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Chat Transcript

02 Dec - 10:00 hrs

Hemant Rustagi | CEO, Wiseinvest Advisors


What kind of fund one should invest now?

Chat Transcript

guest: Sir i want to invest in 4 different Mf for coming 10 years. 1000 Rs SIP per month in each MF so kindly suggest me in which Mf i can invest so i can get good benefit (Growth)
Hemant Rustagi: Investing thru SIP is an ideal way to accumulate a corpus over your defined time horizon..Since you intend to invest for 10 years you can invest in well diversified equity funds..However, don`t have too many funds in the portfolio as it makes it difficult to monitor their progress. For an investment of Rs.4000 pm, you can invest in two funds i.e. HDFC equity and Reliance equity opportunity fund.
guest: Sir, I have 3 SIPs at present a) SBIMF Emerging business fund b)SBIMF FMCG fund and c) SBIMF Bluechip fund. I want to do one more SIP of Rs 2000/- per month for any other fund. Will you please advise where should I invest. Awaiting for your response. Regards, Kabita Behera
Hemant Rustagi: Out of three funds in your portfolio, two funds i.e. SBI Emerging business and SBI FMCG are aggressive funds..You can opt for SBI MId-cap fund in place of SBI Emerging business fund and for additional amount opt for a fund like HDFC Top 200 or Birla Frontline equity fund.
guest: I plan invest in MF through SIP for next 5 years with every year 1 lac each, please suggest best schemes which can get me the best return.
Hemant Rustagi: The best schemes are those that suit your requirement and have a consistent performance track record. To ensure suitability you must first decide on your time horizon..If you intend to invest for the long-term say atleast 5 years or more, you can either opt for balanced fund or equity funds. In the balanced fund category you can consider funds like HDFC Prudence and ICICI Pru Balanced fund.
guest: After such a heavy rally is it advisable to invest in equity mutual funds or go for mix of equity and debt?
Hemant Rustagi: investing in mutual funds looking at the market moods is never a great idea..The right way to invest is to first decide your asset allocation based on your objective and time horizon..For long-term investing systematically in equity funds can get your very good returns..for an objective that needs to be achieved in medium term, balanced funds would be apt.
guest: I had till not invested in Mutual fund. I had no knowledge which, Where and How I should purchase MF. I want to invest min. Rs.50000.00 per year. please advice me.
Hemant Rustagi: Mutual funds are a great option for investment as they allow you to invest in different asset classes in a very simple manner.Moreover, you have the option to select from a variety of funds in each of the asset classes like debt, equity and gold. To decide your asset allocation you must consider your time horizon as that allows you to decide whether to focus on safety of capital or beating inflation.
guest: hi sir, i want to invest each month RS 2000. where i invest in the market. please suggest best schemes which can get me the best return.
Hemant Rustagi: Investing systematically is a great idea as it brings in a discipline in your investment process.However, it is equally important to choose the right funds based on your risk profile and time horizon. If you intend to invest for the long term, opt for investing thru SIP in funds like Reliance equity opportunity and ICICI Pru Focused bluechip fund.
guest: sir at present i have two sips of rs 2000 each in dspbr & reliance mf ,since oct 2010 both have given good returns fro the fourth year onwards.please advice whether to continue further or to take an exit
Hemant Rustagi: Investors are often faced with the dilemma of whether to continue in a fund or exit..more so during the periods when the markets are doing well.. this happens primarily because when you invest without a clearly defined time horizon you find it difficult to decide what to do..Therefore, if you do not require this money for say another few years, there is no need to exit..Of course, it is always important to monitor your portfolio regularly to make sure that non-performing funds are weeded out..
guest: Whats the future of fundz like "Pramerica Dynamic Asset Allocation Fund - Gr".. I have been investing 1K everymonth in it and have received a CAGR of 12.7% Should I move out and put my investment in fundz like HDFC Top 200 (currently investing 4K in it per month)..
Hemant Rustagi: Pramerica Dynamic asset allocation fund is a hybrid fund that invest in a combination of debt and equity.Such fund are a good option for those investors who can not decide asset allocation on their own..however, it is also important to not compare their performance with equity oriented funds..No doubt, equity funds can giver better returns at times but there would be attendant risks too.So, you must decide based on your risk appetite and time horizon.
guest: As a new joiner, kindly suggest some MF with good returns in short period of time.
Hemant Rustagi: Since you are a new investor, if you have a time horizon of at least one year, you can opt for equity savings schemes like Kotak equity savings schemes and JP Morgan equity savings scheme. These funds invest in a combination of debt, arbitrage and equity in such a manner that invest in equity ad arbitrage is more than 65 percent so it is treated as equity fund for tax purposes..Besides, a restricted exposure to equity makes them a good option for new investors.
guest: Sir, I am mutual fund investor and I have invested my money in different mutual fund houses. My funds are performing good and giving excellent return to me. At present can I book my profit? (Anil Rihani)
Hemant Rustagi: You should be happy that your funds are performing well..this is what every investor wants..god performance should not cause any anxiety to you..however, to ensure that it doesn`t happen keep your focus on your goals and time horizon..If you time on hand, not only should you hold these funds but also you must continue your investment process..However, keep an eye on the performance of your funds..
Hemant Rustagi: If you have to rethink on your selection within 6 months, it is an indication that you did not do home work before deciding to invest in these funds..It is important to select your fund carefully based on suitability, performance and consistency..Moreover, always avoid investing in too many funds..For an investment of Rs.6000 om, you shouldn`t have more than 3 funds which could be HDFC equity, BSL 95 and ICICI Top 100.
guest: Hello sir, I invested 10 lakhs in Birla Sun Life – G and 4 lakhs in ICICI Prudential Dynamic - G in July this year. I have approx. 22 lakhs to invest. What funds should I invest in? I am looking with a long term outlook. I can see that small and mid-cap funds are doing better than large cap. What is your opinion on this? Below are 2 funds I have identified to split 11 lakhs into each - Franklin (I) Smaller Cos (G) and Reliance Tax Saver (ELSS) Fund (G). what are your other suggestions? Thanks
Hemant Rustagi: for along-term investor it is always a good idea to have exposure to quality mid-cap funds..However, the bread and butter of the portfolio should be large cap and large cap oriented funds..You an consider funds like Reliance equity opportunity fund and Franklin Smaller companies fund..Reliance Tax Saver is an ELSS and hence invest in if you have to invest for saving taxes.
guest: Good morning sir I want to invest rs 1000 per month in mutual funds for my child education I need rs 2000000 my age is 37 my child age is 9 months
Hemant Rustagi: For a time horizon of say 10 years, to accumulate a corpus of Rs.20 lacs at an assumed annualized return of 12 percent, you need to invest Rs.10,000 pm..You can invest in funds like Birla Frontline equity fund, Religare Invesco contra fund and HDFC top 200 fund.
parora0207: Hi Sir, I am having the SIP in 4 fund like: HDFC Top 200, IDFC Premier Equity, BSL frontline Equity and Axis Long Term Equity Fund-ELSS of Total Rs.-9,000/- Please suggest can I continue with all these fund or I have to do some changes? Also please suggest the better fund for invest in one diversify and one balance fund each of Rs.-2,000/- thru SIP?
Hemant Rustagi: These are all quality funds and hence you can continue with them..You can consider HDFC Prudence as a balanced fund and Reliance equity opportunity fund as a diversified fund.
sunjeev72014: Is it right time to invest in Debt funds
Hemant Rustagi: Although debt funs will benefit when the rate cut happens as there is an inverse relationship between interest rates and bond prices, it is important to understand that if the rate cut doesn`t happens or doesn`t happen in the manner being envisaged by the market, you may to face volatility..so be carefully while selecting the fund.