Advice on Fund Selection

POSTED BY Durgarao ON October 5, 2010 1:09 pm COMMENTS (3)

Hi,

I am 26 years old,i am average risk taker,currently insted in HDFC Tax saver  2k,PPF 2K, and EPF contribution is 2K,and now I am planning to start invest 8k through SIP in below funds

HDFC Top 200                2K Large & Mid Cap
Reliance Growth             2KMid & Small Cap
DSPBR Top 100              2K Large Cap

How the fund is Clasified as MultiCap fund?Can somebody suggest me some MultiCap funds to invest remaining 2k?

Is the Funds compositon is good?

Waiting for response

Regards,

Durga

3 replies on this article “Advice on Fund Selection”

  1. bharat shah says:

    the classification of fund categories is different for different mutual fund rating agency/company/site. for mutual funds in india, i think, the most familiar is ‘valueresearchonline.com’, and now, i come across ‘morningstar.co.in’ site, only because of ‘jago investor.com’, which seems me the inspirer of ‘valueresearchonline.com’.this is only my guess. as ‘multicap fund’ category is concerned, as per ‘valueresearchonline.com’, funds with between 40 to 60 per cent of assets in large cap companies over the last three years. other 60 to 40 is supposedly in mid and small cap companies. if you like to invest in multicap fund, i suggest you to check ‘hdfc equity’ alongwith others. for information ‘valueresearchonline.com’ is dividing diversified mutual funds in 4 categories: large cap, large &mid cap, multicap, and mid & small cap, whereas ‘morningstar.co.in’ in only two: large cap and mid & small cap. ‘morningstar.co.in’ categorise first 3 large cap, large &mid cap, multicap into one as large cap and rest as mid and small cap. both ‘valueresearchonline.com’ and ‘morningstar.co.in’ are very useful for indian mutual fund investors. one more difference of these sites’ presentation i like to draw attention is : ‘valueresearchonline.com’ is giving particular mutual fund scheme P/E based on trailing year earnings of the shares of the scheme, whereas ‘morningstar.co.in’ is giving P/E FORWARD i.e based on forward year earning esimate by the analyst for the shares of the scheme. i think, we can have idea of the near future i.e. a year or so, earning growth expectation by the analyst , if we take the ratio of p/e forward by’morningstar.co.in’ to p/e by ‘valueresearchonline.com’ .

  2. Durgarao says:

    I am Average risk taker, all these funds what i asked are for Long term view(more than 10 years).
    And i want to re balance my portfolio with 70:30(Equity:Debt). In Total 14k investments 4k for debt and 10k for equity. And after 6months i want to start investing in short term MF’s.

    Correct me if i am wrong with the analysis ?

  3. Durga

    commenting on fund composition without understanding what kind of investor are you and what are your risk taking abilities will not be fair .

    Its like you show us a girl and ask us will she be a good life partner for u 🙂

    This whole portfolio selection thing is easy , you can just see how much equity part is there in the portfolio and how risky it would be and ask yourself , if that would be something you would be comfortable with .

    Manish

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