Ask Mint | On Investments

Ask Mint | On Investments
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First Published: Sun, Oct 11 2009. 08 51 PM IST
I want to invest Rs30,000 in an equity fund for a lock-in of two years. Please suggest a lucrative fund with a higher rate of return and more risk factors.
Shivaram Vishwanathan
You may choose to invest in Sundaram BNP Paribas SMILE Reg or Reliance Regular Savings Equity fund for the time period mentioned by you.
It is difficult to say which is the most lucrative fund, but going by the portfolio and analysis of past performance, these schemes look good.
I have two questions. First, I want to invest in State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner every month in a systematic way. Please advice. Second, I have got 100 shares of Fortis Health at Rs86. I have got an offer from the company to subscribe to a rights issue for 40 shares or more at Rs110 a share. Please advice on whether I should subscribe to it.
Harpreet Sahni
Regarding your first query, I think there are better options available. However, if you have decided to invest in these for your own reasons, then you may set aside a sum and plan your investments for the short term only.
Regarding your second query, I think it may not be a great idea to invest in this stock, basically for two reasons.
First, the current market price is below the offer price. Second, post-listing of rights shares, there would be equity dilution and prices would adjust downwards. So you may avoid this issue.
The answers are based on a technical analysis of markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and provided for information purposes only by Vipul Verma. Readers are requested to do their own research before participating in stock markets, and neither the paper nor the information provider will be responsible for any actions and outcomes based on information provided here.
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First Published: Sun, Oct 11 2009. 08 51 PM IST