Questions on 1. Fund Rating 2. MF and Direct tax code

[nruharish]

Hi all,

I had two questions:

1. On fund rating - People suggest that we should stay invested for long time (horizon of 5 yrs) in MF and ask ppl to invest in funds with good ratings. However, I keep seeing that fund ratings keep changing what are we suppose to do if 5 star rated funds go down to 2 stars in an year ?
EX: I had invested in DSPML TIGER, MAGNUM Contra, JM Basic, Sundaram Tax Saver funds an year and half ago (all were 5 star funds at that time). Now the star ratings have gone down and ppl are suggesting me to sell these funds. What am i suppose to do ?

2. Direct tax code - I guess as per the current draft. Long term mutual fund gains are also going to be taxed. Hence will result in de-compounding - value research online ariticle - http://new.valueresearchonline.com/story/h2_storyView.asp?str=14771
I want to invest for really long term 10+ yrs (this will be for my retirement). Are there any funds we can think about for this ?

Thanks,
Nruharish.

 

[drsambu123]

Hi all,

I had two questions:

1. On fund rating - People suggest that we should stay invested for long time (horizon of 5 yrs) in MF and ask ppl to invest in funds with good ratings. However, I keep seeing that fund ratings keep changing what are we suppose to do if 5 star rated funds go down to 2 stars in an year ?
EX: I had invested in DSPML TIGER, MAGNUM Contra, JM Basic, Sundaram Tax Saver funds an year and half ago (all were 5 star funds at that time). Now the star ratings have gone down and ppl are suggesting me to sell these funds. What am i suppose to do ?

2. Direct tax code - I guess as per the current draft. Long term mutual fund gains are also going to be taxed. Hence will result in de-compounding - value research online ariticle - http://new.valueresearchonline.com/story/h2_storyView.asp?str=14771
I want to invest for really long term 10+ yrs (this will be for my retirement). Are there any funds we can think about for this ?

Thanks,
Nruharish.

DTC proposal is not finalised.. Things may change? Fund houses may request or do something hopefully.. But we cant guess anything until next April..

Therer are funds like Tata equity PE which has value investing style.. In fact funds PE is very low when compare with other funds and returns are comparable to other good funds.. But no gaurantee that value investing will give more return than other funds

quantum long term equity fund which has exit load for 3 years. So other investers in this fund also stay long ???.. So far returns are good... U can consider

Opinion from experts r welcome

 

[chaurasiyasanjay]

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[InvetteAlmome]

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