Ask Mint | On Investments

Ask Mint | On Investments

I bought Rs20,000 worth of HDFC Equity Diversified Growth MF at Rs173.34 NAV (net asset value). Today, its NAV is Rs99.89. Should I buy Rs20,000 worth more of the same to average it out?

Manjeet Walia

I would suggest that you buy some other scheme despite the fact that this scheme is also good. My choice of investment would be DSP Top 100- Growth or HDFC Top 200 fund. However, you need to have a time frame of minimum two years for investment.

I want to invest around Rs5 lakh for the time horizon of two-three years. Please suggest some scrips at the prevailing market price.

A.K. Mishra

You may build a portfolio of 10 stocks out of the list mentioned below and depending on your weightage to sector you may assign the money to them. At the current market prices, some frontliners such as Tata Steel Ltd, Reliance Petroleum Ltd, Reliance Communications Ltd, Reliance Industries Ltd, Bharat Heavy Electricals, Axis Bank, Union Bank of India, Oil and Natural Gas Corp. Ltd, Steel Authority of India Ltd, NTPC Ltd, Jaiprakash Associates, Punj Lloyd Ltd, Larsen and Toubro Ltd, Tata Consultancy Services Ltd, GAIL (India) Ltd, Bharat Electronics Ltd, Hindalco Industries Ltd, ICICI Bank Ltd, Infrastructure Development Finance Co. Ltd, Reliance Capital Ltd, Sterlite Industries (India) Ltd and some second-line stocks such as Yes Bank Ltd, Alstom Projects India Ltd, 3i Infotech Ltd, Firstsource Solutions, Induslnd Bank, Development Credit Bank Ltd, Bajaj Finserv Ltd, Zuari Industries, Alok Industries Ltd and Mcleod Russell India Ltd, etc., look attractive. You may pick stocks from this list. However, since the selection of these stocks is based on current market prices, this list may vary from time to time. My suggestion is to review your portfolio every year, at least to optimize returns by reshuffling as and when required.

I have 100 Unitech Ltd shares at Rs40, 120 Suzlon Energy Ltd shares at Rs85, 40 Bajaj Hindustan Ltd shares at Rs39.80 and 69 Reliance Power shares at Rs150. I am a long-term investor and want to invest Rs4,000 per month in stocks as SIP (systematic investment plan) but not through mutual funds. How should I create my portfolio and which stocks should I include? I am worried about Unitech.

Ankur Handa

You need not worry much about Unitech. It is a huge realty company and though times are tough and may even get tougher, the stock has fallen substantially and does not offer big downward risk from current levels. Compared with your buy price of Rs40, you are in loss, but I would advise you to hold it as of now.

Regarding SIPs such as investment in stocks, it is indeed a wonderful idea and a very practical one too. But you would need to do monthly research. Right now banks and real estate firms look attractive following recent steps taken by the Reserve Bank of India. But next month the scenario may change and also the prices. So, you need to take a fresh call every month.

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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