Mutual Fund

POSTED BY Vamshidhar Reddy ON September 30, 2012 12:57 pm COMMENTS (14)

Hi Every one!

My name is Vamshi. I have holdings in Fraklin India Bluechip fund from last few months.

I have recently opened a PPF account with ICICI

I am single and 23 years of old and income of 30k every month. Now i have monthly additonal income ( after personal & my family expences) of 12k.

after some research in Moeycontrol, I am planing to start another mutual fund, Sip of 5k in the existing Franklin india blueship fund..

Request you to suggest the best options , whether to invest the entire amount in only one mutual fund or two start another. what abouth the PPF amount i should save every month?

Below are the mutual funds i am looking for. please suggest what is the best fund considering next 4 -6 years of time frame

1) Franklin India Bluuchip Fund ( Already have the holdings)

2) ICICI pru Focused Bluchip euity fund

3) HDFC top 200 fund

4) UTI oppertunities fund

 

I am also interested in investing eqity shares, if someone suggest.. its also for long term of 4 to 6 years

Anticipating the best Suggestion

Thank you in advance

Best Regards

Vamshidahr Reddy

14 replies on this article “Mutual Fund”

  1. Vamshidhar Reddy says:

    Ok. Thanks. But as SIP is already started, i will be tracking its progress for next 3 to 4 years, at good time i will exit and turn my investments into Debt funds or safe investments….

    Thank you again
    Vamshidhar Reddy

  2. TheZionView says:

    Vamshi,

    No i am not saying 4-5 years is not enough just that its high risk game. Hence i suggested relatively safe option of keeping in Large Cap.

    IDFC Premier is excellent fund and some of their holding have been 2,3 and 5 baggers from the time they started the fund and the fund manager can be said as Indian Peter Lynch in making,but all this also involves extra risk.

    Its totally upto you to determine what risk level are you will to play.

  3. Vamshidhar Reddy says:

    Thank you Zion. I have already placed SIP in IDFC Pre Equity. now SIP is running for 6 months with the monthly investement of 6k. 4k in franklin bluechip its also for 6 months. remaining 2k turning it into PPF….

    What do you suggest now…? do u want me to cancel the SIP in IDFC pre equity ?

    But isn’t 4 to 5 years enoug for mid cap..?

    after this time period i will move them into a different and safe investement for next one year….!!

  4. TheZionView says:

    Vamshidhar,

    Are you saying you are going to take the money out in 5-6 years when your gonna get married. If that is the case then it should be handled differently.
    I would suggest to put the extra money into Franklin Blue Chip as its a large cap fund and dont bother adding any small cap fund as your 5-6 years term will be risky for such investments.

    Also after 4 or 5th year you should start moving the fund slowly to Debt based before removing it in the 5th or 6th year for your marriage purpose.

  5. Vamshidhar Reddy says:

    Thanks Ramesh & Prakash.. i have placed two different SIPs for Franklink Blue chip and IDFC Pre Equity with 4k and 6k respectively…..

    will transfer 2k into my PPF account. it will get executed by 10th of this month.

    Let me know if there is any better suggetions….

    Thank you in advance..

  6. Vamshidhar Reddy says:

    also, How doen the Crisil rating would be done? can any one explain please?

  7. Vamshidhar Reddy says:

    Hi Ramesh. What do you mean by Sectoral funds? Can you please elaborate?

    also when it comes to my investment style, i dont expect to get retunrns of 20 or 40%. as per my calculatin i need yeasrly retunrs of 12 to 15% as i read in jagoinvestor book. its not mean i wont take risk.

    I have checked the IDFC pre equity, which has been ranked as number 2 in its catergory. how about ICICI pru discouvery fund?

    1. Ramesh says:

      Learn more about it. Sectoral funds are antithesis to the diversified funds.

      Ranking and star ratings are mostly senseless, unless you know what is causing that rating. The quality and the persistence of the management team is a must thing. Morningstar’s qualitative ratings are a good start.

  8. Dominic Prakash says:

    What do you mean by holdings? Do you have running SIP with Franklin Bluechip or just money sitting? if you are working in a company try to incrase your PF. Otherwise
    5K in Franklin BlueChip, 4K in IDFC Pre Equity, 3 K in PPF

    1. Vamshidhar Reddy says:

      Thank you prakash. I have around 30k money sitting in Franklin Bluechip. now i am about to start a constant SIP for next 5 to 6 years, which i though would come in handy for my marriage expenses.

      So the excess money i have after everything is 12k. as per your suggestion i will start SIP of 5k in Franklin bluechip. But how about starting another SIP 5k SIP in ICICI pru Focused Bluchip euity fund ?

      I am confused between UTI oppertunities fund or ICICI focused bluchip, HDFC top 200.
      What do you suggest out of it?

      any specific reason, why you suggested IDFC pre equity ?

      Thank you in advance

      Best Regards

      Vamshidhar Reddy

      1. Dominic Prakash says:

        Franklin BC and ICICI BChip are almost similar funds (Large caps). I suggested IDFC Pre Eq because its a good Small & Midcap fund.

        1. Ravi says:

          Hi Prakash,

          How about Birla Sun Life MNC (G). It is also performing at top level in Small and Mid-cap.
          I also am analyzing to build a portfolio for myself in long term, hence wanted to know your views.

          Here is the link to my forum post, request you to please respond to my query:
          http://localhost/jagoforum2/analysis-on-long-term-investment-portfolio/4949/

          1. Ramesh says:

            Sectoral funds are not recommended as a core part of portfolio, because they are not consistent over long term periods.

          2. Dominic Prakash says:

            I’ll second Ramesh’s answer below as well as in your other link.

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