Dear P.C, If we book the profit and want to invest in a debt fund on a long term, which funds would you suggest like short term debt/long term debt/gilt. Kindly advise. Feroz ...

Dear Ashal, Wadia and Sharma ji, Last yr i invested in following MF (dividend pay-out option) BSL Frontline Equity HDFC-Top200 DSPBR-TIGER DSPBR-Top100 Kotak-30 Kotak Opportunities HSBC Equity Sundaram Select Focus Reliance Growth Now, one year has completed. Please suggest shall I book profits or keep these funds or book partly profit. Thks Wishes zapper...

Dear All, I have Rs. 1000 for investment in MF through monthly SIP for next at least 10 years and there is one choice between Birla Sun life Frontline Equity (G) and DSPBR Equity (G). Please suggest me which will be correct pick and why? ...

--32-- In 1883, a creative engineer named John Roebling was inspired by an idea to build a spectacular bridge connecting New York with the Long Island . However bridge building experts throughout the world thought that this was an impossible feat and told Roebling to forget the idea. It just could not be done. It was not practical. It had never been done before. Roebling could not ignore the vision he had in his mind of this bridge. He thought about it all the time and he knew deep in his heart that it could be done. He just had to share the dream with someone else. After much discussion and persuasion he managed to convince his son Washington, an up and coming engineer, that the bridge in fact could be built. Working together for the first time, the father and son developed concepts of how it could be accomplished and how the obstacles could be overcome. With great excitement and inspiration, and the headiness of a wild challenge before them, they hired their crew and began to build their dream bridge. The project started well, but when it was only a few months underway a tragic accident on the site took the life of John Roebling. Washington was injured and left with a certain amount of brain damage, which resulted in him not being able to walk or talk or even move. ...

Dear Experts, I`d like to add a debt fund to my portfolio to rebalance it once a year. Could you suggest a good debt fund? Could you also tell me why it is good? Thanks in advance, Ram...

We traded on IDFC and TATA MOTORS yesterday, which were TOP GAINERS in NIFTY. Today also we will buy IDFC, TATA MOTORS. Our Trading list contains Steel sectors, Opto Circuit from dip, SINTEX, Oriental Bank, CAIRN, IDFC, TATA MOTORS, GSPL, Etc. TOP PICK IDFC Target 184-188...

Why kannadigas will not have anyother party except the BJP... what the congress could not do for the nation, Bangalore`s Yedi has done for its citizens Rain Water Harvesting Mandatory for New building From November 1 rain water harvesting will be mandatory for new buildings.The recent amendment of the BWSSB Act that’s made rain water harvesting mandatory for new and bigger old buildings could bring about a change. Provided, citizens understand the law, get the system installed and also trained in handling it. People need professional help to design a system complying with the law. They also need trained plumbers and masons as well as money to invest in the structure. Some plumbers and masons well versed in this are listed on the BWSSB website. Rain water if captured can generate water equivalent to 3000 MLD, almost double the current demand. It can also reduce the massive problem of flooding in Bangalore to a great extent, say experts.Depending on design, orientation and catchment area of the house, you could pay between Rs 8,000 and Rs 75,000 to set up the system. If you don’t have an RWH unit, your water and sanitary connections could be cut. However, there are rewards for installing one. After an assessment by the BWSSB in January 2010, five houses will be selected and rewarded Rs 10,000 each. ...

You should BOOK Profit one by one in following Funds:

DSP T.I.G.E.R. Fund
KOTAK -30 Fund
HSBC Equity Fund
Sundaram Select Focus Fund

Invest by STP in Follwing Funds

- IDFC Premier Equity/
Small & Midcap Equity Fund

- Sundaram S.M.I.L.E. Fund

- Principal Emerging Bluechip Fund

P.C.Shama



...

DONT INVEST in any Pension Plans.

Invest in 2-3 Good Equity Funds/Balance Funds by monthly SIP ( on different Dates) for 15 years.

After Retirement, apply for Systematic Withdrawl Plan to recieve Fixed amount Every month on Pre-determined Date.

To get good Income after Retirement try to Increase SIP amount every year.

Birla Sunlife Frontline Equity Fund/
Birla Sunlife - 95 Fund.

HDFC Equity Fund/HDFC Prudence Fund

Reliance Regular Saving Fund Equity/ Balance Option.

P.C.Sharma...

Performance of Birla Frontline Equity is GOOD

Birla Midcap is OK but IDFC Premier Equity/ Small & Midcap Equity Fund is Better Option.

Performance of HSBC Equity Fund is not Consistant.Switch to HDFC Top 200 Fund.

Franklin PRIMA PLUS is OK.But DSPBR Equity
is Better option.

Bencmark VIP is Excellent Choice.

P.C.Sharma...

If you want better returns ,you can not get from safe Options.

If you are willing to take calculated RISK, in short Term(Negligible Risk in long Term)you may opt for Following Options.

Invest money in HDFC High Interest Fund Short Term Plan

Apply for STP(Systematic Transfer Plan) from this Fund to HDFC PRUDENCE Fund (Balance Fund)so that full money is Transferred in this Fund in 1 year or 2 years.

Apply for SWP ( Systematic Withdrawl Plan)
after STP is Completed, to recieve FIXED Amount per month on Pre-determined date.
Apply for Approx. 1% of Invested amount per month as SWP.

P.C.Sharma



...

Dear Sunil,

Answers of most of your Question are already posted in my comments.

Following Funds have given Better Returns in Past.

In 1-2 years you may or may not get desired Returns.If your Time is Flexible, Invest by SIP & if your money grows by 15% or so,Switch to Short Term Funds/Liquid Funds.

DSPBR Balance Fund
HDFC Prudence
Birla Sunlife-95
Reliance Regular Savings Fund Balance

P.C.Sharma...

IRDA has already issued Guidelines & some Insurance Companies have started new ULIPS with lesser Charges.

HDFC has Launched HDFC Youngstar SUPER with Following Allocation Charges.

1st year = 15%
2nd year = 10%
3rd year = 5%
4th year Ownwards = 3%

Reliance had Launched Reliance Premier Life
with Following Allocation Charges.

1st year = 6%
2nd year Ownwards = ZERO

You may wait & compare the Charges & then take ULIP which gives Maximum Cover with Minimum Premium.

P.C.Sharma




...

Dear MILAN,

You may change Asset Allocation to 50-50
& review it from Time to Time.

DONT Invest in KVP. Invest in some Better Managed DEBT Fund like

- Birla Dynamic Bond Fund
- HDFC Short Term Fund
- Reliance Short Term Fund


Switch from UTI Mastershare Fund to UTI Opportunity Fund.

Ther is no need for Index Fund if you are an INFORMED Investor & willing to actively Monitor your Investments & take Appropriate
Actions / Rebalancing from Time to Time.


Sundaram Select Focus Fund to Birla Frontline Equity

Best Wishes,

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...

GROWTH of Some Better Performing GILT Funds have been 20-30% during last
3 months with Annual Growth being
25-40 % in last 1 year.

Thhese Funds may not give similar Returns in Future. If somebody wants 12-15% returns ( without Stock Market RISK)in NEXT 1 year, INVESTMENTS in BETTER PERFORMING GILT /BOND Funds may be GOOD OPTION. There is no Entry Load. If Redeemed before 1 year Exit Load of APP.1% may be Deducted.

GILT Funds are related INVERSELY with INTEREST RATES. If Interest Rates start Going up after 1 year, Returns of GILT/BOND Funds may go DOWN to 4-5%.

Investors need to Monitor the GROWTH of GILT Funds & INTEREST RATES Scenario & Reddem Compulsorily as & when Interest Rates start Going up or Returns become Lower.

Having Said this, Returns of EQUITY Funds are Expected to be BETTER in Longer Term.

Performance of some Funds has been very GOOD.

CANARA Robeco Gilt Fund
DWS GILT Fund
ICICI PRU GILT Fund Investment Plan
UTI GILT Opportunities Plan

Birla Sunlife Dynamic Bond Fund
IDFC ALL Season Bond Fund
KOTAK Bond Fund

P.C.Sharma
...