I have invested in certain Mutual Funds such as DSP BlackRock India T.I.G.E.R. Fund, HSBC Emerging Market Fund, HSBC Equity Fund, HSBC Unique Opportunities Fund, JPMorgan India Smaller Companies Div, Reliance Diversified Power Sector Fund, Reliance Growth Fund, Reliance Vision Fund; none for tax saving. I am still employed, though close to retirement, and while I don’t need my funds right away, I do need to start looking at the next five years’ scenario. Should I leave these funds untouched? If I plan a small monthly systematic investment plan (SIP), what should I look at, mindful of current investments?
I think in the present situations withdrawal of money from mutual funds may not be wise, even though the turmoil in the market continues and there could be a further fall. In the time period targeted by you, it would be better to stay invested; rather, add some more units to your kitty to average out your investments. In this regard, SIP would definitely be a good idea and despite expectations of more weakness in the stock markets, you may take an SIP in DSP BlackRock Balanced–Growth. I liked its portfolio as its better placed compared with other leading balanced schemes. The scheme has low risk, but high returns could be expected. However, you must know that like all other schemes, even this scheme will have the risk of current market situation, but for a five-year time frame, you may earn good profits by investing now.
I hold shares and convertible debentures of the following companies. Could you please let me know their status.
1. Panchmahal Cements Ltd (2,500 shares)
2. Pioneer Silk Mills Ltd (1,600 shares)
3. Orkay Silk Mills Ltd (3,000 shares)
4. The Bombay Silk Mills Ltd (1,800 shares)
5. Lakhanpal Foods Ltd (500 shares)
6. Fabworth (India) Ltd (1,000 debentures)
7. Tamilnadu Jai Bharath Mills Ltd (500 shares)
8. Arvind Polycot Ltd (1,500 debentures)
Panchmahal Cement was last traded on 26 December 2001 and is suspended currently as per information available on the Bombay Stock Exchange (BSE) website. The company’s address as per our records is: The Emperor, II Floor, Falehgunj Main Road, Baroda - 390002 ; Tel: 91-0265-791523. There is no information available with us on Pioneer Silk Mills Ltd. Orkay Silk Mills, which changed its name to Orkay Industries, was delisted. The Bombay Silk Mills Ltd was delisted and the orders for the winding up of the company were issued on 21 October 2002. The name of Lakhanpal Foods Ltd was changed to Vafa Agro Ltd and on 2 July 2004 was delisted. The name of Fabworth India was changed to Uniworth Textiles Ltd. Tamilnadu Jai Bharath Mills was last quoted at Rs13.78 on 26 May 2008 on BSE; since then there is no information on it. Arvind Polycot Ltd was merged with Arvind Products Ltd.
I have invested (figures in lakh) in the following mutual funds over the last one-two years: JM Agri and Infra Fund-G (1.0), Sundaram BNP Paribas Equity Multiplier Fund-G (0.25), Birla Sun Life International Equity-G (0.20), ICICI Services Fund (0.30) and Tata Indo Global Infra Fund-G (0.30). I intend to hold these for next one-two years. Advise me if reshuffling is required, generally in terms of standing/rating of these schemes.
I think your portfolio is not fully optimized. Given the current market situation, you can adds some attractive schemes to your kitty for long-term investment. Some of the good schemes in my opinion are DSP BlackRock Top 100 Equity, HDFC Top 200 Equity, Birla Sun Life Balanced – Growth, UTI Banking Sector Fund, Tata Infrastructure Fund and Sundaram BNP Paribas Select Focus Fund, etc. Since all the schemes you are holding are suffering huge losses, I would not suggest exiting these schemes by reshuffling. However, you may choose to add new schemes.
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