My choice in Equity Diversified Mutual Fund

[Saurabh.Sau]

Hi,

I am new to the investment. Therefore i need your assisstance in the investment. Following are my choice. please suggest should i go ahead with that. I can take risk in investment. I have to invest 30k in Equity Diversified Mutual Fund.

1. Magnum Contra (G) -------------------------10K
2. Sundaram BNP Paribas S.M.I.L.E. Reg (G)-----10K
3. Reliance Regular Saving Fund Equity (G)------10K

Your assistance is highly solocited.
Thanks.

 

[rajeshn2007]

All are good funds. Invest for long term.

 

[Saurabh.Sau]

Thanx Rajeshn2007. I have given equal wtg to all three in terms of investment. is that OK? or doi i need to modify that?

 

[rajeshn2007]

Thanx Rajeshn2007. I have given equal wtg to all three in terms of investment. is that OK? or doi i need to modify that?

Hi saurabh,
give low wtg to contra fund, max of 20/25%. otherwise ok.
if possible you can add some more like hdfc top200, hdfc equity,dsp top100.

 

[Saurabh.Sau]

Hi saurabh,
give low wtg to contra fund, max of 20/25%. otherwise ok.
if possible you can add some more like hdfc top200, hdfc equity,dsp top100.

Thanx Rajesh ji.
But I have one query that NAV of hdfc top 200 is 162.80. hdfc equity 205 and that of dsp top 100 eqt is 81. So is it ok to go for such high NAVs. Will it give good return. I am having long term horizon. Kindly suggest.

 

[rajeshn2007]

Thanx Rajesh ji.
But I have one query that NAV of hdfc top 200 is 162.80. hdfc equity 205 and that of dsp top 100 eqt is 81. So is it ok to go for such high NAVs. Will it give good return. I am having long term horizon. Kindly suggest.

Hi Saurabh,
High nav doesn't matter, if the market goes up - nav of 10 will go upto 11, nav of 162 will go up to 178.
If your are not comfortable with high valuations, wait for a mkt correction of 20/30 % and if it comes down you can invest. SIP also good.

 

[Saurabh.Sau]

Hi Saurabh,
High nav doesn't matter, if the market goes up - nav of 10 will go upto 11, nav of 162 will go up to 178.
If your are not comfortable with high valuations, wait for a mkt correction of 20/30 % and if it comes down you can invest. SIP also good.

One more silly question but how would i kno that when market correction will occur?

 

[lonsharim]

One more silly question but how would i kno that when market correction will occur?

We are currently experiencing a correction because the valuations are deemed to be higher than ground realities.

The NAV values of your funds would go down. One of the strategies that people adopt is to buy when ever there is a dip/correction.

 

[lonsharim]

Another point I want to allude to is that the value of the NAV i.e. the number of units you purchase from a fund is irrelevant.

As a crude example, consider you invested 10,000 rupees in two identitical funds. One fund gave you 1000 units @ 10 and another gave you 100 units @ 100 rupees. Your portfolio valuation that day still stands at 20,000 rupees regardless. Buying funds that have low NAV values does not mean you are getting them a low valuation.

 

[Saurabh.Sau]

We are currently experiencing a correction because the valuations are deemed to be higher than ground realities.

The NAV values of your funds would go down. One of the strategies that people adopt is to buy when ever there is a dip/correction.

Thanx Lonsharim, Thanx a lot.
So does it means that i shd wait for some more time b4 further correction occurs?