3 replies on this article “Best Suited Funds across categories”

1. Jagadees says:

   May 6, 2011 at 5:47 am

   @Chirag
   I would say that dont commit the fund you kept for your higher studies in mutual funds as you want the money at the end of 3 years because you dont know how the market will be at that time…… better you can lock that money in some bank FD @ 10.5% for 666 days or something like tat(For senior citizen there wil be 0.5% more).
   Commit the money in mutual funds only if it is not needed for a minimum of 5-7 years….. because you will enjoy the fruits of equity and compound interest only in the long term……

   My suggestion:
   Multicap – quantum long term equity fund/ICICI pru dynamic/Templeton india growth fund
   Midcap and small cap – IDFC premier equity fund/ICICI pru discovery
   Balance fund – HDFC prudence fund/Reliance regular savings equtiy
   Basically each sector moves in cycles so if a sector performed well for 5 years, there is more chance of under performance in the next cycle. so basically you will be better off by investing in diversified equity fund rather than sectoral fund.
   By the way which sectoral fund you found to be out performing diversified equity fund in all the market condition? (asking just to take the discussion forward)

   Regards
   Jagadees

   Reply
2. Chirag Shetty says:

   May 5, 2011 at 11:16 am

   @Jagadees

   Thanks for your reply. The timeline i specified for 3 -5 years is because i would need some amount to vouch for my higher studies after 3 years whereas I would still like to keep in some of my investments as it is and let them grow and hence the 5 years timeline(maybe more).

   I mentioned about the sectoral fund since I’ve seen them perform better(better returns) compared to equity diversified funds for the same period though they come with added risk which I’m ready to take. Whereas I would like to keep the remaining set of funds to which I’m hoping will provide for the ‘stability’ part of my portfolio with less risk and comparatively less returns compared to a sectoral fund.

   Reply
3. Jagadees says:

   May 5, 2011 at 6:28 am

   @chirag

   what is your investment objective?
   why there is timeline of 3-5 years? would you need the fund immediately at the end of 3rd yr?
   generally it is not fruitful to invest in equity funds with timeline less than 5-7 years min…..
   why do you want sectoral fund in ur portfolio? why not a large cap fund for stability?
   I dont understand your risk profile – aggressive but stable…..because aggresive portfolio comes with bit of volatility………

   Regards
   Jagadees

   Reply

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