Dear Guest,

For Medium to High Risk Invest 1000 P.M. Each in Following Equity Funds:

Birla Sunlife Frontline Equity Fund
DSPML Equity Fund / DSPML Balance Fund
DWS Alppha Equity Fund
HDFC Growth Fund.

For Low to Medium Risk Invest in Following

UTI Mahila UNIT Scheme( GENTS Allowed to Invest)

Low Risk with High Liquidity Invest Rs.2000 P.M. in Following Arbitrage Funds ( Expected TAX Free Returns of 8-9 % Per year if Redeemed after 1 year.


HDFC Arbitrage Opportunity Fund

SBI Arbitrage Opportunity Fund

UTI SpREAD Fund

P.C.Sharma...

Dear vvrk,

Please Read Article ' Asset Allocation : Key to Wealth Creation" in Investor India Magzine, August 2008 Page No.68-70 ( Bajaj Capital Publication Costing Rs.20/- only).

It mentions that in Long Term 91.5% Profits are on Account of Asset Allocation Strategies. ( We may not be Convinced Easily).

You need not Churn Funds Frequently but you can Read article named as ' DONT Marry Stocks". Same Applies to Mutual funds.

Fund Manager of JM Equity is not Sandeep Sabbarwal since 5-6 months.

P.C.Sharma
...

Dear vipinenatr,

You can Invest in any of Following Funds.

Reliance Growth Fund
Reliance RSF Equity Fund
DWS Alpha Equity Fund/Investment Opportunity Fund
DSPML Equity Fund

P.C.Sharma




...

Dear vvrk,

My Favourite Fund is Reliance Growth Fund Till NOW.

DSPML Equity Fund is also an EXCELLENT Fund.Other Favourite Funds are
Relaince RSF Equity, IDFC Premier Equity, DWS Investment Opportunity & HDFC GROWTH Fund.

I Expect Newly Launched Reliance Quant PLUS Fund ( Large Cap Oriented
wih Small AUM ) to be BEST Performer among Reliance Fund House in Coming year. I have started Fresh Investments in this Fund.

P.C.Sharma




...

An Article in INVESTOR INDIA Magzine(August 2008) mentions in short about
ASSET Allocation - CPPI Strategy.

It also mentions that 90% Wealth created is on account of Asset Allocation.

Can anyone throw more light on above.
Is there any book which deals about asset Allocation in Detail.

I am trying to evolve Asset Allocation Process for Mutual Funds & ULIPS Investments.

P.C.Sharma


...

Dear vvrk,

I had also Invested in JM Equity & HDFC Taxsaver but Redeemed in Dec.2007 & April 2008.

There is no need to remain invested in POOR Performing Funds if their Performance continue below Average for more than 2-3 Quarters.

Among JM Funds JM CONTRA appears to be BETTER.

Among HDFC Funds HDFC GROWTH is BETTER.

Please Discontiue Further Investment & switch to better Performing Funds.

P.C.Sharma



...

Dear cpaunwala,

Please TAKE ILLUSTRATION from Various Companies for same Insurance Cover & Same Premium & Compare the Value of Fund after 10, 15 & 20
Years.

KOTAK Smart Advantage ULIP is worse than MOST of ULIPS on Follwing COUNTS:

- Sum Assured = HALF of Term ( Max.15 Times of Annual Premium)

- In case of Premature Surrender, 1st years PREMIUM may VANISH to ZERO as well as Extra Surrender Charge.

KOTAK Head Start ( Futre Protect) is Better Option.

Compare this ULIP with HDFC Youngstar & ICICI Smartkid.

ICICI Smartkid may offer Higher Insurance Cover( 50-60 Times of Annual Premium)

Mortality Charges are Cheaper in HDFC Youngstar & Metlife Smart.

EVEN Child Plans of Reliance & SBILIFE can be Compared.

52 Free Switches make RELIANCE ULIP as GOOD Choice for WELL INFORMED
Investor.


P.C.Sharma


...

Dear Sharmaji, I will buy the magazine suggested by you. I have always believed in asset allocation strategies. This is one reason I have actually started investing in ULIPS. Just yesterday I have taken HDFC Endowment Suvidha plan. In mutual funds, the underlying portfolio of stocks keep changing. So the term -do not marry stocks- will not apply to mutual funds. That term is more specific to shares. I was holding on to the fund since it is from the same SBI Magnum team. I will consider your suggestion regarding JM Contra. Thanks, Raj...

Dear Sharmaji, To be frank, as of now I still do not have a good EXIT strategy. Have not done much thinking on how long should one wait before getting out of a fund. I do not like to churn my funds too much. I prefer staying invested and giving some time to my investments. I have stopped fresh SIP\\`s but am planning to stay invested in both JM Equity and HDFC Capital Builder for atleast another year before I decide to switch. Thanks, Raj...

I kinda guessed the favourite fund for most would be Reliance Growth....

dear p c sharma thank u very much for ur advice.............. can i prefer kotak smart advantage in which by paying premium of 10k every year i can get cover of 25 to 35 lakhs and its for 30 yrs....... in the case of khs min insurance is 15k and max term is 25 yrs.... which can be more helpful........

A question in regards to Mutual Fund schemes having insurance tied with them such as Birla Centry SIP, Kotak Smart Kid and Reliance etc. If I submit the application for these schemes directly to the AMC office will there be no entry load like normal equity mutual funds or will there be any entry load as these are special schemes? Appreciate quick response....

Yes pcspune, its best not to compare SIPs with nonSIPs.... but folks should be very rich not to want to touch the money in MFs isnt it? If i have to go seeking a loan coz my money is in MFs isnt it really a sad state of affairs then... i dont keep money for longterm anywhere coz kids want only branded clothes, only huge cars, iphone and so on etc etc.. my wallet is always empty....

Thank you so much. Since HDFC has still not confirmed SIP discontinuation, I will continue the SIP in HDFC Top 200. I will invest the money from other disconinued funds in a balanced fund. ...