I hold shares of GMR Infrastructure Ltd (136 shares purchased at Rs180 each), DLF Ltd (16 shares at Rs890 each), and Reliance Power Ltd (185 shares at Rs370 each) . Shall I keep or sell them?
Devuni Swetha
GMR Infrastructure is a good stock with a long-term investment perspective. Since you have purchased this stock at a very attractive price, you should hold it for at least six months.
DLF is one of the best stocks in India’s real estate space and has a promising future. However, the stock has fallen substantially from your acquisition price. You should hold or average out this stock on further declines. Reliance Power is also a long-term bet. However, you may have better alternatives in the form of other fast moving stocks. You may exit the stock at around Rs415 partly and invest that money in other stocks and remain invested in the remaining shares of Reliance Power for at least two years.
I want to buy shares of Arvind Mills and Welspun Gujarat Stahl Rohren in small quantities. What about the prospects of these companies?
N.V. Sugavanam
Both the companies mentioned by you are good. Arvind Mills Ltd has a short-term price target of Rs63, while Welspun Gujarat Stahl Rohren Ltd has a strong resistance at Rs410. If Welspun Gujarat crosses this resistance level, then there could be a small surge in this stock, which may take it to Rs440.
I want to start investing through the systematic investment plan (SIP) with a budget of around Rs15,000 per month across 10 mutual fund schemes. I’m looking at short-term gains for 50% of them and long-term gains for the rest. Could you suggest something?
Sridhar
You may take SIP’s in following funds: Reliance Diversified Fund–Growth, DSP Merrill Lynch TIGER– Reg, HDFC Top 200, Tata Infrastructure Fund, UTI Banking Sector Fund and Sundaram BNP Paribas Select Midcap Fund for short-term gains, SBI Magnum Contra Fund, SBI Magnum Multiplier Fund, Kotak Opportunities Fund, DWS Investment Opportunity Fund, etc. for long-term gains.
I hold 26 Reliance Power shares, which I bought at Rs424 each, and 12 DLF shares bought at Rs700 each. I want to know within a year’s time how much they can go up? I can hold them till March 2009. So, by that time, what you expect on these stocks.
Nasir
Reliance Power has a target band of Rs490-525, while DLF has a target price band of Rs980-1025. However, my advice is that you keep track of these stocks on a regular basis as the targets may change depending on market conditions and changes in company fundamentals.
My take-home salary is Rs7,000 a month. Please advise where to invest so that in the long run, I should have some good savings in my account. The investment option should give good returns. I can put aside Rs500-700 per month for the investment.
Rahul Chopra