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Ask Mint | On investments

Ask Mint | On investments

I want to know the future of 0.01% cum redemption preference shares of Ispat Industries Ltd. When and how can these be converted into equity? Please advise if I should hold? I have 2,000 @ of Rs7 per unit.

- L.D. Tyagi

The 0.01% cumulative redeemable preference shares of Rs10 each being held by you shall be redeemed in eight quarterly instalments commencing from 15 June 2018.

To know more details, check out http://www.ispatind.com/investorrelations.asp

As far as the option of holding or exiting this share is concerned, I would suggest you hold it till the end of this year, since the current market price is very low at Rs4.76. On getting a decent price, you may exit this stock and instead buy the equity share of the same company. I expect in the long run, the equity stock would give good returns.

I want some clarification regarding Sahara Mutual Fund that recently introduced the Banking and Financial Services Fund. What is the fund’s strength and who can invest? What is the returns one can expect? Do you think this is a good fund?

- Jayaprakash

The Banking and Financial Services Fund offering of Sahara Mutual Fund, which is currently open for subscription, does not look very exciting, primarily for two reasons. First, the banking stocks and the stocks of companies that are into the business of banking and financial services are not the hot property in the current economic situation and in view of the high rate of inflation.

Secondly, if investment in this sector should be done, then in my opinion it should be done in either the beaten down banking stocks or the schemes of those mutual funds that have a track record comparable against some benchmark. That way you get a fairly good idea about the risk perception and return expectation of the scheme. Just by analyzing this new fund offer, I cannot comment on the expected return.

As far as your last question is concerned, I think you have better opportunities available.

I am 62 years old and have retired. I would like to invest around Rs5 lakh in mutual funds. I want to earn a monthly income. Can you suggest something?

- Jayarajan

The monthly income plans that are good include DBS Chola MIP, Principal MIP Plus, Birla Sun Life MIP II Savings, Principal MIP and DSPML Savings Plus Aggressive.

These schemes could be a good portfolio for the purpose of monthly income.

However, I would suggest you consult your local financial consultant also in this regard.

Can you please tell me the ranking of the top performing ELSS (tax-saving) funds as on August 2008?

- Karthikeyan.G

The well performing ELSS funds include Fidelity Tax Advantage Fund - Growth ; BOB ELSS 96; HDFC Long Term Advantage Fund-Growth; Sahara Taxgain-Growth; Franklin India Index Tax Fund; JM Tax Gain Fund-Growth; LIC Tax Plan-Growth; Birla Sun Life Tax Relief 96-Growth; HDFC Taxsaver-Growth; ING Tax Saving Fund-Growth; Sundaram BNP Paribas Taxsaver-(Open Ended Fund)-Growth; Tata Tax Advantage Fund-1; Taurus Libra Taxshield-Growth; and DWS Tax Saving Fund-Growth.

Could you please give me a list of the top 10 mutual funds (non-tax saver)?

- Kamal

The top 10 mutual funds in terms of best one-year returns are Reliance RSF-Equity-Growth; ICICI Pru Infra Inst I; ICICI Pru Infra; IDFC Premier Equity Fund-Growth; BOB Growth Fund-Growth; Sundaram BNP Paribas Select Focus-Growth; DWS Investment Opportunity Fund-Growth; Templeton India Growth Fund-Growth; DBS Chola Opportunities Fund-Cumulative; and HSBC Equity Fund-Growth.

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