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Ask Mint | On Investments

Ask Mint | On Investments
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First Published: Sun, Aug 10 2008. 11 43 PM IST
Updated: Sun, Aug 10 2008. 11 43 PM IST
I want to invest in mutual funds through systematic investment plans (SIPs). Can you recommend the best mutual funds in the current scenario for SIPs and the categories (such as equity diversified or other) to invest in, and how much monthly amount should I invest in them and for how long?
Gagan Sharma
Reliance Regular Savings Equity, ICICI Pru Infra Inst I, IDFC Premier Equity, Sundaram BNP Paribas Select Focus Reg, Templeton India-Growth, ABN Amro Dividend Yield Fund-Growth, LIC Equity Fund-Growth, ING Dividend Yield Fund-Growth, LIC MF Opportunities Fund-Growth, SBI Magnum Equity Fund-Growth, LIC MF Growth Fund-Growth, DBS Chola Opportunities Fund-Cumulative, Kotak Contra Fund-Growth, UTI Thematic Mid Cap Fund-Growth, JM Hi Fi Fund-Growth and HDFC Top 200-Growth are currently the best performing funds.
As far as the category goes, equity funds with growth option seem to be a better choice.
However, since you haven’t given your investment profile—such as the amount you wish to invest, time frame for investment, your risk appetite and purpose of investment—it would be difficult to draft a portfolio for you. I would suggest you to write in detail your investment profile for a precise answer.
I want to invest a certain amount over the next six months for the education of my son, who is now five years old. Assuming that he will need the funds when he is 18, I have shortlisted Reliance Growth, Principal Child Benefit and DSP ML Top 100 Equity. Are these fine? If not, which two- three funds would you suggest?
S.K. Chakravarty
Your selection of funds is correct and, depending on the amount you propose to invest, you may add a few more schemes, such as HDFC Top 200, Reliance Regular Savings equity, DSP ML T.I.G.E.R.–Reg and Sundaram BNP Paribas Select Focus.
Since your time horizon is very long, you should review the performance of you investment every year and make necessary changes.
I want to invest Rs7,000 per month in different mutual funds through SIPs for six-seven years. This investment I am doing is for my daughter’s marriage. Please suggest some funds which can give me good returns.
Sanjay Goel
It’s a good idea to invest in mutual funds through SIPs for a long period of time. My choice of investment in this case would be HDFC Top 200, DSP ML T.I.G.E.R.-Reg, Sundaram BNP Paribas Select Focus, Templeton India-Growth, JM Hi Fi Fund-Growth, UTI Banking Sector and Reliance Growth-Growth with investment of Rs1,000 each in these schemes.
Also, review your portfolio regularly for necessary changes as per the prevailing circumstances then.
I am a 22-year-old graduate, interested in long-term investment. Could you suggest me some stocks with strong fundamentals for investment for five to 10 years?
Dixit Mehra
For an investment period of five to 10 years, my choice of stocks would be Oil and Natural Gas Corp. Ltd, Reliance Petroleum Ltd, Bank of Baroda, Canara Bank, Tata Teleservices Maharashtra Ltd, Tata Steel Ltd, Jaiprakash Associates Ltd, GMR Infrastructure Ltd, Tata Consultancy Services Ltd, Hindalco Industries Ltd, Bajaj Financial Services Ltd, Reliance Industrial Infrastructure Ltd and Tata Motors Ltd.
In the current scenario, these stocks are attractively priced for those with a long-term investment perspective. However, as a strategy, you should pick these stocks in small lots and on declines, since your investment horizon is very long.
I have shortlisted UTI Gold ETF and Kotak Gold ETF for investment. I found that though Kotak manages a smaller asset size compared with that of UTI, it’s performing well. Which ETF do you suggest me to opt for?
Ashwin
The performances of all gold exchange traded funds (ETFs) have been more or less similar, though, looking at the daily chart, it appears that Quantum, Kotak and UTI have fared slightly better.
I would suggest you to invest in Kotak and Quantum gold ETFs. However, you should plan investment in gold ETF only if you have a long-term perspective because in the short term, gold prices are likely to remain range bound.
I would suggest you to invest a small amount in these ETFs and wait till the gold dips to $880-$887 per ounce in the international market (current rate is $909.55). That will be a good time to invest in gold or gold-related ETF.
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, Aug 10 2008. 11 43 PM IST
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