I bought 80 shares of IDFC Ltd at Rs119. I am seeing a loss currently. Should I hold, sell or buy more to average out?
Unfortunately, there is still some pain left in the market and it has not yet bottomed out. However, since your stock is quite attractively valued at current market prices, I would suggest that you average your portfolio around Rs58-62 with a long-term objective. There is no point selling your holding at current valuations.
I have 9,800 units of Reliance Natural Resources Fund (Growth) taken at the time of issue at Rs10. The net asset value (NAV) has been declining since then, giving me negative returns. Should I hold or sell?
— Deepak Agarwal
At current levels, hold your investment. At a NAV of Rs7.74, I think the scheme has the potential to give good returns as its major investment is in the energy sector (23.82%), followed by metals and metal products (8.76 %), construction (5.63%), diversified (5.49%) and chemicals (4.86%). Since the thrust areas of the scheme are key sectors, I think it would bounce back. The market has still not bottomed out, so you may have to wait for some time and be prepared for some more losses. However, buying at lower levels when the Sensex is around 11,000 points might help you optimize your investment. My advice is you should hold and average your portfolio.
My portfolio consists of BGR Energy Systems Ltd (14 shares, bought at Rs480 each), Mundra Port and Special Economic Zone Ltd (15, Rs440), REC Ltd (73, Rs105), Reliance Power Ltd (27, Rs270), V-Guard Industries Ltd (82, Rs82), Edelweiss Capital Ltd (8, Rs825), Future Capital Holdings Ltd (8, Rs765), Idea Cellular Ltd (100, Rs75). I am a medium-term investor and could hold these for another two years. Please advise on selling/holding/buying or averaging few of these stocks.
You may hold BGR , Mundra Port, REC and Idea , and may pare your position in Reliance Power, V-Guard, Edelweiss and Future Capital at appropriate levels. The appropriate level for Reliance Power would be Rs193, V-Guard around Rs59, Edelweiss Rs580 and for Future Holdings Rs360. You may average REC , Mundra Port and Idea at lower levels.
I have following systematic investment plans (SIPs): Kotak Opportunities Fund Rs2,000 per month (pm), (invested Rs16,000, current value Rs11,121). Reliance Banking Fund (G) Rs2,000 pm , (invested Rs16,000, current value Rs12,372). Reliance Natural Resources Fund (G) Rs2,000pm, (invested Rs10,000, current value Rs8,216). There is also a one-time investment of Rs10,000 in Sundaram BNP Paribas Energy Opportunities Fund, the current value of which is Rs6,589. Total invested: Rs52,000, current value Rs38,658.
What should I do with my portfolio? Should I continue investing in SIPs, or stop investing without withdrawing what is invested? I have a long-term investment plan, say more than one year.
— Unnikrishnan K
The markets are passing through a bad patch and it may continue for some more time. Since you have seen a major part of the crisis, in my opinion you should continue with your SIPs as they are all in good schemes. But be prepared for some more losses, due to the turmoil in global markets.
However, keeping in mind the valuations, you should keep some spare capacity for investment in the time to come. So, hold your investment and wait for the right opportunity to invest, which will arise in next three-six months.
I have shares of following companies: Sharp Industries Ltd (bought at Rs63, 100 shares), Artson Engineering Ltd (Rs91, 100), Facor Alloys Ltd (Rs12.50, 500), IKF Technologies Ltd (Rs13.50, 500), Paramount Communications Ltd (Rs33.50, 100), Suven Life Sciences Ltd (Rs32, 100).
I have a long-term outlook. .Should I hold these shares or sell them? Should I buy more when the markets fall?
— Yatish Shah
Sharp Industries was last traded on 30 September 2002, and since then it is not being traded. Artson has been very volatile this year so you may sell your stock or part of it around Rs53. Facor Alloys is a momentum stock and is likely to trade volatile in future so you may sell it entirely or in part around Rs12. IKF Technologies also falls under the same category and it would be better if you pare your investment in this stock around Rs14. Paramount Communication has a strong resistance at Rs23; if the stock closes above this level, then it may touch Rs28. I think that would be a good level to sell the stock. You may hold Suven Life Sciences at current levels and watch out for resistance at Rs31.
I am a non-resident Indian and want to invest in mutual funds. I am in a dilemma whether to go for sector-specific funds, equity diversified, or balanced funds. Kindly advise.
— Dhaval Dave
In the present situation, it would be better to go for balanced funds and equity diversified funds. You should avoid sector-specific funds. However, the mix would depend on your investible surplus, your risk profile and time frame for investment.
My portfolio consists of Reliance Petroleum Ltd (350 shares bought at Rs135 each), State Bank of India (20, Rs1,770), NTPC Ltd (175, Rs200), DLF Ltd (30, Rs540), Reliance Industries Ltd (5, Rs2,265), Power Grid Corp. of India Ltd (75, Rs150), ICICI Bank Ltd (10, Rs1,165), Idea Cellular Ltd (100, Rs75), Reliance Energy Ventures Ltd (5, Rs1,225), Reliance Communications Ltd (5, Rs505), Punjab National Bank (5, Rs575) and Power Finance Corp. Ltd (15, Rs225). I could hold these for another two years. Please advise on my portfolio.
— Arti Aggarwal
Considering the fact that all your holdings are blue-chip stocks, I would suggest you to hold your portfolio if your capacity permits and plan to average them when the Sensex comes to around 11,000 points.
However, you must note you should never average your portfolio at one rate and should spread your investment over a range so that you may get advantage of lower rates also.
You may prefer to add more of Reliance Petroleum, NTPC, Reliance Industries, Reliance Communications, and PNB on declines.
I invested Rs1.5 lakh in mutual funds as a lump sum in November-December 2007 when the Sensex was at 20,000 points. Today I am seeing a loss of Rs55,000. My portfolio includes: JM Basic (G), which is 55% down, Sundaram Capex Opportunities Fund, down 50%, Kotak Indo World Infra Fund, 47% down, JM Contra Fund (G), 45% down, Reliance Natural Resources Fund and Reliance Diversified Power Sector Fund. I have a two-year investment frame. What should I do?
— Arpit Puranik
The losses in your case are really high and you may have to be prepared for more. However, I would suggest you prune your holding in JM Basic Fund, Sundaram BNP Paribas Capex Opportunities Fund and JM Contra Fund.
Since all your investments are in diversified schemes, pruning your portfolio in these schemes will give you an opportunity to add schemes from other sectors, which may be balanced or equity-based only. However, I would suggest you wait for a relief rally to prune your investment.
I have SIPs in HSBC Equity Fund and DSP Merrill Lynch Top 100 Equity Fund. Should I continue or suspend the SIPs mid way? Also advise whether there will be an exit load if I discontinue investment in these two now.
You should continue your SIPs as the schemes you have invested in are good.
Answers are based on a technical analysis of the markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and are provided for information purposes by Vipul Verma. Readers are requested to do their own research before participating in the stock markets. Neither the paper nor the information provider will be responsible for any outcome based on information provided here.