Ask Mint | On Investments

Ask Mint | On Investments
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First Published: Sun, Sep 14 2008. 10 32 PM IST
Updated: Sun, Sep 14 2008. 10 32 PM IST
Which of these are good to buy: Sterlite Technologies, EIH Associated Hotels, Sunil Hitech Engineers, Nitin Fire Protection Industries, Indoco Remedies, Yes Bank, Sesa Goa, Petron Engineering Construction and Havells India?
— Preeti N.
Going by your list, good stocks purely in terms of their ability to give returns from price appreciation, would be Yes Bank Ltd, Sunil Hitech Ltd, Sesa Goa Ltd and Sterlite Technologies Ltd. You should buy these stocks in small lots and buy more on declines.
I have purchased shares of Unitech (at Rs277 each), Gitanjali Gems (Rs422), Hindustan Zinc (Rs840), Petronet LNG (Rs101), Punj Lloyd (Rs395) and Moser Baer (Rs193). I can hold them for another year or two. Should I sell them now or hold?
— D.P. Singh
Since your buying rates are quite high, it would be better if you hold the stocks and add more in case your budget permits, specially stocks such as Hindustan Zinc, Petronet LNG and Punj Lloyd. You may sell a part of your holding in Unitech Ltd and Moser Baer in case the market rises as both the socks may remain laggards in the time frame mentioned by you.
I have made the following investments and want to remain invested for 6–8 years: Rs40,000 in Magnum Multicap-G, Rs45,000 in Magnum Taxgain-G, Rs45,000 in Magnum Comma-G, Rs30,000 in ING Vysya Midcap-G, Rs90,000 in Kotak Opportunities-G, Rs45,000 in ICICI Prudential Banking and Financial Services Fund-G and Rs45,000 in Reliance Regular Savings Equity-G. Please advise on the portfolio. I also want to invest another Rs2 lakh with the same time horizon.
— S. Kaul
All your schemes are very good and your portfolio is likely to yield good returns in the time frame you have mentioned. But, I feel you do not have enough diversified funds as the emphasis on midcap schemes. So, in my view, investing in schemes such as DSP ML T.I.G.E.R–Reg and Tata Infrastructure fund would be good. Also, you may consider Sundaram BNP Paribas Select Focus–Reg scheme as it gives more emphasis on energy, technology and financial services sectors. Adding these schemes would balance your portfolio.
I have invested in some mutual fund schemes through agents. Now I want to make some direct investment. Will the fund firm deduct broker commission if I fill up the additional investment form available with the unit statement and send it directly to the fund house? Also, will the commission be deducted if I apply directly in a new form with the existing folio number?
— K. S. Mohanan
In case you are filling up the form sent directly by the mutual fund and depositing it directly to the fund, then you will not be charged for commission. Also, if you are applying in a new form and depositing the same directly, even if it is under the existing folio number, you will not be charged. However, you will have to ensure that the form does not have the broker’s stamp on it. If you fill up a form that has the broker’s stamp on it, then you may be charged for commission even if you apply directly.
My portfolio consists of SREI Infra (300 shares at Rs152 each), Gujarat NRE Coke (430, Rs117), HDIL (131, Rs340) and GHCL (110, Rs87). Please advise.
— Tarun
SREI Infrastructure Finance Ltd is currently in a down phase and may test its recent lows. However, the outlook on the stock will turn positive once it closes above Rs130. So in the current situation, you should hold the stock. Gujarat NRE Coke witnessed a sharp fall in the last few days and now the price seems to be stabilizing. However, there is no indication currently of the stock bouncing back or moving up sharply. In this case, if your investment capacity allows, you may continue to hold this stock and review it once the stock closes above Rs110. Housing Development and Infrastructure Ltd is a good stock and you should hold it for a minimum of one year with a price target of Rs510. GHCL is also a good stock and you should hold it.
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, Sep 14 2008. 10 32 PM IST