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Ask Mint | On investments

Ask Mint | On investments
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First Published: Sun, Apr 19 2009. 11 30 PM IST
Updated: Sun, Apr 19 2009. 11 30 PM IST
I want to invest a small amount in mutual funds (MFs). I want to do it aggressively to get high gains. Which MFs should I consider? I already have about Rs30,000 in MFs (Reliance Diversified Power Sector Fund, Kotak Global Emerging Market Fund, HDFC Top 200 Fund, SBI Infrastructure Fund, Franklin India Opportunities Fund and Franklin India Prima Fund). Since then the value has gone down around 60%. I also have Rs3 lakh portfolio in equities ranging from Larsen and Toubro (L&T), Bharat Heavy Electricals Ltd, JP Associates, Oil and Natural Gas Corp. Ltd , Carin, three banks, etc. These are in small numbers so as to keep them for a long time to appreciate. But the account has shrunk to 51%. However, these firms are good and are expected to benefit when markets recover. I have a large amount in L&T. Should I invest more in L&T? Can you suggest some names in metals too? Should the existing companies be enlarged? My portfolio had 70% profit before the crash but since then has shrunk to less than half. With regards to MFs, I need a few names where small funds could be invested in view of diversification.
Bharat Goel
In my opinion, good metal stocks would include Steel Authority of India Ltd, Tata Steel Ltd, Sterlite Industries (India) Ltd and JSW Steel Ltd. Regarding good mutual funds, you may consider adding Sundaram BNP Paribas Select Midcap Fund, UTI Banking Sector Fund, Kotak Opportunities Fund and HSBC Equity Fund–Growth option.
We have Rs1 lakh to invest. My two sons are 13 years and 8 years old. We will need the money for their college education. By mid-May we again plan to invest a similar amount for their higher education. We know Rs2 lakh is not enough. Should we invest in large-cap? Also suggest if we should invest now or go for post double schemes of eight years or wait for the market to get better or make a new portfolio.
V.C. Patel
It all depend on your risk profile; if your risk appetite is low, you should go in for balanced schemes of good mutual funds. If you have a good risk profile, then it would be better to invest in the stock market directly with a time frame of up to three years. However, if your have no risk appetite, you should go in for fixed return schemes. Given the current state of stock market, I would suggest a mix of direct investment in stock markets and mutual funds.
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.
You may send in your stocks and mutual funds related queries to askmint@livemint.com
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First Published: Sun, Apr 19 2009. 11 30 PM IST