Suggestion regarding Mid & small Cap

POSTED BY Abhishek Tewari ON March 18, 2012 8:49 pm COMMENTS (26)

 

I am planning to invest in a well diversified Mutual fund portfolio. After doing some research I thought of investing in the below mentioned funds :

1) For Large Cap => DSP BlackRock Top 100 Equity
2) Large And Mid => HDFC Top 200 & UTI opportunities
3) Mid And Small cap => ?????

 

Will you please let me know which are the funds in mid & small cap worth investing

 

I am planning to do a SIP of INR 1000  per month/in each of the funds.

Beside this , to invest around INR 20,000 in HDFC tax savers.

 

Please comment whether this portfolio is good enough and at the same time do suggest me any fund in Mid and small cap.

 

Regards

Abhishek Tewari

 

26 replies on this article “Suggestion regarding Mid & small Cap”

  1. Abhishek Tewari says:

    CJ thanks for the suggestion.

    I have very little knowledge about gold fund. Will you please share some more light on the same lik returns and the funds which are good.

    Abhishek

    1. Dear Abhishek, no direct answer for your gold fund query but an interesting article for Gold investments –

      http://economictimes.indiatimes.com/markets/commodities/how-too-much-gold-is-a-drag-on-indias-economy/articleshow/12395863.cms?curpg=1

      Thanks

      Ashal

  2. Abhishek Tewari says:

    Thanks wealthucreate for the info.

    As rightly said by Ashal we should wait for some more time.

    I belive any person who wants to start his term plan frm next fiscal year, should wait till any further info regarding the new term plan of LIC comes.

    Abhishek

  3. Abhishek,

    As per TOI, LIC planning to reduce the premium for Term plan. They want it to be be competative.

    Ashal and Others.
    If the premiums is reduced is it applicable for new policies or will be reduced for exting ones too? I pay bomb on my LIC term plan.

    1. Dear Welathucreate, any comment at this stage ‘ll be not good. Please wait for the formal launch of LIC’s new Term Plan & let the LIC clarify itself that ‘ll it go on the way followed by others or ‘ll it opt the Aegon Religare way.

      Aegon Religare, recently changed it’s mortality table & accordingly reduced it’s prem. So for a customer centric positive move, it increased the sum assured & thus adjusted the reduction in prem.

      Thanks

      Ashal

  4. CJ says:

    Why don’t you diversify a bit and invest in Gold funds. (Fund of Funds)?

  5. Abhishek Tewari says:

    Thanks Ashal for your comments. 🙂

  6. Dear Abhishek, please surrender your existing LIC policies. For the same contact your LIC office. Regarding MF investment please investment in HDFC Top 200, Quantum Long Term Eq. & IDFC Prem. Eq. + HDFC Tax saver.

    thanks

    Ashal

  7. Abhishek Tewari says:

    Thanks wealthucreate for your suggestion.

    I hav noticed that the difference of premium between LIC jeevan amulya and kotak is substantial. If one has to get the best rate and keeping in mind the settlement rate.. whom they should choose..

    Will you please let me know the process how to discontnue the current policy.

    Regards
    Abhishek

  8. Few more things which i want to know:
    1) Please look at my investment plans, is the amount which i have mentioned sufficient or should i increase the amount or add new funds. FYI: i have around 1 L as an emergency fund.

    Answer : for now you can stick to

    ” As per our discussion and few research which I did ,I am thinking to invest in the following funds.
    1) For Large Cap => DSP BlackRock Top 100 Equity (2k/month)
    2) Large And Mid => HDFC Top 200 (2k/month)
    3) Mid And Small cap => IDFC Premier Equity Plan (2k/month)
    4) ELSS-HDFC tax saver -24k annually
    5) PPF-25k

    Dont add new fund. Every time you get some hike, gradually increase your investment.
    ——————————————————————————————————————–

    2)Shall i discontinue my current LIC endowment policy(premium 24k started in Jan12). If yes then please reply to the below mentioned questions:
    a) Shall i discontinue now or after the locking period.Let me know the losses in both the cases.
    b) Term Insurance- which company??? Aegon or Kotak or HDFC life or any other company

    Answer: If i was you, i would have discontinued ASAP.Dont wait till lockin period is over.
    Term Insurance: Split your insurance with two providers. i would be baised and go for LIC Amulya jeevan. Simple reason, they have good settlement rate.
    I am not sure about settlement rate of Aegon, i think Kotak has better settlement rate.

    Guru’s Please correct me if i am wrong.

  9. Abhishek Tewari says:

    I fully agree with wealth create, and thanks alot ashal for your suggestion.

    Few more things which i want to know:
    1) Please look at my investment plans, is the amount which i have mentioned sufficient or should i increase the amount or add new funds. FYI: i have around 1 L as an emergency fund.
    2)Shall i discontinue my current LIC endowment policy(premium 24k started in Jan12). If yes then please reply to the below mentioned questions:
    a) Shall i discontinue now or after the locking period.Let me know the losses in both the cases.
    b) Term Insurance- which company??? Aegon or Kotak or HDFC life or any other company.

    Regards
    Abhishek

  10. Abhishek,

    Very few people in this finance world will say you dont need insurance. Yes i mean it. you ask a insurance advisor. he will always be willin to push you some insurance product. As Ashal said you dont need insurance. There is small porotion of crowd who dont need insurance.

    Generally once we start earning, our parents start depending on our salary. Once we get married spouse, children are dependent on us. You need to evaluate on black and white basis.

    Enjoy investing….

  11. Abhishek Tewari says:

    No, i dont have any loan or liabilities. Planning for a home loan in 4-5 yrs from now, Approx value of home seeked would be around 50L in 2016.

    1. Dear Abhishek, as of now you do not have any liability so in my view you should not purchase any term insurance as of now but as you are not quite sure of your marriage, You may go for 35Y term plan offered by Aviva or Aegon Religare. Please opt a sum assured of at least 10 times of your yly income.

      Thanks

      Ashal

  12. Abhishek Tewari says:

    I dont have any family liabilities. Planing to get married in 1 and half year to 2 years.

    1. Dear Abhishek, any loan liabilities as on date?

      Thanks

      Ashal

  13. Abhishek Tewari says:

    Few more details of the same:

    I am 28 single, and my salary is 40k/month. Expence around 15k-17k.

    As per our discussion and few research which I did ,I am thinking to invest in the following funds.
    1) For Large Cap => DSP BlackRock Top 100 Equity (2k/month)
    2) Large And Mid => HDFC Top 200 (2k/month)
    3) Mid And Small cap => IDFC Premier Equity Plan (2k/month)
    4) ELSS-HDFC tax saver -24k annually
    5) PPF-25k
    Insurance-curently have an endowment policy paying 24k,

    Shall i increase the amount or add new funds.

    Please suggest.

    Abhishek

    1. Dear Abhishek, any plans to get married near future? Also please do quote if you have any family liabilities for younger sister or brother?

      Thanks

      Ashal

  14. VIGNESH BASKARAN says:

    HI
    To add up to wealthucreate

    Have an emergency fund and health insurance
    happy investing!!!

  15. Abhishek,

    How much to invest in ELSS depends on how much you should invest after deducting your EPF and other premiums you pay for insurance
    If you are young, Go for one term plan,out of remaining invest 80% in ELSS and 20% in PF.

    Can robeco and HDFC tax saver should be good enough.

    Regarding your query of splitting money. IDFC permier equity + HDFC Top 200 and Two ELSS mutual fund should provide you required dirversification.

  16. Abhishek Tewari says:

    Thanks rmohan for your input.

    Shall i invest in a large,mid and small in equal proportion or differently??

  17. rmohan80@gmail.com says:

    Sorry I forgot to mention SBI magnum Global fund which is another good midcap fund and slightly less risky than Sundaram Select Midcap

    Disclaimer: I have monthly SIP in Sundaram Select Midcap

  18. rmohan80@gmail.com says:

    If you can take a bit of risk, go in for Sundaram Select Midcap or else BSL Frontline Equity Fund which has a mixture of large and midcap

  19. VIGNESH BASKARAN says:

    Hi

    To add to the above explanation pls see the below thread. it will be really useful

    http://localhost/jagoforum2/best-mutual-fund-in-mid-cap-category-for-next-5-yrs/91/

  20. Abhishek Tewari says:

    Thanks Vignesh,

    My monthly take home is around 40k. Will you please let me know how much should i invest in the respective SIP,ELSS,PPF.

  21. VIGNESH BASKARAN says:

    Hi

    IDFC premeir equity plan A which is a well performing fund with the good returns of 18 percent for the past five years.

    Now they have opened for lumpsum investments also.

    Minimum SIP investment amt -2000.

    if you dont want to invest in this you can go for the BSL dividend yield plus.

    To compare abt these mutual fund you can either go to any of the below links.

    www. valueresearchonline.com
    http://www.moneycontrol.com.

    Happy investing!!!

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