Ask Mint | On Investments

Ask Mint | On Investments

I hold the following mutual funds from the dates mentioned against each:

Fidelity India Special Situations Fund-Dividend Option (May 2006); Templeton India Equity Income Fund-Dividend Plan (May 2006); Reliance Growth Fund-Growth Plan-Growth Option (February 2007); Reliance Vision Fund-Growth Plan-Growth Option (February 2007); HDFC Long Term Advantage Fund (formerly HDFC Tax Plan 2000-Growth) (February 2007); Reliance Equity Opportunities Fund-Growth Plan-Growth Option (May 2007) and HDFC Mid-cap Opportunities Fund-Growth Option (May 2007).

Please advise on my future course of action.

- Pranay

Fidelity India Special Situation Fund is a slow performer, and chances of good returns from this fund are not very much as it has heavy exposure to bank stocks, which are currently underperforming the market. Unless bank stocks turn around and head northwards, the scheme is not likely to perform well.

Templeton India Equity Income Fund is a better scheme and has outperformed its benchmark. Since the portfolio of the scheme is quite broad-based and has major exposure in metals, technology and energy stocks, the scheme has good scope for future.

Reliance Growth- Growth is also a good scheme and has good portfolio comprising of energy, metals, health care and services sector. The scheme may do very well in the long term.

Reliance Vision fund also has a decent outlook for the long term, considering its portfolio and investment.

HDFC Long Term Advantage fund has a decent portfolio and has performed satisfactorily against its benchmark. However, the scheme is likely to remain subdued in the short term due to its higher exposure to the financial services sector. However, for the long term, the scheme has a promising portfolio.

Reliance Equity Opportunities fund and HDFC Mid-cap Opportunities fund are also good choices for the long term and are most likely to outperform their benchmark.

How is Idea Cellular at Rs110? Should I buy?

- Sandeep

Idea Cellular Ltd is looking good at the current market price of Rs108.90. For the short term, the target would be Rs126, while in the long-term the target would be Rs160.

What is your opinion on GHCL and Petronet LNG? Please review my investment holdings: GSPL India (100 shares at Rs70.40 each); Bongaigaon Refineries (162 shares at Rs64.00); Petronet LNG (100 shares at Rs74.90); RPL (100 shares at Rs181.70); RNRL (400 shares at Rs117.95); Gujarat Heavy Chemicals Ltd(200 shares at Rs78.70); IFCI (812 shares at Rs62.50); Ispat Industries (1,891 shares at Rs32.95) and Oswal Chemicals (162 shares at Rs43.50). Is there any sector that my portfolio is missing that you think I should be investing in?

- Harshit Patel

GHC Ltd is in a down trend since December 2007, and is currently showing signs of consolidation. You may start picking up this stock in small lots if you have a long-term outlook. I have an “accumulate" rating on Petronet LNG with a long-term perspective. Petronet LNG is likely to witness consolidation around Rs84. You should always pick up stocks in small quantities over a period of time to take advantage of volatility.

Regarding your portfolio, it seems well placed. However, you should add some public sector bank stocks such as Union Bank, Bank of India and Bank of Baroda, and Oil and Natural Gas Corp. Ltd and Steel Authority of India Ltd in your portfolio with a long-term perspective.

I have Rs50,000 for investment. How much should I invest in gold fund and real estate fund, and in which MF. I am 48 years old and want to earn Rs5,000-7,000 per month after retirement. In which government scheme should I invest and how much should be invested every month to achieve my target without taking any risk so that I may get maximum return after 60?

- Pavan Pankaj

First of all, I must say that all investments are subject to some risk and going by the basic principle of investment, the higher the risk, the higher the returns. If you wish to earn decent returns, then you will have to adjust your risk profile accordingly.

Since you have 12 years to invest, I think you should invest your money in mutual funds. We have been recommending good mutual funds scheme in every issue. Right now, you do not need to invest in government schemes as they do not offer you good returns. You can invest in gold exchange-traded funds or ETFs as they are likely to do well in the short term and should invest your balance sum in good mutual funds schemes, subject to your risk profile.

For achieving your goal or Rs5,000- 7,000 per month, you should take a systematic investment plan or SIP of Rs4,000 in DSP ML T.I.G.E.R– Reg, Reliance Growth– Growth, and DWS Investment Opportunity fund.

I have bought 5,000 units of UTI Infrastructure Advantage Fund Series I (G) at Rs10 a unit. Please advise whether I should hold or exit.

- Amandeep Singh Gill

You should hold this stock for some time now and review after six months.

I have 100 shares of Ready Foods Ltd in physical form. Are these shares trading on any stock exchange?

- Ajit Singh Rawat

Ready Foods is not trading on any exchange.

Can you guide me on following stocks: Great Offshore; Gemini Communication; Rain Commodities; Avaya GlobalConnect; Container Corp.; Sasken Communications; SREI Infrastructure; and Core Project and Technologies.

Also, mention the time perspective. Any suggestions on investments would surely be appreciated.

- Chirag Mehta

Great Offshore is a good bet for the long term with a price target of Rs900. Gemini Communications Ltd is in a down phase currently and has a price target of Rs305. Rain Commodities has a target of Rs315 and a stop-loss of Rs175. Avaya Global Connect is also in the consolidation phase. You may start buying this stock in small lots; however, there is resistance at Rs220. The stock would rally once it crosses Rs220 and has a target of Rs280. Container Corp. of India Ltd has a target of Rs1,076 and a stop-loss of Rs740. Sasken Communication can be bought around Rs120 with a target of Rs220. SREI Infrastructure has a target of Rs185 and a stop-loss of Rs115. Core Projects and Technologies Ltd has a target of Rs300 and stop-loss Rs145. Please note these are only targets if the stocks moves favourably, and are not my recommendations.

I have invested Rs5,000 in Reliance Regular Savings Equity in May. Please tell me if this is a beneficial investment with a year’s time frame in mind. Please give me insight on how this fund would fare in another couple of years. Also, suggest some funds that would yield good returns after a period of one-two years.

- Fareed

The scheme is an underperformer compared with its benchmark so far this year. However, since its focus is on energy, construction and technology sector, I think the scheme would do well in coming months. You may get decent returns after a year.

I am 40 years old and currently do not have any pressing financial demand. I am investing Rs5,000 per month as SIP in Reliance Vision, Fidelity Equity, Sundaram Select Focus and DSP Top 100. I started investing in them about three months ago and plan to continue for a year. I would like to review them at the end of one year and then decide to continue further. Kindly provide your views.

- R. Gowri

SIPs are the best way to invest in mutual funds and your selection of mutual funds is also good. So, in my view you are on right track and may earn decent return on your portfolio.

I want to invest Rs30 lakh. Could you please advise me as to how I should invest to get good returns? Also, if you could let me know what would be the tax structure regarding the same.

- Kamlesh Khurana

For a good investment decision, I would need to know your time frame of investment, your risk profile, your expectation of returns and the purpose of investment. In the absence of this information, it would be difficult to design your portfolio and suggest you something concrete. Following your investment planning, you should talk to your tax consultant for fine-tuning your investment.

So, first of all, elaborate on the above mentioned points.

Below is my current portfolio. Which scrips do you advise me to keep at the current levels and which do you advise to sell? Ashok Leyland (70 shares at Rs43.40 each); Yes Bank (50 shares at Rs162.58); Chambal Fertilisers (50 shares at Rs79.67); Hindalco (16 shares at Rs183.76); PowerGrid (45 shares at Rs96.52); Suzlon Energy (9 shares at Rs300.12) and MRPL (30 shares at Rs93.91). I have invested in these scrips through online broking. Would I be eligible for dividends on these shares? If yes, then how and when would I receive it?

- Parameshwar Iye

All the stocks in your portfolio are good and have decent outlook for one year. However, you may sell Ashok Leyland and add Steel Authority of India Ltd for one year.

Also, you are definitely eligible for dividends and you should talk to your broker about 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.