Mutual Funds Investment Strategy = Help please!

[ramsvenku]

Great Postings !!! really informative ..Thanks Jeet for the your good topic posted and getting an healthy debate and sharing there individual views/thoughts /experience from MS/KP/AW1o..thank you all guys..

As a layman like me in Mutual funds its really help to know where and how to stay invest systematically.

In my case i need your valuable suggestions/advise..where have invested in MF in the year Jan-2008 like Jeet

I have in my portfolio HDFG Infrastructure, JM Agri & Infra, Kotak Indoworld Infra and Reliance natural resources all are growth funds.

My total investment on above funds is 1 lakh and now am facing huge loss in JM Agri & Infra and Kotak indoworld current NAV is at 3.03 & 6.79 respectively.
My concern here is should i buy more at this level or need to park my money for some more years...?? am having a time frame of about 10yrs from now on..

May i request any one throw some light on above portfolio weather i selected good MF house? or want me to switch over..i appreciate and welcome your advise/suggestions here.

Hope i am not disappointed u guys for putting this post in between.

Once again thanks and regards,

Rams

 

[ramsvenku]

Great Postings !!! really informative ..Thanks Jeet for the your good topic posted and getting an healthy debate and sharing there individual views/thoughts /experience from MS/KP/AW1o..thank you all guys..

As a layman like me in Mutual funds its really help to know where and how to stay invest systematically.

In my case i need your valuable suggestions/advise..where have invested in MF in the year Jan-2008 like Jeet

I have in my portfolio HDFG Infrastructure, JM Agri & Infra, Kotak Indoworld Infra and Reliance natural resources all are growth funds.

My total investment on above funds is 1 lakh and now am facing huge loss in JM Agri & Infra and Kotak indoworld current NAV is at 3.03 & 6.79 respectively.
My concern here is should i buy more at this level or need to park my money for some more years...?? am having a time frame of about 10yrs from now on..

May i request any one throw some light on above portfolio weather i selected good MF house? or want me to switch over..i appreciate and welcome your advise/suggestions here.

Hope i am not disappointed u guys for putting this post in between.

Once again thanks and regards,

Rams

Guys,
Please reply me...am waiting for your help hear..my sincere thanks to AW10 if he could suggest me on it.

Rams

 

[ajs26]

What do u suggest is a better investment in terms of long term returns:
a) Investing in NFOs of good fund houses when NAV is still Rs 10.
OR
B) Investing in best performing funds while their NAV has already reached 100 or more.

 

[kenfrapin]

Good question as this is the BIGGEST difference between shares and MFs.
Moreover, these so called 'agents' pry on new investors with cheap NAVs when it makes absolutely no difference.

So lets make it crystal clear now with this example

Fund A
Investment amount: Rs 1000
NAV: Rs 10
Units bought: 100

Fund B
Investment amount: Rs 1000
NAV: Rs 10
Units bought: 10

For the sake of uniformity, say the markets goes up by 10% and assuming both funds are comparable, in the same segment with similar fund objectives.
So now, BOTH funds also gain 10%

Fund A
NAV increase: 10% of 10 = Rs 1
Units held: 100
Total Value : 1000 + 100x1 = Rs 1100

Fund B
NAV increase: 10% of 100 = Rs 10
Units held: 10
Total Value : 1000 + 10x10 = Rs 1100

So very clearly there is no difference whether the NAV is 10, 100 or 200 because MFs call increase as per the market scenario. In case of shares it is very different because it is a single company and it can go with or against the market. In case of MFs, sicne they hold atleast 30 to 50 shares, it is a collective increase and most definitely always follows the market trend and not affected by a single share movement.

So its best to chose a well established MF, with a track record of atleast 3 years. This way you have a lot of information on fund movement, the portfolio, sectors which the funds normally invests in and most importantly, comparison of returns over the years.

Hope this helps
Cheers
KP

 

[ajs26]

thanks kenfrapin it sure cleared my dubiety

 

[reks]

I have selected the following MF to invest for about 5 years time horizon:

1) HDFC top 200 growth (SIP)
2) reliance vision ( growth)
3) Icici pru Infrastructure - Growth
4) UTI-Dividend Yield Fund/Or Opportunities Fund- Growth (Select one).

Actually I am planning to buy direct from directly fund house as i got(few)/ will be getting the online a/c.

Please suggest me if there is anything to reshuffle my above portfolio?

Any suggestion will be appreciated.

Regards

Reks

 

[rajeshn2007]

I have selected the following MF to invest for about 5 years time horizon:

1) HDFC top 200 growth (SIP)
2) reliance vision ( growth)
3) Icici pru Infrastructure - Growth
4) UTI-Dividend Yield Fund/Or Opportunities Fund- Growth (Select one).

Actually I am planning to buy direct from directly fund house as i got(few)/ will be getting the online a/c.

Please suggest me if there is anything to reshuffle my above portfolio?

Any suggestion will be appreciated.

Regards

Reks

Hi Reks,
Your portfolio is fine, except you could remove UTI fund. Sundaram select focus/select midcap could be added - may be 10% of your portfolio.

 

[reks]

Hi Reks,
Your portfolio is fine, except you could remove UTI fund. Sundaram select focus/select midcap could be added - may be 10% of your portfolio.

Thanks Rajesh for your input.

In fact I have UTI fund house honline a/c .. Is there any better fund which I can consider?

Can I add reliance growth one mid cap instead of large cap (Vision)?

Sundaram I don't hv online a/c for it..Thats the reason not thinking abt that.

Any suggestion pls.

 

[rajeshn2007]

Thanks Rajesh for your input.

In fact I have UTI fund house honline a/c .. Is there any better fund which I can consider?

Can I add reliance growth one mid cap instead of large cap (Vision)?

Sundaram I don't hv online a/c for it..Thats the reason not thinking abt that.

Any suggestion pls.

Hi Reks,
Online a/c doesn't count. Reliance growth is a largecap fund. If you are specific about midcap, sundaram is a good choice.

 

[saivenkatraman]

Buying Mutual Funds online is really a fascinating thing. But, will you know the right time to invest? Are you sure you have allocated the right proportion to each fund? Will you know whether the funds that you choose are the best suited for you? Will you know when to exit? If the answer to all these questions is YES, then you may go online. If the answer to any of these questions is NO, then you need a good Financial Advisor, who can understand your requirements, do a fundamental and technical analysis based on your requirements, and then give you an investment plan.

Regarding the funds that you have chosen, please try to avoid sectoral funds (like ICIC Infrastructure fund), even though the past returns may attract you. Instead of UTI, you may look at other AMCs such as Sundaram BNP Paribas, DSP Black Rock and Birla Sun Life.

I would suggest you to build a core large cap portfolio and then have SIPs in any of the midcap funds such as DSP Black Rock Equity Fund or Sundaram BNP Paribas Select Midcap Fund.

This would be ideal for your time horizon of five years