Advise on Mutual fund

POSTED BY Bhavin Nagda ON February 19, 2013 8:34 pm COMMENTS (14)

14 replies on this article “Advise on Mutual fund”

  1. Dear Bhavin, don’t get me wrong. When I’m checking you for the ranking assigns to any fund on each site, there you ‘ll notice that a fund is 5* in a site, 4* some where else & 3* at another site. So always take the rankings with a pinch of salt. Use your own brain to decide what is good for you. 🙂

    Thanks

    Ashal

  2. Bhavin Nagda says:

    Hi Ashal,

    All credit goes to you and Manish. Just because of you guys I am able to gain knowledge.
    I use to read your blogs, go through the Question-Answers session. Which helped to increase my knowledge. Hats off to you guys.

    I will surely visit the other sites also that you mentioned.

    Thanks for your valuable time.

    Have a wonderful time.

  3. Dear Bhavin, now your thought process is very much clear (at least it looks to me). Welcome to the party dear. Regarding the ranking, please check the ranking of any fund from VROL, Moneycontrol, Morningstar, Economictimes, Crisil & you w’d come to know what I mean?

    Thanks

    Ashal

  4. Bhavin Nagda says:

    Dear Ashal,
    But the ranking is given as per the returns, Higher the returns, higher the rankings.

    We can say that the fund is performing well based on their returns only.
    If the fund has very low returns, that means the fund is not performing well.
    Thats what the thumb rule is, I guess.

    Also the funds i have selected earlier has many companies in common. I,e, i am investing in the same company by different means.
    I know i have made the mistake doing this.
    So i have selected these new funds.
    where
    SBI FMCG will be all the FMCG companies (mostly large companies)
    SBI Emerging Businesses will be all Mid-Small Cap companies
    ICICI Prudential Eq Volatility Advantage Reg- Balanced Fund.

    Again, i am not expert in these domain, so i am trying to seek help from you.
    But this is the guess i have made.

    Again, since i dont have any idea that how the companies will perform in the future, so i am going through SIP way.
    And maximum i can do is, i can choose the best SIP’s by not looking at the future growth of the companies in that particular SIP ( due to lack of knowledge), but by returns only.

    And since SBI FMCG fund contains various Big FMCG companies, I dont think so there will be a loss in FMCG sector anytime, since it maufactures daily need products, which people will never compromise with or substitute it with anything else at any given cost, no matter how inflation is low or high.

    Please Guide.

    Thanks.

  5. Dear Bhavin, when you drive a vehicle, do you look forward or backward? Please check the past performance but do not depend solely on that. Regarding the ranking given by any agency or website, do not take it blindly. As long as the fund in question is performing or doing it’s job as per your expectation, no reason to worry.

    SBI FMCG is a sectoral fund & hence can not be called as a pure diversified fund. It’s a high risk fund & be ready to see to much volatility. The future may not remain same as the past in this particular fund.

    Thanks

    Ashal

  6. Bhavin Nagda says:

    Thanks Ashal,

    I have selected this funds based on their 1 yr and 3 yrs Ranking in Value research online.
    I have selected the FMCG fund since it has a good returns.

    Arent these funds good for investing?
    Can you give your personal opinion for these newly selected funds and the % of amount to invest in these newly selected funds.

    The DSP top 100 has very low ranking these year. So i dropped the idea of investing in it.
    Smilar for the other funds.
    I know SIP returns should be viewed for the long term and not for the short term, but such low rankings for these earlier selected funds is making me worry.

  7. Dear Bahvin, trying to answer your query.

    Switching means to redeem and then to purchase from other fund?
    Yes.

    Will there be an exit load applicable to it?
    “ll depend upon the exit load policy of the fund question.

    Can you please give the feedback on the above portfolio?
    On what basis you selected these funds? In my personal opinion, Franklin India Bluechip & Quantum long Term Eq., just 2 funds are more than enough.
    Disclosure – I’m investing my own money into these funds so my view may be baised.

    Also the plan of STP, do you think is right?
    No, We do STP to invest from debt to Eq. or vise versa. here you are changing merely the fund but basic investment asset class is aame i.e, Eq. so no need to go for STP route. Invest in one lump sum.

    Thanks

    Ashal

  8. Bhavin Nagda says:

    Hi Ashal,

    Suppose i want to switch from 1 mutual fund to another.
    Switching means to redeem and then to purchase from other fund?

    Will there be an exit load applicable to it?
    Because they haven’t completed 1 year.

    If the exit load is applicable, what i planning is to keep the units as it is in the current mutual fund and will do STP by keeping the lumpsum amount in Debt fund after an year.

    Since none of the above mutual funds are working well. I want to change it.

    And as you said that 2-3 mutual funds are enough.
    After a small research I am going for the below portfolio.

    Name Type Amount
    SBI FMCG EQUITY FMCG 12,000
    ICICI Prudential Eq Volatility Advantage Reg Hybrid- Equity Oriented 8,000
    SBI Emerging Businesses Equity: Mid & Small Cap 10,000

    Can you please give the feedback on the above portfolio?
    Also the plan of STP, do you think is right?
    Please help.

    Thanks in advance.

    Bhavin

  9. Dear Bhavin, only 2-3 funds are enough to provide you the final corpus you are looking for. From your list, here is my choice.

    DSP Top 100
    IDFC Prem. Eq
    HDFC Balanced

    That’s it. Simple & effective portfolio. Easy to track & identify the laggards if any is there.

    Thanks

    Ashal

  10. Bhavin Nagda says:

    Dear Ashal,

    Did you get a chance to look into the above portfolio?

    Thanks
    Bhavin Nagda

  11. Bhavin Nagda says:

    Hi Ashal,

    I think i posted the question but even i am unable to to view question.
    I think i made some mistake. But forget it,

    I really appreciate the efforts you put in this forum.
    Just looking at the title and without knowing the question you still replied it. Hats off to you.
    Keep it up.

    My Investments in mutual fund is as follows.

    Canara Robeco Equity Diversified Regular Growth-7000/ month

    DSP BlackRock Top 100 Equity Fund Regular Plan Growth- 8000/ month

    IDFC Premier Equity Fund – Plan A Growth- 6000/ month

    HDFC Balanced Fund – Growth- 6000/ month

    HDFC top 200 – 1500/ month

    Queries:

    1. Am i Over diversifing my portfolio with so many mutual funds?

    2. Now i am thinking to sell all my units in balanced fund and buy in HDFC Top 200 and then after continue investing in HDFC TOP 200 with 7500 (6000+1500) per month.

    Am i taking the right decision on this?

  12. Dear Bhavin, what’s your portfolio? To invest or not into balanced fund ‘ll be a personal call. For my own money at your age I w’d stay with balanced fund if it’s my first fund.

    thanks

    Ashal

  13. Bhavin Nagda says:

    Actually having 2 queries.

    1. Am i Over diversifing my portfolio with so many mutual funds?

    2. I am moving from HDFC balance fund to HDFC top 200 fund. DO i need balanced fund at the age of 24?

    Thanks.

  14. Dear Bhavin, what’s the query?

    thanks

    Ashal

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