MF Investment

#1
Hi

Could you kindly guide me as to which of the following factors needs to be considered which making long term investment options (say abt 5 to 10 yrs)

1. catregory (infrastructure, large cap, hybrid, large and mid cap, multi cap, tax planning

2. Risk grade

3. Return grade

4. Net asset

5. Sectorwise

6. Ranking


When I browse through the value research website there are loads to information is available. How the person with little financial background could decide which particular fund is good.

I am highly obliged if you could throw some light and enlighten me about this subject.
 

TracerBullet

Well-Known Member
#2
Hi

Could you kindly guide me as to which of the following factors needs to be considered which making long term investment options (say abt 5 to 10 yrs)

1. catregory (infrastructure, large cap, hybrid, large and mid cap, multi cap, tax planning

2. Risk grade

3. Return grade

4. Net asset

5. Sectorwise

6. Ranking


When I browse through the value research website there are loads to information is available. How the person with little financial background could decide which particular fund is good.

I am highly obliged if you could throw some light and enlighten me about this subject.
For 5-10 years, just invest in good diversified equity funds ( and/or fund manager) with long term track record in consistently beating benchmarks accross market cycles and forget about it. Dont chase 1 year toppers, and dont invest in sector funds. Prefer investing using SIP/STP. You can add some dynamic debt funds to diversify and to have some money in case of crashes. You can also add some Midcap funds if you are ok with extra volatility.

You can just look at recommended funds by FundsIndia, morningstar. Value research ratings i think are statistics driven, they also have a MF yearly book ( ~500Rs ) that has more analyst filtered list of funds that you can buy say once in 3-5 years.

To get you started, these are some good funds

Diversified Equity
Franklin Prima Plus
HDFC Equity
BSL Frontline Equity
Reliance Equity Opp

Midcap Only
UTI Midcap
HDFC Midcap
Franklin Prima
IDFC PE

Dynamic Bonds ( Debt)
UTI dynamic Bond
BSL dynamic bond

There are many more good funds, just select 3-5 good funds and dont worry too much.
 
#3
Hi

Could you kindly guide me as to I am trying to switch from Templeton India Growth Fund to Franklin High Growth Companies Fund. Is it good.
Secondly switching from Franklin India Dynamic PE ration Fund to Franklin India Blue Chip Fund
Thirdly switching from Franklin India Index Nifty Fund to Franklin India Prima Fund Growth.

Is this a good move or any other suitable funds to switch to.

Thanks in advance for your reply.
Nitya
 

TracerBullet

Well-Known Member
#4
Hi

Could you kindly guide me as to I am trying to switch from Templeton India Growth Fund to Franklin High Growth Companies Fund. Is it good.
Secondly switching from Franklin India Dynamic PE ration Fund to Franklin India Blue Chip Fund
Thirdly switching from Franklin India Index Nifty Fund to Franklin India Prima Fund Growth.

Is this a good move or any other suitable funds to switch to.

Thanks in advance for your reply.
Nitya
All 3 are fine and you can switch - But try to understand what they are and manage your allocations. Large cap and diversified Funds well generally fall less in bear markets. Also you may consider using 2-3 Fund Houses instead of 1. ( Although franklin is very good, so no specific reason. ) Also dont invest in index funds in India.

Franklin India Blue Chip Fund is mainly largecap. Franklin India Prima Fund is midcap ( Franklin India Prima Plus is more largecap ). These funds have very long term good track record.
Franklin High Growth Companies Fund is what its name suggests - Its multicap and oriented towards possible High growth in new few years.

If you want suggestion - it depends on what you want and how long you will invest. There are many good funds, below are some options that i can think of now. You can mix between them as you see fit.

Conservative portfolio - You want minimal risk and prefer to loose less money when market falls
1) UTI Opportunities
2) Franklin India Bluechip
3) ICICI Focussed BlueChip

Conservative 2 - Slighty more diversified than above and may be more volatile but good for long term
1) UTI Equity / BSL Frontline Equity
2) Franklin India Prima Plus
3) ICICI Dynamic

Aggressive - If You believe India may grow well in next 5-10 years, and will hold for long term and manage slightly higher volatility.
1) Franklin India High Growth ( Multicap )
2) Reliance Equity Opp ( Multicap )
3) UTI Midcap
4) HDFC Midcap / Franklin Prima / IDFC PE

I also like HDFC Equity as Multicap fund although it hasnt done that well recently. But its fund manager has track record of outperformance through 20 years and many market cycles.

Use DIRECT Growth option only, use SIPs for new investments and dont stop when market falls. And read articles in sites that i gave to get more familiar with all of this ...
 
#5
Thanks very much for your detailed reply. Just I was wondering why specifically you said not to invest in index funds. What are the risks involved in it. Could you throw some more light.
Thanks in advance
regards
Nitya
 

TracerBullet

Well-Known Member
#6
Thanks very much for your detailed reply. Just I was wondering why specifically you said not to invest in index funds. What are the risks involved in it. Could you throw some more light.
Thanks in advance
regards
Nitya
Most good MF easily and consistently beat indices by a large margin over medium to long term in India. In USA indices apparently are hard to beat but for whatever reasons this is not the case in India. So instead of Nifty, which is an index of large cap stocks, prefer a large cap focussed fund ( Conservative 1 )

See for yourself in value research, they compare fund returns against its benchmark Index ( Nifty / CNX 500 etc ). There is 0 reason to invest in index funds in India.
 
#7
I am looking to invest in HDFC Mid Cap Opportunities Fund Growth with a period of 10+ years. Is it a right one. Is there any good funds in DSP Black rock or Franklin?

Thanks in advance for your reply.
Regards
Nitya
 

TracerBullet

Well-Known Member
#8
I am looking to invest in HDFC Mid Cap Opportunities Fund Growth with a period of 10+ years. Is it a right one. Is there any good funds in DSP Black rock or Franklin?

Thanks in advance for your reply.
Regards
Nitya
There is no right or wrong, We have many funds with good long term record, just select some of them. Dont put in midcap funds only, they look nice now but when market falls, they can fall more too. Also, midcaps were cheap before but not so much now so they may not outperform as much as they did last year. Still good to have atleast 1-2 if your investing for 10 years.

Franklin has prima fund for midcap, DSPBlackRock - i dont know, check in 3 sites i already gave.

Select 2-3 diversified funds and add 2 midcap funds. Using multiple Fund houses removes risk of 1 fund house underperforming. Its easy to say 10 years but when markets cracks, people sell. Market makes people sell at low and buy at high.

I already gave lots of options and links to check more. Look at sites and make your selection. No more reply unless you put some effort and give a detailed question or for something i didnt already answer.
 
#10
Hi

I have a specific query. Is using NSE NMF II platform is good for buying mutual funds? I had gone through the website. Looks very interesting. But would like to have the views / comments on use by someone who already traded.
Thanks in advance
regards
Nitya.
 

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