Mutual funds General Discussions

[mail2joshi]

Hi All,
I want to invest in MFs but only 2-3k per month
With so many mutual funds around, how to select the MFs according to my requirement ?

Is it good to invest in two different MFs rather than only in one ?

Also whome should be contact, I mean if I want to go for HDFC so where should I approch them for MFs

Thanks for any kind of help

Regards
sjoshi

[Aneeliyo]

Well, I am still new to investments but You may try the following websites, which highlights on MF and how to buy..

http://www.personalfn.com/
http://finance.indiainfo.com/

Hope it helps you.

Happy MFunding

[life2007]

Hello

I have been reading for quite some time from experts in various chats, articles etc that one should have a portfolio of maximum 5 to 6 funds.

I fail to understand the logic. Would it not be safe to invest periodically in different funds, differnt AMC, different sector and also DIFFERENT FUNDS.

Now let us say Fund ABC is peforming well these days and is on the top of the charts for the last one year. Now a person X invests some amount regularly for say 5 years. Another person also invests some amount in the same fund ABC, but also invests a part of his saving in FUND BCD which is also performing well. Which decision would be more wiser???

My only question if not cleared by the above example, why cant we invest in different type of funds (ofcourse after good research) and actually expand the portfolio to 10-15 funds and may be expanding it more in certain period) instead of just 5-6 funds ?

I am not questioning the experts ability here..... just trying to understand the underlying logic...being a new investor

Thanks

Regards

Jeet

[Vicky78]

It is good to invest in different AMCs. Based on the research each Amc would come across a few stocks that are common across portfolios of that AMC. Say if they had made a mistake in the research or process (timing) the loss might get reflects across various funds of the same fund house.

An example would be HDFC's equity fund. A strong research -oriented, process-driven fund house. Almost everybody rates this fund house as best of the best. But if you look at the 2 year track record of most funds, they have delivered mostly below average results.(with the exception of HDFC Growth)

While it is important to invest in a process driven research oriented fund house, such situations may occur when they entire funds are underperforming their benchmarks.

4 equity funds should be adequate. If invested in more than 4-5 equity funds, your portfolio we start acting like a huge index fund.

Mostly sector funds would form the top of the charts every year. Over the long term 3-5 year period, diversified funds outperform sector funds. However if investing in sector fund it should be limited to 10% of the portfolio. A better option would be to buy stocks or ipos in that sector and holding it for long periods of time.

[life2007]

Brilliant Vicky.. Thanks again... You are simply great

[Flash2talk]

Originally Posted by Vicky78

Mostly sector funds would form the top of the charts every year. Over the long term 3-5 year period, diversified funds outperform sector funds. However if investing in sector fund it should be limited to 10% of the portfolio. A better option would be to buy stocks or ipos in that sector and holding it for long periods of time.

Hello Vicky,

There is a recent trend towards Infrastructure recently.
Almost all AMC's in this line. What is your opinion on this?
Even Tata & UTI which is already having infrastructure funds; have new fund offers in the same theme and now close ended schemes.
Is it better to do investment in these Infrastructure NFO's or to go for their old open ended Infrastructure Funds

Flash2talk.blogspot

[Vicky78]

Infrastructure funds are bit broader sector funds when compared to Technology, Power, Auto, Pharma etc. Its stilghtly more risky than the plain vanilla diversified equity funs available. Still I have one fund to add agression to my portfolio.

Among all infrastructure funds DSP ML Tiger is simply the best. It has a broader mandate to invest in infrastructure and economic reforms. For example at times this fund invested in FMCG which most infra funds do not. So it is relatively safer and its 3 year track record is simply stunning. Also, as per the fund house it is the most aggressively managed fund.

After that there are existing funds too like, ICICI prud infrastructe Tata Infrastructure and UTI Infrastructure. They are all openended and a have a good track record.

Never ever go for NFOs whatever theme they maybe.

[shah_rishi]

Hi....a bit off the topic but still about growth fund.
Today rcvd an email from kotak pasted below.....pls comment on those who have had experiences with this fund or share some knowledge...thanks, Rishi.


Hello,

Continuing the success story of the ICGF series, we are now glad to present to you the 4th India Concentrated Growth Fund.


‘Concentrated’ is a stock specific approach which is indifferent to market momentum. The approach is to build a portfolio of 12-15 quality stock ideas and hold onto these ideas with a 2 year horizon. The ideas are picked after intensive research and company visits.

The track record of our earlier 3 concentrated portfolios proves that it’s an approach that works.


Fund
Launch
Redemption
Performance ( prior to profit share)

1
India Concentrated Growth Fund 1
Aug 2005
December 2006
50.78%

2
India Concentrated Growth Fund II
Sept 2006
December 2007
76.1%

3
India Concentrated Growth Fund III
Feb 2007
Not redeemed
61%


Please find attached a term sheet of the fund. Please let me know if you have any clarifications on the fund.


Warm regards,

[vicky2k7]

hi friends
i want to invest in MF'S (elss) . SO anybody can suggest the best MF's for tax saving

[drpsiva]

hi vicky2k7,there are few threads dedicated to elss in this forum.just go through them and you will have some idea.