Saturday, May 30, 2009


I recently received a Mail from, a US based etf site which has ranked my Blog http:// among the Top 50 50 Buy and Hold Investing Blogs and mine has been ranked at NO.3.
This is what the email said :

“From: Jimmy Atkinson
Sent: Thu, 14 May 2009 21:59:42 +0530 (IST)
Subject: Good Funds Advisor Named a Top 50 Buy and Hold Investing Blog


Just in case you
have not yet noticed, Good Funds Advisor was named a top 50 buy and hold investing
blog at ETF Database earlier this week. I thought you and your readers might
want to check out the rest of the list. Let me know if you have any feedback, or
feel free to leave a comment directly on the blog post. http



I dedicate this success to YOU. Yes, you dear readers, who keep visiting my blog and come up with interesting suggestion.
So, guys check out my blog http:// and tell me how can I further improve my blog and make it No.1.
Thanks to you all
Srikanth Shankar Matrubai

Also visit for an indepth Equity Analysis

Visit http:// for More Detailed Mutual Fund Advise.

Wednesday, May 13, 2009


ICICI Target Return Fund - Invest

Srikanth Shankar Matrubai

A rare NFO, which is good

ICICI has come with a New Fund Offer named ICICI Prudential Target Returns Fund, an Open Ended Diversified Fund. The objective of the Fund is to Generate Capital Appreciation by investing in equity/equity related instruments of BSE100 and, providing investors with options to withdraw their investment automatically based On Triggers as when and when achieved.

The fund offers investors an option to switch out their capital appreciation or entire investment when the fund reaches a particular target, preset at either at 12%, 20%, 50% or 100%. This will help the investor to book his profit and protect any downward fall.

A back testing carried by the AMC shows that a trigger @ 20% moved into even a normal savings account would have given a return of 14.92 on a Rs.10 NAV., whereas not using the trigger would have left your NAV at 10.04 inspite of the NAV having touched a high of 21.
(This Simulation is based on a Value of Rs.10 invested on 01 Jan 2006 till March 2009).

This scheme will give comfort to first-time investors, who usually come when markets are at peak and then lose out money when they fall. This scheme will book profits regularly in a discipline manner. Profit booking in a disciplined manner is essential. Investors tend to become greedy when they see appreciation and become fearful during correction and this fund will eliminate such greed. The Trend seen in the last two years clearly shows that a bit of Active approach is essential even in Mutual Fund investments and this Fund addresses this need.

Positives :
1) The Trigger Mechanism will automatically ensure Rebalancing.
2) With Triggers, Returns are locked at regular returns and Value is preserved in the event of a Subsequent fall.
3) The fund intends to invest in Large Caps, which is a comforting factor.
4) The Fund is being launched after the Stock Market have seen a Big Correction and is Attractively Valued, thus the probability of the Fund achieving its 'Targets' is rather high.

1) The biggest negative of the Fund is that due the Mandate, the Fund Manager is forced to Sell out Stocks as soon the Stated Target is achieved and may well miss Higher Returns if held.
2) There is no Guarantee that the Fund will meet its 'Trigger Target' if the Markets were to stay Range Bound to Negative.
3) In the Event of a Bull Run similar to 2 years back, than there is a risk of losing the Benefits of compounding Returns.

The Fund should do well and one can invest going by the Fact that the Fund will be investing in Large Caps and the Markets too look attractive over the Next two years at least. The Fund may not give Huge Gains but does promise to protect your gains in the event of a market crash.

Invest with the Option of 20% Trigger Target and Switch to ICICI Liquid Plan - dividend Reinvestment Option.

One can consider investing in this Fund

Best of luck,
Srikanth Shankar Matrubai

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Friday, March 13, 2009

Seek your suggestion

Seek your suggestion
Hi srikant,

Lalitesh here (hope u still remember me ) ...First of all let me wish Belated Merry Christmas and Happy new year in Advance !!!!

I understand that you would be too loaded with work ..but still I seek your kind help (suggestion) regarding the investment I had discussed with you and Aslanshu, because I have registered for the funds and its almost started working.

You might remember the mail I have sent you for the investment
regarding the home down payment which i need after 3 yrs and the fund i need is around 10L (atleast), and as per your valuable suggestion i have enrolled for the below funds :

Port1 (24k)
Name Date1 Date2 Date3
HDFC T200 N/A N/A 1,000
Sundaram Sel Foc N/A N/A 1,000
DSPMLT100 N/A N/A 1,000
UTI Spread LTP(G)2,000 1000 1000
HSBC MIP -RP(G) 2,000 2000 2000
DSPML Balanced 2,000 1000 2000
Kotal Floater LTP(G)2,000 1000 2000
Investment Amount
:: 24,000/months

Time Horizon
:: 3 yrs

As of now i have selected to invest for next 1 yrs only.

:: to acheive >10L corpus by next 3 yr.

I had submitted the form of UTI Mahila fund also for 7k/month but as per my agent, it was rejected becuase only females can only invest in this fund. so will be choosing some other fund soon and register for the same . Final plan is to have 31k/month plan.

Could you please suggest me if this portfolio looks fine of it need any modification. Similarly i have created few other portfolio for my future needs but since its still under registration so haven't share the same here.

I'll be seeking your expertise to comment on those portfolio as well, once i send you the details. Finally, can i have your suggestion on my this 24k portfolio.



Dear Lalitesh Kumar,
I am happy to see your mail again. And I am particularly more happy
to see that you have not ignored my suggestion and have avoided All your
investment into Debt Fund and have also considered Equity Funds.
You seem to have chosen your funds well, going by the fact that a good number of them have a solid performance track record.
However, I have concern that you seem to have invested just a bit on the higher side in DSPML Balanced Fund. Given the nature of your goal and time limit, you can consider switching to DSPML Savings Plan (Moderate) with a Equity Exposure of 20% (compared to 65% equity exposure in DSPML Balanced Fund).
DSPML Balanced Fund has had a good track record but the current market appreas to continue remain volatile and may not the recent highs in a hurry, and moreover the Debt Funds due to Falling Interest Rates should easily give you upwards of 12% return in next 6-9 months.
Your agent is ignorant. Any person (male or female) can invest in UTI Mahila Fund. Only the name is Mahila. Sure, go ahead and invest. Its small Corpus is 82.46 makes it manageable. The Fund is rated 5 Star by ValueResearch.
Though the Fund has had a bad 2008 with a return of negative 8%, the 3 years return continue to impress at above 20%. And the Fact that the Fund has only 12% in equity and with falling interest rates, the Fund should give you good returns.

Even as recently as Novermber 2008, the Hindu Businessline had given a "Invest" Recommendation on the fund. You can find the same in the link
You can also consider investing the additional 7k in UTI Spread itself.


Best of luck,
Srikanth shankar Matrubai

See the earlier query by Lalitesh Kumar on

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Student's dilemma on Diversified Funds or Balanced Funds?

Student's dilemma on Diversified Funds or Balanced Funds?
From: Akhil Sharma

Hi! Mr.Advisor

I'm a student.My age is 23.i love to save my's been a year that i've invested in various equity diversified funds like
ICICI pru infra
Reliiance diversified power

Sundaram capex
Reliance RSF equity
Kotak indo world infra
I've invested Rs.5000 in each of them.As the last year has been bad for the markets...i've lost 50% of my investment.Now i want to invest again but not in diversified as i now want to have different type of funds in my portfolio.

I wanted to know if DSP black rock balanced fund,UTI mahila unit scheme and Reliance banking fund would be a good deal to invest or not and should i go for lumpsum or i should go for SIPs!
Any of your suggestions for me are welcome.

Thank you!
You're doing a great job!.....cheers to ur blog!!
Akhil sharma

Dear Akhil sharma,
First of all, thank you for your kind words on my blog.
You have started your invested at the peak of the Bull Market and hence it is no surprise that your investment value is down by 50%.
Alas, your investment has all been in Infrastructure Funds which only adds to the downswing of your investment value.
Thankfully, I am happy to note that you have not lost your heart and ready to invest again. Yes, as you yourself have admitted, you need to diversify your investment horizon. The funds you have selected for investment are all Balanced Fund. And at your age, you can go for Diversified Funds as these funds typically give you more return than Balanced Funds over a longer periods of time.
you can consider one among the following funds for your future investments.
Birla sunlife Equity fund
Fidelity Equity Fund
HDFC Top 200 fund
Reliance Growth Fund
Sundaram Select Focus Fund.

If you are still considering Balanced funds, you can think of HDFC Prudence Fund which has an excellent Track Record since its inception.
Preferably, go for SIPS.
Best of luck,
Srikanth Shankar Matrubai,

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Kingfisher Airlines Limited Formerly known as Deccan Aviation Ltd. The Group's principal activity is to provide commercial passenger airline and a private helicopter and airplane chartering services in India.
After the Annual General Meeting, I had a chance to talk with the “King of Good Times”, Dynamic Chairman of Kingfisher Airlines, Dr.Vijay Mallya.

He announced “the worst is over for the Airlines Industry. Kingfisher Airlines Fundamentals is getting stronger by the day and we will start to break even from this month itself.
“I think the worst is over and there’s no reason why private equity investors who had expressed interest when oil was at $100 a barrel shouldn’t be more interested when oil is $36 a barrel,” Mallya said

He said once the Govt brings the ATF under the ‘Declared Goods’ category, Kingfisher Airlines will immediately reduce fares.
“We can pass on pretty much majority of the savings and that would be good for the industry, make air travel even more affordable and stimulate an industry that has slowed down considerably,” claimed Mallya.
"Kingfisher will be the biggest airline in India by 2010 not only in terms of market share, as others claim. In all the aspects, it will be the biggest. Wait and you will see," he said, dismissing all related questions. Hyperbole? Like the man says, we will wait and see.

At least in Near Short Term of upto 1 year, things are looking much much brighter than it was in anytime of the Kingfisher’s history. The operations costs are lower and there are no visible signs of going up, and, the Airfares are not being reduced and surprisingly, the load factor is going up, which should all add up to “Good Times” for the Kingfisher Stock. Can expect an upside of at least 40% from here and expect the Stock to reach at least 50-55 by June End 2009. Buy in Small quantities as “Contra” Pick. The stock could be the Dark horse of 2009.

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Dear All,
I received an interesting article on Gold today morning from Kotak Mutual Fund and you have to read it. It is very very interesting.
The damage caused by the financial excesses of the last quarter century was forcing the world's authorities to take steps that had never been tried before.

This gamble was likely to end in one of two extreme ways: with either a resurgence of inflation; or a downward spiral into depression, civil disorder, and possibly wars. Both outcomes will cause a rush for gold.

Find below an extremely interesting link which details why gold prices have been depressed and why dollar has been outwardly biddish despite deteriorating fundamentals. All along the article are very interesting snippets from industry veterans and analysts on their outlook on the current happenings and its impact on gold going forward..

The link is :

So a good moment to get in gold stocks now?

According to Frank Veneroso, a well known gold market strategist, yes, he recently said:

I think gold might have a very explosive upside in the current environment. Gold stocks are now extremely cheap relative to the price of gold with the commodity bust, gold mining costs are falling. I think money managers should now be buying gold stocks.

So, dear investors,, can you ignore investing in DSPBR World Gold Fund or AIG World Gold Fund?. Obviously not.
Think again and invest at least a portion of your investible surplus is Gold Funds.
Best of luck,
Srikanth Shankar Matrubai

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Dear all,
The Global Financial Crises we are witness to today is unprecendented and many Economies, (even Developed ones) are on the brink of an looming impending Recession. In response, Central Banks, with US leading from the front, are pumping in tonnes and tonnes of money by printing more and more Dollars. But the disaster waiting to happen is, that this Oversupply of Paper Currency is not backed by any Real Assets such as Gold. Which means, that the Currency that the US Govt is pumping is only a Paper churned out from Printing Presses.
What this creates is, that Gradually the Confidence in US Dollar will reduce and its VALUE too decrease (Remember Zimbabwe?).

This is where a proxy currency such as "GOLD" holds intrinsic value, since the supply of it is limited and which is not in control of any Central Bank. Gold has a unique characteristic of "storage value", vis-à-vis paper currencies. Paper currencies tend to lose value over a period of time due to inflation (loss of purchasing power) caused by over supply as it leads to a situation where more and more currency is required to buy the same amount of goods.
Another shocker is that the Gold Reserves held by US, UK and other Developed Countries on threshold of depression has fallen considerably. While the ratio of Gold to Currency was 141.2 tonnes to 1bn$ in circulation, now it is ONLY 10.7tonnes to 1bn$ in circulation. This shows that More paper Currency is in circulation backed by Less Gold. To correct this analomy, the US needs to increase its Gold Reserves by MORE than 13 times!!!!
This will only Fasten the process of Falling Confidence and Faith in the US Dollar and hasten the image of Gold as the Saviour to protect over the Long Term.
Citigroup, in a recent report has said that gold will touch US$ 2,000 per ounce. That's 2.5 times the current price of the yellow metal at US$ 800. The firm believes the measures taken to tackle the financial crisis will not stabilise the global economy. Instead they will lead to a painful depression. As per the bank, the financial system has tripped beyond recovery, towards depression. In this scenario, there will be a flight towards gold. In fact, according some reports, China plans to add nearly 6 times its current gold reserves of 600 tonnes in a move away from foreign paper currencies.

With the financial crisis not over yet and the recession looming large, central banks would continue to inject more and more money into the financial system. Thus the debasement of the currencies will continue making Gold more and more attractive as a hedge against the dwindling purchasing power and the loss of faith and confidence in paper currencies.

Gold is seriously undervalued.

Buy gold before it gets expensive.

On where to invest, you can visit
Best of luck,
Srikanth Shankar Matrubai

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