Creating IDEAL Portfolio

[soumyaranjanin]

better do the alpga analysis of the fund NAV with the index you will get the clear idea. whether the fund is performing correctly or not.

 

[shyamc]

Can you please elaborate on the Alpha analysis, the method and the frequency at which it should be calculated.

 

[nikrod]

Hi Nikrod,
Apologies if my opinion sounded brash. I just checked the numbers of some of these mutual funds. Some of them do better than sensex.

I used to invest in ELSS mutual fund earlier as anyways you get a 30 percent tax benefit. Simple way of picking mutual fund was to go to Moneycontrol and pick up the 3 top ranked mutual funds with 5 stars extra. The problem is what is performing great today, can go bad tomorrow. Unlike shares price, one does not keep an eye on the NAV. Anyways I have never got satisfactory returns (beating sensex), and got losses some times (sensex also fell, but this fell more).

I have been using a system of technical analysis for share investing. Stop losses are quite close at only 5-10%, so risk is small. Gains have been good as I have mentioned. And it is neither difficult nor time taking. I spend just about 10 minutes a day to decide whether/what to buy/sell tomorrow.

Why a large number of mutual fund dont beat sensex? My idea is they are very big. In crisis times they cannot sell off all their shares. That will finish of share market itself. We individuals can move quickly. Plus they have employee and dealers to pay salaries and commissions.

Hey blitz,

No offence taken. I only expressed my views.

I agree with you with investing in shares directly if you understand technical analysis & other stuff.

About MF's beating benchmarks, india has still not reached stage where US markets are & there still is potential for out MF's. As our markets develop the index funds would be name of the game.

Another observation is that many ELSS funds are not as good as their open ended siblings from same fund house. Can't guess why...

 

[mrindia]

I also agree that if u r interested in stocks & have little knowledge, go for index funds.
mr india

 

[sumapathi]

Mutual funds are still the best way for a novice investor who does not have time or ability to analyze & track stock market.

I also do not agree with the fact that Indian mutual funds are not beating Sensex or their respective benchmark. Many good Indian MF's have beaten benchmark over past 5 to 15 years.

You say it is not difficult to beat the benchmark? Why then are many profession fund managers who have all the analysis available fail to beat the market? And 40% average return consistently without risk can only happen in dreams. With every reward there comes the risk.

Knowledgeable investors can go for direct equity investment. You need effort & time to analyze & follow your investments. If one has that direct equity investment will be advisable.

:clapping:

 

[bagchi_p123]

Hi, Can anyone give me some idea about the following funds?

Fidelity Equity
Sundaram BNPparibas Select Focus
Quantum Long Term Equity

Incidentally, I am already having the following in my portfolio

HDFC Top 200
HDFC Prudence
ICICI Infrastructure
ICICI Discovery
Reliance Equity Savings and
Sundaram BNPparibas SMILE

Thanks,

Purnendu Bagchi

 

[idealprofile]

Your portfolio looks good, instead of adding 3 new funds you can invest more in existing funds only. You can think of replacing ICICI discovery to one large cap fund like DSP Top100 or Birla Frontline Equity.

 

[nikrod]

Your portfolio looks good, instead of adding 3 new funds you can invest more in existing funds only. You can think of replacing ICICI discovery to one large cap fund like DSP Top100 or Birla Frontline Equity.

I would give same advice. continue with your existing funds.