Buy GMR Infra

GMR Infra with its Hyderabad Airport has shown that it has the capability, vision and ability to scale and build World Class projects. That too on time and within cost parameters. In fact, I read a article in a paper that its Hyderabad Airport has itself became a Tourist Attraction. This is just the beginning.
When they complete Delhi International Airport, the stock would be at least double of what it is today (today 148). And dont forget they are also building an Airport in Istanbul in Turkey and thus have provided diversification. And the icing on the cake, GMR Infra is also into Roads and Power Plants!.
Can anyone find such a diversified Infrastructure Story quoting at such ridiculous price?.
Remember I had recommended GMR Infra at 200 (10 paid up) 17 months back predicting Double the price. Now the Rs.2 paid is quoting at 148. See the appreciation!!!!
Now, I boldly predict that Rs.2 paid up will be quoting at above 500 around the time Delhi Airport opens for operation. Go and invest right now.
Best of luck .

Stock Advise

An Investor asked "if you are serious please tell me 4shares for child plan. looking for 5 years long term".

My reply was "I normally recommend Mutual Funds and still stick with it. You can consider investing in Birla Sunlife Frontline Equity Fund, DSPML Top 100 Fund, HDFC Top 200 Fund, Reliance Growth Fund, Sundaram Select Focus fund and SBI Magnum comma Fund. These are my favourity choice for long term investors with a time horizon of at least 5 years. They should be giving you good returns definitely above market returns.

Among Stocks specifically, I am bullish on Gujarat NRE Coke, GMR Infrastructure, Reliance Industries and Webel SL Energy., the 4 stocks you asked for, and these 4 stocks should form the core of your portfolio.
Best of luck."

Mutual Fund Advise

One investor Aryan asked ::

"I am looking to invest in Mutual funds. As the commodities market is booming will it be a good idea to invest in mutual funds which have high investment allocation in commodity segment?????

If the answer is yes which MFs shd i invest in..

Thanks in advance"


MY REPLY WAS :::

Dear Aryan,
Your decision to invest in mutual funds is good. But putting your entire money in commondity funds is not a good thing to do. As a Asset Allocation, you could invest upto 10% of your portfolio in Commondity funds of which SBI Magnum Comma Fund would the top pick simply for its excellent track record and consistent performance. You may also look at the NFO DSP ML Natural Resources and New Energy fund.
As prudent Asset Allocation you should also consider investing in DSP ML World Gold Fund which invests in Gold Mining companies worldwide and has given double the returns of Gold since inception.
As usual, investing through Systematic Investment Plan for better returns as they help you ride through market volatility., and as you may be aware, commodities are very very volatile.
Best of luck.

Mutual Fund Advise

An investor Ashok asked, Hi, I am looking for some diversification as I am already well invested in Indian Equities. So I am looking for funds which invest 100% in foreign equities. Can anybody list these funds out? Most of the funds launched in India with the "Global" theme which invest in equities of foreign companies have only 35% invested in foreign equities with the rest 65% invested in Indian equities, and I am not able to figure out from the names whether they are 100% Global funds. Thanks

My Reply was :

Posted by: kentmss on (26-Mar-08 10:36 ) Your basic idea of diversification is right, Ashok. I think you should look at Principal Global Opportunities Fund which invests upto 100% in listed Foreign Equities. And now the best part, The Fund has consistently outperformed its Benchmark Index MSCI World Index by a good margin. Of course, I assume you know the Tax Implications of investing in International funds. Best of luck.

Mutual Fund Advise

----- Original Message -----
From: Bharat Katwala
Subject: Suggetions about my portfolio

Hi Mr.Srikanth,

I have read some of your postings in the MMB. That prompted me to discuss with you about my portfolio and seek your suggestion about it.

I want to build a strong mutual fund portfolio to achieve two goals - my son's education and build corpus for my retirement. Both these goals are 15 years away from now. I am planning to invest regularly for over next 10 years in mutual funds to achieve my goals.

Currently I have investments in following MF.
1. HDFC Top 200
2. Reliance Vision
3. Franklin India Prima Plus
4. DSP ML India TIGER
5. ICICI Pru Infrastructure
6. Sundaram Select Midcap
7. SBI Magnum Global
8. Kotak Opportunities
9. Birla Sunlife Equity fund
10 SBI magnum Contra
11. Reliance Diversified Power Sector
12 SBI Magnum Tax Gain (ELSS)

Please have a look at my portfolio and suggest if I need to add/delete/change any of the funds to achieve my goals in most efficient manner.

Thanking you in advance.

Regards,
Bharat




MY REPLY :

Dear Bharat,
First of all, congratulations. This is one of the best portfolios I have come across. Keep it up!
There is very little to change in the portfolio. If anything, you could add some more fund to give your portfolio a bit of diversification.
Firstly, your portfolio doesn't have any international exposure, so obvisouly, funds like Principal Global Opportunities fund which invests upto 100% in foreign Equities and more importantly has outperformed its benchmark, MSCI World Index quite consistently, should boost returns in your portfolio.
Also, Mr. Bharat, you should also add DSPML World Gold Fund which invests in Gold Mining Companies worldwide and has always given returns more than Gold!
And lastly, your portfolio could do with some spice in form of SBI Magnum Comma Fund, which invests predominently in Commodity Stocks and also has been a consistently good performer.

Best of luck .

Mutual fund Advise

An investor asked thus, "I am a 33 year old person, who has been investing about 50000/- a year in the equity market. I now want to make portfolio of Rs.300000/- in MF. Thereafter I can invest Rs. 50000/- a year. I\\\\\\\\`am prepared to make long term investment. Plesae advice me where to invest and where to make future investment to get good returns"?

My reply to him was "Dear Amit,
At the outset, congratulations. You have are at the right place at the right time. You could not have timed your entry into the mutual fund any better. And your investment horizon is long which will only help you in getting good returns. Considering your age and investment horizon I have picked some good funds, you can select among them. Please try to invest through SIPs to maximise returns.
1. BIRLA SUNLIFE EQUITY FUND
2. DSPML TIGER FUND
3. HDFC TOP 200 FUND
4. RELIANCE GROWTH FUND
5. SBI MAGNUM COMMA FUND

Best of luck."

Reliance Diversified Power Sector Fund

To add up a bit more, CNBC today disclosed that
"Till nearly three-four months back, Reliance Diversified Power Fund have been sitting on 20-25% cash. But recently they have increased their cash and are sitting on nearly 30% cash; their Assets Under Management, or AUMs are over Rs 6000 crore. This means that the Fund is sitting on nearly Rs 1800 crore of cash. This is according to the latest fact sheets that have been out in February. However, it is not yet know whether they have deployed the money"
This should encourage you to stay invested, because it shows the fund manager was able to sit in cash rather than being invested in a downtrend market., and now that the market seems to have just started to find some support at around 15000 levels, The Fund would have deployed some corpus into the market and should in all probability give good returns.
Best of luck.

Mutual fund Advise

An investor Anoorit asked the following question:

"I am looking for large cap mutual fund to invest. I have in mind few names like HDFC Top 200, Kotak 30, Sundaram Select Focus, DSP ML Top 100. Please advic me to take which one and in what proportion. Is there any name I missed out?? I dont need ay tax saver fund.

Presently I hold Reliance growth, RSF, and Diversified power.JM Basic and Emerging Leaders, ICICI Infra and Kotak Opportunities. For tax saving Sundaram Tax Saver, Magnum tax gain and Principal Personal Tax saver.

So it is apparent that the portfolio has a mid cap bias and that is the reason i want to go for pur large cap fund to balance it out. Reliance vision is left out as I have many Relaince fund."




My reply to him was..........

Dear Anoorit,

By the way, as you have yourself said, your investment is baised towards mid cap and Reliance funds. So, your decision to invest in Large Cap Funds is apt and timely.
My favourite has always been HDFC Top 200 fund. I would definitely recommend it to you. It should form core of every one's portfolio.
You could also look at
1. Birla sunlife Frontline Equity Fund
2. DSPML Top 100 Fund\
3. Kotak K30 Fund
4. Principal Large Cap fund\
5. Sundaram Select Focus Fund
6. Sundaram Leadership Fund
7. SBI Magnum Comma fund
8. Fidelity Equity fund

Even though the last two named are not large cap funds, you should consider investments in these funds because Sbi Magnum Comma Fund should be outperformet because Commandities are in super cycle of bull run and Sbi Magnum Comma Fund should be a major beneficiary
Fidelity Equity Fund has been another favourite of mine. It is a "go anywhere" fund and should be an outperformer.

My Best 3 choice of the above would be HDFC Top 200 Fund, Birla Sunlife Frontline Equity fund, Sundaram Select Focus fund.

Wish you all the best.

Investment Advise

This is a suggestion I had given to a person who wanted to invest 5000 per month with a time horizon of 5 years!



At the outset, congratulations, you have decided on the right investment with the right time frame. Regarding your 5000 my advise would be that you never go for theme funds and rather invest in Diversified funds which will definitely take exposure into themes as and when necessary., this way you would not get caught into wrong themes.
My selection of funds would be as follows:-
1. Birla Sunlife Equity Fund
2. HDFC Prudence Fund
3. Reliance Growth Fund
4. Sundaram Select Focus fund
5. SBI MAgnum Comma Fund

You better consult your financial advisor before investing.
And also, keep track of your funds regularly and when you want to withdraw., just 1 year or so before that start one by one all your investments into Balanced Funds and Debt funds.
This way you will not get caught if the market goes into tailspin at the time of your redemption.

Mutual fund investments

I am happy you have chosen mutual funds for your tax saving investment. There is no other asset class which can beat Mutual Funds Equity Linked Savings Scheme (ELSS) in terms of returns and liquidity over a period of time.
You can invest in ELSS with just Rs.500. And in multiples of 500. All your investments are locked for 3 years. ELSS schemes have tended to give returns of an average above 20% even in the worst of times., simply because they know you cant withdraw for 3 years and they can invest in high quality stocks at low prices before they become large cap and wait for it perform.


You can see my messages in easymf.com. You go to easymf.com and type "kentmss" in boarder in message board column.
You will get more details about mutual funds investments.
You can clarify any doubts you have through email to me at
sharesher@indiatimes.com

No Lumpsum

Dont be too fast. Preferably invest through sips rather than a lumpsum.
Anyway, your first choice of investment in Kotak Opportunities Fund., is a good choice. It has been outperformer over the past 6 months or so. But it has still to prove over a longer a period of time.
Now that your first choice of investment has been a dynamic fund, I feel you should invest in a Large Cap oriented Fund like Birla Sunlife Frontline Equity Fund, HDFC Top 200 Fund or Reliance Vision Fund. This investment will compliment your other investment.
Best of luck

Gold Fund

Gold has given superlative return over the last two years. But still compared to a longer period of 5, 10 and even 20 years, it has been able to only marginally beat inflation and has been a laggard compared to equities. There is no other asset class which can give like Equities (Mutual Funds) over a longer period.
Equities has been a preferred investment avenue for smart investors across the world for returns. Gold is preferred only for short term safety of capital and not for any returns as such.
Even so, if you still want to invest in Gold, my preferance would be that you rather invest in DSPML World Gold Fund. This fund invests in Gold Mining Companies across the world and has given an absoulte return of over50% since launch last September.
Best of luck.

I think you need to change your Investment Advisor at once. You have taken a big gamble by investing such huge amount in JM Core11. You should have rather gone for a existing fund or even if you had gone for an NFO., you would have been better off by investing in an Diversified Fund like Mirae Asset India Opportunities Fund or the upcoming DSPML Natural Resources and Energy Fund.

Anyway, past is past. At least now be careful before investing such huge amount in one go.

As for your choice of Sips in Jm Contra and JM Basic., I am okay for it expect that it increases your exposure to one Fund House to a very high percentage. So, either stop one Sip (preferably JM Basic) or reduce the investment amount in both Sips.

And Reliance Power is too risky to remain invested for long. Keep monitoring the fund performance and book periodic profits and if possible switch to Reliance Growth Fund.

About Reliance Regular Savings Fund, it has been a laggard all these years and only now it has been a star performer. I would rather wait for some more time.

Your investments is equally divided in two fund houses only namely JM and Reliance.

More diversification is urgent need of the hour.
Your investment strategy seems to be HIGH RISK HIGH RETURN, which works both ways. A better strategy would be to spread across market caps and sectors to benefit from high volatily that the markets are currently going through.
You can look at investing the following funds for fresh investments.
1. Birla Sunlife Equity fund
2. DSPML Tiger Fund
3. Fidelity Equity Fund
4. HDFC Top 200 Fund
5. HDFC Capital Builder Fund
6. HDFC Prudence Fund
7. Kotak Opportunities Fund
8. Lotus India Agile Fund
9. Mirae Asset India Opportunities Fund
10. Reliance Growth Fund
11. SBI Commandities Fund
12. SBI Magnum Contra Fund
13. Sundaram Capex Fund
14. Sundaram Rural India Fund
15. Tata Pure Equity Fund
16. UTI Infrastructure Fund.


Best of luck

You can also contact me at sharesher@indiatimes.com

I think you need to change your Investment Advisor at once. You have taken a big gamble by investing such huge amount in JM Core11. You should have rather gone for a existing fund or even if you had gone for an NFO., you would have been better off by investing in an Diversified Fund like Mirae Asset India Opportunities Fund or the upcoming DSPML Natural Resources and Energy Fund.

Anyway, past is past. At least now be careful before investing such huge amount in one go.

As for your choice of Sips in Jm Contra and JM Basic., I am okay for it expect that it increases your exposure to one Fund House to a very high percentage. So, either stop one Sip (preferably JM Basic) or reduce the investment amount in both Sips.

And Reliance Power is too risky to remain invested for long. Keep monitoring the fund performance and book periodic profits and if possible switch to Reliance Growth Fund.

About Reliance Regular Savings Fund, it has been a laggard all these years and only now it has been a star performer. I would rather wait for some more time.

Your investments is equally divided in two fund houses only namely JM and Reliance.

More diversification is urgent need of the hour.
Your investment strategy seems to be HIGH RISK HIGH RETURN, which works both ways. A better strategy would be to spread across market caps and sectors to benefit from high volatily that the markets are currently going through.
You can look at investing the following funds for fresh investments.
1. Birla Sunlife Equity fund
2. DSPML Tiger Fund
3. Fidelity Equity Fund
4. HDFC Top 200 Fund
5. HDFC Capital Builder Fund
6. HDFC Prudence Fund
7. Kotak Opportunities Fund
8. Lotus India Agile Fund
9. Mirae Asset India Opportunities Fund
10. Reliance Growth Fund
11. SBI Commandities Fund
12. SBI Magnum Contra Fund
13. Sundaram Capex Fund
14. Sundaram Rural India Fund
15. Tata Pure Equity Fund
16. UTI Infrastructure Fund.


Best of luck

You can also contact me at sharesher@indiatimes.com

Tax Saving Funds

I would advise you to split your 10000 into 5 investments of 2000 each and invest in the following Tax Funds. They all are very consistent and will definitely give you above average market returns

1. Birla Sunlife Tax Relief 96 Fund
2. HDFC Tax Saver Fund
3. Kotak Tax Saver Fund
4. Prinicipal Personal Tax SAver Fund
5. Sundaram Tax Saver.

Best of luck.

You can also contact me through email on sharesher@indiatimes.com