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  • Jignesh Shah

    11 Oct - 03:00hrs

    SIP or Lumpsum investments?

    Jignesh Shah Registered Investment Advisor

  • Posted By: guest:

    I have started 2 SIP SBI Bluechip Fund (INR. 1000 for 5 years) DSP Blackrock fund (INR. 500 for 10 years) now i want to invest more so please guide me that where can i invest for long term for better returns.

    Posted By: Jignesh Shah

    : While you have mentioned about 2 SIP investments. First scheme is SBI Bluechip. About second scheme, we would prefer more details. DSP Blackrock would have multiple of Equity schemes. Which one you have invested is difficult to comprehend. So please provide full details. Nevertheless, as an investment philosophy, we wish to diversify across different categories and different fund-houses. So something like 2/3rd into Large Cap and Multi-cap categories and 1/3rd into Small & Mid-cap space should play out well, over longer term, in terms of risk adjusted return.

    Posted By: guest:

    I am investing by SIP 2000.00 per month in Hdfc200 M.F.since last 4years should I continue it for how long.Is this right time to Withdraw.Thanks

    Posted By: Jignesh Shah

    : We would suggest to look at investment from different perspective. What is important from longer term wealth creation perspective is TIME IN THE MARKET & NOT TIMING THE MARKET. So, unless there is very much over-weight situation in Portfolio about equity or some cash-flow requirement, there is no point of withdrawing from investments. If equity has gone over-weight in your portfolio compared to your Strategic Asset Allocation (which depends on age, investment horizon, liquidity requirement, etc. ) we suggest not to withdraw. At the same time, we would suggest to have more at least 3-4 equity funds across different categories like Multi-cap and Mid & Small cap space, th take advantage of diversification and do not restrict all your investments to only one fund.

    Posted By: guest:

    which is the best mutual funds for SIP to 7 years.

    Posted By: Jignesh Shah

    : Our standard suggestion for average risk return profiled investor is to have 1/3rd of Equity exposure in Large Cap category (Birla Frontline Equity, ICICI Focused Bluechip), 1/3rd in to Multi Cap category (Franklin Prima Plus, Kotak Select Focus) & 1/3rd in Small & Mid-cap Space (HDFC Mid-cap Opportunities, Mirae Asset Emerging Bluechip), Rest we may need to customise based on specific needs.

    Posted By: guest:

    Hi, I want to Invest Rs 5000-10000 in SIP for longterm(10yrs) for kids education, kindly suggest some good funds which can give me good returns . It can be mix of aggressive moderate type of funds.

    Posted By: Jignesh Shah

    : We appreciate your planning for longer term of 10 years. Our standard suggestion for average risk return profiled investor is to have 1/3rd of Equity exposure in Large Cap category (Birla Frontline Equity, ICICI Focused Bluechip), 1/3rd in to Multi Cap category (Franklin Prima Plus, Kotak Select Focus) & 1/3rd in Small & Mid-cap Space (HDFC Mid-cap Opportunities, Mirae Asset Emerging Bluechip), Rest we may need to customise based on specific needs.

    Posted By: guest:

    Sir, I am 61 years old retired person. I want to invest Rs.10000- per month upto 5-6 years and lump sum Rs.100000-. Please guide me whether it is right time (when market is very high) to invest in mutual fund and I will be thanksful if you suggest name of good schemes which may give good return. Thanks Sir

    Posted By: Jignesh Shah

    : Sir, at 61 years of age and retired person, definitely, safety of capital should be priority. However, fixed income only probably may not beat the inflation consistently. Equity has been proven to be the asset class which over longer period beats the inflation. So some portion of Equity (perhaps 10-20%) would be preferable. Having said that and as you have mentioned markets are really at high level. While not trying to time the market, suggestion would be to spread out your investment into Equity Funds, over span of 2-3 years, so that you tide over event of General Election in 2019. Our standard suggestion for average risk return profiled investor is to have 1/3rd of Equity exposure in Large Cap category (Birla Frontline Equity, ICICI Focused Bluechip), 1/3rd in to Multi Cap category (Franklin Prima Plus, Kotak Select Focus) & 1/3rd in Small & Mid-cap Space (HDFC Mid-cap Opportunities, Mirae Asset Emerging Bluechip), Rest we may need to customise based on specific needs. Hope this suffices.

    Posted By: guest:

    I have invested in the following funds. I want to invest more and need financial advise to pickup the right funds to invest long term. Can you please let me know what funds are good? Should i need to pick more small-cap funds or mid-cap funds. Im willing to pay for getting good financial advise.. ESGP-Axis Equity Saver Fund Growth, TSGP-Axis Long Term Equity Fund - Growth, BSL Tax Relief 96 Fund- (ELSS US 80C of IT ACT) - Dividend-Regular Plan, DSP BlackRock Tax Saver Fund - Regular Plan - Dividend, Franklin India TAXSHIELD - DIVIDEND, ICICI Prudential Long Term Equity Fund (Tax Saving) - Dividend, and SBI Magnum Tax Gain Scheme - Regular Plan - Dividend

    Posted By: Jignesh Shah

    : Sir, adding more funds where strategy or investment style or portfolio compositions are similar, will NOT add value to Risk Adjusted Return. Our standard suggestion for average risk return profiled investor is to have 1/3rd of Equity exposure in Large Cap category (Birla Frontline Equity, ICICI Focused Bluechip), 1/3rd in to Multi Cap category (Franklin Prima Plus, Kotak Select Focus) & 1/3rd in Small & Mid-cap Space (HDFC Mid-cap Opportunities, Mirae Asset Emerging Bluechip), Rest we may need to customise based on specific needs. Among the ELSS / Tax Saving schemes, we prefer Axis Long Term Equity, Birla Tax Relief 96 schemes. There is no point of over-diversifying with more schemes under same category. We prefer to have GROWTH option within Equity Funds, because under DIVIDEND option, we are afraid that money coming back to investor as DIVIDEND, may not get re-invested and might get spent. This may impact longer term return in Wealth Portfolio.

    Posted By: guest:

    I want to Invest some lump sum amount, what should I do SIP or Invest whole amount in any balanced fund?

    Posted By: Jignesh Shah

    : Sir, better strategy is to go with Strategic Asset Allocation and based on valuations of various asset classes, go tactically over-weight or under-weight. Pl note that Tactical Asset Allocation (TAA) is variation to Strategic Asset Allocation (SAA) and can NOT be extremes like 0% or 100%. Also, additional money being earned from Service or Business, which becomes investable surplus, we would suggest to invest in terms of TAA. Also, annual re-balancing will help further in achieveing Longer Term Risk adjusted Return. Extension of the same logic is if you have done your asset allocation, then you need to invest into Debt & Equity yourself, rather than leaving the same to Fund Manager through Balanced Funds. When you generate investable surplus from time to time, invest same time in proportion of TAA and same becomes systematic and periodical investments and you get benefit similar to SIP.

    Posted By: guest:

    is it good to start investing in reliance small cap fund for 10 yr.

    Posted By: Jignesh Shah

    : While last one year return of Reliance Small Cap Fund has been fabulous, return has been volatile. We prefer Franklin Smaller Companies and Mirae Asset Emerging Bluechip Funds, in same space.

    Posted By: guest:

    Shall i continue investing SIP in Kotak oppurtunities fund. Pls advise..

    Posted By: Jignesh Shah

    : While Kotak Opportunities Fund have performed equally well over various time horizons, in terms of risk-adjusted return, our preferred ones are Kotak Select Focus and Birla Equity Fund, in space of Multi-cap Equity category.

    Posted By: guest:

    In a high valuation market like the current one, what should be the correct strategy in investing mutual fund in your view?

    Posted By: Jignesh Shah

    : Sir, better strategy is to go with Strategic Asset Allocation (SAA) and based on valuations of various asset classes, go tactically over-weight or under-weight in concerned asset class. Pl note that Tactical Asset Allocation (TAA) is variation to Strategic Asset Allocation (SAA) and can NOT be extremes like 0% or 100%. Also, additional money being earned from Service or Business, which becomes investable surplus, we would suggest to invest in proportion of TAA. Also, annual re-balancing will help further in achieveing Longer Term Risk adjusted Return. When you generate investable surplus from time to time, invest same time in proportion of TAA and same becomes systematic and periodical investments and you get benefit similar to SIP, over Longer Term. What is important from longer term wealth creation perspective is TIME IN THE MARKET & NOT TIMING THE MARKET. So, unless there is very much over-weight situation in Portfolio skewed towards equity or some cash-flow requirement, there is no point of holding back from investments.

    Posted By: guest:

    Sir I have started SIP in Reliance small cap fund direct for Rs.5000 for 10 years. Is it good step.

    Posted By: Jignesh Shah

    : While last one year return of Reliance Small Cap Fund has been fabulous, return has been volatile. We prefer Franklin India Smaller Companies and Mirae Asset Emerging Bluechip Fund, in same space.

    Posted By: guest:

    I am investor in DSP Blackroack small and mid cap fund. Is it a good fund shall i continue investing?

    Posted By: Jignesh Shah

    : Now Fund Manager who used to manage DSP Micro Cap Fund is taking care of this fund as well. Changes in portfolio are in line with the earlier fund. So, gradually we would expect similar characteristics in both these funds. Also, number of stocks may come down and weight may increase. So, you may continue with this fund.Also, we would prefer Franklin Smaller Companies and Mirae Asset Emerging Bluechip Funds, in same space.

    Posted By: guest:

    I am investor in DSP Blackroack small and mid cap fund (SIP). Is it a good fund shall i continue investing?

    Posted By: Jignesh Shah

    : Now Fund Manager who used to manage DSP Micro Cap Fund is taking care of this fund as well. Changes in portfolio are in line with the earlier fund. So, gradually we would expect similar characteristics in both these funds. Also, number of stocks may come down and weight may increase. So, you may continue with this fund.Also, we would prefer Franklin Smaller Companies and Mirae Asset Emerging Bluechip Funds, in same space.

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