First Mutual Fund

POSTED BY Jipal Shah ON June 3, 2012 12:45 pm COMMENTS (9)

Hi,
I want to start investment 2000 per month in Mutual Funds for long term.
I want to start with a one fund immediately.
I have selected (analyzed on valueresearchonline.com) below funds to commence.

1. Canara Robecco Equity Tax Saver – Growth Fund
2. Quantum Long Term Equity Fund
3. HDFC Equity Fund
4. IDFC Premier Equity Fund

Please advice a one initial fund to start with.
Thank you !!

9 replies on this article “First Mutual Fund”

  1. Jipal Shah says:

    Hi Ashal,

    Thanks for the reply !
    HDFC Balance/Prudence Funds are “Hybrid: Equity-oriented” Funds.
    HDFC Balance funds equity:debt:cash ratio is 66:25:9.
    HDFC Prudence funds equity:debt:cash ratio is 75:22:3.
    Balance funds will reduce the equity risks to my MF portfolio.

    I think it is good to invest in diffrent categories of MF (Large Cap, Mid Cap, Multi Cap, Hybrid, etc).

    I want to add another mid-small cap fund to my MF portfolio, thinking of ICICI Pru Discory Fund to HDFC mid-cap Opportunity.
    DSP Top 100 and HDFC Balance/Prudence Funds will be in my future portfolio may be after 6-8 months or may be not, will add same amount to increase in HDFC TOP 200 or ICICI Pru Discovery Fund. That I will decide after some months. Currently looking forward to add another mid-cap fund to portfolio.

    Please advise.

    Thank you !

  2. Jipal Shah says:

    Finally I have started with “HDFC Top 200” with 1000 Rs. Now, want to select another fund.
    I have choosen “ICICI Prudential Discovery Fund (G)”.
    I have started with Large Cap(TOP 200) fund so have choosen another mid-small cap(ICICI Pru Discovery).
    I have explored other multi-cap and balance funds, but I think need to select now second fund as mid cap, future fund will be DSP BR TOP-100 and HDFC Balance/Prudence Fund.
    Please advise.

    1. Dear Jipal, May I know what this Balance fund (HDFC Balance/Prudence) ‘ll do to your portfolio? Please increase amount in HDFC Top 200 itself for the amount you want to invest in DSP Top 100.

      Be an investor of MFs not a collector.

      Thanks

      Ashal

  3. Jipal Shah says:

    Hi BanyanFA,

    Thanks !!

    I will start with 1k in “HDFC Top 200” and 1k in “HDFC MidCap Opportunities”.

    Can you please let me know what % of amount will go every year in charges (like any Admin charges, Monthly charges, other expenses etc) ?

    Thank you !

    1. Durga Prasad says:

      Hi Jaipal,
      I came to know that fund management charges of Rs.25/month would be deducted during 1st 4 months of SIP.

      Thanks,
      Durga.

  4. BanyanFA says:

    If you are opting for just one fund with 2K per month, I would suggest you to go with an Equity Diversified fund which is between Large & Mid Cap – HDFC Top 200 Fund. Other option which you have is HDFC Equity Fund.

    You may also consider an alternative investment strategy of breaking 2K into 1K x 2, whereby you invest 1K into a large cap such as BSL Front Line Equity or ICICI Pru Blue Chip and the remaining 1K you invest into a MidCap – HDFC MidCap Opportunities Fund.

    Regards
    BanyanFA

  5. Kapil says:

    I hope you have a defined goal for this. If not, then I would suggest that do not invest in MFs for the sake of it. First, define your goal and then plan your investments. Each and every instrument in which you invest must have a goal tied to it.

    Here, I see one of them is an ELSS fund. Do you plan to save tax from this investment?

    1. Jipal Shah says:

      Dear Kapil,

      Thanks for the reply! I have only goal earn as much interest as I can by investing in long term Mutual funds :).
      Regardless weather it is Tax saving or not, I have choosen these funds by long term performance, fund manager and their portfolio distribution etc from https://www.valueresearchonline.com.

      Please advice a fund to start with.

      Thank you!

      1. Dear Jipal, if you are going to invest with only goal of earning as much return as possible, my take – please do not invest in MFs at all. Please link your investments with a definite goal like child education, marriage, your own retirement & then start investing.

        From the funds selected by you, please invest either in Quantum Long Term Eq. or HDFC Eq. fund.

        Thanks

        Ashal

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