I would like to invest Rs10 lakh in mutual funds for five years. Could you suggest a portfolio for me?
—Mohan Raj Nair
Ideally, you should have a mix of infrastructure-based mid-cap, sectoral and diversified funds.
Among the infrastructure funds, Tata Infrastructure fund looks attractive, which has a potential for high returns. The main investment of the company is in frontline stocks such as Reliance Industries Ltd, Larsen and Toubro Ltd, Tata Steel Ltd, Tata Power Co. Ltd and Bharat Heavy Electricals Ltd, with major allocation to energy, metals, basic engineering and financial services being diversified. UTI Infrastructure fund is also good. In the mid-cap space, BNP Paribas select mid-cap fund has a promising future and the fund has been a steady performer.
Among sectoral funds, banking and energy-based funds are most attractive. Since banking funds are available very cheap now, you can focus on funds such as Reliance Banking-Growth fund, UTI Banking , Sector Fund, etc. In the energy sector, Sundaram BNP Paribas Energy Opportunities-G looks very good with a long-term perspective. While diversified funds such as Reliance Diversified Power Sector Fund-Growth-Growth, HDFC Top 200, Kotak Opportunities fund, DSP ML TIGER-Reg, HSBC Equity and ICICI Prudential Dynamic funds are promising. I think these funds can make a good portfolio for you.
You must review the performance of your portfolio periodically to add or drop the funds depending on market conditions prevailing then.
I am a non-resident Indian. I have invested only in one company, Dharani Sugar and Chemicals, and I own several thousand shares in that . Its stock price has been low for a long time. What is your opinion about this company? Do you see any turnaround in the near future? Is there any possibility that stock prices might rise?
Dharani Sugar and Chemicals Ltd is currently trading around Rs19.40 a share and has a 52-week high of Rs36.40 and 52-week low of Rs15. This is a loss-making company and for the year ended 31 March, the company reported a pretax loss of Rs16.69 crore. There is nothing very exciting in the balance sheet of the company except for the fact that the book value is Rs20.26. Technically, the stock too does not look exciting. In this scenario it would be better to prune your position in the stock. The stock has potential to move to Rs24 in the short term and I think that will be a good opportunity to reduce your holding.
I would like to invest Rs50,000 in mutual funds through systematic investment plans. Which mutual funds and plans should I go for? I don’t have much knowledge about the markets. Can you please guide me.
From the investment point of view, following schemes look good at current level with a long-term perspective. DSP ML TIGER-Reg, SBI Magnum Contra, DWS Investment Opportunity, HDFC Top 200, Sundaram BNP Paribas Select Mid-cap fund, Reliance Growth-G and Tata Infrastructure fund.
I think you can split money in these schemes with higher allocation to DSP ML TIGER, Sundaram BNP Paribas Select Mid-cap and Tata Infrastructure fund.
I would like to make a one-time investment of Rs1 lakh for three years, preferably in an equity scheme. Kindly advise.
You may split your investment in Tata Infrastructure Fund-Gr, Sundaram BNP Paribas Select Mid-cap fund, Reliance Growth-Gr and DSPML TIGER-Reg.
Which is the best mutual fund to invest in? Please guide me.
The term best mutual fund is very subjective as it is based on several criteria such as time frame, risk profile, type of returns desired (cumulative, distributable), etc.
So, it is difficult to say which one is the best.
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.