What is the short-term target for these stocks: Reliance Infrastructure Ltd, Bartronics India Ltd, Reliance Communications Ltd, Larsen and Toubro Ltd (L&T), Welspun Gujarat Stahl Rohren Ltd and Bharat Heavy Electricals Ltd? Can we buy at the current levels?
Khurshed N. Balsara
Purely technically, Reliance Infra has a target of Rs580, Bartronics India a target of Rs108, Reliance Communications a target of Rs190, L&T a target of Rs720, Welspun Gujarat Stahl Rohren a target of Rs85.
As far as buying these stocks is concerned, I think short-term would be a risky idea and you should consider buying them for the long term. If you have to invest in the short term, then I think Bartronics India, L&T and Reliance Infra are better choices.
ARS bonds of UTI issued in lieu of Rajalakshmi plan of UTI are due to mature on 1 April. How should this money, around Rs5 lakh, be invested to earn best possible return for a tenure of 8-10 years, if we consider the amount available to my daughter at the time of her marriage? Incidentally, UTI has sent a form for conversion of these bonds to UTI mutual fund schemes. Should I convert into one or many of UTI funds or invest redemption proceeds independently?
Considering your investment in isolation—which means I am not taking into consideration your risk profile, your other investments and issues such as tax-saving and liquidity—I think you should split your investment into three. Part one, with 50% of the portfolio, you may invest in mutual funds, equity option. Among UTI schemes, UTI Infrastructure Fund, UTI Dividend Yield Fund are good. However, you could also consider schemes such as HDFC Top 200, DSP Blackrock Top 100 equity, Sundaram BNP Paribas Select Focus, SBI Magnum Contra, DWS Investment Opportunity, ICICI Pru Infra, Reliance Growth–Growth DBS Chola Opportunity, Franklin India Blue Chip, HSBC Equity, Reliance Vision fund, etc. Invest 30% in debt-based funds and schemes with an option to convert them to equity as and when required. Invest the remaining 20% in fixed deposits. I think this will be a balanced allocation of funds for optimized growth with limited risk.
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