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

SRIKANTH SHANKAR MATRUBAI replied ::::

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.

FUNDS WITH MINIMUM RISK

Mr.BABANI asked ::

I am 38 yrs old , i am in a private service hence my risk profile is minimal(also i have my parents to look after) , my investement goal is long term which can range from a minimum of 03 years to 10 years.

i am primarily investing to garner money for my children education who are prsently 04 and 01 yrs old

i am therefore not investing in stocks but in mutual funds only.


i have alredy invested rs 10000/*- in personal tax saver just now. in addition i want to invest a another 30000/- in mutual funds.
other than the aforesaid mutual funs i wanted to know about 2 mutuals which my agent has suggeted

1) reliance diversified power sector fund- gr
2) tata infrastructure fund - gr

whats your take on these two


i hope i have answered your queries , if not kindly let me know if you need any further data.

regards

babani

SRIKANTH SHANKAR MATRUBAI explained ::::


Dear Babani,
At 38 years, and 3 year time horizon, your risk profile is minimal, you are better off investing in Large Cap Funds and Diversified Equity funds. Instead of investing 10000 in Personal Tax Saver, you could have invested in Large Cap Fund. Invest in Tax Funds only to save your Tax Liability.
Also, you are better off investing through SIPs instead of lumpsum. SIPs are easy on pocket and also serve you better. Even of sip of 100 is available in Reliance and Lotus Mutual funds.
For your 30000, you can consider investing in
Birla sunlife Frontline Equity Fund
DSPML Top 100 fund
Fidelity Equity Fund
HDFC Prudence Fund
HDFC Top 200 fund
Sundaram Select Focus Fund
I have given 6 funds, invest 5000 equally in them. Route all your future investments in these funds only. Have a focussed portfolio and do not become a 'Fund collector'.
Preferably, invest through sips.

Regarding two other funds you are considering, I am sorry to say this, but the funds selected by your agent are not going to give you very high returns. Both the funds are Sector Funds and may be bogged down by Bearishness in that Particular Sector.
They already had great run in the past and repeatation of the same is not expected. Both the Power and Infrastructure Sectors have been hit by Interest Rate hikes and Raw Material Shortages. You are better off investing in Diversified Equity Funds as already suggested to you earlier.
Best of luck,
Srikanth Shankar Matrubai

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

IS SUNDARAM TAX SAVER FUND A GOOD CHOICE?

A Guest asked ::
Hello,

I need to invest montholy SIP Rs 5000 in ELSS for tax lanning.
I have selected Sundaram BNP tax saver fund for the same.
Is the choice is right or not?
Please suggest.


SRIKANTH SHANKAR MATRUBAI'S REPLY :::::

Dear Guest,
Your choice of Sundaram Tax Saver Fund is a very good one. But investing all your investment amount in One Fund or One Fund House is not such a wise move. Besides Sundaram, you should also look at other Good funds. Some of them are
Birla sunlife Tax Relief 96 Fund
DSPML Tax Saver Fund
DWS Tax Saving fund
Fidelity Tax Advantage Fund
HDFC Tax Saver Fund
Lotus India Tax Plan
Principal Personal Tax Saver Fund
If you add, Sundaram Tax Saver Fund, totally there would be 8 funds. You can invest 1500pm in sundaram and 500pm in the other 7 funds.
Review your investment after 2 years.
Best of luck,
Srikanth shankar Matrubai
Visit http://goodfundsadvisor.blogspot.com for More Detailed Mutual Fund Advise.

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

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



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

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.