Sunday, May 18, 2008

Investment Advise

One Ashutosh wrote :
planning a portfolio like this : diversified DSP ML TIGER RP (G) - 5000.00
ELSS - Principal personal -500 SIP
SBI magnum Tax Gain - 500 SIP

Balanced - ICICI Pru CCP Gift plan - 5000

HDFC Young Star ULIP

What say ?

MY REPLY ::::::
Dear Ashutosh,
Your choice of ELSS fund are good, though nowadays I am having second thoughts on SBI Magnum Tax Gain 93 about its future capability to generate above Market returns. The doubt has arisen due to its bloated Corpus in recent times and I prefer to invest my ELSS amount in DSPML Tax Saver Fund and Lotus India Tax Plan.
However, you can continue your planned investment in Principal Personal Tax Saver.
If your are planning for a SIP of 5000 in DSPML Tiger Fund, good, go ahead. But, if possible, please dont put all your money in only one fund. Preferably invest in atleast 3 different funds to have diversification and avoid sector concentration.
As Ranjan has said, ULIPs are very bad investment option. They tend to charge heavily and give huge commissions to agents which ultimately affects you.
Instead you can consider Kotak Star Kid Facility offered by Kotak Mutual Fund for its funds namely Kotak K30, Kotak Opportunity and Kotak Tax Saver.
You can also look at DWS Tax Saving Fund which too offers Life Insurance Coverage upto 5 times your investment.
Best of luck.
Srikanth Shankar Matrubai.

No comments: