Please suggest Portfolio for LT

Dear Friends,

Wish you all a happy and prosperous New Year.
I would like to seek advice from esteemed members of the forum.
I am about to receive 13-15 Lakhs from some family property sale. While I can use that money to repay my loan, I prefer to invest on a long term basis and reward myself.

The risk profile is Aggressive and risk appetite is high.
The investment time horizon is 12 to 18(or 24) months.
During last 2 years my poor strategies with smaller investments did not yield proper results, so I want to seek advice from various gurus.
The questions are
1)Is it a good idea to go for any PMServices?(many ask for min 25 lakh), if so who are good and acceept <=15lakhs.
2)Is it good to invest in Top performing mutual funds(like suggested by Valueresearch and many experts here)
3)Is it a good idea to allign my portfolio with good advisors like mahmeds,anid007 OR prabhajeet
4)Is it a better idea to keep my eggs in fundamentally strong stocks suggested by many advisors here like

Texmaco
SBI
Adaani
GMR Infra
Reliance Infra
Idea Cellular
Reliance Energy
DLF
TATA teleservices
Jai Corp
Guj Mineral
Unitech
can you suggest some Penny stocks?
Any other suggested by you,

Most important thing when is the right time to enter? and targets to exit?

I really appreciate your time for reading my post and giving your guidance.
Happy New Year to all of you!!!

Thanks,
Siva

Hi Siva,

Following are good picks to me - serial wise..

DLF
Reliance Energy
Idea Cellular
TATA teleservices
Reliance Infra
SBI
Jai Corp
GMR Infra

1)Is it a good idea to go for any PMServices?(many ask for min 25 lakh), if so who are good and acceept <=15lakhs.
I think ShareKhan offers PMS for investment of Rs. 10Lakhs, I read it on their website.

If you can monitor the market invest directly in Equity otherwise select abt 6 best performing MF's and invest in them

Regards,

I believe

CMC
TRF

True that most PMS providers require minimum 25 lakhs, also did not receive great feedback, their annualised returns results are inferior to MF results (especially when considering, capital gains tax vs tax free)

Sharekhan wants 20% of the profit anything above 15% results.

I cannot monitor on hourly basis that's why I don't want to go for Intra-day OR Short Term, Since my risk apetite is HIGH, I would like to try my luck with equities. I do have some funds aside for short term trading, but not this huge.
If I don't receive strong feedback from some other esteemed members of the forum, yes I will go for MF route.

Thanks,
Siva

Dear Siva,

In riding bull market everybody wants to make a quick buck and claims that his risk apetite is very high. I bet, tomorrow if you loose 3-4 lakhs out of these 13 lakhs, your risk apetite will come down to its lowest level with in no time.

You said you have a loan to pay, my suggestion is to pay your loan partially if not completely and rest of the money you can invest in Plots, MF's and in some bluechip shares.

People have made a lot of easy money in last few years and nowadays everybody talks about doubling the money in a week. Do not get carried away and keep realistic goals for yourself.

Siva,
Wishing you a very happy new year. My sincere advice is to pay your any pending loans in full and be debt free. That is the foremost priority and rest all comes after that only.

Invest in PPF and short term deposits (which pays at 8% for 1 year) and rest may be 3-4 lacs in stock market.

Please note that this bull run will not be lifelong and has to come to end sometime. Hence awaiting for next bull run (which is not predictable) for reaping benefit is better than closing out known debts and investing in confirmed returns (which is predictable).

Lastly I request u restrain from investing through MF/Brokers and instead pick 10 stocks (with a mix of 5 Good PSU's and 5 Good private companies) and accumulate them .

This will be helpful for ur long term plan as getting twice returns in a week are just a mirage and if it is true you need to spend sleepless 1 week before u actually see it !!!!!!

Wishing u good returns in all ur investments and hoping to see u post in 2010-2011 mentioning how your investment returns are performing?

Dear Visakk,

Your List is pretty good, it would be better if you could add The Biggie RIL in that list, even with your high risk profile I would suggest you keep at least 20% of RIL in your portfolio as it would give tremendous stability to your portfolio. You could assign 10% of your money for high risk stocks like Deccan Gold, STC and invest 1-2 % in each of these type of stocks. Keep a lookout for these type of stocks on this forum.
I would also suggest not to do short term trades in the beginning and invest only for long term, as and when you gain experience and confidence you could start with the short term. Even after more than 2 years in the markets I am still not very comfortable with short term trades without the help of the TA guys or news based movements.
It would also be beneficial for you to do as much research for the companies you want to invest in. I am a firm believer that the more time you devote for the stock markets, the more money you can make.

With Regards

Jnj

Hi Mr. Visakk,
When its your own money why do want somebody else to manage for you in the ways like PMServices. I am telling you the following from my personal experience with Sharekhan PMS.
These PMS guys initially promise you the moon through their agents. But once you give the money to them the way they answer to you is horrible. And the agent keeps on saying some nonsense or the other to do some timepass. And the people in headoffice talk as if they are IAS officers and doing a great favour to you.
The agent who promised the moon has earned some commission by making you a Bakra. And PMS guy makes some money by frequently buying and selling shares because that earns them brokerage. Remember they are doing PMS services for maximising their companies profits not your profits.
And in the end I am disclosing that out of large amount of money I invested through PMS of sharekhan. They divided into various portfolios and made a loss of 40% in Beta, gain of 5% in normal PMS. Net Net I made a loss of around 4% through them in a period of 11 months.
I Knew they did it intentionaly. Because I can't believe such big brokerage firm does not understand which way the market moves. During this same period lot of mutual funds made a gain of 100%.
I realised I that it was my mistake to be gullible and innocent and believe these sharks.
Why I am telling this to you is I don't wont you to go through same pain as I did spending sleepless nights.

My Suggestions:
----------------------------------
1.) If you can spare time have a PC and internet connection and do a lot of research and follow some forums like traderji, Moneycontrol etc. You will come across some helpful people like Jnj,Anid etc.,etc.,.etc.,.. Who are here to help people create their wealth. And also invest and continuosly learn the markets. Because in the end you are the only person who can make any call.

2) If you cannot spare time Go for some top rated and reliable mutual funds.

I hope my answer is not lengthy. But though of posting this not just for you for all those who could get into the trap laid by these PMS guys.

Thanks

Dear Nansrired

Your advice to Visakk is perfectly and 101% correct.

I have also experienced with Sharekhan. They will first see how to earn maximum brokerage out of our money.

For Visakk, the best source of investing is the best mutual funds because Mutual Fund managers manage our money in best way so that they can reduce the risk and gain maximum.

I really appreciate all the advisers here for giving sincere advice to the investers.

thanks

puduags