Need advice on Mutual funds selection

[jayraj]

Thanks you friends for your recommendation.

I removed HDFC Equity fund from the list.
I added some more into list and started SIP (45K/month for 12 months) on these funds. It looks like ICICI do not have weekly SIP option.

My idea is to invest 10 lacs by the end of this year 2010.

Here is my modified list of funds


Sector Fund
-----------
Reliance Pharma Fund (G) - Added based on my risk profile

Largecap
--------
Birla SL Frontline Equity -A (G)
HDFC Top 200 Fund (G)
UTI Opportunities Fund (G)
DSP-BR Equity Fund - RP (G)
DSP-BR Top 100 Equity - RP (G)

Midcap
------

ICICI Pru Discovery Fund (G)
Sundaram Select Midcap -RP (G)
Sundaram S.M.I.L.E Fund (G)


I would like to add debt fund in my portfolio. Can you suggest me a good debt fund. Is my selection of funds still good ?.

When is the right time to buy Gold ETF ?.

If you want to send me a mail directly, please send to rajkast@yahoo.com


Thank you very much.

jayraj

[vaidy9]

Hi Jairaj,

Your selections are generally good. If you are considering ELSS, consider CAN Robeco or Birla Tax Saver. One thing to remember is that after 2011, when the new Direct Taxes Code is likely to kick in, redemptions are likely to be subject to EET, l.e. exempt, exempt and taxed. This means the capital gains under growth schemes which are likley to be larger, will be taxed. Better option would be to invest in Dividend payout plans as then the capital gains on redemptions would be smaller; dividends will be tax-free in the hands of the investor under the Tax Code, provided the Dividend distribution tax is paid.

[lawrie.john]

thx jairaj...
if you really want to chose the best ... check the top 5 sites for their star performers and select the one which appears on all the 5 MF related site..with 3 yrs rocking performance...
Thats how i selected the list and all yr funds are rockers..
keep it going as you will not lose money..
1 reason i reaped profits was I pumped when the NAVs down in Mar09..besides SIPs i also add funds when ever the NAV dips..this adds value to my investment.. Just keep the alerts on rediff money and you get alerted when the price goes up or down.. i was checking for weekly as i wanted to put the SIP and forget about it...but i guess i have not choice..

happy investing...

[lokesh1212]

i wouldnt touch HDFC top-200. Its poor performer and gives poor returns. It is a large cap MF and nowdays its small/mid caps that are performing better.

[nikrod]

Originally Posted by lokesh1212

i wouldnt touch HDFC top-200. Its poor performer and gives poor returns. It is a large cap MF and nowdays its small/mid caps that are performing better.

Some Quick Statisics for HDFC Top 200

1 Year Returns - 96.76% Rank - 68/215
3 Year Returns - 13.69% Rank - 10/160
5 Year Returns - 26.80% Rank - 7/89
7 Year Returns - 38.33% Rank - 7/56

It is one of the best fund out there based on log term & consistent performance.

The fund fell by 45.35% in 2008 when most mid-small cap funds fell by 70 to 80%. Mid & Small Cap funds have greater potential for returns in booming markets but also carry more risk than large cap funds. Mid-Small cap stocks also turn illiquid in bear markets. Investors have to balance their risk profile by diversifying between large & mid cap funds.

@@lokesh1212 - Please do not make any random statements without any data to support.

[zedu]

Selection of Funds is very good. But if you are investing 10 lac in a year than you may follow this system also:-
1. Invest 8 lac in MF as selected by you, however you can add HDFC Prudence Fund also in list.
2. Remaining 2 lac invest in Large cap stock directly Say Reliance, L&T, SBI, ONGC for longer term.

[rckaushal]

Dear Financial Gurus,

Could you kindly enlighten me about the minimum age for investing in Mutual Funds in India.

Is there any minimum age?

My friend is a 16 yrs old and having PAN. He is interested in investing in Mutual Funds. Is he authorised to invest?

With thanks in advance for answering the above.

Kaushal