MFs Advice

[manav500]

Hi Gurus,

Pls advice me abt these MFs, whether can I hold or can I come out.

1) HDFC Long Term Advantage Fund-Dividend
-Purchase of 442.546 units @45.193 on 05-jan-2006. MY investment 20000
-Loss of 56% now.

2) Sundaram BNPparibas CAPEX OPPur Funs-DIV
-500units @ 10 bought on 05-09-2005
-Loss 23% now.

3) Reliance Tax Saver DUND- Dividend
-1000units @ 10 bought on 23-08-2005
-24.41% loss now.

Your advices will be of great help.
Thanks.

 

[asheesh3337]

You had explained your portfolio but without knowing your financial goals or what was your view at the time of investment, advice given to you will be biased it is recomemded if you declare the relevent information such as what was the aim of putting your money in the said schemes? What is your age? When would you like to utilize this money?

Only thing you need to know is equities are volatile in a short run and pays a good return if holded for a longer term. For your information BSE sensex had started in 1979 with 100 points and till March 2009 it is still giving a return of 16% compounding. Mind it this period covers alll the risks national or international.

 

[manav500]

Hello Asheesh,
Thanks for reply and now to answer your questions
*aim of putting your money in the said schemes - Tax rebates and to multiply my money, atleast to the extent of 20%.
*What is your age - 33
*When would you like to utilize this money - I had set the target of 3 yrs actually. 3yrs is over now. Now after waiting for so long I am in an avg loss of 40%.

I am skeptical about further losses in this recession period. I am thinking to save atleast whatever money is left.
Thanks.

 

[pkamalesh]

Dear manav...another imposrtant thing u need to identify with ur investment in MF is...Are u looking for a income based returns, Long term financial security(retirement) or just to multiply ur money(like everyone)...In my view u should have contacted a professional advisor coz he would plan ur investment based on ur risk profile and the purpose of investment..Any ways my advice to you would be to stick to these...even if u remove this money u would be daizy about putting it back into some other fund which might be nothin but another load...Unless the markets are out and done with the slow down EFFECT there is IMHO no other way out..BUt yes if ur thinking of sweeping out the money and do trading in the cash market ..then may be u can do that..but be sure if u can manage ur money..thats the imp part of it....

Wishing u all the best bro...

 

[lonsharim]

I agree with pkamalesh. Do you have any other reasoning for opting out of these funds other than the loss? My suggestion is that if you do not have the requirement for the money currently, then let it stay there. The market is going to continue to be volatile for a while and expected to settle down after the elections. Also there is a market expectancy that Q3 and Q4 will be good quarters. Based on that, if you can wait another 12 months, you should be able to reduce your losses.

Often I see people telling that MF investments are long term and should be made with at least a 3 year horizon. For me that time period is at least 5 years especially given the massive market corrections in 2008.