Hi,Einstein and Members,
I have no idea in Mutual Funds...2012 start invest in 5 Funds with Dividend reinvestment plan..Except HDFC its closed ended plan and 2013 invest in Birla Frontline growth option..(Report was attached)
Before started i was confused...where and which fund to invest...Finally chosen Bajaj Capital all in under one roof...!!! Its near my house, branch manager also friendly.,
Last week i met branch manager, He recommends 4 fund they are..
1.HDFC EQUITY FUND
2.ICICI DISCOVERY FUND
3.IDFC PREMIER EQUITY
4.ICICI WEALTH BUILDER FUND (Unit Linked)
KIndly review above funds..if any suggestion..welcome..!!!
My Doubts,
a)Which is better Growth or Dividend Re-investment plan (Quantity will Increase)
b)Which is best Single Invest or SIP or Buy on dips NAV (Birla divided yield & icici pru dynamic =2 Funds added buy on dips..but i was missed Reliance vision @ 28 nav level)
Comprehensive Portfolio Performance & Valuation Report
1) Dividend reinvestment vs growth - I see no reason to use dividend reinvestment. Use growth. I dont know if the dividend is taxed, if it is then its bad for long term gains
2) Bajaj Capital all in under one roof - I think people dont understand the difference MF expenses make. I strongly feel that we should only go for Direct funds instead of using distributors. Direct funds have approx 0.5-1% lower expenses.
Just a simple example which i think looks correct - for last 20 years, say we get 30x returns aggregate. If there was just 1% extra expense in the first year, that tiny 1% is now 30% less due to missed compounded returns on it. Imagine this happens every year. Are you willing to pay them for some minor website facility??
Look another way - if you have 50L portfolio and non-direct MF has 1% extra expense - you are indirectly paying 50k every year to Bajaj - WHY?
3) the funds all look good. I am not familiar with Rel vision & Birla divided yield. ULIP i think is not needed - they used to have high expenses. Instead prefer term insurance - keep insurance and investment seperate.
Look
here for good funds.
4) SIP vs single investment - SIP will average out your cost reducing risk over the SIP period. Its generally better as it will reduce risk. But do understand that SIP is not magic - If you are already invested with big amount say 10L then a tiny sip of say 10k will not make any difference for your 10L. So just think SIP as a way to reduce risk on fresh investment.
i think SIP is a very good way to invest. If we try to time, behavioural biases make us invest near top and sell near bottom.
If you are a trader and track Nifty, even better way was suggested by SmartTrade. I dont have the post but this is what he suggested
"Whenever there is a dip of 500 points I buy these funds. In case there is no dip in a month then I buy the months budget on last day of the month. I always felt that we are sitting in front of the terminal every day, So why depend on some arbitrary date for SIP ? We can invest when market takes a dip"
These posts may help -
here,
here and
here
Try investing in microcap stocks. Even the utterance of the stock your buying makes the price flutter like a headless chicken.
yes sir. This is one place where i doubt big Mutual Funds can do well. But need to have skill in picking good stocks when they are in trouble and sit tight. There are too many minefields here. I hope to read books and have some ability before the next major crisis in the next decade or two. For now, i am better off with MFs and their sureshot relative performance.
Even if we can equal MF performance minus expenses with normal stocks, it may be worth it but its not for everyone.
Yes its true, they keep changing after a year of 2 this is for majority of the mutual funds.
I am sorry to say but all of your replies are spreading FUD. You didnt give any info to backup your claims and keep spreading nonsense about terrible performance, about 10-20% aggregate returns and now this.
1) Prashant Jain of HDFC has been with them for the last 20+ years. Yes fund manager changes happen sometimes, people retire, people leave - but you anyway should keep track of MF performance every few years.
2) The links i gave for morning star/ VS / fundsindia all try to evulate all of this before making recomendation and they explain it too.
3) There is no reason to believe that the next FM will be bad. In any case, Funds have teams of people and processes in place . Fund manager is a big component but he is not everything. Consistent Historical outperformance against benchmarks is enough for me.
Maybe i am completely wrong, but I am beginning to think that you are selling these so called portfolio managers or you do it yourself. If so, please make it clear. Nothing wrong, you certainly have skills in picking stocks (i have none... ) but dont spread FUD.
Anyway, i am done with this thread since you have nothing fruiteful to add about these portfolio managers ...