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Chat Transcript
26 Jul 2012 - 16:00hrs hrs
Jayant Pai | VP & CFP
Investing in Mutual Funds
Chat Transcript
| rishab_pruthi12: What factors to access which fund to invest in any particular category.Is past performance enough to select a fund. If not, what additional factors needs to be taken care off. |
| Jayant Pai: Factors to assess : Whether the fund is sticking to its mandate. For instance, if a fund says it is a large-cap fund it should only buy large-caps and not mid-caps. Also, every fund house has its own character - For instance aggressive fund houses will manage all funds aggressively. Choose a fund house which suits your personality. While past performance, is not the only metric, it does help in assessing a fund. |
| harbhajansingh8: i wanted to know in which MF should i invest, i have done only 1 investment till date for 1k in Gold fund of JP Morgan. I would like to invest more please advice |
| Jayant Pai: If you are a beginner, you may begin with balanced funds and then move onto equity funds after a year or so. HDFC Balanced Fund and FT India Balanced are two good options. |
| bharatjain1983: with the view of 7-10 yrs which sip is good for clients ? |
| Jayant Pai: The monthly SIP is a good option. Most others are mere gimmicks. |
| rjsharma19: i want to invest in MF . plz tell me how can i invest in MF in right way and which MF is perfect for me in a student of computer science age 25 a |
| Jayant Pai: The right way to build a portfolio is to have around 75% of your money in large-cap funds, with the balance in mid-cap funds. A few good funds are : DSP Top 100, HDFC Top 200, Franklin Bluechip and HDFC Mid-cap. Before investing, you should obtain your KYC number. |
| ashfak_1983: Hi sir, I would like to invest through SIP in MF for a period of 10 years.My aim to generate 50Lakh income.For this how much I want to invest every month through SIP and can you suggest me some good MF also to do..Thanks in advance for your time n consideration... |
| Jayant Pai: At an assumed average return of 11% p.a., you will have to invest Rs. 23000 per month in order to generate Rs/. 50 lakhs. A few good funds are : DSP Top 100, HDFC Top 200, Franklin Bluechip and HDFC Mid-cap. |
| creativegrafix: Pl. suggest best funds for a retired person with a corpus of 1.5 cr requiring about 1 lac pm |
| Jayant Pai: In case you require regular income every month, I suggest you choose bank fixed deposits and not mutual funds, as dividends are not guaranteed in any mutual fund. You could earn Rs. 1 lakh each month (pre-tax) by investing Rs. 1.50 crores in a bank fixed deposit which gives 8% interest p.a. Choose a good nationalised bank and not a co-operative bank. |
| vipinsharma0111: I want to invest 4 thousand per month please suggest me any mutual fund |
| Jayant Pai: It is not prudent to randomly give names without knowing your situation. |
| a.hemant2006: I want to invest 4-5K in a Midcap fund through SIP for 20/22 years. Already investing 7K in HDFC Midcap. Should I increase my SIP in the same fund or look for another fund house like IDFC Premier Equity or SBI Magnum Emerging fund for diversification? |
| Jayant Pai: HDFC Mid-cap is a good fund. You may add IDFC premier Equity to it. |
| nanireddi: Hi Sir, I am from UK, want to invest around 25,000 in mutual funds, already invested 5,000 in SBI FMCG Funds. Please advice how can i invest the money in mutual funds |
| Jayant Pai: As you have already invested in SBI FMCG, the process for investing in the schemes of any other fund house will not be different. As mentioned earlier, choose a fund house/scheme which suits your personality. SBI is an aggressive fund house. If you prefer a more sedate one, you may choose HDFC or Templeton. |
| bharatjain1983: sir , iwant to know if the market will go up or down from here ? is this the right time for sip in mf ? |
| Jayant Pai: There is no `right time` to start a SIP. SIPs were invented to help investors invest in a regular and disciplined manner, without being concerned about market-timing. |
| rishab_pruthi12: I am 24 years old,and have just started earning.I want to start saving, not that i really need to, but managing my money will help me grow it. MF is one of the options. As I do not have adefinite goal, what should i go with, investing 20K in kum some, or investing 4-5000 per month? What i want is return but in quest of that i dont want to loose my money. Please suggest the best course of action. |
| Jayant Pai: If you want returns without losing money, fixed income options such as bank fixed deposits, company fixed deposits or a quasi fixed-income option Fixed Maturity Plans are more suitable. |
| ajayskm: Sir I am having three SIP from Aug 2010of Rs 5000 Each 1. HDFC Premier equity (GP) 2. Reliance Equity Opartunity RGP 3. DSP BR Top 100 GP should I continue or nay change /modifiaction required plz suggest I want to continue for further 1o ~ 15 Year |
| Jayant Pai: All these three are good funds. You may continue with them. However, review the performance once every year, and redeem them if they are under-performing their respective benchmarks and their category. |
| rohan342: How mutual funds help Small investors like Me? How in recessions, Mutual Fund can make profits? |
| Jayant Pai: Mutual funds enable you to participate in equity and debt markets in a structured manner. You may not be able to do so on your own. An equity mutual fund scheme earns profits for its unitholders through the stocks that it owns. During recessions, the earnings of these stocks may be adversely affected. Consequently the stock prices too may fall. A mutual fund only reflects the prices of the portfolio therein. Hence it may happen that schemes are unable to make profits during recessions. |
