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Chat Transcript
30 Apr - 01:00 hrs
Suresh Sadagopan | Founder, Ladder7 Financial Advisories
SIP or lumpsum investments?
Chat Transcript
| guest: what to do if my fund is not performing? |
| Suresh Sadagopan: If you have chosen a fund that was good once and has started underperforming, you need to do the following See whether the fund is performing above or at the level of the category / benchmark. Sometimes, the fund may perform badly for sometime, only to recover after sometime. This can happen is the fund manager has taken a call that has not fructified in the short term. If the performance improves over the next two three quarters, it is fine. If it does not, you need to find if the fund manager has changed, whether they have made any fundamental change to the fund attributes or the way the fund is managed, or undue concentration in a few sectors etc. it may call for reduction / exit from the nonperforming fund. If you still have faith in the fund manager, his style of managing etc.you could hold on. Else, you should come out and invest in another performing fund. |
| srikumar1976: Hi, I am investing in ICICI Pru Focused Bluechip, Quantum Long Term eqty, SBI Emerging Business,HDFC Midcap Opportunities,SBI FMCG, SBI Pharma, ICICI Pru Bkg & Fin Services. Please guide me about my Portfolio? I want to invest in these for 5-6 years. |
| Suresh Sadagopan: Most of the schemes in your portfolio are good performers. I see that the portfolio is a bit aggressive, with midcaps and sectoral funds. This may be suited to you based on your age, risk taking ability etc. As far as sectoral funds are concerned, the exposure should be a small percentage. Better stay with diversified funds, which anyway participates in these sectors too. I would suggest that you could consider a largecap fund instead of say the banking fund. |
| gadekarparag: Hi! I am planning to invest in mid/small cap funds..should I start SIP or should I invest lumpsum amount? Also please help me to choose fund among SBI Emerging buss, I pru Discovey and Reliance Equity opportunity |
| Suresh Sadagopan: I would suggest that you look at a longer term horizon for mid & small cap schemes like 10 years. I would definitely suggest SIP as you need not time the markets. Timing the markets, as it is, does not come out right. All the three funds you have mentioned are good, performing funds and you may do well in them. I would suggest I Pru Discovery fund which has a value based investment theme |
| rsatish2013: Whats the best strategy for investing in mutual fund in the volatile marked like the current one we are facing. Is the lump sum or SIP which one u feel is better |
| Suresh Sadagopan: SIP is a very good style of investment when the markets are choppy. It does not work only in one situation, where the markets are expected to go down continuously for years. However, our economy is expected to pick up pace and perform well in future. So SIP mode of investment is one of the best ways to create wealth. |
| rsatish2013: I have invested in following through SIP in the following funds from 2 yrs 1.Fidelity equity fund 2)Fidelity global real assets 3)DSP BR Equity fund 4)DSP BR Top 100 5)Quantum Long term equity 6)IDFC premier equ planA 7)UTI Opportunites fund is my funds are on right track . Can i continue with the SIP? |
| Suresh Sadagopan: Some of the funds in the portfolio are not doing well or there are other better performers you could look at. Fidelity Equity Fund ( L&T Equity Fund ) is doing OK. DSP Equity Fund ( Multicap ) has not been doing well for several quarters. Suggest you could look at Franklin Bluechip Fund & Mirae Asset India Opp Fund ( Multicap category ). |
| subbareddykv: Hi, i am planning to invest monthly 3k in mutual fund for minimum of 5 years. please suggest me best mutual funds. currently i am investing monthly 1000 in HDFC top 200 growth fund. and my is 30. |
| Suresh Sadagopan: I would suggest that you could look at Franklin Bluechip Fund or Canara Robeco Equity Diversified Fund. I would suggest the former, if you are going to limit your investment to Rs.3,000/-. |
| marghadedk: I have HDFC prudence Fund in my portfolio.The fund is not performing well from last 2 years. Should I switch to another balance fund ? |
| Suresh Sadagopan: HDFC Prudence Fund is not such a bad performer as it appears on the surface. This fund had over 50% mid & small cap exposure, which is more volatile and had been beaten down. The fund manager has not changed, the fund attributes and the way it is being managed remains the same. I would strongly suggest that you give the fund some time. There is no need to switch now. |
| guest: What is performance of ICICI pru focused Bluechip(G) for 15 years. I am investing 2500/ per month through SI{. How much I will get? |
| Suresh Sadagopan: ICICI Focussed Bluechip was launched in 2008. It has returned 13% since launch. It has been a good perfomer since. As to how much will you get, the question is best answered by the Lord himself;) But, over the longterm, a 12% returns seems feasible. |
| guest: Hi, I want to do SIP in FMCG, Pharma and Banking sectors. which funds do you suggest, pls? is lumpsum or SIP better in these funds? kindly advise |
| Suresh Sadagopan: I would suggest that you do not go wholehog on sectoral funds. If you do, there would be points when the sector will not do well and your funds will be beaten down. I strongly suggest diversified funds. Among sectoral funds, I would prefer FMCG funds for their defensive theme. |
| guest: Whats the Asset allocation in percentage you could recommend to a person who is 37 years old and has potential to take high risks? |
| Suresh Sadagopan: An asset allocation of upto 70%in equity can be suggested, which can be brought down steadily over the years, with 40% allocation at retirement ( at 60 years ). |
| nishadbhave: Hi, Currently I`m investing in HDFC top 200 and HDFC gold fund. What is your view on these and suggest some MFs I can start SIP at current condition ? |
| Suresh Sadagopan: HDFC Top 200 Fund can be continued. Even if you are not continuing your SIP, you should keep your investments there intact. HDFC Gold Fund could be a good fund to invest, if you need gold allocation in the portfolio. Do not invest to take advantage of temporary decline in gold prices. |
| rajatpassi1: I have the following funds with me-ICICI Focused Blue chip/Franklin Blue chip/UTI opportunities/Quantum long Term Equity/Mirae Asset India Opportunities/Canara Robeco Equity Diversified/Reliance equity opportunity/Birla SL GenNext Fund/ICFC Premier Equity/SBI emerging Bisiness/HDFC Midcap/ICICI Discovery/IDFC sterling.I want to exit from 2-3 funds.PLs suggest... |
| Suresh Sadagopan: Your portfolio is packed with good performers.All funds mentioned are doing well. Why do you want to remove them. You could rather keep them and do all investments you do in future in these funds. |
