What is your portfolio strategy?

[Vicky78]

well yoogi

But I doubt if any of these amcs really have it in them to research on mid caps and deliver on longer time duration. Take a look at the five year returns.

Magnum Contra Jul 03, 1999 68.51 1/56 Oct 05, 2007

Reliance Growth Oct 07, 1995 67.65 2/56 Oct 05, 2007

Magnum Global Sep 22, 1994 65.53 3/56 Oct 05, 2007

Sundaram BNP Paribas Select Midcap Jul 19, 2002 63.87 4/56 Oct 05, 2007

Magnum Multiplier Plus Feb 20, 1993 61.39 5/56 Oct 05, 2007

Birla Sun Life Equity Aug 27, 1998 59.90 6/56 Oct 05, 2007

DSPML Equity Fund Apr 15, 1997 59.72 7/56 Oct 05, 2007

Reliance Vision


Magnum contra (large cap) heads the list followed by 3 midcap funds magnum global sundaram midcap and reliance growth. After that it is all large caps. The difference in return is not very large just about 5%.

And another point, waiting for 6-10 years on a well performing midcap fund hads other disadvantages like swollen fund sizes. IMO, if a midcap fund crossed 2K crore it loses its aggression.

 

[yoogi]

Point taken. Thanks.

MF managers also are under constant pressure to stay on top of monthly and yearly charts if they want new funds to flow into them... Also new money (from FII or HNI) always flows into largecaps first.

So Mid cap might just end up as a diversification strategy rather than Aggression for growth..

 

[Vicky78]

So Mid cap might just end up as a diversification strategy rather than Aggression for growth..

Exactly!

 

[thakur]

PLz advice me

Hi Friends..

i am planning to invest in Open ended mutual fund for jan to dec 2008 .
After dec i want to redeem it and agian invest that money in a tax saving mutual fund for tax benefit.
what do u , think , is it right way? . As open ended can provide better return till end of the year.

Which open ended mutual funds should i invest .

Any comments from experienced friends on this will be help ful to me.

Regards
thakur

 

[mrindia]

Re: PLz advice me

You must assess your risk appetite first. Investment & tax planning can go hand in hand. 1 yr time period is too less to reap bennefits. Select some good funds, have a balanced portfolio & retain it for at least 4-5 yrs. Tax saving funds can decorate your holdings in a nice way alongwith other funds. No need to redeem all units after one yr to invest that money in ELSS.
Cheers!

 

[thakur]

Re: PLz advice me

You must assess your risk appetite first. Investment & tax planning can go hand in hand. 1 yr time period is too less to reap bennefits. Select some good funds, have a balanced portfolio & retain it for at least 4-5 yrs. Tax saving funds can decorate your holdings in a nice way alongwith other funds. No need to redeem all units after one yr to invest that money in ELSS.
Cheers!

Thankyou very much.

 

[thakur]

How can good Portfolio be created in my case..

Hi Friends ,
i do not have much knowledge about creating a gud portfolio , though i tried read regarding it , still i am not clear .
From 2007 only i started investing for tax saving purpose only.
But now i feel like investing in more funds which can give good returns and be complement to my existing funds.
Presently i have two funds
1) SBI Magnum TAX Gain growth
2) HDFC TAX saver growth
i want to invest 6k monthly in some gud open ended funds.
Which funds should i choose that make a good portfolio with my existing ones.
From this forum i have been getting good responses . thanks to all u members for your support and guidance.

Regards
Thakur

 

[mrindia]

Re: How can good Portfolio be created in my case..

Both Tax Saving funds u chose are nice. Keep investing. For investment purpose, go for SIP in DSP ML TIGER (G) & Reliance Gr.

 

[infinity_lko]

Re: How can good Portfolio be created in my case..

Good Portfolio is not created so casually. First of all, you should jot down your basic Financial Objectives; then estimate the investment/saving budget for those Goals; then use a Future Value Calculator to estimate those Financial Goals after taking Inflation into account; finally , check @ what rate of returns on your Savings/investments can take you closer to objective ! If its 8-10% then do not take any undue risk and simple open some good SIP/Recurring in Diversified Equity MFs; if its 15-20% then open SIP in some specific Sector Funds, like- Technolgy Funds, Banking Funds, Media & Entt Funds etc and also use some lump-sum investments in Bluechip Frontile Stocks ; if its more than 30% then use some properly planned Asset Allocation Style having judicious mix of Stocks, MF, Gold ETF etc. .....its not just so simple ! Plan it seriously

 

[infinity_lko]

Re: PLz advice me

If your purpose is Tax Planning, use your funds according to that only; investing in Open Ended Funds for a year and then switching to ELSS is easy to talk but difficult to achieve the desired result. Simply open a monthly SIP in any open ended ELSS according to your budget and continue the process for 3 - 5years. Get rebate on all accumulatiosn in the Financial Year and see the value after 5 years! I bet Rs 2000/- pm in a good ELSS can easily become 5 lacs plus after 5 years...past records suggest much higher than this !!