I have Rs80,000 to invest in mutual fund schemes with the following parameters:
1. Time horizon—two years
2. Risk appetite—moderate
3. Returns expected—about 15% per annum
Please advise whether I should invest in one or two large-cap funds or in Nifty/Sensex funds. Could you also suggest some funds?
I have burnt my fingers earlier by investing in HDFC Prudence Fund, JM Basic Fund and JM Contra Fund.
Considering your case, I think it would be wise to start a systematic investment plan (SIP) for 12 months instead of investing at one go now. You may have a mix of both types of investments—20% in lump sum and balance in SIP.
As far as my choice is concerned, I would prefer to invest in four schemes—Sundaram BNP Paribas Select Focus Fund (Regular), Reliance Regular Savings (Equity), Tata Infrastructure Fund (Growth) and Reliance Banking Retail (Growth).
I am 30 years old and have been investing in monthly SIPs in the following equity-linked savings schemes (ELSS) since last year: HDFC Tax Saver (Growth) and SBI Magnum Taxgain (Growth), accumulated investment of Rs3,000 each. I have also invested Rs3,000 in Reliance Banking Fund.
I intend to increase my investments in the current fiscal.
My financial adviser has suggested that I increase my investment in Reliance Banking Fund to Rs6,000, and take up another fund, DSP BlackRock Top 100 for Rs3,000, in addition to investing the same amount in HDFC and State Bank of India ELSS.
Can you please advise on the asset allocation of these funds? Should I invest in any other sector fund?
The advice of your investment adviser seems all right. However, instead of adding more of Reliance Banking Fund, you may choose to invest in Sundaram BNP Paribas Select Focus Fund or ICICI Prudential Equity and Derivative Income Optimiser Retail (Growth).
I have to invest Rs1 lakh in tax-saving mutual funds by March. Kindly suggest some good funds. Also, should I invest now or wait until March?
Would you advise an SIP for tax saving funds from April or should I invest lump sum in different funds? Also, I have invested in the following stocks during the past nine months (100-200 shares each):
Reliance Communications Ltd; Idea Cellular Ltd; Tata Teleservices Ltd; Reliance Power Ltd; GVK Power and Infrastructure Ltd; Jaiprakash Hydro Power Ltd; Yes Bank Ltd.
Which of these should I retain? I can wait for three-five years.
Please also suggest a few growth stocks with investment outlook of three-five years.
You may start investing in tax-saving schemes from now. It would be better to break it into three parts and invest an equal sum every month.
About investment pattern from April, I would suggest you to take SIPs in as many schemes you want. However, do plan before taking your investment call.
Regarding the choice of tax-saving schemes, I would prefer Sundaram BNP Paribas Taxsaver, SBI Magnum Taxgain and HDFC Tax Saver.
Regarding your investment in stocks, since your time horizon is quite decent, I would advise you to stay invested and do not sell anything now. If you have further capacity to invest, then my choice of investment would be Mcleod Russell Ltd.
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