Help in selecting mutual funds

[surfingminds]

I would always suggest you to have your own decisions based on the data you are collecting so please do your own home work rather just ralying on any body

[AmoghG]

And yet you start a thread asking for queries where to invest!

[MFadvisor]

Yes Diversifying into different asset class such as Equity , Debt , Gold and Real Estate would be ideal but for small investor to monitor and execute such thing it becomes way to complex for individual investor. so the next best is to Diversify within Mutual Funds category. Mainly large cap, midcap, oppurtunity fund and balanced fund.

Its a well known fact that over long term Equity gives you much better returns then any other Asset Class.

[MEHBOOB]

Buy 532608 dchl @ 209 tgt 257 in short term

[Haridass]

buy ifci,bob,uco bank for good return

[Vicky78]

Originally Posted by MFadvisor

Yes Diversifying into different asset class such as Equity , Debt , Gold and Real Estate would be ideal but for small investor to monitor and execute such thing it becomes way to complex for individual investor. so the next best is to Diversify within Mutual Funds category. Mainly large cap, midcap, oppurtunity fund and balanced fund.

Its a well known fact that over long term Equity gives you much better returns then any other Asset Class.

Honestly whats the use of a balanced fund?

You can get better results of investing in a exisiting diversified equity fund and a existing debt fund.

Opputunities fund are very volatile and they all have been average perfomers, with the exception of ABN Ambro oppurtunities fund, all other opportunities funds have not beaten their diversified equity funds in their own fund house.

DSP ML Opportunies VS DSP ML Equity Fund
Franklin India Opportunities VS Franklin Prima Plus

If you take a look at the performance of ABN Ambro oppurtunities fund, a small sneeze in the stock market, this fund drops to very high negative returns. Its 2 year return is 43%, which is what many diversified funds achieved.

IMO, the performance does not justify the risk these opportunities funds take.

[Vicky78]

Reliance Growth has lost its aggression sitting on a huge funds size.

In the past 2 years there is nothing great about HDFC Equity. Its 2 year return is as good as an index fund (that would track the sensex).

[oxusmorouz]

Originally Posted by MFadvisor

Yes Diversifying into different asset class such as Equity , Debt , Gold and Real Estate would be ideal but for small investor to monitor and execute such thing it becomes way to complex for individual investor. so the next best is to Diversify within Mutual Funds category. Mainly large cap, midcap, oppurtunity fund and balanced fund.

If an investor is planning to diversify into different mutual funds, it would be advisable to go in for a "Fund of Funds" kind of investment rather than invest individually in different mutual funds, thus increasing the slippages and transaction costs.

Originally Posted by MFadvisor

Its a well known fact that over long term Equity gives you much better returns then any other Asset Class.

Well, the reason why newspapers claim that equities have given the highest yield is because of the lack of awareness of alternative investment avenues. Would I prefer an investment in a well diversified and well managed venture capital or a mezzanine financing company over an aggressive equity based mutual fund? I doubt it. If I keep a part of my portfolio for aggressive growth, might as well justify that term. Also, we ignore other investment avenues such as junk bonds, distressed securities, and hedge funds. The problem with our Indian investment scenario is the lack of publically available alternatives which restrict the flow of savings to mutual funds, fixed deposits, PPFs and occasionally, equity or debt.

[Vicky78]

Fund of funds has a higher cost as the expense is paid on the FOF and the fund it holds. Correct me if i am wrong but all FOF invest in there own fund house. So that loses the potential of maximizing returns.

[ranj_2k]

you are very right.