Mutual funds General Discussions

[gokulblr]

I was an NRE and I invested all my hard-earned savings into Mutual Funds last year. I wanted to start a Fixed Deposit, but my Bankers advised me to invest in Mutual Funds . On 12th of December 2007, I invested 9-Lakhs into different MF's as suggested by my agent. Unfortunately, the market started declining within a few weeks and my earnings have been reduced to less than 6-lakhs now. I was new to this field and now I an confused. My agent asks me not to withdraw the funds now, but I am not convinced. Will I ever get my money back ? Could anyone please advise.

1 Franklin India PRIMA PLUS - GROWTH : 2 Lakhs
2 SBI Magnum Comma Fund : 1 Lakh
3 DSP Merryl Lynch India T.I.G.E.R Fund : 2 Lakhs
4 Reliance Growth Fund : 2 Lakhs
5 TATA Infrastructure Fund - Growth : 2 Lakhs

[kapil123]

Originally Posted by gokulblr

I was an NRE and I invested all my hard-earned savings into Mutual Funds last year. I wanted to start a Fixed Deposit, but my Bankers advised me to invest in Mutual Funds . On 12th of December 2007, I invested 9-Lakhs into different MF's as suggested by my agent. Unfortunately, the market started declining within a few weeks and my earnings have been reduced to less than 6-lakhs now. I was new to this field and now I an confused. My agent asks me not to withdraw the funds now, but I am not convinced. Will I ever get my money back ? Could anyone please advise.

1 Franklin India PRIMA PLUS - GROWTH : 2 Lakhs
2 SBI Magnum Comma Fund : 1 Lakh
3 DSP Merryl Lynch India T.I.G.E.R Fund : 2 Lakhs
4 Reliance Growth Fund : 2 Lakhs
5 TATA Infrastructure Fund - Growth : 2 Lakhs

Mutual Funds are actually meant for people who want the exposure to the equities, but do not have time and experience to do it themselves. Mutual funds are handled by people very well versed with equity markets.

In the long term perspective, the returns from equity markets are expected to the better than the bank returns. But yes in short term there would always be negative returns.

In terms of financial planning, there should be proper allocation in your investments. A fixed %ge should be allocated to Mutual Funds and another %ge to other investments like Bank Deposits etc. This is in order to ensure capital protection to some extent and good returns from the equities. I am not sure whether this kind of financial planning was done or not. But if these investments are for long term, then there should not be much to worry about.

Another thing that I would like to mention is that one should take the SIP route for investments in mutual funds. It is best to avoid investing the whole amount in one go in equity linked mutual funds. In fact one should keep on investing on a monthly basis.

Cheers,
Kapil

[mayurkotlikar]

If you dont need that money, dont withdraw.
Why to suffer loss when you can avoid it?

2 lakh is a big amount, most of the mutual fund gurus here will suggest you to invest that amount in liquid funds and make a STP to Equity funds (as good as SIP).

I have followed that advice. The funds you have are good, so no need to panic

[gabbar.singh]

I invest in mutual funds only and can remain invested for next 5 to 10 years. I am doing SIP even though market is subdued and expected to remain so for unforeseen period.

I believe I will beat bank rate over next 5 to 10 years. My goal is very moderate i.e. beating the bank rate. Am I on right track?

[Vicky78]

Originally Posted by gokulblr

I was an NRE and I invested all my hard-earned savings into Mutual Funds last year. I wanted to start a Fixed Deposit, but my Bankers advised me to invest in Mutual Funds . On 12th of December 2007, I invested 9-Lakhs into different MF's as suggested by my agent. Unfortunately, the market started declining within a few weeks and my earnings have been reduced to less than 6-lakhs now. I was new to this field and now I an confused. My agent asks me not to withdraw the funds now, but I am not convinced. Will I ever get my money back ? Could anyone please advise.

1 Franklin India PRIMA PLUS - GROWTH : 2 Lakhs
2 SBI Magnum Comma Fund : 1 Lakh
3 DSP Merryl Lynch India T.I.G.E.R Fund : 2 Lakhs
4 Reliance Growth Fund : 2 Lakhs
5 TATA Infrastructure Fund - Growth : 2 Lakhs

Remain invested.
The fund selection is good. frankilin Prima Plus, reliance Growth & DSP ML tiger are really very good funds.

There are only 2 issues in your portfolio.
1. NO sip. Get into an SIP, so that the cost is averaged
2. Too many Infrastructure funds- Tiger, tata infra one top of it you have a sector fund - magnum comma. These make your portfolio too risky (extremely volatile) - Pick one among the three


This should make a good portfolio (aggressive). Invest in these funds via SIP. Remain invested in the rest of the funds and exit when ever appropriate.
1 Franklin Prima Plus
2. DSP ML Equity
3 DSP Merryl Lynch India T.I.G.E.R Fund
4 Reliance Growth Fund

To answer your question whether it was a mistake? No!

[Vicky78]

Yes, you can beat the bank rate. Go for SIPs irrespective of market conditions.

[gabbar.singh]

Originally Posted by Vicky78

Yes, you can beat the bank rate. Go for SIPs irrespective of market conditions.

Thanx. I go for SIP on all 4 dates or STP on weekly basis.

[swama694]

I have investments thru SIP ...and I opted for a particualr day in a month. Can I select 4 dates sothat instead of 6000Rs on a specific date, can I have 1500Rs on four different dates in a month.

[gokulblr]

How do I start a SIP now ? Do I have to withdraw the funds and re-invest to do this ?
Thanks

[pasha]

You have already put the money in, so don't withdraw anything. Just sit tight for another 2-3 months and the funds will be in profit.