Mutual Fund Basics

[kpp]

Originally Posted by dranalyzer

the market is scaling new heights virtually on day to day basis.

to make your money grow market is the best option but you have to be an expert of the trade so it is better to make your investments in MF's.

Cos your money will be invested by the experts on your behalf.

Mr Balaji has given a very good understanding of MF's

Nicely explained in above replies.

I want to know can we invest in ELSS with SIP option for tax rebate.
Can we invest in existing ELSS schemes or we have to wait for new ELSS schemes.

[pnbalaji]

Dear KPP,

You could invest in any ELSS schemes with SIP option irrespective of whether it is old or new.

As a start, you could go for "Fidelity tax advantage fund" which was launched a month or two before. Also it is better to go for "Dividend Reinvestment" option.

Tax rebate will be applicable for the amount that you have invested upto the financial year end. For ex, if you start investing 3000 Rs per month from November onwards, you would have invested Rs 15,000 by the Financial year end and this 15,000 Rs can be shown for tax rebate.

Hope this helps.

Thanks,
Balaji.

[kpp]

Thanks Balaji,

Regards,
KPP

[rajpalmanish]

Hi,

How would u rate of risk in mutual funds out of 100.

I mean, if u invest in mutual fund 100 times, how many times you would have chance to get profit.

Also, please let me know is it a good time to invest in mutual funds.

[pnbalaji]

Hi,

I would say the oppurtunities of getting profits in mutual funds will above 80%.

There is no good time to enter into mutual funds if you go in for the option of SIP. However, if you are going to purchase one time, better go for investing during some correction period in the stock market.

Thanks,
Balaji.

[rajpalmanish]

Hi,

Thanks for the response. As you said that I should wait for some correction for One time investment, but do u think there will be a correction in the market as market seems to growing very fast.

[pnbalaji]

Not sure when there will be a correction phase in the market. But usually after a new high sensex point, usually there will be a correction. We could expect a correction once the sensex reaches 12,000. If not, it will be there only after 15,000.

Thanks,
Balaji.

[master]

Hi,

I am new for this forum. I have read some of discussion. It's seriously very interesting. I need ur expert help for how to read and see different research reports on Mutual Fund, Equity, Finance market. Please explain me.

Thanks

[pnbalaji]

As I mentioned before, after reaching a high of 12612, we are now in a correction period. But really I did not expect this much steep. Media played well in this case which has wiped off almost everything from small investors.

Master: You could use the site moneycontrol.com for any kind of mutualfund information.

Thanks,
Balaji.

[arunuj]

Other sites worth mentioning for MFs

http://www.valueresearchonline.com/
and
http://www.mutualfundsindia.com/

You could find lots of information there.