Should I withdraw from SBI magnum comma fund

[sandeep729]

Hello all,

I have been investing 1000/- in SIP in SBI MAGNUM COMMA FUND (G) from Nov 2008. It has delivered me low returns compared to HDFC top200 or Reliance Growth.

I am planning to buy reliance banking fund (g) in SIP mode. please suggest if I should

---- Withdraw all the money from SBI and start an SIP of 3000/- in Reliance Banking

---- Start a 2000/- SIP in Reliance banking and continue with the 1000/- SIP simultaneously in SBI

Your valuable suggestions are needed

Investing main.......Lage Raho Munna bhai:thumb:

 

[yodlee99]

I would suggest you to increase your investments in HDFC Top 200 and slightly in Reliance Growth. These 2 are well-diversified funds giving consistent returns for years now and expected to do well in the future.
I would also suggest not to invest anymore in Magnum comma (commodities) fund or Rel Banking (sector) fund, unless you know very well about these funds or work in that industry. Most of us in this forum, have a full-time job/biz and cannot always predict any sectoral funds. It is better for a fund manager to do with a team of experts. If a sector is doing good, it would be a part of the well diversified fund like HDFC Top200. Always, invest in well diversified and well managed funds only. This would be my suggestion.

 

[xxdiesel]

Sell it. Ain't worth it. Go to www.valueresearchonline.com for Mutual Funds research and advice.

 

[seetharamank]

dear friend magnam comma fund is a sectorial fund which reacted to the metalindex fall now metal islikely to raise please add to ur holding in the longrun it will give u a verygood return seetharamank IFA

 

[seetharamank]

Sell it. Ain't worth it. Go to www.valueresearchonline.com for Mutual Funds research and advice.

dear friend i am now a days ppl quoting valueresearch.com rating as yardstick mutualfund investment is based on longterm perspective which is 5 years to 10 years horizon it website recomendations if u are young&wantto stay invested thro mutualfund route sectorialfunds are the moneyspinners comparitively seetharamank IFA

 

[yodlee99]

Its probably true that some of the sectoral funds are good money spinners. For eg, banking has been good and will continue in a growing market like ours where there is talk of financial inclusion of the rural masses which has remained untapped since independence. After a few years, the top performing sector of today will be replaced by another sector.
But, my question is: what makes you think that the fund managers doesnot invest in such sectors? They have many more experts to back them and time to research than a common man. Hence, I would always suggest investing in equity diversified funds that are managed well giving consistent returns for years now. All the best performing sectors are likely covered in it.

 

[sandeep729]

Dear all,

I have been getting mixed reactions for SBI magnum coma fund. I am still confused with taking a decision regarding withdrawal from this fund.When my investment had been 12000/-, I found the returns to be 19000/- (which was nearly 50% considering an SIP of 1000/- pm). Now my investment has been 21000/- and the returns are coming to 27000/-.

The portfolio of this fund consist mainly of metal, mining, oil & gas, chemicals with stocks like coal india, gnfc, guj minerals, ongc, reliance, hind zinc, united phosphorous being the major players.

Is this a long term player (lambi race ka ghooda) or should is this the best time to withdraw considering the market fluctuations. I can hold the fund for 3-4 years if the market looks fantastic in the metal, mining, chemical industry in the near future.

Expert advice needed plssssss.......

Happy investing

 

[asterix24]

Dear all,

I have been getting mixed reactions for SBI magnum coma fund. I am still confused with taking a decision regarding withdrawal from this fund.When my investment had been 12000/-, I found the returns to be 19000/- (which was nearly 50% considering an SIP of 1000/- pm). Now my investment has been 21000/- and the returns are coming to 27000/-.

The portfolio of this fund consist mainly of metal, mining, oil & gas, chemicals with stocks like coal india, gnfc, guj minerals, ongc, reliance, hind zinc, united phosphorous being the major players.

Is this a long term player (lambi race ka ghooda) or should is this the best time to withdraw considering the market fluctuations. I can hold the fund for 3-4 years if the market looks fantastic in the metal, mining, chemical industry in the near future.

Expert advice needed plssssss.......

Happy investing

Hi Sandeep,

Before we can suggest, let me ask you this. What is your objective out of any investment? For how long do you intend to hold? What is your current status in life (age, marital status, dependents, cash flow etc)?

The reason I am asking is because I observe that you are comparing returns after just one year. Regarding the market, I would quote an earlier statement from Yodlee: Fund managers are better adept at that and precisely for this reason, I feel Equity diversified is much better as compared to sectoral funds. If you want to invest into a specific sector, I would rather advise you to buy some good picks. For example, SESA GOA is a good performer over long term and though is facing some crisis due to restrictions in Karnataka, should be able to tide over this and give some good returns over the long run.

Happy Investing !!