I had applied for redemption of mutual fund units, which I had bought in the name of a minor, through a direct credit to bank. But I received the payment in the name of the minor. What should I do now since the minor doesn’t have a bank account?
— K. Raga
Since payments are being made to the person whose name appears as applicant, it’s logical for the fund house to make payments in the name of the minor. However, now you can open a bank account in the name of the minor in whose name the payment was made and make yourself the co-applicant. This way you can get the payment credited and withdraw it too.
I wish to invest Rs30,000 in two-three funds for three years. What are your suggestions.
— Santosh S. Naik
Assuming that you have a balanced risk profile and you do not want to receive periodic benefits such as dividends, my choices would be DSP ML T.I.G.E.R–Reg, Reliance Growth-Growth option and Tata Infrastructure fund. This portfolio covers a wide range of sectors and stocks, which are likely to outperform the market.
I hold 10 shares of ICICI Bank (bought at Rs530 each), 40 shares of GMR Infra (Rs202), 120 shares of TTML (Rs38), 100 shares of Ispat Industries (Rs54), 20 shares of Parsvnath Developers (Rs277), 25 shares of RNRL (Rs154) and 16 shares of Reliance Power. What should I do with this portfolio? Also suggest some tax-saving mutual funds.
I would suggest you wait for now and watch out for bargains on declines. You may buy stocks such as ICICI Bank Ltd, GMR Infrastructure Ltd, Tata Teleservices (Maharashtra) Ltd, Reliance Natural Resources Ltd and Ispat Industries Ltd on decline in small lots. You may skip averaging in Parsvnath Developers Ltd, Reliance Power Ltd, etc. and wait for the right time to switch these stocks for better choices.
About tax saving schemes, you could opt for systematic investment plans in SBI Magnum Tax Saver, Sundaram BNP Paribas Tax Saver and HDFC Tax Saver. With this, you will get a balanced portfolio with exposure to well-performing stocks.
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.