Mutual Funds for a Risk Taker

Mr.TABBY wrote ::
hi..i am 27yrs old n totally new to investing...i wld like to have your advice as which mutual funds and sip should i invest,in reference to the following points -
1) i can invest atlest Rs.5000 per month
2) i can invest Rs.20,000 per year
3)i have a long-time horizon
4) i can take risks

SRIKANTH SHANKAR MATRUBAI'S REPLY ::::
Dear Tabby,
For your age and time horizon, 100% equity exposure is warranted. Your risk profile also helps in the matter. With these consideration, I would recommend the following
1000 * 1 in Birla sunlife Equity fund (1000)
1000 * 1 in DWS Investment Opportunity Fund (1000)
500 * 1 in Fidelity International Opportunities fund (500)
500 * 1 in JM contra Fund (500)
500 * 1 in Lotus India Tax Plan (500)
250 * 2 in Relinace Growth fund (500)
250 * 2 in Reliance Natural Resources Fund (500)
500 * 1 in sundaram Select Focus Fund (500)

Take adequate Term Insurance for your security. You can invest your 20000 lumpsum in Debt Fund and then go for an STP into a Large Cap Fund.
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I need 6 lakhs in 3 years

Mr.REDDY wrote :
where i need to invest my money for 3 years, i want to buy house after 3 years, i needed money about 6 laks

SRIKANTH SHANKAR MATRUBAI' S REPLY ::::

Dear Reddy,

At 15% returns CAGR, you would need to invest 13338 per month.
At 18% returns CAGR, you would need to invest 12781 per month.
At 21% returns CAGR, you would need to invest 12255 per month.
I hope you have also considered inflation while calculating your cost of house.
regards,
Srikanth Shankar Matrubai



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Benefit for child's future

A Guest wrote :
Dear sir,
I have invested equally in the name of my son (age 13) and daughter (age 12) under advise from my broker. They are as follows:

-icicipru child care gift, purchase date may 2004, current market value Rs 248980, monthly sip Rs 1000 running now since jun 2005.

-icici emerging star, purchase date june 2005, current market value Rs 41773, monthly sip Rs 1000 running now since jun 2005.

Please advise what changes are required for the benefit of my childrens\`s future.


SRIKANTH SHANKAR MATRUBAI'S REPLY ::::

Dear Guest,
Kindly stop your sip in both the funds AT ONCE!!!!.
The both the funds have average performance to show, you can do better by investing in Good Diversified Equity Funds. While ICICI Pru Child Care Gift Fund is a Balanced Fund, ICICI emerging Fund is Mid-cap fund. I am sure both the funds would trail Diversified Equity Funds in return over a period of 5-6 years, which seem to be your time horizon.
Invest your monthly 1000 sip in the following funds for maximum returns.
250 * 2 in Reliance Growth Fund (500)
500 * 1 in Fidelity Equity Fund (500)
1000 * 1 in HDFC Top 200 fund (1000)

It would be good if you also switch your existing investment in ICICI Emerging Star to a Good Large Cap fund from the ICICI Stable like ICICI Growth Fund or ICICI Focussed Equity Fund.

Best of luck,
Srikanth Shankar Matrubai.

Visit http://goodfundsadvisor.blogspot.com for More Detailed Mutual Fund Advise.

Loss in existing sip, shall I continue?

Worried, Mr.LiveWire asked
" dear sir ,
I have sips of icici infrastructure fund, reliance equity opp, franklin india opp fund and also lumpsum investments in principal equity &uti infrastructure.plus i want to make new sips & lumpsum investment in mutual fund should i stick on my old mutual funds or can u recommend me some better performing mutual funds , i am also looking to exit from some of my old mutual funds kindly advice as i am having losses in my investment right now"

SRIKANTH SHANKAR MATRUBAI'S REPLY :::
Dear LiveWire,
Unfortunately, all your funds are 'Below Average' Category and are underperformers. You seem to love Infrastructure and overexposed your investments to these funds. Continue in ICICI Infrastructure Fund only if you intend to stay invested for at least 5 years.
Switch out from Reliance Equity Opportunity to Reliance Growth fund
Switch out from Franklin India Opportunity Fund to Franklin Equity Income Fund
Stay invested in Prinicipal Equity for now
Switch from UTI Infra to UTI leadership, as you already have ICICI Infra.

Your portfolio lacks Good Diversified Equity funds as well as Large Cap funds.
Take a look at the following funds and add them as and when possible,
Birla Sunlife Equity Fund
Birla Sunlife Frontline Equtiy Fund
DSPML Top 100 Fund
DWS OPportunity Fund
Fidelity Equity Fund
HDFC Prudence Fund
JM Contra Fund
HSBC Equity Fund
Mirae India Asset Opportunity Fund
Sundaram Select Focus Fund

Kindly invest via Sip and always take advice of well intentioned and well informed persons before commiting your money into any funds. "

Best of luck,
Srikanth shankar Matrubai
Visit http://goodfundsadvisor.blogspot.com for More Detailed Mutual Fund Advise.

Best Tax Saving Fund

Sunny asked :
"Hi,I wish to invest 60k in a tax saving fund through SIP route,should I invest in Sundaram Tax saver or Kotax Tax saver ? Which is the best in the category ? Have lost quite a asmount money in SBI Magnum"

SRIKANTH SHANKAR MATRUBAI's Reply :::

Dear Sunny,
If you had been following my advice, I had become sceptical about SBI Magnum Tax Gain 93's repeatation of its excellent past performance about a year back itself. the number one reason being its Bloated Corpus.
Both of your choices, Sundaram and Kotak Tax Saver Funds are very good. You can definitely go ahead.
You can also consider investing in
Birla Sunlife Tax Relief 96 fund
Fidelity Tax Advantage Fund
You can also consider DWS Tax Saving Fund. This Fund not only has given decent returns but as a BONUS offers Free Life Insurance, 5 times your investment. No conditions, no asteriks. Plain and Simple.
Regards,
Srikanth Shankar Matrubai
Visit http://goodfundsadvisor.blogspot.com for More Detailed Mutual Fund Advise.

How much 5000 earn in 24 years?

A Guest asked ::
"if i am investing rs 5000 per month for 24 yr.how much return should i calculate in my net value."

SRIKANTH SHANKAR MATRUBAI'S REPLY :::

Dear Guest,
Good Question. Before answering, I would like to ask you, will you be disciplined to continue your investment for 24 years without break?. If yes, then you sure would go places.
Since your question is hypothetical, I too would have to answer hypothetically, as the returns would vary on a yearly basis, and if you consider an approx value, then the returns would be like this ::

Your 5000 per month for 24 months, your investment(your input value) would be Rs.14,40,000 and the returns would be
@12% returns === 75,42,143
@14% returns === 1,02,26,967
@16% returns === 1,39,26,119
@18% returns === 1,90,20,407
Your returns @18.35% would cross 2 crores. Just see the difference between 14% and 18%.
This small 4% difference would over a period of time result in a difference of MORE than 1 CRORE!!!
so, my advise is Go for Good Diversified Equity Funds and this would give the extra 4% returns.

Best of luck,
Srikanth Shankar Matrubai.

Visit http://goodfundsadvisor.blogspot.com for More Detailed Mutual Fund Advise.

SHALL I CONTINUE WITH MY EXISTING SIPS....??????

Neha asked ::::

Dear Sir,
I am 38 and investing in MF thr SIP since last 1 year which are
1. Rs.1000/- every month in REL.GROWTH
2. Rs.1500/- every month in SBI Contra
3. Rs.2000/- every month in DSP ML TIGER
4. Rs.1000/- starts now in pru ICICI POWER

Kindly advise me about my portfolio. should i continue or change it.

FROM : Neha Aildasani

SRIKANTH SHANKAR MATRUBAI'S REPLY ::::
Dear Neha,
Your portfolio at first glance looks good. But sadly, 60% in Sector/Theme Funds does not angur well for your financial health. while you may continue to invest in Reliance Growth and SBI Contra, kindly have a relook and stop your sips in DSPML Tiger and ICICI Power Fund. Even in SBI contra you better reduce your sip to 500 per month only. And in Reliance Growth, you split your sip for better returns.
With the saved amount of 4000 through stoppage and reduction of sip, you can consider investing in the funds suggested below:
1000 * 1 in Birla Sunlife Frontline Equity Fund (1000)
500 * 1 in DWS Tax Saving Fund (500)
1000 * 1 in DSPML Top 100 fund (1000)
1000 * 1 in HDFC Prudence Fund (1000)
500 * 1 in Sundaram Select Focus Fund (500)
This will give a Balance to your portfolio.


Best of luck,
Srikanth shankar Matrubai