Tuesday, February 17, 2009

High Risk-High Return funds

Mr.Vipin asked ::

want to invest 2,00,000 rs in high risk mutual fund for 5-8 yr.what is maximum return i can get.and i want to get dividend quarterly .which mf provide maximum return in india


Dear Vipinenator, you seem to be very aggresive investor, going by the query you have posted, here and in other posts.
To get 2,00,000 in 8 years, through sip investment at 21% rate of return, you need to invest 877 per month. And at a reasonable 18%, rate of return, you need to invest 993 per month.

Of course, if your investment is lumpsum, then the arthimatic changes dramatically.
To get the same 2,00,000 after 8 years, at 18% returns, you need to invest in a lumpsum a amount of Rs.53208!!!
Even assuming a return of 21%, you need to invest Rs.43526 as a lumpsum.
so, it is always advantageous to go for sip.
the funds you should consider investing.
Birla Sunlife Equity Fund
DWS Opportunities Fund
JM Contra Fund
ICICI Dynamic fund
Lotus India Agile Fund
Mirae Asset India Opportunities fund
Reliance natural Resources Fund
sundaram Rural India Fund

these are all Aggressive Funds and should suit your risk profile. Do review your investment every 6 months or so.
Best of luck,
Srikanth Shankar Matrubai
Visit http://goodfundsadvisor.blogspot.com for More Detailed Mutual Fund Advise.

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