Wednesday, March 19, 2008

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.

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