better.
Thanks
Ashal
Tracked by: 0 Boarder
I have already put 15,00,000 in "HDFC HI Short-term-G". Now I am in search of another liquid fund in Debt-Short term category. Can anyone please point out some good funds for the same? How about "HSBC Income Short Term-G"? Please advice....
Tracked by: 3 Boarders
Dear Dragonbhat, I`m not at all angry with rags123 or any one else. I was just popping the question as now days due to so much hammering of Eq. market, a lot of people r either advising to redeem or to stop new investment. Be it Lump Sum or SIP.
Regarding ur Question - I have no idea when `ll the market `ll touch again the level of 21K?
Also regarding ur need urgently, my dear friend, in my view investment should be goal specific. Eq. as an asset class can perform only over long term 10-15-20 years. By this sense, if a person is investing for education or marriage corpus of his new born or for his own retirement, Eq. should be the first choice. If the investment is for a down payment of his dream house after 6-8 months or for a lump sum pmt. for any emergency, this amount at any cost should not be invested in Eq. It `ll be better to have this short term amount invested in Bank FDs, Pure Debt Funds etc.
Ur views are invited.
Thanks
Ashal...
In reply to:
Learn to invest in equities without an iota of risk
Posted by :
Dragonbhat
Hi ashalanshu,
quote `Dear rags123, did u have any idea in december, that market is going to tank in jan & onwards `ll go down & down. ` unquote
by the same logic, do you know when the market will go back to 21k or if it will go back. Don`t get angry with me - think about it. Maybe I am wrong.
I wish that market goes up.
The logic of SIP is very very similar to that wish.
(what if one keeps averaging down and one fine day you realise you need half the amount invested urgently!)
Wishing you lots of money,
Regards,
Dragon.
Tracked by: 3 Boarders
You are right. It is not to say that SIPs are bad! It is to say that investment without fundamental analysis will not fetch you the kind of returns you expect. For instance, some one said that his aim is to beat the Sensex by atleast 5-10% YOY. Thats a fair enough target. Another said, he wanted 50% returns YOY. You need to follow different approaches for both. Right now, we`re not in the best of the times to invest and I have said this right from 14k onwards! Let the market settle down, look for sustained economic indicators, employment growth, industrial growth etc and then take a call on your investment. If you still believe SIP is the way, no matter where the market belongs, you are as good as a blind man at work!!
...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : RANJAN
Equity is for the long term. Nobody can time the market. Safest thing is to invest via SIP regularly for 3 to 5 years. If a person has started SIP when the market was 21000 the average cost of his units will be high. Many investors have stopped investing because their investment value is showing negative value. This is wrong. He should continue to invest via SIP . This way his average unit price will keep coming down. A long term SIP even if the bear market is there for 1 or 2 years - it does not matter. His average cost will come closer to its present NAV. So when the market starts going up - he will break even when the market crosses 12000. If he stops investing - he might not be able to recover his loss for a long long time. As long as you stick to your asset allocation and rebalance it regularly - you will make money. PATIENCE & DISCIPLINE is the KEY to be successful in the equity market.
WalNut, can you please mail me at boscom at gmail ? I would dearly like to get in touch with you....
In reply to:
Invest with 3-4 year horizon: Birla Sun Life
Posted by : WALNUT
I feel like laughing reading this expert\\\\`s views/ He would have advised investors to do the same with 3/4 year time from in 2004. these guys survive on the this kind of things. grace would have been to admit his lack of knowledge but he cannot resist as this has become his habit. The fund managers are probably the worst lot anywhere but like scavengers they keep on making comments which have no basis whatsoever. The stock market no one can predict and fund managers by thier very nature being parasites are less equipped to do so than others. It is a big trick played on the poor investors by these characters. Poor guy having lived on the sweat of others , how can be keep quiet. He needs more money for his fat pay cheque
Tracked by: 3 Boarders
Dear Mayekar,
It is not easy Decision to Change the Fund.
Your Understanding of Category Average is Correct.
If Performance of any Good Fund becomes below Average continuously for 3-4 Quarters, one should consider Change.
Reliance VISIOn, SBI Global comes in this Category.
Decline in Performance may be due to Change in Fund Management, Increase in AUM or other Reasons.
If the Funds near Category Average Improve the Performance to above Average Level within 3-4 Quarters, Continue to Invest.
I would like to ADD Following Observation.
IN SIP SOMETIMES Average or Below Average Performing Fund may give VERY High Returns in long Term if its Performance Improves Suddenly after 3-4 years. I noticed this in SBI Magnum Equity Fund in 2007.
3 years Returns of SBI Equity were better than SBI CONTRA Fund in 2007.
Current Situation offers GOOD Opportunity to switch from Average Performer Midcap / Sector Funds to Better Performer Largecap Oriented Diversified Equity Funds.
P.C.Sharma
...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : Mayekar
Dear P.c.sharma
When you say BELOW AVERAGE , you mean below category average?
IF a particular fund is performing below category average consistently, , that fund is to be avoided
IF a particular fund is close to category average but performing above category average would you recommend stopping SIP in them?
( reason i am asking is there are several funds that are close to cat average and just above cat. average but they have been in existence for long. Similarly many top funds may sometime (maybe after 1-2 yrs) move to close to category average.
thanks
rs
Tracked by: 3 Boarders
Dear db8037,
You may reduce the Midcap & Infra.& Sector Funds & Increase Large Cap Funds.
Discontinue Following
JM Financial
LOTUS AGILE
Sundaram Capex
Either Reliance Growth or Reliance RSF Equity.
Start SIP in Following
DWS Top 100 Equity Fund
HDFC Growth / Top 200
IDFC Imperial Equity Fund
KOTAK 30
DWS Alpha Equity Fund
P.C.Sharma
...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : db8037
Thanks Ranjanjee and pcspune(sharmajee),
I have tried investing in VR 4 start and 5 star funds but I believe my portfolio is inclined towards mid cap and sector funds, here are my funds (all sip) 1000 rs per month,
1) ICICI Infrastructure 5 star
2) IDFC Premier 5 star
3) JM Financial Not Rated
4) Lotus Agile Not Rated
5) DSP Gold Fund Not Rated
6) Reliance Growth 4 Star
7) Reliance Regular 5 Star
8) Reliance Div Power Not Rated
9) Sundaram Focus 5 Star
10) Sundaram CAPEX 5 Star
Please let me know if I need to make some changes to this portfolio.As per VR, my Giant is 30%, Large Cap is 19%, midcap is 33% smallcap is 8% and not classified is 8%
Thanks a lot for your time.
Tracked by: 3 Boarders
Hi ashalanshu,
quote `Dear rags123, did u have any idea in december, that market is going to tank in jan & onwards `ll go down & down. ` unquote
by the same logic, do you know when the market will go back to 21k or if it will go back. Don`t get angry with me - think about it. Maybe I am wrong.
I wish that market goes up.
The logic of SIP is very very similar to that wish.
(what if one keeps averaging down and one fine day you realise you need half the amount invested urgently!)
Wishing you lots of money,
Regards,
Dragon....
In reply to:
Learn to invest in equities without an iota of risk
Posted by : ashalanshu
Dear rags123, did u have any idea in december, that market is going to tank in jan & onwards `ll go down & down.
U can only say now, that it`s better to invest at current levels, but i`m asking for a constant & disciplined approach. Which only SIP or STP can provide.
Thanks
Ashal
Tracked by: 0 Boarder
If the rating (value research) of the fund is good and you if you do not need the money - STAY INVESTED.
If the rating is not good - EXIT and use the money for ELSS this year in a better rated fund. Invest via SIP ONLY. ...
In reply to:
should i exit now?
Posted by : Guest
i invested in elss 3 years back - should i exit now or hold on
Tracked by: 3 Boarders
When it comes to appreciation - dividend reinvestment & growth are similar. But 10 years from now if your funds do well - you have the choice of switching to payout anytime and enjoy tax free dividend income. Under growth option you have to withdraw either fully or in instalments to get an income. Under growth option you pay STT on the redemption amount. Under dividend payout there is no STT deducted at source. You have the option to enjoy dividend for a few years and pay STT only when you redeem. The only point to be noted is that before redeeming switch to pay out atleast 1 year before redemption so that you do not pay any short term gain tax on the units allotted for your last dividend. ...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : db8037
Thanks so much Ranjanjee...I have another question. you always recommend divident reinvestment, how this is different from growth option. I have all my funds in growth option since I am investing for 10 years, can you please let me know the diff so that I can take care of that in future.
thanks
Tracked by: 3 Boarders
Dear Mayekar, In my view u should adopt both options -
1. Increase ur SIP amount by 1.5 times but instead of increasing the SIP amount on same date, it `ll be better to have new SIP in same funds on different dates for the amount u want to increase.
2. At the same time, put ur lump sum in Liquid + funds & as & when there is a bottom as tested pre diwali, do make a lump sum investment of small quantities on those days also.
Had u mentioned ur funds, it `ll be better.
Thanks
Ashal...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : Mayekar
Dear Ashal, Pcspune , Ranjan, and other seniors
I am doing SIP for past 2 years in select equity div funds.
What if i plan to increase the SIP amt in same 6 funds by 1.5 times than what i had since past 2 years . ( i am having cash avaiable )
No doubt stock prices have fallen to 2007/2006 levels . If i increase investments in SIP in same funds for next 2 years , will i not be averaging better.
Of course 2 years is assumed period of time market may take to recover( assuming worse case scenario)
If may take lesser time in which case i would be happy to stop EXTRA sip and continue old amounts
OR is it better to invest lumpsum whenver markets comes close to bottom( noone can predict bottom but somewhre close)
whihc is a better strategy
please advice
thanks
-RS
Tracked by: 3 Boarders
Reason might be: Dividend Reinvestment can be switched to Dividend Payout anytime, without any exit load or charge....
In reply to:
Learn to invest in equities without an iota of risk
Posted by : db8037
Thanks so much Ranjanjee...I have another question. you always recommend divident reinvestment, how this is different from growth option. I have all my funds in growth option since I am investing for 10 years, can you please let me know the diff so that I can take care of that in future.
thanks
Tracked by: 3 Boarders
Dear P.c.sharma
When you say BELOW AVERAGE , you mean below category average?
IF a particular fund is performing below category average consistently, , that fund is to be avoided
IF a particular fund is close to category average but performing above category average would you recommend stopping SIP in them?
( reason i am asking is there are several funds that are close to cat average and just above cat. average but they have been in existence for long. Similarly many top funds may sometime (maybe after 1-2 yrs) move to close to category average.
thanks
rs
...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : pcspune
Dear Mayekar,
You should mention CORRECT & COMPLETE name of Mutual Fund Scheme. You should Add LS on Declines if your Existing Investments are in Better Performing Larege Cap Oriented Equity Funds.
If the Performance of your Existing Funds is BELOW AVERAGE, you should Invest Fresh Funds in Better Performing Schemes.
P.C.Sharma
Tracked by: 3 Boarders
Thanks so much Ranjanjee...I have another question. you always recommend divident reinvestment, how this is different from growth option. I have all my funds in growth option since I am investing for 10 years, can you please let me know the diff so that I can take care of that in future.
thanks...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : RANJAN
You are investing Rs 10,000 every month.
While renewing your SIP allocate in this manner.
Invest via SIP Rs 2000 in each of these funds -
1) Sundaram Select Focus
2) HDFC TOP 200
3) DSP Black Rock Top 100
Invest via SIP Rs 1000 in each of these funds -
1) ICICI Infrastructure
2) Reliance growth
3) DWS Investment Opportunity
4) IDFC Premier
Opt for dividend reinvestment if you do not need any income
now.
Stay invested in the funds you have invested till now for a year. Review and then decide whether to stay invested, switch or get out depending upon the performance.
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