Please Suggest.....

#1
I am planning to invest Rs. 5000 each on quarterly basis in two of below funds.

1. DSP BlackRock Equity
2. SBI Tax Gain

Please suggest whether these two funds are good to invest. I want to remain invested in these two funds for the period of approximately 4 years. Also please suggest me another fund in case i would like to go for one more fund.
 
#2
i m investor of sbi tax gain and satisfty with it.go with reliance growth fund.ya its nav is greater than black roc eq fnd but remember always in stock mkt "size does matter" bada hai to behtar hai(if not ramlinga raju).
 

nikrod

Active Member
#3
i m investor of sbi tax gain and satisfty with it.go with reliance growth fund.ya its nav is greater than black roc eq fnd but remember always in stock mkt "size does matter" bada hai to behtar hai(if not ramlinga raju).
Reliance Growth is a Mid Cap fund and has given excellent performance over the past. But I disagree with the "bada hai to behtar hai" theme specially when it comes to Mid cap funds. If a mid cap fund with huge corpus decides to invest even 1% of the portfolio in a small company, it would affect the price of stock. Also getting out would have negative implications on that stock. Mid caps also have liquidity issues (highlighted in bear runs).

For Mid Cap funds the mid size (typically 100 to 1000) crores is good. Reliance Growth currently has asset size of 7000+ crores.

One more point is NAV does not matter in mutual funds, so you should not fray from investing in a fund because it's NAV is high.

@ajaysingh: Decision is yours. Both funds are good performers & well managed.
 

nikrod

Active Member
#4
I am planning to invest Rs. 5000 each on quarterly basis in two of below funds.

1. DSP BlackRock Equity
2. SBI Tax Gain

Please suggest whether these two funds are good to invest. I want to remain invested in these two funds for the period of approximately 4 years. Also please suggest me another fund in case i would like to go for one more fund.
I am invested in SBI Magnum Taxgain too. But my personal opinion is there are better funds in market. Magnum was once darling of industry but in last 2-3 years it's performance is nothing to cheer about. Also it's investment style has become safer and more in line with index due to rise in asset size.

Some Tax saving funds I would suggest are Sundaram Tax Saver, HDFC Tax Saver, Franklin India Taxshield & Canara Robeco Tax Saver.

HDFC & Canara Tax Savers are more aggresive while Sundaram & Franklin are safe bets.
 
#5
DSP BlackRock Eq - DSP BlackRock Equity
SBI Mag tax gain - DSP BlackRock Equity + Tax gain + Lock-in for 3 years.

Both the above funds are Diversified Equity funds. You can add a little bit of midcap focus to your portfolio - ex. Sundaram Select Midcap
 
#6
@nik sir
reliance growth fund inception date was 8 oct 1995 means is alloted unit to its nfo investor on 10rs.in these 15 years its high nav is 425(aprox).means 42 times of ur investment.as for as ur bear market scennario quote i think 1995 to 1999 was a bear mkt before ketan parikh.and since 2000to 2003 was a beear mkt.and it also see recent bear market.so the fund had see 3 bear market.although past performance is no gurantee for future but if we buy grossary item we prefer reputated shop or malla.as per u big corpus is not better but if fund manager have a lot of money he can design his game for any condition.he can average his position.so i think bada hai to behtar hai.
 

nikrod

Active Member
#7
@nik sir
reliance growth fund inception date was 8 oct 1995 means is alloted unit to its nfo investor on 10rs.in these 15 years its high nav is 425(aprox).means 42 times of ur investment.as for as ur bear market scennario quote i think 1995 to 1999 was a bear mkt before ketan parikh.and since 2000to 2003 was a beear mkt.and it also see recent bear market.so the fund had see 3 bear market.although past performance is no gurantee for future but if we buy grossary item we prefer reputated shop or malla.as per u big corpus is not better but if fund manager have a lot of money he can design his game for any condition.he can average his position.so i think bada hai to behtar hai.
One fact cannot be changed and that is amazing past performance of Reliance Growth. Cannot overlook that. Sunil Singhania has also managed the fund very competantly.

But in general investment community, the perception about the Size of Mid cap funds is that "too big is not too good". Still, I respect your views.

By the way DSPBR Equity also has impressive performance. The Performance for 5 year trailing period is 29.94% while since launch(April 1997) is 25.44% - Source: Value Research.
 
#8
dear ajaysingh.g, It is good that you have decided to invest in mutual funds. From the selection of the schemes it appears that you have two objectives in mind while investing viz:
1. Tax Planning
2. Saving for future needs.

For Tax Planning under noted funds are givin good growth:
ICICI PRU TAX PLAN, HDFC TAX SAVER, BIRLA SUNLIFE TAX RELIEF'96 AND RELIANCE AX SAVER.

For general saving below mentioned funds are giving good returns:
Reliance Growth Fund, HDFC Top 200 and Birla Sunlife Frontline Eqity Fund.

Method of investing
You have rightly selected to invest in a systematic manner. Better, make it monthy or weekly rather than quarterly. This will give you better average cost of investing and consequently will increase your growth in avolatile market. Reliance Mutua Fund is now giving option of daily Systematic Transfer Plan. This will bw still better.

WHY TO INVEST
Dear friend, you should identify the goals in your life for which you propose to save/invest eg higher education of your children, their marriage or your retirement. For this purpose I need to know about you and your family. I can prepare Financial Plan for you. If you are interested, please send your data on attached format.
 
#9
dear ajaysingh.g, It is good that you have decided to invest in mutual funds. From the selection of the schemes it appears that you have two objectives in mind while investing viz:
1. Tax Planning
2. Saving for future needs.

For Tax Planning under noted funds are givin good growth:
ICICI PRU TAX PLAN, HDFC TAX SAVER, BIRLA SUNLIFE TAX RELIEF'96 AND RELIANCE AX SAVER.

For general saving below mentioned funds are giving good returns:
Reliance Growth Fund, HDFC Top 200 and Birla Sunlife Frontline Eqity Fund.

Method of investing
You have rightly selected to invest in a systematic manner. Better, make it monthy or weekly rather than quarterly. This will give you better average cost of investing and consequently will increase your growth in avolatile market. Reliance Mutua Fund is now giving option of daily Systematic Transfer Plan. This will bw still better.

WHY TO INVEST
Dear friend, you should identify the goals in your life for which you propose to save/invest eg higher education of your children, their marriage or your retirement. For this purpose I need to know about you and your family. I can prepare Financial Plan for you. If you are interested, please send your data on attached format.
very useful information. a couple of days back Reliance Mutual Fund house came out with some exceptional schemes like Duel advantage Fixed tenure funds...any reviews on it?How it might turn out to be?how profitable and all?
by the looks of it..it looks good!
 
#10
It is adebt oriented fund and should give a growth of 10- 12% on an average. It is good for people who do not want to take risk such as retired and old people. It is better than the Bank FDs as it expectedly will give a higher growth. More so, if redeemed after one year, it will be treated as long term capital gain and benefit of taxation can also be taken. So the tax liability will be much less.
 

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