Good MFs to invest

POSTED BY Deepak Chachra ON March 3, 2012 6:00 pm COMMENTS (8)

Hi,

Am looking to invest into MFs, a sum of about 75K-1L, with a time horizon of 1year-3year. I have a few MFs shortlisted, which I believe, are good ones:
1. Axis Long term equity Fund
2. Birla SL 95 (G)
3. Canara Robeco Equity TaxSaver Fund
4. UTI MNC Fund
5. UTI Dividend yield Fund (G)
6. SBI Magnum Global Fund

Which amongst these do you suggest are worth investing? If there are any others worth investing, please suggest. Would you suggest SIP mode of investment or lump-sum, considering that equities are in bad shape and outlook is upwards for next 18months or so.

I already hold:
1. Axis Hybrid (3year lock-in, started in Sept 2011)
2. SBI Magnum TaxGain (lock-in of 3yrs over!)
3. Birla SL Tax Relief 96 (lock-in of 3yrs over but dont want to sell since am in loss!)
4. HDFC Top 200 (SIP currently on for last 6months)
5. HDFC Prudence (SIP currently on for last 6months)
6. HDFC MidCap Opportunities (SIP currently on for last 6months)
7. Reliance Diversified Power Sector
8. Reliance Equity Opportunities
9. Sundaram Select Mid-cap

I listed my existing holdings just so that if someone wants to suggest, they would know where their and my opinions overlap.

Thanks,
-Deepak Chachra
(+91-9823848422)

8 replies on this article “Good MFs to invest”

  1. Deepak Chachra says:

    Dear Ashal,

    My goals are important for me and the way I thought I would achieve those are with Sensex rising (and me having invested in it). I am seeking to build future kitty.

    MFs are the instruments, I am comfortable with; other instruments, I have described my views on them in the earlier part of this conversation thread.

    Thanks,
    -Deepak

    1. Dear Deepak, please do not link your goals with sensex level. Why? For past 4Y or so, sensex net return is almost zero but the people who were investing using SIP or STP have gained a lot.

      So my take ‘ll be to focus on your own goals.

      Thanks

      Ashal

  2. Dear Deepak, what’s important for you – your goals or sensex target, please decide yourself.

    Thanks

    Ashal

  3. Deepak Chachra says:

    @ Abhishek: Thanks for the advice

    @Ashal: Sorry, I missed out on pruning part of the reply. Yes, I intend to hive off 3 MFs from my current list:
    1. sbi magnum tax gain
    2. reliance equity opportunities
    3. sundaram select midcap
    4. reliance diversified power sector (this I would once I have reached the target NAV or 3-months, whichever comes first).

    My priorities are not immediate gains (I don’t believe in exponential rises overnight!). If the redemption period extends beyond 3years, am OK with it as of now. My target levels of Sensex (from what I have read) is about 20K by Mar 2013, if eurozone crisis don’t BLOW UP!! (for now, it seems to be getting averted)

    Don’t worry about your views being harsh… I like candid speak, so feel free to shoot your views, as long as they are not personal vilifications 🙂 I am absolutely OK with someone forcing me to introspect!

    Just to put in perspective, with my current income, am able to manage my home-loan EMI, daily expenses and other laundry-list expenses. It’s the surplus that I want to invest so as to build up future kitty by investing in proper avenues.

  4. Dear Deepak, are you sure that in next 18 months, market ‘ll be where you are predicting & by the way what’s that good level you are referring to?

    In your reply, you skipped the need to prune down your current list. I did not ask for investing in real estate or direct stocks.

    Asrightly pointed out by dear Abhishek, first of all please prioritize your goals & then identify the instruments which can fulfill your need & then only think of investing in. Predicting such short term calls of 18-24 or 36 months is a sure shot way to ruin your financial health.

    I’m sorry, If you feel my reply a bit harsh but from the core of my heart I really want to help you to understand your own financial position & then your efforts to improve the same.

    Thanks

    Ashal

  5. Abhishek says:

    Hi

    You need to list ur goals before u go ahead. Meet a good planner in ur area who can help u.

    rgds
    abhishek

  6. Deepak Chachra says:

    Dear Ashal,

    Thanks for the candid advice, I appreciate it. I have that long a list of investments since they were bought at different points of time for either tax saving or investments. I choose not to invest too much in stocks, since that requires regular tracking and I am never sure which source is reliable and trustworthy for advice about the future of that particular stock.

    I choose not to invest in real estate since I find a lot of shady deals, projects and builders in India.

    I already have one pension plan and am thinking of investing something in a ULIP (since my earlier LIC policies are about to mature, which my father did for me ~20years or so back).

    I was thinking about investing in MFs, since I can liquidate them faster (should there be an urgent personal need). I quoted a horizon of 1-3year, since currently equity markets are down and the outlook is good for next 18months or so. Mind you, am not saying I would invest in all the 6 funds that I listed above but just that, during my research, I found these 6 MFs to be performing pretty good with a positive outlook for future.

    What do you suggest considering all this:
    a. Think of a longer horizon only?
    b. Better fund amongst these?
    c. Any other better funds?
    d. All of the above?
    e. Just refine my views on other modes of investing? 🙂
    (In case its option e., please suggest a reliable source of stocks advisory)

    Thanks,
    -Deepak

  7. Dear Deepak Chachra, are you a MF investor or MF collector? Already invested in 9 funds & now want to add 6 more funds, are you kidding?

    Please prune down your original list from 9 to just 4-5 funds & then invest those 75K to 1L Rs. in your choice of funds. By the way as you are going to invest for such a short term of 1-3Y, the chances of your loss are far higher than any profits.

    Please do not invest in Eq. funds for such a short term.

    Please update me with your views.

    Thanks

    Ashal

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