Which is the best Equity Diversified Mutual Fund ? . I am going to list down some of the best Mutual funds which I have figured out from Valueresearchonline.com . I am listing down 6 Equity Diversified Mutual Funds and 3 Tax-saving Mutual funds . I will highlight the main points of Mutual funds like its History , its performance and its Portfolio Allocation.
Best Equity Diversified Funds
These funds are suitable for people who are looking for long term investments and are ready to take the risk of mutual funds .
- 12 year old fund , Return Since Launch is at an excellent : 24.6%
- Strong 5 yrs return at 33.4% beating its benchmark by impressive 8.4%
- 50% Portfolio in Small and Mid cap Companies (Risky Fund, with High Potential)
- 6.5 year old fund , Return Since Launch is mind boggling : 36.8%
- Strong 5 yrs return at 30.6% beating its benchmark by 6% .
- 80% Portfolio in Large and Giant Companies
- Looks less risky Fund compared to DSPBR Equity-G
- 13 year old fund , Return Since Launch is excellent : 25.3%
- Strong 5 yrs return at 31.8% beating its benchmark by 7% .
- 65% Portfolio in Large and Giant Companies and 30% in Mid caps . Well Diversified Fund
- One of the best funds available with long term Track record . Must Have
- 10 year old fund , Return Since Launch is excellent : 27.6%
- Strong 5 yrs return at 35.86% beating its benchmark by astonishing 11% .
- 55% Portfolio in Large and Giant Companies and 35% in Mid caps and Small cap .
Reliance Regular Savings Equity
- 4 year old fund , Return Since Launch is 21% even with the bloody market Crash.
- Strong 3 yrs return at 21.5% beating its benchmark by 12.5% speaks for its potential in Future .
- 45% Portfolio in Mid caps and Small cap makes it a Risky and Aggressive Fund .
- With minimum investment required of Rs 500 , It can find a small corner in one’s Portfolio
- Only for Risky Investors , Its a new Fund and hence does not have Strong and Long track record like its seniors .
Sundaram BNP Paribas S.M.I.L.E. Reg
- 4.5 year old fund , Return Since Launch is 22.5% even with the bad markets.
- Good 3 yrs return at 16.5% beating its benchmark by 7% .
- With close of 75% Portfolio in Midcaps and Small cap makes its Fund with heart of real Risk takers . Don’t get into this if you don’t like messy markets . It can take your heart our of your body and play hide and seek with it .
You should see this Video to understand how to choose a good mutual fund on your own
If you are fan of Jagoinvestor or Manish , you might like to Fill up the Fan Book
Best ELSS Mutual funds (Tax Saving Mutual Funds)
These are tax saving Funds , used for saving the tax under Sec 80C upto Rs 1 lac . Suitable for investors who want to invest for long term and also require tax saving .
- One of the oldest Tax saving Funds with 10 yrs of Strong Track Record
- Return Since Launch is 22.3% .Strong 33% return in last 5 yrs beating its benchmark by impressive 6.5% .
- Very good performance in last 2-3 years in falling markets with 17.3% return in last 3 yrs which is almost double of its benchmark returns .
- Well diversified amoung Giant , Large and Midcap companies makes its a Good fund .
- A little aggressive fund with 55% portfolio in just 3 sectors of Energy , Finance and Construction , betting on India’s future ..
- A very flexible fund know for its adaptability with any situation makes it suitable for every kind of investor.
Canara Robeco Equity Tax Saver
- One of the oldest Tax saving Funds with 16 yrs of Good Track Record
- Return Since Launch is 15% which is decent enough in such a long term .
- Very good performance in last 5 years with 30.5% return beating its benchmark by impressive 7% .
- Mind Boggling 60% return in till date in current year (2009) shows that some great potential is building in this fund .
- Well diversified amount Giant , Large and Midcap companies makes its a Good fund .
- High Concentrating in midcaps (around 50%) makes it a risky Fund .
- Minimum Investment of Rs 500 makes it an attractive choice for Risky Small Investors .
- This one is the quite genius who does not shout much about its achievement . Not much appreciated among its peers but has one of the best long term track record which has ability to put all the tax saving funds in shame .
- One of the oldest Tax saving Funds with 13.5 yrs of excellent track record.
- Return Since Launch is 34% which is an unmatched achievement in itself .
- Close to 29.5% returns in last 5 yrs beating its benchmark by 6% .
- It is now becoming more aggressive by increasing its allocation in Midcap funds .
Note : This is not an exhaustive list of Good funds . There are many good funds which are not here . Its just a Compilation of funds which I personally feel are good ones and have ability to perform in Future . All the funds have high Equity Allocation and can be very risky . You should invest in these only after understanding your Asset Allocation and Risk-appetite to handle the ups and downs of its performance .
I will come up with the compilation of some good Sectoral Funds , Debt Funds and Balanced Funds later . Watch for it 
Comments Please and let me know which fund is your favorite and why . If I had to choose 1 fund , it would be Sundaram Tax Saver because I did a detailed Analysis of it myself and It went ahead of SBI magnum which had number 1 position from long time .
Source : ValueResearchOnline
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Hi Manish,
Good post, Reliance Growth and IDFC Premier Equity funds are very good midcap funds.
Rakesh
@Rakesh
Thanks for putting up your views and suggestion .. I am sure they are very good funds .. As i said , there are many good funds which are not on the list of mine because i was just putting 9 ofthem ..
However , i was not excited with IDFC premier because it a hardcore Midcap fund with 80-90% in Midcaps and still its performance is at par with HDFC Prudence which is a balanced fund . What do you think about it ?
Manish
the returns since inception you mentioned, are they CAGR or total returns?
Good review. I have also reviewed a lot of Mutual funds and then zeroed down on HDFC top 200 and Relliance RSF.
Good to see both of them in your list, it kind of improved my confidence in those 2 funds
Keep writing!!
SMILE has a higher expense ratio… MAYBE midcap fund from BNP will be a better option – longer track record, lower expense and new fund managers performance is decent.
what are your thoughts on index funds? Do active funds really beat the market? Or law of reversion to mean takes the glare away from today's popular funds. Curious to hear some thoughts on it?
~sr
Index Funds in India have more often than trailed not only the Diversified Equity Funds but the Index Benchmarks itself.
I always prefer Diversified Equity Funds.
.-= Srikanth Matrubai´s last blog ..FIDELITY GLOBAL REAL ASSETS FUND =-.
@income.portfolio
They are CAGR returns .
@Orangesplaash
yeah .. they are very good funds and come at the top . good to have in the portfolio .
@~sr
BNP Midcap fund is also a nice fund .
Regarding Index Funds , they are also a good alternative to non-index funds which i have mentioned . they are less risky and have more stability in returns ..
Average 5 yrs returns stand at 20-25% range, so its a good tool for wealth building . I would also recommend to have a look at consitent investment in ETF's
Manish
Hi Manish,
Good Post..
I think One Fund is missing..
You should select Birla Sunlife Front line Equity Fund..
Give your Idea..
Nikhil
@NIkil
As I said that my list is not exhustive list
. SBL Frontlife equity is also a great fund . Good returns and less risky i would say .
Manish
Nice Post
Can you share some more light on index funds and ETFs, what are advantages and disadvantages of both? How can we buy ETFs in SIP manner?
Hi, I agree with Nikhil.. Birla Sunlife Front line Equity Fund is vvery good MF and I also find Reliance Diversified Power Sector Fund is great too…
@Anonymous
Index Funds are active funds , where fund manager has to buy and sell shares and maintain the portfolio in the same ratio as index has different shares , which change over time . Index Funds are mutual funds and hence not tradable on stock markets .
ETF's are tradable instruemnts which tracks the index , they are passive insturments which means no one has to be actively doing something there .
One can buy a fixed quantity per month if you have to do SIP in it . Mutual funds dont provide that facitlity
@Vishu
I also agree that those two funds are great and very good. Just that we have limited space on article
Manish
hmmm,
thanks for reply.
As per my understanding, major difference between index fund and ETF:
1. cost is high in index fund compared to ETF. (low compared to actively managed mutual fund)
2. SIP in ETF is manual effort while SIP in index fund is automated stuff.
The other thing for which I am not sure is dividends. As per my understanding, dividends are reinvested in index fund which is not the case for ETFs.
But the problem is that, even though MF houses have luxury to have dividends to use as fund management charge and brokerage, they do bad job (or are willing to do bad job) in terms of not able to reach even index performance.
I am interested to know which one has performed well say for last 10 years in India.
Can you share some thoughts/statistics here?
You are correct about ETF and SIP
Regarding Index Funds , Medium term performance has been around 20% + (5 yrs) which is good . I have no idea about ETF . but it would be around same considering you are doing your rebalancing .
Manish
Theoretically, index funds (ETFs or otherwise) are very nice. But they don't work well in India. Active mutual funds beat them by miles in returns, expense ratio and tracking error are very high. See http://businesspandit.wordpress.com/2009/07/16/efficient-market-hypothesis-in-india/
Guys, thanks for replies
I will continue with active funds for now … I was seriously thinking to get half of my SIPs in index funds/ETFs and searching for data to check whether I should go ahead or not.
Hi Manish,
I thoroughly read your articles on mutual funds and found them exremely helpful in selecting a few mutual funds, in fact your blog coupled with valueresearchonline were the only sources of info for me.
I have selcted -
DSP BR TOP100 for its diversificn large cap cos. and high 5 yr rtrn
HDFCTOP 200 for its performance
and I seek your opinion on my selection and a suggestion, whether I should invest in BSL dividind yield or reliance regular savings, for I seek an aggressive fund for handsome returns.
ratnmani
@Ratnmani
Your selection is good . Reliance Regular Savings Equity and Sundaram select midcap are funds which can suit you if you want to get aggresive . Its good that you understand that you are aggresive . but i would suggest to put money in these atleast for 2+ yrs and through SIP only .
Thanks for the appreciation btw
Manish
Dear Manish,
Remember we had discussed about the PPF+SIP+Term insurance combo.
Well i am glad to inform you that i have started PPF exhausted all my limit of 70K in ppf and also have started SIP in three funds DSP top 100 equity, reliance growth fund and Sundram BNP paribas Select Midcap fund, for all funds dividend reinvest is the category i have selected.
Term insurance by the end of december i would increase it by 30L more. what are your suggestions?
@Amarnath Awargaonkar
Excellent , that is a great acheivement , Taking action is the toughtest part and you have taken that step , its worth appreciation ..
Your Funds choice is also good . There are some things which you could have improved
- You could have choosen growth option , and not divident reinvestment , Can you tell me your reasoning for choosing it ?
- Regarding Term Insurance , make sure you choose another company this time for your Insurane ..
- I hope the mutual funds are suitable as per your risk appetite .. All the funds you have taken are high risk fund , funds are good , but the important question is are they suitable , If yes , great !!
Manish
Dear manish,
I plan to save regularly for minimum 5 years through SIP. I thought both DSP and reliance funds invest in large caps while sundaram is in midcaps.
I took the dividend reinvest option as it would be tax free (as per the direct tax code) if i had taken growth option i would have to pay a hefty sum in taxes. Am i wrong here?
@Amarnath
Why do you think that it will be tax free ? and what will be tax free ?
The amount you get at the end when you sell it OR the amount which you get reinvested as dividend .. As far as I know that way it works and will work in future is same .
This is how it works right now ..
Your mutual fund declares dividend , which you get after they already cut dividend distribution tax of 14.something % . once it gets reinvested , that reinvested amount will be seen as fresh investment and hence if you sell your stuff before one year .. the part which is upto will attract short term capital gain ..
so if on Jan 1 , 2009 you bought mutual fund worth 1 lac and on Oct 2009 , you get 10,000 worth of investment reinvested , then this 10k will be considered as fresh investmnet , and now if you sell on Mar 2009 , then this 10k of investment will be seen as STCG and tax accordingly .. All this is true before the new code tax and after also ..
Point me to any article or news which says that it will be tax free ? May be I have not seen it then ..
I guess you are confused with the part which says that "dividend from shares will be tax free even after Direct code tax" , which is a different thing ..
Manish
Dear Manish,
Taking dividend option was a easy way but i would not have earned much keeping them in a bank so i thought it would be better. Any way if you suggest i will go for the growth option.
Regards.
@Amarnath ..
Ok change it to growth now ..
Manish
Dear Manish,
Go through this-
http://www.dnaindia.com/money/column_dividend-reinvestment-vs-growth-option_1160961
Regards.
@Amarnath
Thanks for the link .. it was very knowledgable
Manish
Dear Manish,
Having read the article –
I have as of now kept my money in the dividend reinvest option, if the tax regime changes,
If dividend distribution tax is levied i will go for growth option,
If LTCG is introduced (as proposed in direct tax code) then i will keep the money in dividend reinvest option,
Is it okay?
@Amarnath
seems to be fine .. Its not going to make "much" difference anyways ..
The other alternative is to change it to growth now and then take action as per what happens in 2011
.. but as i said .. its not worth the change .. so chill ..
Manish
I guess the prime question is, which of these two is better?
1) Equity Growth with LTCG
2) Dividend Reinvestment with DDT
Any thoughts on this anyone?
@Bhagwad Jal Park
I hope you are talking about this because of the new tax code.
We would need more information on this like what will be the LTCG tax applicabale and other rules need to be clear .
With current information 2) Dividend Reinvestment with DDT would beat the Growth option .
Manish
Interesting post! The sharing will obviously guide the investors about the Mutual fund selection.
@Mutual Funds Investment
Yeah .. I am sure people will benefit from it .
Manish
Hi Manish,
I have invested in – HDFC Top 200 (G) and Sundaram Tax Saver (G).
My wife has invested in – Sundaram Tax Saver (G).
Now, we both want to invest in one more MF each. I have zeroed down on three Funds – DSP BR Top 100 (G) / DSP BR Equity Fund(G) / Birla Sunlife Frontline Equity (G).
Please suggest which two are better out of these 3 and if (D) is better than (G) in the light of new Direct Tax Code.
Also, please suggest if we should invest more in MF as after the above investment we both will have 5 MF investments in SIP of 2000/month
-LS
I generally believe in index funds. If one has to pick just one fund for long term investing (say 15 years) and SIP in to it every month, which funds would the gurus here suggest?
I beleieve DSPBR Equity-"D" is 12 years old fund and not DSPBR Equity-"G" as mentioned in the features of this fund in your list.
Please Correct me if I am wrong.
Hi, regarding Growth opttion or Div reinvest I feel that Div reinvest is the best. Sometimes If I need some money and I know that a particular fund I'm invested in is coming out soon with a dividend I can change from Div reinvest to div payout, which is not available in Growth. Otherwise I keep option as Div reinvest, which pretty much works the same way as growth.
Also, when markets are low it is good to keep div option as reinvest and markets are over heated I think about changing the otion to Div payout and book some profits in the form of dividend paid out. So, overall div reinvest option the best, according to me. Just my 2 cents.
@Lakhwant
Its not a right thing to choose 2 out of 3 , one can never tell that.. It will change after 1 yrs anyways .. chooing 2 best out of those 3 is overdoing the analysis .
Choose any of them , all are good .
@mr
All the index funds would have performed very much same , the only difference would be how much of tracking error do they have . the best thing would be to go to valueresearchonline and choose one with least tracking error and good over all returns ..
@Anonymous
Yes you sre correct , its DSPBR Equity-"D" , my mistake , but it would not much difference overall .
@Ashwani
When you say "div-rein" is same as growth , its not correct , If a fund was at 100 and now its gone up to 130 and div declared is 20 , first dividend will be declared (after deducting DDT and then that money will be reinvested again) so the amount will be less than the growth one .
Div-rein will make sure after new tax code comes into picture , agreed .
manish
Manish, I was refering to Equity based mutal funds only, in whose case DDT is not applicable. Only Debt funds have DDT. So in case of Equity based MF's div reinvest is same return as Growth. (with added option of booking profit in times of high valuations in market by changing over to Div payout on record date).
@Ashwani
Ok , in that case you are correct ..
Manish
Dear Manish,
Thanks for your all articles very helpful.
As your advice I start SIP with small amounts each Rs. 2000 *24 months as below
HDFC Top 200 * 2000 * 24
Reliance Regular Savings Equity * 2000 * 24
Sundaram BNP Paribas S.M.I.L.E. Reg * 2000 * 24
ICICI Prod * 2000 * 24
Still I have excess amount to invest around 200 k. What is your advice?
Do I directly purchase or SIP with two good among (either HDFC Top 200 or your advise ) .
I already enough real-estate invested and start investing in stocks, I am aggressive , do you advise some debt funds?
Thanks in advance.
Regards,
Raja
.-= Raja´s last blog ..Trust Objectives =-.
@Raja
Its not a right thing to say that you should invest more or not ..
Your current investment plan looks good . You should now try some Debt products . You can try some debt funds now or try PPF .
Manish
Hi Manish,
Your Blog is really very helpful. I am a S/W Engineer and my monthly salary is Rs 20000. I have savings of Rs 50000 for investment with me and save around 10,000 Rs every month. I plan to invest 10,000 per month in SIP. I have already started a SIP of 3000 Rs in HDFC Top 200. Please suggest me more funds to divide the remaining 7000 Rs. I have also invested 10000 Rs lumpsum in HDFC Top 200. Please suggest me how should I invest my savings . I’d lik to invest in gold etf also as I read online and in newspapers its giving remarkable returns. Please advise. Thanks in advance.
@Ankita
thanks
.
Some other good mutual funds at : http://www.jagoinvestor.com/2009/08/list-of-best-equity-diversified-mutual.html
Dont invest too much in Gold ETF’s , I would suggest buy gold ETF for not more than 10% of your total portfolio . Amazing returns is ok , but its not guaranteed always .. And Gold is anyways too much high these days ..
At the end , these things are the last question you should answer , your first question is
1. what kind of risk taker are you
2. What are your financial goals in coming 1 yr , 3 yrs , 5 yrs , 10 yrs , 40 yrs .
3 etc etc
once you answer these , its very easy to answer these questions
Manish
DSPB Launched a new MINING FUND, It may give you 22% interest if take risk.
one who loves to risk may earn more. only advise not guarranty. use you own mind not depend to only on others.
I am just wondering from where did you get that figure of “22%” , other wise I accept you views . Let everybody know ?
Manish
Dear Prakash,
How on the earth did you arrive at the figure of 22%?????
Yes, the fund is good and one worth investing. Click here on the investment merits of the fund. http://goodfundsadvisor.blogspot.com/2009/12/dspbr-world-mining-fund-unique-theme.html
.-= Srikanth Matrubai´s last blog ..FIDELITY GLOBAL REAL ASSETS FUND =-.
Beware,
ULIP plan give gain only in logn term period which start normally after 10 years. ULIP plans take almost 50% of your first premium amout as various charges and take charges after it almost Rs. 900/- per years.
But Mutual Fund is differ but only for those loves to take risk. always invest small- small amount in various Mutual Fund. So that you may take less risk.
only advise not promished.
yup .. you are correct . ULIPs are long term products only , People are buying it for short term which is not correct .
Manish
Manish,
Could you please help me out in picking up 2 best Equity-diversified Midcap MFs among the following MFs ?
I have high Risk appetite and ready to invest for 5+ years.
HDFC Equity
Reliance growth
IDFC premier
Sundaram Select MidCap
DSPBR Equity
Thanks in advance.
@Asif
You are trying too hard .. There is nothing like best among these .. The only parameter you can judge is long term returns , but there is very little gap and it would be change the ranking in coming 1 month , 1 yrs or 5 yrs .
Pick any , its not worth trying to pick the best , nothing like that .
Manish
Dear Manish,
Just came across you postings here. Very interesting and informative postings, indeed! Helps individuals decide their insuranmce needs. I have some questions and hope to get some answers from you: (for the record, I am 51 years old!)
I only have a Money Back policy in force since 2000 with a SA of Rs.1,00,000 more from the tax saving persoective.
1. I ‘mistakenly’ took a ULIP-with-insurance policy called Money Plus 1 from LIC of India and paid two annual premiums (2006 and 2007) of Rs.45,000 each, for a 16 year policy. I did not pay for 2008 and 2009 (not yet). Do you think I should continue/discontinue with this policy?
2. After having gone through your postings and visiting other portals, I am deciding to go with a combination of Term Insurance for Rs.25,00,000 for 14 years (retiring at 65) with accident and temporary/permanent disablement, and a health insurance (Rs.5,00,000). Please advise. Which companies’ plane would suit me?
Thank you very much in advance for your tips.
VJ
hmm…
What is the Insurance cover ULIP is providing you ? Is it too small like 2-3 lacs , If yes , then just pay the last premium and also make sure all your money is swtiched to Debt Option , may be 80 Debt and 20 Equity , but mainly it has to be Debt because its not recommended that you have lot of it in equity at this age .
Mainly see ULIP as your Investment vehicle now .. Already you have paid 2 premium and most of the cost is covered from you . So lets go with it now .
Also apart from this , take a term insurance , take iTerm from Aegon Religare , thats the cheapest one at the moment .
Dear Friend,
for cheapest risk cover you can consider Birla Dream Plan, even though it’s ULIP but you can customise as a term plan too & believe me it’s even cheaper than religare i term plan.
Nice .. why dont you give us full Details
Manish
Hi Guys,
I would like to add something to your discussion about the Dividend Payout option in Mutual Funds.
As per my understanding –
1. Dividends are always Tax free.
2. Dividend Distribution Tax is Nill for Equity Schemes of Mutual Funds and it is 14.163% for Debt schemes.
As most of the schemes mentioned here in this post are Equity schemes, therefore they should be exempt from tax.
Please let me know if it is not the case.
Manish, thanks a lot for tremendous work in this blog. I am sure it is helping a lot of people like me.
Thanks & Regards
Jaswinder Singh
Jaswinder
you are totally correct
. thanks for your kind words , The blog is made of awesome readers and commentors like you , not just my writing 
Manish
hi manish
i need a bit of advice frm you regarding my investments.
i m a doctor, age 36, married single kid, my salary is Rs. 1 lakh per month, i have follwing investments-
1)i have booked a flat of Rs.33 lakh for which i hv been alloted a loan of Rs 26 lakh. EMI will start frm nov-2010.till then i hv to give intrest.
2) LIC of 31000/- annual premium
3) mediclaim frm star health of SI 5 lakh
4) SBI-life Smart ULIP -50000/- ANNUAL for 3 yrs in nov 2009
5) Mutual funds(all i hv taken in this month only)
a) DSP BR top 100 equity fund (G)-SIP 1000/-
b) Birla sun life dividend yeild plus(G)-SIP 1000/-
c) ICICI Pru Discovery(G)-SIP-1000/-
d) Sundaram BNP paribas SMILE (G)-SIP-2000/-
6) PPF A/C since 2 yrs with a balance of 8000/-
Now i want to take 2 more funds like UTI Opportunity fund(G)
& DSP BR Equity fund (G), ONE TERM INSURANCE PLAN .
Please guide me whether i m going in right direction and please tell me if any correction is needed
Vivek
Its not enough data to give advice on portfolio restructuring , Its takes more time and things . But With this much information and assuming general things . Here is what I would have done .
2: Find out what is the IRR of your current LIC policy , Use IRR (see my article on it) . I am sure the IRR wont cross 6% . so you should be surrendering this policy because it cant give you returns which you can make in long term .
4: Stop this policy (stop paying the premium) . ULIP is taking too much money from you and complicated enough to be discarded .
- Increase allocation in PPF .
- Take a term policy , I dont recommend names , but I like AR and SBI personally , you can check iTerm . Split insurance into 2 .
- DSPBR equity is good .
You are doing good overall. try to read as much as you can and then you should be able to take care of your Financial Planning in a good way in some months
Manish
hi manis
please clarify what is dividend yeild plus growth in Birla sun life dividend yeild plus (G) fund
Dividend yield Funds are those funds whose strategy is to invest in those companies which give good dividends back . The strategy is to buy those companies at cheap valuations . However most funds do no comply with their own set objective and take unnecessary risk , but of which they are sometimes a lot of profit . Over all the funds is ok , not bad .
Why dont you put money in Equity funds for long term through SIP ?
Read an article about Dividend yield funds here : http://money.outlookindia.com/scripts/IIH021C1.asp?SectionId=2&CategoryId=78&ArticleId=6583
Manish
Manishji,
I, a salaried man with 4lakhs per year, am totally new to the mutual fund world.
With the advice of some local MF advisers I did the following so far.
1. A 1000 per month SIP with ICICI Pru Infrastructure fund Divident reinvest
2. A 1000 per month SBI Life Child Plus
3. Rs 50000 per year for three ears in SBI Smart ULIP
Now I want to start one more SIP and was planning to start with Birla Sun MIDCAP for long term.
Then the agent said about the abolishing of Entry load by SEBI and he would be charging
1.5%. It’s OK and justified if he gives valuable comments. Then I checked whether this
man giving good suggestions with you blog. The ValueResearch link given
by you was much helpful. According to this site for a 5 year term Birla Sun MIDCAP
do not have a good track record. This means he was not showing me the right way.
He should have suggested me to go for at leat BNP Paribas. What’s your opinion?
@Jubi
Yup .. looks like he didnt do very well as an agent .. Not sure why has has suggested you things which he did.
1 is ok but not too good
2 is bad (stop it after completing 1 yr)
3 is totally bad (stop it)
1.5% commision is too much for this agent adn 1,5% for what !! .. mutual funds or everything including ULIP ? He is already getting commision for ULIP .. you dont need to pay anything for ULIP
Manish
hi manish, its a nice post..i m a bba student making a project on MFs n i would choose HDFC top 200 as i hav done a research on it n hav found it is better amongst many other
HDFC top 200 is amazing fund . However every fund is different and you cant compare everything with this fund .. This is a Equity diversified mutual fund and has to be compared with funds in same category .. So overall its a winner .. there are other funds too .. but this one is great
what all funds did you like ?
Manish
Manishji,
What is your opinion about investing a sum of 15K in
Sundaram BNP Paribas Thematic fund PSU which was launched recently?
I am waiting for your advice than my MF advisor.
Jubi
Dont go for NFO’s .. or any new fund offer. . Go for regular Equity diversified ..
Manish
If you are particular about PSUs as a investment strategy, you would be better off investing in Religare PSU fund. Here’s why http://goodfundsadvisor.blogspot.com/2009/12/sundaram-psu-opportunities-fund.html
.-= Srikanth Matrubai´s last blog ..FIDELITY GLOBAL REAL ASSETS FUND =-.
manish i want to save 6000 per month.(BY SIP) FOR LONG TERM.
in to cateogries
1)BALANCE FUND &
2)EQUITY DIVERSIFIED MUTUAL FUND
PLZ SUGGEST M SOME BALANCE FUNDS AS WELL AS EQUITY DIVERSIFIED FUNDS.
THANKS
AMIT
Some good Balanced top funds are ::::
HDFC Prudence
Magnum Balanced
DSPBR Balanced
Tata Balanced
Birla Sun Life 95
Some good Equity funds are at : http://www.jagoinvestor.com/2009/08/list-of-best-equity-diversified-mutual.html
Manish
Dear Mr. manish
I hope you will get some time to answer.
I read this article and was amazed by the way you reply people, So i also have some problem with my investment
I am 32 yr. i have a liitle girl of age just 4 month.
I did some calculation i need 34 laks after 22 year and another 30 laks after 24 years ( 7% inflation). I searched some CHILD ULIP plan and try to calculate the return given by ULIPS in 22 years and 24 years time frame, with same amount of term plan + mutual fund combination. The net yield for best ULIP i found comes out to be 8.27% (@10%) including FAC, mortality, FMC, PAC and service charges. which looks to beat MF+TERM plan considering on average diversified funds have expanse ratio 2.2, and also I have to pay premium for TERM plan.
So Please suggest what i should do my limited knowledge show that ULIP can beat MF in long term considering both perform in same line.
Does ULIP give same return as MF. ( If not it will be expansive to change ULIP if selection goes wrong, if MF we have flexibility to change the fund)??
In ULIP i can manage the fund ( e.g. i can put money in debt 1-2 years before i need money, IN MF i can also do the same but then I have to put in FD or post office and I have to give tax on that)
I am very confused i am not able to decide whether I take ULIP of take MF + Term plan.
Please suggest me something.
Thanks
Ravindra
Nice confusion
So the first thing i need to understand is why do you think 8.27% return of ULIP will beat MF + Term combo , you didnt give me any reason ? what does 2.2% expense ratio has to do with it ? May be i dont know
Next thing is you said that you can manage ULIP by shifting money from one fund to another ? Do you have expertise for it ? Do you understand what kind of expertise it requires ? or do you know that it needs expertise at all
ULIP is a good product , But is it suitable for you? Its like having a very beautiful high maintenance wife with big ego . its not the point of good or bad, the point is can you handle it ? Do you have the expertise ?
ULIP’s switching might look like just a phone call , but when to switch ? If you switch at wrong times then it can create a disaster
, like say you invest 100 in ULIP and then you have it in Equity fund , markets start falling and you shift it to Debt because its safe now .. But markets do not go down then and keep moving up , but because you have shifted and are fearful that it can go down again, you do not switch now .. now equity keeps going up and you dont switch now because its too late .. suppose equity gave 50% return in 6 months , so what could have become 150 will still be 104 in your hands , now out of frustration of loosing the potentail profit you put your money back in Equity and suppose you104 goes up to 120 after going up and down .
Now market starts falling but slowly , but having seen the up days you know that its normal , markets go up and down , so you wait and are confident that you will make money , but market keeps coming down and you are still hopeful that you will make money , Now market goes down by 30% in another 6 months . You 120 is now worth 90 now because equity has under performed .But if if you were invested in Equity and didnt do anything (no swithces) still you would have made 115-120 at the end of 1 yrs .
Yeah .. i have made the numbers myself and this is just illustration , but the point of this exercise is that switching at wrong time can be bad at times , and keeping quitefully invested in something and not doing anything can be good . Switching is nothing by small sister of trading in markets which i can not recommend you at all .
Manish
Dear manish jee,
The calculations I mentioned was on the expected return of 10% including every charges of ULIP and MF. So the net yield for ULIP is 8.27% and net yield for MF is 7.8 % considering both grows at the Same rate ie. 10% year by year in future. If we consider both can grow 15% scenario may be different.
I did these calculations for 22-24 years? I understand the market goes up and down but 22 years is a long time so we can ignore short term fluctuations considering ours is a developing market and GDP can grow on average 8% during next 20 years.
I don’t care what will happen to the market in 1-2-3 year. Most of the experts can’t time the market, none of the experts predicted market can overcome from the recent crisis so sooner. I know experts in CNBC, NDTV profit etc. saying market will go 6000-7000 just 10 month back. They change their views so frequently.
My point is whether I should go to a product which is less costly or I have continue paying these fund manager who even can’t beat their benchmark (Some of them).
People say ULIP is costly but in long term it comes out that it is less costly than MF. The most important charge in the ULIP is FMC which is 1.25% in the fund I have considered in GROWTH option, and MF charges in form of expense ratio which on average 2-2.5% for well diversified fund.
I am still confused which is cheaper??? In long term ULIP or MF. You can calculate MF + Term plan VS ULIP plan on
http://www.apnainsurance.com/insurance-advice-india/calculate-ulip-mutual-fund-calculator.html
sorry to take your too much time please comment whether my points are in right direction.
BTW my MF agent now asks 2% commission for their service after removal of entry load from MF’s. He just gets the form filled by me and submits to the office he manage my funds through some software in which I can see detailed holding (which helps me otherwise I have to do all the calculation once in a year), he also give list of good funds time to time which I conform from different sources one like valuresearchonline site before taking any major decision.
Thanks its too long if you have time I can continue later also .
Ravindra
The first thing you have to do is get rid of your mf agent , he is of no use . better use fundsindia.co .. they are free .
Regarding ULIP or MF confusion .. the return provided by MF is much higher than 10% in long term ,also the return given on valueresearch is after afctoring in Fund charges . so you should not be deducting 2.2% from 10% which you calculate it .
Other aspect is Simplicity .. you are concentrating on just return , which is supreme indicator . But apart from that there are other things like how flexible it is to stop it , restart it , understand it ,etc ..
So you have to decide if you want 10% return with 90% complication , or 9% or 9.5% return with 0% compication
Manish
Dear manish jee I finalyze to take 2 mutual funds namely HDFC top 200, and DSPBR top 100 for Rs. 2000 SIP in each I want to run them at leaset 10 years from now then evaluate. These are large cap fund so I hope they will do good in 20-22 years so that i can continue after 10 years. to manage risk i want to take HDFC prudence fund or DSP Black rock balanced fund what do u say.
Also i want SBI contra as mostly it large cap with contrarian view? Am i right..
I had given some exercise to my MF agent to give me comparison of different child ULIP plans but he didn’t send me till now. I tried hard to compare different child ULIP but it is so complicated some like HDDFC give the comparison chart with service tax also other don’t give. I was searching for ULIP plans because the new cap on the charges imposed on them after dec. 2009..so i thought it may be useful.. but still i thought MF+term will do better..
If you come across any child plan with lowest charges please suggest me I want to have a look on that..
So I dicided to take little pain to go to the mutual fund AMC office and fill the form to start my SIP.. 2 hours job .. and I dont have to pay his 2% commission for just filling the form…I kicked off my MF agent..for any new SIP
Great
First point is that , you can not rely on a single MF for 22 yrs . So make the best choice now and in couple of years they will change and may be new one’s comes , So that time you have to shift to other funds . That is not a big deal . Your choice of funds is good .
SBI contra is good , assuming you know what it means and how they work . At the end , if you take responsibility of what you are doing and know the effect and its impact and also accept it . You are always right
Regarding Child ULIP’s i have no much idea . Its same as other ULIP’s with some other features which make is more suitable for child related goals . Why dont you start a thread in Forums here and see if there is anyone with his views . Leverage others knowledge . Also try to call different companies and ask them .
Manish
Dear Ravindra,
If your investment horizon is 20-22 years, then you should be looking at Diversified Equity Funds and not Large Cap funds. Diversified Equity Funds give you Higher returns then Large Cap funds.
Though your choice of funds is good, I would prefer to have Diversified Equity funds like Birla Sunlife Equity Fund, Fidelity Equity Fund which have given consisitently good returns in all types of markets.
Going for Balanced Funds for such a long period of time would limit the scope for Higher returns.
I am sure Manish agrees with me.
.-= Srikanth Matrubai´s last blog ..FIDELITY GLOBAL REAL ASSETS FUND =-.
I agree
Dear Manish,
Very nice and informative postings!
I would like to invest in a good mid-cap oriented mutual fund, having a nice track record of at least 3 years. Could you please help me out in picking up the better ones among the following MFs?
I have high risk appetite and I’m ready to invest for 5+ years through SIP investment.
Reliance Growth
Birla Sunlife Mid-cap Plan A
Sundaram BNP Paribas Select Midcap,
Sundaram BNP Paribas S.M.I.L.E. Regular
Reliance Regular Savings Equity
IDFC Premier Equity Plan A
TATA Equity P/E
ICICI Prudential Discovery
You can also suggest any other good fund in the above category that I have left.
Below 3 are some good funds in risky mid cap category .
IDFC Premier Equity Plan A-G
Sundaram BNP Paribas S.M.I.L.E. Reg-G
Sahara Mid-Cap-G
Next 2 funds are also midcap funds but with some amount of concentration on large caps .
UTI Opportunities-G
Reliance Regular Savings Equity
Note : Make sure you invest in Mid-cap funds only if you accept the fact they the negative returns from them can be disastous . All these funds mentioned above have given close to -50 % return in 2007-2008 . And money invested in these funds in 2007 is almost same now .
Manish
Dear Manish,
Thanks very much for your guidance.
anwesha
hi
I am a great fan of your blogs and find them very informative and extremely helpful.
I am new to investments, and I am planning to start S.I.P. in HDFC Top 200 (2000/-), DSP BR Equity G (1000/-) and Reliance Regular Savings Equity (500/-). Could you kindly review my financial plan and make suggestions as required.
darrel
Hi Darrel
All the funds you have choosen are great funds . Just make sure that you accept the fact that these all funds are risky and the fund value can go up and down heavily and hence volatility would be high . For long term , these are good choice . go for it .
Just that I would like to clear a simple thing . The fact that you call this as “Financial Plan” is not correct . This is just “investment plan” and that too a short , uncomplete , little part of your big “Investment Planning”
. Financial Planning is much more than this .
I hope you agree
Manish
Manish,
Really nice to see your suggestion for finiancial planning. Could you please advice me also for the same as I am already investing in HDFC TOP 200 (INR 2000 ), Tata Infra (INR 1000) and Reliance RSE (INR 1000) through monthly SIP and now want to invest another INR 10,000 pm for next one year.
Rajib
09836022335
Rajib
You can now look at some other alternatives like
1. Gold ETF’s
2. Debt Oriented Mutual funds : http://www.jagoinvestor.com/2009/11/list-of-best-debt-oriented-mutual-funds-for-2009-2010.html
3. Nifty ETF’s
You should maintain the balanced between Debt and Equity both , depending on your age .
Manish
Hello Manish,
Recently I noticed a fund which is bit new (Hardly 5 year old). But the method looks good…. Fund is TATA Equity P/E. What is your observation on the same. How do you evaluate this fund? Thanks in advance. What I observed is that they are holding to their stocks for a while giving enough time to generate capital appreciation.
Hi Young@Market
Tata Equity P/E is a unique mid cap fund . the Fund invests in companies which are undervalued (uses PE to judge) . So most of the shares are from midcap . Risk and return profile of this fund is extremelly high . So stay with it if you are a risk taker , else move to a large cap oriented fund .
manish
I am sorry, Manish, I beg to differ from you. Tata PE fund may look mid-cap baised but the fact that the fund invests in companies which are quoting at Low PE and hence fall less during Market Falls, (check out the fund’s performance in 2008 and you will agree with me), and hence the Fund is for Risk-averse investors and could be looked at by Conservative investors. The Fund holds Large, Mid and Small Cap stocks in its portfolio.
However, please note that the fund, due to its Value investing strategy will NOT give handsome returns during Bull Markets.
.-= Srikanth Matrubai´s last blog ..FIDELITY GLOBAL REAL ASSETS FUND =-.
Srikanth
If you look at my comment , I never said that fund is not good . Infact I have myself told that “stay with it the fund if you are high risk taker” . Give that the funds portfolio contains 75%+ in small and mid cap stocks, how do you say that it suits risk averse and conservative investors ?
Manish
Yes, Tata PE Equity Fund does have a majority of its holdings in small and mid caps. I agree with that. But you seem to have missed the point that the fund invests in stocks which are quoting at a PE lower than Nifty PE and thus the Fund follows a “Value Investment Strategy”.
Funds that follow this strategy tend to fall less than the broader markets because their selected stocks are usually less volatile.
It has outperformed both the equity funds category average and the benchmark BSE Sensex over various time periods.
The portfolio is quite diversified with investments in around 40 stocks. The top five stocks have, on an average, accounted for more than 25% per cent of the portfolio making it less susceptible to changes in the fortunes of a few companies.
Because of this ’safety first’ strategy, the Fund is suitable for Risk averse investors.
Srikanth
thanks for your views , looks like I missed some point , Should we compare stock PE with Index PE , is it a valid thing to do ?
Manish
Hi Manish,
I need some advice related to my financial planning.
I am 31 years of old with a monthly take home income of 50K after deducting my loan EMIs.
I am married and have a kid of 1 month old.
Following are my current investments
1. 8K per month on HDFC ULIP. I started in Jun 2006.
2. Insurance from LIC for myself, 24K per year. I started in 2002
3. Insurance from LIC for my wife, 16K per year. I started in 2008
I have invested some 30K in few MF long back. Haven’t started any SIP.
I need your advise on my current investment plan. Also I have around 3 lakhs with me.
I want to invest long term for my child. Please suggest me a proper plan to invest.
Please let me know if you need any more information to suggest a proper plan.
Thanks.
Prabhat
Prabhat , I am wondering how can I give you any financial plan with this much of data . But anyways here are basics things .
ULIP investment : please relook if you are able to handle it effectively . If you are not switching at proper time and are not interested in it , then there is no much point continuing the ULIP .
LIC Insurance : the main thing is Cover , which you have not told me, make sure you have adequate cover .
Your Wife Insurane : Is she earning ? If yes , only then she needs to be insured .
Making a full financial planning is a big activity and takes a good amount of time and focus ,.If you need a personalised Financial Planning service , mail me personally .
Manish
Hello Manish,
very informative article on debt funds,
with the current default/situation of worldwide debt market, will it affect the india debt market
i have liquid cash need to invest in Debt funds for 2 years with a low risk appetite,
i can afford a 5% dip in the capital,
which debt funds would you advise or should i look at MIP
Err … this is post regarding equity funds
. I guess you wanted to write comment on debt funds article 
. Anyways 
You can invest your money in the funds mentioned at http://www.jagoinvestor.com/2009/11/list-of-best-debt-oriented-mutual-funds-for-2009-2010.html
Manish
Hi Manish
DSP Equity D is 12 year old fund with good long term performance (NAV around 52) where as DSP Equity G(NAV around 14) is new fund. Will it be choose DSP Equity Growth instead of DSP Equity Dividend? Is there any difference with respect to performance and returns?
Raj
Dont look at NAV . that should never be looked at . The reason why D option has NAV of 52 is that its an old fund , its started in 1997 and it has taken many years for NAV to grow . whereas growth option is just 2 yrs old (2007) . The performance of both the funds are impressive
. you can include it in your portfolio .
NAV is just like a person Name, doesnt matter if its long or short , what you have to look at is a person internal strength and attitude
Are you trying to build your investment plan ? What else are you thinking of ?
Manish
Thanks Manish, I do understand NAV does not matter, Just was curious to find whether choosing G option would be better or not as it was not even mentioned in valueresearch web site. More over why G option was started in 2007 and not introduced during all these 12 years
“Why G was not introduced before 12 yrs”
This is something i cant answer
. There may be many reasons like that time people were more interested in buying D option and not G option OR may be becasue the markets that time were stagnant for long time and hence D option was more attractive that time than G option 
. there can be many reasons . its out of my scope right now to guess 
Manish
Yes, I agree. So I can choose G right based on long term performance of D, even though G is only two years old.
Yes , thats correct
Manish
Thanks a lot manish
Manish ,
gr8 post and informative responses. Thanks.
BTW, did you do any research about fund manages from india with good track record. If you can share with us that would be very helpful. Also, some good website for tracking fund managers and investments.
Srikanth
For now I have not done any study like that . Will think about it in future
Manish
your suggestions are very useful for peoples in the world
it is useful for all.
Great picks, Manish. But I am surprised that you have missed out two good ELSS funds, here, namely
Birla Sunlife Tax Relief96
Religare Tax Plan
Among the equity Diversified Funds, you could have also added the Birla Sunlife Equity Fund.
Further, to add to your list of 9 funds, why not make it 10 funds, by adding a Balanced Fund, namely HDFC Prudence fund, the BEST in the category.
limited space
thanks for these funds
. they are also good ones 
Manish
Manish, I am planning to start SIP with 5 or 6 funds. I selected 12 funds, every one looks fine, Can you please help in eliminating few of them… may be your choice of funds from below list.
1 HDFC Top 200
2 Reliance Growth
3 SBI Magnum Contra
4 HDFC Equity
5 Birla Midcap
6 Birla Frontline Equity
7 Sundaram SMILE
8 Sundaram Select Midcap
9 DSP Top 100
10 DSP Equity
11 ICICI Discovery
12 Reliance Regular Savings Equity
Well.. you are asking a tough question . there is no guarantee that the funds which i choose will beat others , If its long term i would say most of them will be able to give your required returns .
i personally would like to invest in
1 HDFC Top 200
8 Sundaram Select Midcap
9 DSP Top 100
12 Reliance Regular Savings Equity
Thanks Manish, I will start with four of them and will include one more HDFC prudence.
Yup looks good . HDFC Prudence is amazing .. Go with it
Manish
Manish,
Would like to know if it will be wise to invest in Gold funds like AIG World Gold and DSPBR World Gold as the SIP facility cannot happen with Gold ETFs ?
I thought of buying some units of Gold ETFs every month. But, it seems impractical as i might not be regular.
Your Views..
Shantharam
Shantharam
both are different things .. gold funds is nothing but equity funds , investing in shares of companies involved in mining of gold and same kind of work , whereas gold etf is purely gold investing . Both are different and should be used for different reason
manish
Hi Manish,
I would like to invest through SIP around Rs. 2000 – 2500 (monthly) in HDFC Top 200, Reliance Regular Savings Equity, Sundaram Select Midcap.
Kindly suggest how shud I move ahead.
Thanks in advance.
Hiren Bawalia
Great
You can just start the SIP now . You can do it from
- An agent
- Demat account (your demat account should allow mf investing , ICICI has it)
- DO it directly , go to AMC office and fill form yourself
Manish
Hi Manish,
Thanks for your advice.
Hiren Bawalia
hi manish,
thanks a lott…for providing such a good information regarding MF’s.
i am an enginner, age 23 , having monthly saving of around 16000/ p.m.
but i am facing, lack of knowledge in driving my investment plans.
and already18 months have passed doin job..mostly i have invested in Fixed deposits.
but as this yr i came in to tax payee segment, so i started thinking.My father or colleagues told me to take a LIC jeevan anand or jeevan saral of 5lacs sum assured.with 25000/- PA installment of 20yrs.
but i confused whether after 20yrs it will fulfill my needs. Becoz as i knw insurance plans are not to increase ur wealth with high returns. and at this stage i want to increase my wealth with better returns with low risk.So i came to knw about MF’s.But how to start with it?.From ur articles i came to know about 2/3 fund dat are very gud.just now i applied for ppf account,i think a gud option for investment as well as tax saving.but for my wealth creation in which mutual fund i shud have to invest ?..and with what amonut of SIP in respective MF?….please manish advise me..
and tell me procedures too buy mutual fund?…as neither i have demat account nor i consult to agent?..
plz advise manish…
i will be awaiting…[:)]
Varun
All your problems have very easy solutions . Dont worry .
Regarding LIC policies
—————————-
You are thinking very right . Those policies are not at all worth . Low yields , not value for money . Just blood sucker policies . Please oppose your father and colleagues .
mutual fund i shud have to invest
———————————————
You should choose some good long term options discussed at : http://www.jagoinvestor.com/2009/08/list-of-best-equity-diversified-mutual.html . Dont loose your sleep over choosing the best one . there is none . What will really make your wealth grow is consistency in investing and letting it grow over long term .
tell me procedures too buy mutual fund
————————————————–
There are 3 ways
1. Get an agent and pay him commision (convinient/costly 1-2%)
2. Do it yourself by filling form etc at AMC office (some work / free)
3. Do it through your demat account (ICICI/HDFC has it , some commision here)
Regarding your Education in this area
—————————————————-
1. http://www.jagoinvestor.com/archives
2. http://www.subramoney.com/
3. http://www.shyamscolumn.com/
4. Read Outlook money and Money Today Regularly .
5. Think a lot logically and Ask every small thing from agents and companies
6. Ask me
What do you think ?
Manish
first of all.thanx a ton manish…for answering my queries..[:)]
manish..what do u mean by consistency in investments..?…
and by long term?…means 5 or 10yrs can we call it long term investments?…
and how these dividends is paid in MF’s ?…and what is this NAV stands for?…
supoose i started investing in HDFC top 200 ( sip 2000/-pm) and in DSPBR top 100equity req-G ( 2000/-pm) and in reliance regular savings equity ( 1000/-pm) it means for 10 yrs, i invested around 6lacs/- then how much return i shud expect.and how will it be paid to me..?..
..
please guide me?..
and tell me how shud i choose my AGENT?..means what thing i shud consider in choosing an agent?..as i am new ?..but i hav believe in u..[:)]…
can u tell me about some best agent ?…
and manish shud i invest in stocks through ( agent)…
i am an medium risk taker..?..
please guide..{:)]
Varun
Most of your queries are answered on this blog
1. What is meant by long term : http://www.jagoinvestor.com/2009/03/what-is-long-term-in-share-market.html
2. how these dividends is paid in MF’s : http://www.jagoinvestor.com/2008/04/mutual-funds-options-growth-dividend.html
3. what is this NAV stands for : http://www.jagoinvestor.com/2007/11/what-is-mutual-funds-easy-explaination.html
4. how much return i shud expect. : http://www.jagoinvestor.com/2009/10/4-charts-which-will-change-your.html
I would suggest you first go through some articles and educate your self . After reading them , put up your questions . But first try to find them on the blog yourself
see : http://www.jagoinvestor.com/archives
Manish
dear manish,
sorry for asking silly thinngs..as it is already given on ur blogs.
but from 2 last days in my part time i m reading ur blogs, and gathering information as much as i can gather..?…
but very soon i will read all the postings and try to utilize those learnings in my upcoming investments…{ once again thanks for these posting;;]
the effect of this site on me is now at this level, dat i have started thinking at speed and want to take some steps as early as possible..?
i also have sent u a friend request on orkut, i hope u will approve it…[:)]
..but some ques. i wud lik to ask..?.
1). i want to start investing in 2/3 MF’s as early as possible means with in this months. for 20 yrs period. i have told u my monthly saving is around 16k/- pm so inwhich ratio i hav to invest in which products?..mans hw much in MF’s , hw much in PPF’s etc.
2). please tell me hw much of SIP i shud invest in each fund..?
3). i have no dependents . as i am not married and my father already have a good business..and property..so shud i go for a term insurance now?..
4).I need to save tax this yr for this i have to invest around 35000/- ?. (plz guide me for this query)
with best regards
varun
Varun
Nice to see you are reading my blog so much , Glad to know . Here are the answers
1. You can invest in any of the mentioned funds . I cant give exact names and it does not matter. Pick at random . How much in MF and how much in PPF is a question which depends on your age and risk appetite and your financial goals . 80:20 looks good
2. Decide the annual investment and divide for per month
3. No Financial dependents = NO insurance
4. Invest in ELSS/PPF for 35k . from next year do your tax planning early .
Manish
hi mansih
thnks for the reply.
1) mainsh shud i go to AMC’office to invest or online banking account is safe ( as HDFC’s Investment service account)?..but as they are saying they will charge only 400rs/-per year for maintenace and no any transaction cost?…is it true ?..and hw abt the fundsindia.com is it safe to invest through it?..
2). i want to invest 10k p.m., so what shud be my weightage in equity, balanced. and debt funds/.as i m of age 23 and no dependents..and i m medium risk taker?..
3). do my choices are vaild..
1. hdfc top200 (2000/-pm sip)
2. dspbr top 100 equity (2500/-sip)
3.sbi magnum tax gain ( 1000/-) – for tax saving also
4. reliance regular savings equity (1000/-)
5. Sundaram BNP paribas balanced fund ( 1000/-)
6. sundaram select midcap fund ( 2000/-)
so what u think is this ratio, or choice of fund is valid, or in which fund i shud do more / less?
4). So this yr in which ELSS scheme i shud invest 35k in lump sum?. ( sbi magnum tax gain, hdfc tax saver G, or sundaram tax saver, or canara robeco equity tax saver )….plz guide..
Varun
1. Go to AMC office and invest , that will save your any transaction cost .
2. There is no single answer to this . It will depend a lot on your preference . It wont matter a lot if your ratio is little less or more . Just have some appropriate numbers (high equity less debt)
3. looks good . Shifting things here and there wont affect a lot .
4. Diversify in some good funds . I personally like Sundaram , Canara . Make sure you understand the risk of ELSS. There is no guarantee than after 3 yrs of lock in there will be profits for sure .
Manish
hi manish
i am having icici pru discovry fund and sundaram smile fund both growth opton and mode of payment is through SIP, my question is can i put some lumpsum amount in these funds in the same folio and are there any extra charges for that.
Vivek
Your next lumpsum payment does not depend on your SIP . It will be totally a new thing.
Manish
hi,manish, i am engineer as 34 years.my sallary is 4 lakes per annumm.i would like to invest in mutual fund throught sip,per month 6000.please guide the mutual fund
Sushil
For long term investment it would be a good idea to invest in mutual funds mentioned at : http://www.jagoinvestor.com/2009/08/list-of-best-equity-diversified-mutual.html
If you are not a big risk taker or you want to invest for short term try : http://www.jagoinvestor.com/2009/11/list-of-best-debt-oriented-mutual-funds-for-2009-2010.html
Are you not interested in ETF ?
Manish
hi manish
1. it means online purchasing is not gud of mutual fund?..
2. shud i invest in hdfc taxsaver, and bnp tax saver / or sbi magnum tax saver??..in a lumpsum 35k..or divide in all these?..
3.is fundsindia. com safe for purchasing of mutualfund?…
4. i wanna buy a car after 2 yr so in a lumsum shud i invest in debt fund or balanced fund for 2yr..?tell me the name of fund also..
thnks in advance.
Varun
1. there is nothing wrong with online transaction , but it has a cost . If you want convenience and everything at comfort of a click , then go for online investing , its all about what are your preferences .
2. It is advised to so SIP for newcomers . Lumpsum has its own advantages , if market shoots up after your investment , then you gain most in Lumpsum rather than in SIP . but because its not advised to time the market , its better to go with SIP for newcomers atleast .
3. I cant say anything . There are people who have done through them and they are satisfied .
4. Its good that you do not take much risk if your goal is critical . better look at HDFC prudence or some other debt funds listed at http://www.jagoinvestor.com/2009/11/list-of-best-debt-oriented-mutual-funds-for-2009-2010.html
Manish
Great post! keep them comin… thanks for all your hard work.
Thanks for comment ..
What are your views on misselling and how can we remove it in some years ?
Manish
hai, manish, i am intrested in also ETF.At presently kotak etf is as NFO.please suggest me.is NFO taken or not
Sushil
NFO in ETF is very different than NFO of Mutual funds . But anyways better for with other ETF’s like benchmark ETF for nifty .
Manish
dear manish
its true as being a newcomer i have to invest through SIP, but now in my case i have to invest 35k to save tax .either in PPf or in ELSS .
dats y i was asking dat i shud invest in hdfc taxsaver or bnp tax saver / or sbi magnum tax saver??..in a lumpsum 35k..or divide equally in all these?..as for now….
for next yr to save tax, definitely i m goin to start SIP…so plz guide..?
regards,
varun
Varun
First thing is that make sure you dont have short term money commitment , If yes , then invest money and save tax . Else pay tax .
You can invest in Sundaram or HDFC , both are good . You can invest in lumpsum in one or two (divide it) . The advantage of SIP is that it diversifies your investment over different time and hence reduces the risk part (and return potential too).
Manish
Dear Manish,
I have read your views and comments about mf I want to know 2 things.
1. HDFC top 200 is recently not so high in rank, does it matter to invest in this fund?
2.does MF agent gets commission direct to customer after ending the entry load ?
Suraj
1. Good point . Its like asking Sachin Tendulkar is not performing well these days, he is not in ICC rank 5 , so can we remove him from team? In the same way, Every mutual fund also goes through bad and good times, so dont judge them in short term .. Anything in top 10 is good fund . If you compare other funds who are rank 1 or 2 today with HDFC tax saver , most of them will sweat in front of it
.
2. If I understand correctly , you are asking “if agents get commision from customers even after entry load is banned” . The answer is yes , may be . So IRDA has said that now all the money you invest in MF will full be invested , You can deal with agent on your own and decide how much you want to pay him . So it can range anywhere from .5% – 2% in todays world . I would say dont pay more than 1% in anycase .
What Mutual funds are you looking at ? Why dont you invest through Demat account or directly ? You have demat ?
Manish
hi manish,
Thankx for resolve my confusion.I want to invest through SIP. Is it possible to invest through Dmat account .How can i get opened Dmat:? please tell me the process.
thanx again
Suraj
Suraj
There is nothing much I have to tell here .
1, Open demat account -> choose the company ,-> goto their site or phone number and tell them you want to open
2, From your demat account there will be way to buy it . try it
Manish
manish,
Thanx for rep.
Is
Is it complicated to invest with AMC office?
suraj
Suraj
It wont be that complicated . Just that you have to go to their office , ask them the form to invest in some particular MF and then fill the form . Thats all .
Manish
If you want to invest in 5 different funds then you shud visit all AMC offices, If you do it thru demat account, then all the funds will be consolidated at one place and have the flexibility to transact online, start SIP or stop SIP and also purchase/switch/redeem etc when ever you want.
Yeah .. That gives a point that if we want to invest in more than 1-2 funds and need convinience too .. Then its better to do it online through demat account
Good point 
Manish
hi manish,
again a good post…dat u post regarding ” missselling “…
…
a very good brain washing article, for this indian mass.especially..
..keep it up..
very soon i wil start my blog also..but right nw i m in learning phase…
its a gud learning frm u..and ur posts…
i hope i will get ur support alws to kick all these stupid and greedy agents , who just see there benefits rather than providing a good solution..
so i will also put my step forward , to remove this financial ignorance among the indian public especiallyyy….
and i knw we can do it..
so done..!!!.
regards,
varun
Varun
I have already replied to you on this … check your last comment on another post .
Manish
hi manish,
1) well which scheme of sbi life shield term insurance is good?
evry 5yrs. 50% increase in sum assured
or evry yr. 5% increase in sum assured
2.) and the longest term this scheme is providing 25yrs, and i am of only23 yrs..means i will be covered upto 48 yr of age only…but i want the cover upto60yr..
it means i have to take the term insurance again at the age of 48 yr, when the premium rate will be too high?…or i shud go for term insurance at the age of 35 so dat i will covered exactly upto 60yrs.?
3). or is there any other insurance company which is providing the cover upto 60 or 65yrs of age, without any term limit.?
regards,
varun
Varun
1. you are asking a wrong question . We cant say which is good or bad . you have to decide which suits you .. both are different and with different cost . I think the first one is ok for me personally , if you want your cover to jump fast , then opt for the second one .
2. yes thats true , or the better thing would be to take another cover when you are age 35
. so that it can contunue till you are 60 .
3. there will be many , LIC will be one of them .. check yourself .
manish
Hi Manish,
From last few days, I have been following your website. I’m really impressed with your response and clarity about the thoughts.
However, I’m to Mutual funds, but would like to start few SIPs (Rs. 2000/-). I can invest spend Rs. 6000/-. May I request you to suggest me some good funds so that I can keep investing money for a longer period of time….say 5 to 7 years.
Regards
Harish
Harish
thanks for the comments . Assuming you have a moderate to high risk appetite and a return expectation of close to 12-15% . you are better off putting money in equity diversified funds : http://www.jagoinvestor.com/2009/08/list-of-best-equity-diversified-mutual.html
Let me know what other things you are looking at , you should choose growth option
manish
Thanks Manish
Well, I can take some moderate risk (avoid high risk). However, Yesterday, I have started following SIPs (Before that I have gone through the suggested article and subsequent disucssion carried out by various user).
1. HDFC Prudence – 2000/- pm for 15 years
2. DSPBR TOP 100 Growth – 2000/- pm for 15 years
3. Sundaram select midcap Growth 2000/- for 15 years
Would like to have your view on the above investment planning…
Subsequenlty, In next 2-3 months, I would like to start 2 new SIPs…Your suggestsion and advice will help me…
Looking for your valueable suggestions.
Regards
-Harish
Harish
Yes .. all the funds you have choosen are good funds .. But before that have you decided your asset allocation ? How much of your money will be in equity and debt ?
May be its time to look at some debt intruments like PPF , Debt funds , bonds .. Atleast Debt oriented funds ..also the funds you have taken right now should be linked with some long term goal like child education , retirement . IS it ?
Manish
Yes Manish
The funds I have selected is for long term investment. Yes you are right I need to think about few debt funds, bonds etc…
Would you like to suggest few debt funds / bonds etc.?
Regards
Harish
Harish
Some debt funds are listed at : http://www.jagoinvestor.com/2009/11/list-of-best-debt-oriented-mutual-funds-for-2009-2010.html
manish
Hi Manish,
From last few days, I have been following your website. I’m really impressed with your response and clarity about the thoughts.
However, I’m to Mutual funds, but would like to start few SIPs (Rs. 2000). I can invest spend Rs. 6000. May I request you to suggest me some good funds so that I can keep investing money for a longer period of time….say 5 to 7 years.
Regards
Harish
Harish
thanks for your comment . I am glad you are liking it .
Debt funds : http://www.jagoinvestor.com/2009/11/list-of-best-debt-oriented-mutual-funds-for-2009-2010.html
Equity funds : http://www.jagoinvestor.com/2009/08/list-of-best-equity-diversified-mutual.html
Manish
Hi Manish,
After going through this whole blog and postings by others,I have started investing 2K p.m. in HDFC Top 200 mutual fund. At this stage, I have decided to keep pouring this amount for five years. I am totally new to SIPs, do you have any rough idea as to how much maturity amount i can expect at the end of five year, would you suggest me to increase the tenure by 5 more year.
Thanks – Himanshu
Himanshu
You can expect around 12% return (you might get more also .. but be safe)
>>> 2000 * (1.01) * (1.01 ** 60 – 1)/.01
164972.73310994645
You can expect 1.65 lacs assuming 12% .,.
Manish
dear manish
1. what is ur opinion about the IDFC premier equity fund as it performing so well since inception ( more than 5yrs ) return rate is 25% approx ( i.e. more than hdfc top 200, and dsp blackrock top100 equity )…?
2. and how would u rate UTI dividend yield and UTI opportunities fund, as they are also giving handsome retun ( ~22% for more than 3yrs ) ?
3. And i read in feb-2010, money today issue dat as per the new tax code dat will be applicable from april 2011, it is not advisable to invest in ELSS scheme as the redeem amount after 3yrs will be taxed, so the people shud invest in ULIPS?…what is ur opinion abt dat?..
regards,
varun agrawal
Varun
The MF you mentioned at 1 and 2 are great funds .. I already that the list I gave is not exhaustive and hence should not be taken as the final list .
Regarding new tax code , until it comes into force , I would like to not take it as a criteria to decide the investments now .. Its still in discussion
Manish
thnks manish…
i know the new tax code is under discussion but you have to do the investments skillfully,,,
and but if the ppf amount deposited after april2011 will be taxed on maturity, so it is advisable in this 15 months to credit in ur ppf account as much as u can ( not more than 70 k )
what u say ?
regards,
varun
Varun
Considering that new tax code comes into effect , still the PPF would be the best in debt category as the same rules of taxation will apply on all the products . Also with PPF i think the rules will not be applied for amount deposited till Mar 2011 .
Manish
hi manish,
can u give me some fruitful guidelines,on how to start my own blog?..
as i am thinking to start with wordpress.com…
what u guide..?
regards
varun
Varun
Why dont you mail me ? Did you try searching for this on net first ?
manish
Hi Manish,
I need some advice on my financial planning.
What is your email address, so that I can send you my details.
Thanks.
Prabhat
Hi Prabhat
I offer Financial Planning services for a fee . You can contact me at manish@jagoinvestor.com . Incase you just have 1 or 2 basic questions . I would love to answer them
Manish
.
Hi Manish
Excellent site!! Keep up the good work.
One more excellent fund comes to my mind. that is Quantum Long Term Equity Fund. I am investing in this fund through SIP for 3 years now and it did very well in protecting capital in the crash time. A very very good fund, i must say.
- Priya Ranjan
Priya
Thanks for sharing this , I looked at fund and it looks good
. not very old though
Manish
Hi Manish
I understand that you offer financial planning service also. If that is correct, can you please let me know you fees?
Best Regsrds
PR
I mailed you
Hi Manish,
You site is doing great job for educating new investor like me.
Yesterday I have taken my first mutual fund HDFC Top 200.
Please help me to plan my investment in MF
I have selected four equity MF for 5 years. Please comment on them or suggest better.
1. HDFC Top 200
2. Reliance Growth
3. SBI Magnum Contra Fund
4. Sundaram Select MidCap(Growth)
I am 30 year old. I want to invest 4000 every month. Please suggest me which is the best approach to invest, In a month one thousand on each selected MF or invest 4000 in one mutual fund.
Please comment of NAV of mutual fund. For exanple if a fund have nav=100 and I have invested 10000 for 5 years. Please tell me what would be the MF return after 5 years if nav=100.
My understanding about MF NAV is, if nav=100 and invested money=10000. I’ll get 100 unit and after 5 years if nav is same like 100 my return would be (number of unit)*NAV. Please comment……..
Thanks & Regards,
Vivek
Vivek
You can diversify your 1k in each of 4 funds you have mentioned . JUst remember and accept the Equity risks .
Regarding NAV thing , yes your formula is correct . if you have NAV of 100 today and you get 100 units , and after 5 yrs , if NAV is 200 then you get 200 * 100 = 20,000 . But thats not the main thing . what you should ask is what is the actual per year return in percentages . See IRR or CAGR return post on this blog , see search box or archives .
Manish
Hi Manish,
I am planning for an investment of about 100K in the next 2-3 months. I have invested in Reliance Pharma, UTI Master Value, ICICI Discovery. I chose to invest in these funds based on their returns in the last 3-6 months. But I feel, I should know how they perform in the future. Please advice me whether to continue investing in the same funds or to start any other. My preference is on high returns. I can take some risks. Time horizon is longer than anyear.
Thanks for your advice in advance
Rush
Rush
All of your funds are risker one’s it seems .. 1 yr is a short period and there is a big risk or downturn , just saying “i want high returns and can take some risk” is not good . are you able to take that risk financially ? Can you imagine the situation when you lost 60% of that investment , is that ok ?
Better choose balanced funds if you cant .
manish
Hi Manish,
I am a policy holder of icici prudential life insurance.and the plolicy is Lifetime super.
i am paying a monthly SIP of 3500 to this policy.
And if i look into my ac on the net it is showing as follows.
Fund Name NAV (INR) # Units Fund Value (INR)
Balancer Fund 31.6 2881.51985 91056.0257
Maximiser Fund 59.21 301.22698 17835.6507
Total: Rs. 108891.6764
What are these balancer and maximiser fund?
One of my friend told ,if you switch it to maximiser fund i will get more returns. IS it true?
Please guide me whether i should switch my total money to this maximiser fund or not.
If u advise me to switch it to maximiser fund,which is the best time to switch it to maximiser in the following cases.
a. When the market is at low levels
b.OR when the market is at high levels.
One of my friendadvised me that” post budget the market will go down then u switch it to maximiser so that u will get more returns”IS it true?????
Please advice me on this confusion.
Thanks in advance.
Rajiv
You need to understand ULIPs well . There are differnet type of funds in ULIP which have more equity and less debt (more riskier) and less equity ad more debt (less risky) . so Balancer is less risky and low rewarding and Maximizer is high risk , high rewarding .
As your friend said , maximizer can give better returns , but at the cost of risk , risk means , it might not happen also . are you ready for it .
Manish
Hello manish,
I need to invest in mutual fund 10,000 for long term. can you please suggest me which mutual fund i have to invest where i can get maximum return. i am ready to go for high risk.
And can you please also guide me for a good medical insurance policy for my parents. My dad age is 53 and mom age is 49. i need to pay less premium for this.
waiting for your earlier response.
Thanks,
Naveen Mittal
09328647199
2k6.naveen@gmail.com
Naveen
For mutual funds choose from : http://www.jagoinvestor.com/2009/08/list-of-best-equity-diversified-mutual.html
For Insurance you can look for apnainsurance.com as it depends on individual need only
Manish
Hi Manish,
I need some advice for my investments. (Age 28)
My invstments are
1. SBI Life ULIP 24000 (3-Year lock in Period , Started in 2007 & already paid for 3 years)
2. SBI Life ULIP 25000 on my wife name (3-Year lock in Period , Started in 2008 & paid for 3 years)
3. Birla sun life tax relief 96 SIP plan (1000/- montly started in Nov 2009)
4. LIC Jeevan Astha (36000-/ Paid in 2008)
5. LIC Market Plus – 1 (3-Year lock in Period , Started in 2010 paid for 1 year now)
I have two Queries –
Whethere I should continue with my 1st , 2nd & 3rd ULIP or withdraw from it?
Also suggest me some good Large Cap MF for investment through SIP as I am totally new to this?
Thanks in advance..
-Tony
Tony
Better get out of ULIP’s if you cant manage it well . 3rd one is a mutual funds , isnt it ?
You can choose some funds mentioned at this article . No ?
Manish
Thanks for reply,
Yes, 3rd one is MF. & will go for good MF suggested here…
- Tony
Hi Manish
I have a small query. Around a year back, I enrolled for SIP in Sahara Growth Fund. But, now, I see that it is lagging it’s peers in performance by a wide margin. So, now I’m thinking of stopping this SIP and switching to HDFC Top 200 or HDFC equity fund. Is it a good strategy? My current SIPs are in
1. Quantum long term equity fund
2. Fidelity Equity Fund
3. DSP Blackrock top 100 equity fund
4. Reliance Growth Fund (For having midcap in portfolio)
5. HDFC Tax saver (For tax saving).
6. Sahara Growth.
I would earn a favour if you can comment on it.
Thanks and the best regards
PR
PR
Yes, looks good idea to shift from that fund now . HDFC top 200 is good . Better have just 3 funds. 1 tax saving (HDFC taxsaver is good) and 2 other non tax saving , HDFC top 200 and one more , you can look at a mid cap fund like Sundaram select midcap
Manish
Hi Manish,
I am 29 yr old. I am investing about 25% of my annual income now. Is this time good to invest so much? ShouldI wait for some more time or is it OK to invest now? If it is OK to invest now?
Pls suggest me the best funds to buy at the moment considering their futureperformance.
Thanks for the suggestions
-Rush