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Ask Mint | On Investments

Ask Mint | On Investments
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First Published: Sun, Sep 28 2008. 10 27 PM IST
Updated: Sun, Sep 28 2008. 10 27 PM IST
I hold shares in Jindal Steel and Power Ltd bought at Rs1,591 each. What should I do with them?
You should hold the shares as they are fairly priced.
You may keep a short-term target of Rs1,966 on the stock for the next six months.
And, if you would like to hold it further, then you may keep a target of Rs2,200 for 1-2 years.
I want to know whether it’s safe to put my ISIN and DP identification number on the Internet, which I shall have to, when I communicate with a company on my share holding. I fear DP number and client identification put on the Internet can lead to tampering with my holding.
S.K. Chopra
All online transactions have some amount of risk associated with them. However, the measures normally being taken by the providers of these services often eliminate these risks.
Regarding your DP identification, I do not understand why you need to put it on the Web.
If this means use of these in some mail or other communication, then just by the identification number, the accounts cannot be tampered. So you should not worry about it unduly.
However, you should take due care of issues such as phishing—a way of collecting information and using them for fraudulent purposes. Your details could be misused in case of phishing.
My portfolio consists of BGR Energy (45 shares bought at Rs732 each), Bhel (10, Rs1,876), DLF (40, Rs7,50), GMR Infrastructure (145, Rs1,88), HDIL (30, Rs7,50), ICICI Bank (200, Rs890), IDFC (100, Rs183), Jaiprakash Associates (155, Rs280), L&T (5, Rs2,689), Mundra Port (70, Rs663), Reliance Communications (20, Rs501), Reliance Industries (20, Rs2,191), Reliance Power (25, Rs270), SBI (35, Rs1,834), Siemens (5, Rs647), Suzlon (5, Rs244), Tata Chemicals (30, Rs312), Tata Steel (50, Rs910) and Varun Shipping (100, Rs79).
I am a long-term investor.
Please advise on selling/holding/buying these stocks.
--Gopal Singh
You should hold your portfolio for now. You may buy Tata Steel Ltd, Infrastructure Development Finance Co. Ltd, Jaiprakash Associates Ltd, Bharat Heavy Electricals Ltd and Reliance Industries Ltd on every sharp decline.
I have bought 3,000 shares of Pioneer Embroideries at an average price of Rs107.
I would like to know why the stock is on a continuous fall from Rs340 to Rs30. Should I buy more at current levels?
Pioneer Embroideries Ltd is among the worst performers on the stock exchange. The company reported a loss of Rs6.17 crore for the quarter ended June 2008.
As per the company, the reason for the losses was high raw material prices. Since the main raw material for dope-dyed yarn business is polyester chips, high crude oil prices had a direct impact.
The company has also recently decided to extend accounting year from 30 June (15 months) to 30 September (18 months—from 1 April 2007 to 30 September 2008).
As far as the decision to buy more at the current level is concerned, you may take limited exposure in this stock to average out the portfolio.
Technically, there is no trigger yet in the stock, which could suggest either the end of a bearish trend or the beginning of a bullish period.
I have been investing Rs5,000 per month per fund since November 2007 under systematic investment plans (SIPs) in Reliance Growth Equity Fund Diversified, SBI Magnum Global Fund Equity Diversified, SBI Magnum Sector Funds Umbrella-Contra, ICICI Prudential Dynamic Plan, DSP ML Top 100 Equity, HDFC Equity Fund, HDFC Top 200 and DSPML T.I.G.E.R.
I also have invested lump sum in Reliance Growth Equity Fund Diversified, Reliance Diversified Power Sector Fund, ICICI Prudential Infrastructure Fund, Reliance Long Term Equity Fund, ICICI Prudential Equity and Derivatives Fund-Wealth Optimiser Plan, SBI Magnum One India Fund, DSPML Tax Saver Fund Equity, Sundaram BNP Paribas Select Thematic Funds Energy Opportunities, JPMorgan India Smaller Companies Fund, UTI Infrastructure Advantage Fund-Series 1, ICICI Prudential Real Estate Securities Fund-Debt Income, Franklin Equity Asian Fund, Kotak Indo World Infrastructure Fund, Reliance Natural Resources Fund and Birla Sun Life Special Situations Fund.
There have been negative news about Merill Lynch.
The current market value of my investments is in negative. Should I continue investing in these funds or switch to fixed deposits with nationalized banks?
Besides SIP, there are a few funds where I have made lump-sum investments. Should I withdraw from SIPs? I do not follow the market on a regular basis, so when shall I sell my funds? I can hold them for 5-6 years.
Also, I was supposed to continue the SIPs for 13 months, but I want to stop them after 10 months. Is there any penalty for doing so?
Deepak Jain
This is a bad phase for the markets, for which some more pain may have left.
However, good bargains are likely to emerge for long-term investors and would thus offer a lot of value and gains in the timeframe you have mentioned.
Since you are a long-term investor, and since you would not need funds immediately, it would make sense if you continue with your SIPs as a majority of your schemes are good.
You may partly invest your money in fixed deposits also to take advantage of the high interest rates offered by them now.
Fixed deposits will not only balance the risk of your portfolio but would also give you decent returns.
I can invest Rs1,000 a month in mutual funds for a long term. Could you guide me? I am ready to take medium to aggressive risk.
Anish T. S.
You may take a systematic investment plan in Reliance Regular Savings-Equity scheme, which is likely to yield you good returns in the long term.
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.
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First Published: Sun, Sep 28 2008. 10 27 PM IST