MF Investment Help

A New Commer - Pls Guide

Posted by : ashalanshu

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Dear friend, as u r now member of MMB, One thing is sure, u 'll get valuable advise about ur investments. A lot of us have no access to so called quality advisers, That's why we joined here @ MMB.

It is good on ur part that u r learning from ur mistakes & at the same time r ready to rectify the same. My dear friend if u r for long term say 10-15 years, don't fret much over current downturn of ur portfolio. Over the period, ur losses 'll be wiped out & there 'll be a lot of positive portfolio, but do remember to readjust & rebalance ur portfolio.

happy investing

Thanks

Ashal...

In reply to:

A New Commer - Pls Guide

Posted by : Guest

Dear ashalanshu,

Thanks for the reply. The fact is, i am an NRI so I get very less time to be in India to apply for funds and manage my portfolio fully. Now I have started correcting my mistakes to decrease the number of MF's. I have no MG agent who guides me.

I am not beating bank FD but what i think is to receive atleast minimum returns what bank pays. I don't want few years to go by in loss. I think this comes out from the fact that I have less experience and am in the fund market for very less time. I am correcting my mistakes. I want to enter Debt funds to protect the portfolio going downside.

I have sips of reliance equity opp,fra

Posted by : pcspune

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Dear Live wire,

You may Discontinue SIP in Following Funds & Switch the Existing amount to Better Performing Funds.

Reliance Equity Opportunity
Franklin India Opportunity Fund

You May also Redeem Principal Equity Fund



Following Funds can be Considered for SIP or L.S. Investment.

Reliance Regular Saving Fund Equity
Templeton India Equity Income Fund
DWS Alpha Equity Fund/Investment Opportunity Fund
DSPML Equity / Top 100 Fund


P.C.Sharma


...

In reply to:

I have sips of reliance equity opp,fra

Posted by : Live wire

dear sir ,
I have sips of icici infrastructure fund, reliance equity opp, franklin india opp fund and also lumpsum investments in principal equity &uti infrastructure.plus i want to make new sips &lumpsum investment in mutual fund should i stick on my old mutual funds or canu recommend mesome better performing mutual funds , iamalso looking to exit from some of my old mutual funds kindly advice as i ma having losses in my investment right now

MF Diversification

Posted by : pradesh

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Ranjan ji,

Thanks for reply. I occasionally visit valueresearch, now I will do it regularly. ...

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MF Diversification

Posted by : RANJAN

Look at the returns for a period of say last 3 years and last 5 years.
Compare it with the benchmark returns. Easiest way is to see the ratings of the fund. If value research ratings of the fund is 5* or 4*
- continue to invest via SIP in the fund. Otherwise you can start SIP in a better rated fund.

MF Diversification

Posted by : RANJAN

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Look at the returns for a period of say last 3 years and last 5 years.
Compare it with the benchmark returns. Easiest way is to see the ratings of the fund. If value research ratings of the fund is 5* or 4*
- continue to invest via SIP in the fund. Otherwise you can start SIP in a better rated fund. ...

In reply to:

MF Diversification

Posted by : pradesh

Dear Ranjan ji,

I often read on this board that one should review the performance of the fund in which one has invested. Will you please tell me a couple of parameters (to start with) which are important in such review so that I can start thinking on them. Regards,

MF Diversification

Posted by : pradesh

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Dear Ranjan ji,

I often read on this board that one should review the performance of the fund in which one has invested. Will you please tell me a couple of parameters (to start with) which are important in such review so that I can start thinking on them. Regards,...

In reply to:

MF Diversification

Posted by : RANJAN

Investing in mutual funds gives you diversification as compared to stocks. So risk gets reduced. Investing in too many funds - does not reduce risk - it increases risk. Ultimately what matters is your net returns. What you can achieve with 6-8 funds - why do you want to invest in 20 or more funds? If you do so - what happens is - some funds will do well - most other funds will perform below average - your net returns will come down. Some funds invest major portion in other markets. Such funds are treated like debt funds - when it comes to tax consideration. So be aware of the tax implications. Unless you have sufficient experience in Indian market - better to avoid such funds.

New to investing: Opt for diversified equity funds

Posted by : meshmaker

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Mr. Dhirendra Kumar is quite right But what is ur opinion about fund size for Diversified Equity Fund ...

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New to investing: Opt for diversified equity funds

Posted by : MMB Messenger

Dhirendra Kumar of valuereaserachonline.com feels a good diversified equity fund is the best way to get started for investors looking at regular investing for three years and beyond.

Posted by : Guest

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fund house&fund manager...

Switching charges enquiry

Posted by : Guest

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Please advise if there are any charges for switching from one equity fund to another within the same AMC. I want to switch hdfc equity having current value of Rs 1200000/- to hdfc top 200 which too has ivestment of Rs 700000/- with monthly Rs 3000/- sip. Please note I do have other AMC funds in my portfolio....

how to get

Posted by : dsvas

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Thank you for the information given by you, another information regarding which is the best mutual fund.i saw different sites and and different books stated that no one cannot say that same scheme is the best one.how can i judge that it is the best fund.i think that i can take my own dession in selection of scheme(not the adivce of the agentt). what are the parameters taken in consideration, i konw little about 1)fund managers prformance(how can i know)2)fund size 3)nav there are some parameters which i don't know if you know please convey to me....

In reply to:

how to get

Posted by : RANJAN

Equity is for the long term. Do not judge any fund in the short term.
To make money in mutual funds - you require patience. Keep investing in good rated funds ( value research- 4* or 5*). If markets are down it is better for you. If your horizon is 5 years or more - start worrying only in the 4th year. Till then be happy - you are getting more units. SIP is an ideal way to invest especially in a volatile market.

Tax on withdrawals from ULIP

Posted by : ashalanshu

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Dear pralhad, First of all if it is possible, contact ur ins. company & ask to increase the Sum assured. by that much amount that ur prem. comes below the limit of 20% rule.

If it is not possible, don't worry, ur case is boarderline case. as ur prem. were 21% only calculate ur fund value on a split of 20+1%. The fund value u get as major part 'll be tax free & only the fund value u get from ur 1% excess prem. 'll be get added to ur taxable income from other sources in the year of receipt.

detailed calculation can be made if u post detailed data.

Thanks

Ashal...

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Tax on withdrawals from ULIP

Posted by : Pralhad

Dear boarders,
need your views on this. I paid premium which was around 21% of the sume assured. I have done this for 4 yrs now, monthly. It started in Aug 2004.
I want to withdraw the amount but understand the amount will get added to my taxable income. I'm a NRI and investments were done from my NRE A/C on ECS.
1)Is there any way to avoid this taxation?
2)I was advised by a reputed firm to go with this investment. Is there a place to complain this wrong adise and get compensated?
Best regards,
Prahlad.

Mutual Funds

Posted by : pyaraharsh

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Hi ronniethedevil,

Your all investments are in thematic funds, and general guideline for investment in current senario is go for well diversified large cap fund. In my opinion do the following:

1. Reliance Growth Fund : Continue with it as it has well proven past records, and a mid cap fund

2. Reliance Pharma Fund : Switch to either HDFC Top 200 or HSBC Eqity fund, both are large cap funds

3. Reliance Vision Fund : This is good fund but from some time not having good performance, so switch to Reliance Regular Saving Fund Equity option

4. Reliance Media and Entertainment Fund : Switch to DWS Inv Opp Fund (Prefered) or Kotak Opp.

5. Reliance Diversified Power Sector Fund : Good fund but you can decrease some amount and invest in some large cap funds

Above is just my opinion, do your own research before taking any action and all the best ......

In reply to:

Mutual Funds

Posted by : ronniethedevil

I am currently investing month SIP of Rs. 1000 each Reliance Growth Fund, Reliance Pharma Fund and Reliance Vision Fund. In addition to that I have an SIP of Rs. 1500 in Reliance Diversified Power Sector Fund and Rs. 500 in Reliance Media and Entertainment Fund. Plus I have done lumpsum investment in SBI Magnum Contra Fund, HDFC Equity Fund and HDFC Top 200 about a year back. What should I do with the lumpsum investments I have made, should I hold or switch to other schemes since the returns have not been good.

Mutual Funds

Posted by : ashalanshu

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Dear ronniethedevil, Out of ur Lump sum investment, in HDFC Eq., HDFC Top 200 & SBI Mag. Contra, Only HDFC Eq. is the fund whose performance is lagging for almost 2 years. But at the same time, It is the same fund which has withstand the current market fall fairly well in comparison to others. So At present juncture kindly hold ur investments.

For ur SIPs, there r 2 danger signs.
1. All sips r with a single AMC, hence it needs diversification.
2. Out of total SIP amount of 5K, u r investing 3K (60%) in different sectoral/thematic funds. Such high concentration of sectoral/them. fund should be avoided for a healthy portfolio.

My advise \\`ll be to rezig ur SIPs as below.
1. Rel. Gr. - continue
2. Rel. Vision - replace it with HDFC Top 200
3. REl. Pharma fund - In recent times, pharma sector is a defensive bet so u may continue it at present
4. Rel. Diversified Power - Replace it with DSP ML Top 100, a top quality large cap fund which also has some exposure to power sector
5. Rel. media - for 500 rs. per month, u may invest this sip in Sund. select Focus, again a top class large cap fund.

Thanks

Ashal ...

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Mutual Funds

Posted by : ronniethedevil

I am currently investing month SIP of Rs. 1000 each Reliance Growth Fund, Reliance Pharma Fund and Reliance Vision Fund. In addition to that I have an SIP of Rs. 1500 in Reliance Diversified Power Sector Fund and Rs. 500 in Reliance Media and Entertainment Fund. Plus I have done lumpsum investment in SBI Magnum Contra Fund, HDFC Equity Fund and HDFC Top 200 about a year back. What should I do with the lumpsum investments I have made, should I hold or switch to other schemes since the returns have not been good.

I have sips of reliance equity opp,fra

Posted by : kentmss

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Dear LiveWire,
Unfortunately, all your funds are "Below Average" Category and are underperformers. You seem to love Infrastructure and overexposed your investments to these funds. Continue in ICICI Infrastructure Fund only if you intend to stay invested for at least 5 years.
Switch out from Reliance Equity Opportunity to Reliance Growth fund
Switch out from Franklin India Opportunity Fund to Franklin Equity Income Fund
Stay invested in Prinicipal Equity for now
Switch from UTI Infra to UTI leadership, as you already have ICICI Infra.

Your portfolio lacks Good Diversified Equity funds as well as Large Cap funds.
Take a look at the following funds and add them as and when possible,
Birla Sunlife Equity Fund
Birla Sunlife Frontline Equtiy Fund
DSPML Top 100 Fund
DWS OPportunity Fund
Fidelity Equity Fund
HDFC Prudence Fund
JM Contra Fund
HSBC Equity Fund
Mirae India Asset Opportunity Fund
Sundaram Select Focus Fund

Kindly invest via Sip and always take advice of well intentioned and well informed persons before commiting your money into any funds.
Best of luck,
Srikanth shankar Matrubai...

In reply to:

I have sips of reliance equity opp,fra

Posted by : Live wire

dear sir ,
I have sips of icici infrastructure fund, reliance equity opp, franklin india opp fund and also lumpsum investments in principal equity &uti infrastructure.plus i want to make new sips &lumpsum investment in mutual fund should i stick on my old mutual funds or canu recommend mesome better performing mutual funds , iamalso looking to exit from some of my old mutual funds kindly advice as i ma having losses in my investment right now

how to get

Posted by : RANJAN

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Equity is for the long term. Do not judge any fund in the short term.
To make money in mutual funds - you require patience. Keep investing in good rated funds ( value research- 4* or 5*). If markets are down it is better for you. If your horizon is 5 years or more - start worrying only in the 4th year. Till then be happy - you are getting more units. SIP is an ideal way to invest especially in a volatile market. ...

In reply to:

how to get

Posted by : dsvas

how to get good returns in a volatile markets through mutual funds. i put 2 sips from 2 fund houses one is sbi comma fund for 1 year and sundaram select focus for 10 months. their navs are down trend from begining. everyone say you get lot of units.if the market got into bullish you got good returns.this is only the benefit or if any can anyone say about that.

MF Diversification

Posted by : RANJAN

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Investing in mutual funds gives you diversification as compared to stocks. So risk gets reduced. Investing in too many funds - does not reduce risk - it increases risk. Ultimately what matters is your net returns. What you can achieve with 6-8 funds - why do you want to invest in 20 or more funds? If you do so - what happens is - some funds will do well - most other funds will perform below average - your net returns will come down. Some funds invest major portion in other markets. Such funds are treated like debt funds - when it comes to tax consideration. So be aware of the tax implications. Unless you have sufficient experience in Indian market - better to avoid such funds. ...

In reply to:

MF Diversification

Posted by : Guest

Dear Ashport,

Thank you very mich for the unvalueable advice.I agree with you that \"by investing in too many funds the basic pupose of diversification is lost\". But, then there are funds that invest in different stocks like there is DSPML World Gold which invest in stocks of mining companies etc and then there is Franklin Asian Equity which ivests in the Asian Markets, or funds investing in Latin American Markets. I think one should invest in these funds too to minimise the downside if the Indian market.

Thks
Zapper