My invenstment in Mutual Funds is good or not?

POSTED BY Pramod Patil ON May 12, 2011 4:26 pm COMMENTS (4)

Dear All,

 

I have invested in following MFs through lumsum & SIP. I would like to know that is it good investement or not? If not then in which scheme I should have to move? Please guide me.

  1. Fidelity Equity Fund [Divindend]: – Rs 10K
  2. Fidelity Tax Advantage Fund [Divindend]: – 10K
  3. SBI Magnum Multicap [Divindend]: – 20K
  4. Reliance Equity Advantage Fund [Dividend]: – 10K
  5. Kotak Indo World Infrastructure Fund – Equity – Diversified [Dividend]: – 10K
  6. Fidelity Tax Advantage Fund – Equity – ELSS [Growth]: – 1K through SIP monthly
  7. ICICI Prudential LifeStage Pension [ULIP]: – 2500 mothly

Please let me know that above mentioned investment is correct or not?

Pramod

4 replies on this article “My invenstment in Mutual Funds is good or not?”

  1. Jagadees says:

    @Pramod
    Kotak infra – Making mistake is basic human tendency but we should learn from the mistakes…. You made a mistake by investing lumpsum in sectoral fund without prior knowledge about the sector and the fund….. when you are realize that the fund does not suit your needs you need to get out of the fund irrespective of loss or gain….. Loss due to the infra funds is already there and its not that u will make loss only if u redeem the fund….By not cutting down the losses you are missing wonderful opportunity to earn better returns from good diversified equity funds…. read this article to overcome your loss aversion behaviour – https://www.ppfas.com/pdf-docs/b-finance/feelings-towards-losses.pdf and make wise decision….
    SBI multicap – you can divert the proceeds from this fund to quantum long term equity which is another multicap consistent performer over the last 5 years….please do start SIP instead of doing lumpsum……
    Pension ULIP – one can comment only after knowing full details of the policy like your age, your monthly surplus income for investment, year at which u took the policy and year u want to retire…..If you took the policy 3 years back, u might have paid all the heavy charges associated with it and hence there is no point in leaving it….. you can continue it and If your retirement is more than 10 years away make sure that all your premium goes to either one of the fund i.e.equity/balance fund like flexi growth, flexi balanced or multiplier…..dont go for the protector, preserver, return gurantee which are debt fund or RICH fund which is sector fund….. let us know ur thought….

    Regards
    Jagadees

    1. Pramod Patil says:

      @Jagadees

      Dear Sir,

      Once Again Thank your very much for best & valuable suggestion and guidance on my investment subject.
      I have decided to get out from the Kotak Infra and SBI Magnum Multicap.

      Now I would like to share with you about my completed details for ICICI ULIP investment which as follows.
      My age is currently 35 years and I have invested in the above ULIP in 3 years back. Now in Feb 2011, three years are completed to this ULIP. I am investing monthly for Rs 2500/- in the same and yearly total is Rs 30,000/- Below mentioned funds are from this ULIP.
      Pension Flexi Growth 14.16
      Pension Balancer Fund 30.4
      Pension Protector Fund 18.3152
      Pension Maximiser Fund 65.96
      Pension Preserver Fund 16.4587

      Now again I am requesting that you please suggest me what to do for ICICI Prudential LifeStage Pension [ULIP]?

      Thanks & Regards,

      Pramod Patil

  2. Pramod Patil says:

    @Jagadees

    Dear Sir,

    Thank you very much for your best and valuable reply to my question.

    As you said yes, it is a lump-sum investment and done when I was new in this field. I was completely blank and knowledge-less about MF & share market. Just now I have started investing in MF throgh SIP as mentioned above in Fidelity Tax Advantage Fund – Equity – ELSS [Growth]: – 1K through SIP monthly. At present I don’t want to get out from Kotak Infra Coz if do this then I will make big loss in the same. Just waiting for actual amount from Kotak Infra. But if you are saying that to get out from SBI Multicap, I am ready to do the same as I am in profit. But I would request that you to please let me know that in which scheme should I go if get out from SBI Multicap. 2nd thing please let me know about my investment in ICICI Ulip. Is it good or should I leave from the same. I am waiting for you reply.

    Thanks & Regards,

    Pramod Patil

  3. Jagadees says:

    @Promod
    Why u have chosen dividend option for all your investment option?
    I see couple of funds like Kotak infra fund and SBI multicap which performed very badly. cut losses in these two funds and exit them.
    what is the your goal for the above investment and its investment horizon? because based on that u can select either a multicap fund or midcap fund.
    It seems you made most of your investment as lumpsum. If you have regular income, it is always advisable to go with sip rather than lumpsum to ride out the market volatality and instill certain discipline.

    Regards
    Jagadees

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