I recently opted for voluntary retirement and would like to park some retirement proceeds in mutual funds as the dividend income is tax free. I have already deposited the maximum permissible amount in post office MIS and the Varishtha Bima Pension Yojna of Life Insurance Corp. I cannot park my funds in schemes for senior citizens as I am not one under the age rule. Please advise me some good funds with low risks, high returns and regular income. I am willing to park these funds for three-five years at least. My current portfolio of mutual funds comprises ING Vysya Domestic Opportunity (300 units) Sundaram Leadership (500 units) Tata Equity Opportunity (500 units) SBI Magnum Sector Fund Umbrella (500 units) UTI Master Value (100 units) HDFC Long-Term Advantage (200 units) DSP ML India Star (500 units) ICICI Pru Emerging Star (800 units) ING Vysya Select Stock (500 units) Sundaram Select Stock (500 units) Sundaram Tax Saver (700 units), Magnum Comma Fund (1,000 units), DSP ML India TIGER Fund (1,000 units), Magnum Tax Gain (400 units) and Kotak Mid Cap (500 units).
For good returns, you may invest in BOB Diversified and Baroda Global with a one-year perspective. The other funds you can invest in are DWS Investment Opportunity, HDFC Top 200 and Reliance Growth with a perspective of one-three years and BNP Paribas Select Midcap, HSBC Equity, DSP ML Equity and DSP ML Top 100 Equity Regular with a view of two-four years. I think this will make a good portfolio with decent returns. However I would suggest you should review your portfolio every six months. BOB Diversified, Baroda Global and BOB Balance have a short-term outlook. I expect these funds to outperform the market.
Out of my mutual fund holding, some funds—Standard Chartered Classic Equity, SV Imperial Equity, SC Enterprises Equity, Tata Contra, Tata Equity Management, Tata Equity Opportunity, Birla Top 100, HSBC Midcap, HSBC Advantage India, Principal Infra, Tata Service Industries and UTI Dividend Yield—have not performed well compared to other holdings. Should I sell them off?
Hirdesh Kumar Moria
I think there are better options available in the form of BOB Balance, SBI Magnum Equity, HDFC Premier Multi Cap, Reliance Growth, DSP ML TIGER–Reg, BNP Paraibas Select Midcap, SBI Magnum Contra, HDFC Top 200, Kotak Opportunity, DWS Investment Opportunity, DSP ML Equity, ICICI Prudential Infrastructure, etc. Out of your portfolio, Tata Equity Opportunity and Birla Top 100 can offer you decent returns in long term. You can replace the rest of your portfolio with those mentioned above, understanding the risks associated with them.
I hold shares in Enchante Gem, Kengold, SBI Home Fin and Montari Industries in dematerialized form and Kitti Steels Ltd, Uniplas India Ltd, RR Financial Consultants, Modern Syntex India and Natural Vanaspati (Earlier Kedia Vanaspati) in physical form. Please let me know whether there is any course open to salvage at least part of the investment in these shares.
Shamim Uddin Ahmed
A majority of your portfolio comprises junk stocks, which to my mind do not have a promising future. As far as salvaging your investment is concerned, I think it would be a better idea to create a fresh portfolio with a clear-cut plan on what you want out of it. After planning your portfolio well, make a strategy for investment, set goals, and review it periodically.
I hold 120 shares in TeleData Informatics Ltd, 60 shares in TeleData Marine Solutions Ltd, 60 shares TeleData Technology Solutions Ltd and eight shares in Silverline Animation Technology Ltd. I have not been able to get any information on these stocks. Please advise.
Tele Data Informatics is currently trading at Rs17.95, while other TeleData companies created out of a scheme of arrangement are not currently listed. For more information you can log on to http://www.teledatamarine.com or http://www.teledatatechnologies.com. Silverline Animation, which was created by the demerger of Silverline Technologies, is not listed yet, though it was suppose to be listed shortly after the listing of demerged Silverline Technologies on 6 December 2007.
Can you suggest some mutual funds, which may able to capture the crude oil price movement, or funds based on the BSE Oil and Gas index?
DSP ML Natural Resources and New Energy Inst-G, Escorts High Yield Equity, Lotus India AGILE, ICICI Prudential Blended Plan A, Reliance Quant Plus Retail, Templeton India Growth, Escorts Growth, Reliance Equity Advantage Fund Retail, Reliance Equity Advantage Fund Inst, JM Contra Fund, Tata Index Nifty A, ING Nifty Plus, Templeton India Equity Income are some of the funds that have invested in the petroleum sector.
I want to invest Rs15,000 in a tax-saving related mutual fund scheme. Please provide the names of some new funds in the market that could offer optimal returns in the short/long term.
Among new funds, SBI Tax Advantage Fund - Series I-Growth, JM Taxgain-Growth and Lotus India Agile Tax fund may offer decent returns in long term. However I would suggest you to consider schemes such as HDFC TaxSaver-Growth Plan, Franklin India Taxshield 98, ICICI Prudential Tax Plan-Growth Option, Principal Personal Tax Saver, SBI Magnum Tax Gain, Tata Tax Saving Fund, Franklin India Index Tax Fund, Sundaram BNP Paribas Taxsaver etc. for tax-saving purposes.
I hold shares in physical form in Ready Foods Ltd (700 shares) and Indo American Optics Ltd (200 shares). The shares have been allotted to me through their initial public offerings in 1992-93. For the last 10-12 years, I am not getting any information from these companies. Do these companies exist? If not, is there any chance or procedure for small investors like me to recover their money from these type of firms, or should I assume I have lost my money?
Both the stock were delisted from the Bombay Stock Exchange. As such you do not have much options for the recovery of your investment, being an equity shareholder. However you must file your complaint with the Security and Exchange Board of India, which will help you in case any option emerges.
Is it better to buy existing mutual funds with good performance or new fund offerings?
Both have their own advantages and disadvantages and are good options if selected judiciously. Since schemes with good track records are expensive, so they may not always be a good bet, and the timing of investment is very important in this case.
However, good new fund offers provide you with good opportunity at much lesser prices. The focus should be on picking good funds at opportune time.
I am 47 years old. I’ve made investments in several mutual fund schemes such as Fiedility Intl Opportunities Fund-Growth, Sundaram BNP Paribas Global Fund, HSBC Dynamic Fund, SBI Magnum Global Fund Div, Franklin India High Growth Company Fund, Reliance Equity Advantage Fund, SBI Magnum Emerging Business Fund, ICICI Prudential Infrastructure Fund, Reliance Diversified Power Sector Fund-Dividend Plan, SBI Magnum Sector Fund Umbrella, TATA Infrastructure Fund,Franklin India IFT Fund, DSP ML TIGER Fund and Reliance Equity Advance Fund. Please advise me whether I need to sell any of these schemes and replace them with others to offset the fall in net asset values. I have no pension scheme and do not want to apply for any. I am looking for a return of Rs5,000-7,000 a month after I reach 60 years of age. Please advise.
The objective behind your investment should not be offsetting the losses due to fall in net asset values as these are temporary phases. Once the market improves, NAVs will also follow suit. As you have a pretty diversified portfolio, I would suggest you to hold on to the funds and, if your investment capacity allows, invest in schemes such as HDFC Top 200, Sundaram BNP Paribas Select Midcap, Kotak Opportunities Fund, DWS Investment Opportunity Fund, DBS Chola Opportunities Fund and SBI Magnum Contra Fund. I hope these investments will yield the desired returns for you. However, you should evaluate your portfolio every year.
I want to invest Rs30,000 in mutual funds. Please suggest me the best funds that can save income tax as well.
SBI Magnum Taxgain, HDFC Taxsaver, Franklin India Index Tax, HDFC Long Term Advantage, Principal Personal Taxsaver and Sundaram BNP Paribas Taxsaver are good tax-saving schemes, which can offer you decent returns in 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.