Tuesday, September 23, 2008

shall I Invest in ICICI Infrastructure Funds

From: Mevi
To: kentshershare@gmail.com
Sent: Wed, 20 Aug 2008 01:01:21 +0530 (IST)
Subject: Need advise on investing in SIP

Hi Srikanth,

I came across your blogspot thru moneycontrol.com.

I am a newcomer here and want your advise regarding investments in SIP.

I am 25 and want to invest monthly around 2000rs in SIP. I was looking at ICICI Prudential Infrastructure RetailPlan (G) as a start for around 3 years.

What is your opinion on this? Do let me know if you think any other fund schemes are good.
Thanks in advance,

Dear Mevi,
Your decision to invest in Mutual Funds is a wise one and through SIP is even wiser.
However, your choice of ICICI Infra Fund is not such a wise one after all. True, ICICI InfraStructure Fund has been a very good performer in the past. But, going forward, Infrastructure, as a Sector will not have as good time, it had in the past, and with rising interest rates and slowing demand may even struggle to give Average Returns.
Hence, I would recommend you to Avoid ICICI Infrastructure Fund at this point of time.
You should be better off by investing in diversified equity funds which tend to have stability in their returns and also perform better than Sector Funds (like Infra) over a longer period of time.
Hence, i recommend you to invest in Diversified Equity Funds. You split your 2000 into 2 and invest 1000 each in
Reliance Growth fund
Birla Sunlife Equity fund
These funds should give you more returns than ICICI Infra Fund

Best of luck,

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