DSP Tiger & Magnum Contra still a good pick?

[life2007]

Guys!

I have had DSP Tiger and SBI Magnum Contra Funds since 2008. Though I stopped Investing in mid 2009. I have some surplus amount.

How many of you support that I can go ahead and invest again in the same funds (along with other 2 core funds) given the fact the ratings have slipped in value research. Magnum Contra has now 4 star and DSP Tiger has only 3.

Please advise, do I look for alternatives or stick to the above...


Regards

Jeet

 

[nikrod]

Guys!

I have had DSP Tiger and SBI Magnum Contra Funds since 2008. Though I stopped Investing in mid 2009. I have some surplus amount.

How many of you support that I can go ahead and invest again in the same funds (along with other 2 core funds) given the fact the ratings have slipped in value research. Magnum Contra has now 4 star and DSP Tiger has only 3.

Please advise, do I look for alternatives or stick to the above...


Regards

Jeet

I do not know about recent performance of DSPBR Tiger.

Magnum Contra was excellent performer in times when Sandeep Sabarwal was with SBI MF. Nowadays it's performance in nothing to cheer about. It still gets it's place in top performance over 5 years due to it's performance in 2005-07.

My personal view - look for better alternatives such as HDFC Top 200 & BSL Frontline Equity and stay away from Magnum Contra.

 

[life2007]

Hi

Thank you for your reply. I was thinking on the same lines but was not sure though.

Would you advise me to redeem the investments in Magnum Contra and DSP Tiger and transfer it to the proposed alternatives? Also, I was wondering whether DSP Tiger will revive to 5 star ratings in due course of time because it is basically an Infrastructure fund but not heavily tilted towards it either. Infrastructure has a long way to go in India and with the current projects and signals from the Govt, would it be wise to retain it or choose any other pure infrastructure fund.

Old Folio:
DSP Equity
HDFC Prudence
Sundaram Tax Saver
SBI Tax Gain
SBI Magnum Contra
DSP Tiger

Proposed ChangeoverDSP Equity
HDFC Prudence
Sundaran Tax Saver
HDFC Tax Saver
BSL Frontline Equity
Reliance Regular Savings Equity



The only two queries I have at the moment is :

1) Do I need to redeem systematically the funds in my old folio which has no place in the changeover and pump it to new ones?

2) Does my new folio makes it too risky or over diversified?

Thanks again for your help.

I hope others will pour in their valulable advices.

Regards

 

[nikrod]

Would you advise me to redeem the investments in Magnum Contra and DSP Tiger and transfer it to the proposed alternatives?

Rdeem your units in such a way so that it does not attract tax. Equity fund units held for more than one year are not subject to income tax.

2) Does my new folio makes it too risky or over diversified?

Your porfolio certainly is not over-diversified.
Three funds are mid cap oriented (DSP Equity, HDFC Prudence, REL Regular Savings). Two are large cap (Sundaram Tax & BSL Frontline) & one equally Mid & Large cap oriented (HDFC Tax).

Balance equally between the funds so as to give your portfolio 55-65% large & 35-45% mid cap exposure.