Advise on my portfolio

Hello sir

I have gone thrugh your while searchin for SIP ivestment.It provided me with some useful insights regarding SIP.I am a 21 year old working software professional, i would like to invest 3000 in SIP that would be a part of MBA expenses.So i'm investing 1500 which would give me tax benefits and d other 1500 in equity growth fund the following is my portfolio.

1000- Sundaram paribas BNP tax saver
500- principal tax saver
1000- reliance growth ( targetted at small and midcap )
500- Sundaram Select Focus ( targetted at Large cap )

Plz advice on my portfolio.should i go for reliance growth or hdfc growth or reliance rsf growth.
Thanking you

swamy

SRIKANTH SHANKAR MATRUBAI advised :
Dear Vemula Swamy,
Congratualtions Vemula Swamy, your portfolio is one of those rare ones which is perfect and needs little or no changes. Say thanks to your advisor. Your portfolio is a perfect blend of Large Cap and Diversified Equity. Continue with the same.
Regarding your second query, between reliance growth or hdfc growth or reliance rsf growth, I prefer HDFC Growth as you already have Reliance Growth. However, I would prefer you add Fidelity Equity Growth rather than the above mentioned 3 funds.
Best of luck,
Srikanth Shankar Matrubai.

Is my SIP investments in the right funds?

One blogger Mr.Nishan Asher queried "

Hello,

I have an SIP plan in the following companies, please let me know if should continue stay invested with the same amount or should I stop or reduce the amount I invest monthly.

I am right now investing a Rs 5000 per month in each SIP

Birla Sunlife Mutual Fund – BSL Midcap Fund – Growth (B251G)

DSP Merill Lynch Mutual Fund – DSP India T.I.G.E.R Fund Grow-Reg (D13)

SBI Mutual Fund – Magnum Global Fund – G (L021G)

Sundaram CAPEX – Growth (S82)

Regards,

Nishan

SRIKANTH SHANKAR MATRUBAI replied :

Dear Nishan Asher,
Sadly, your portfolio lacks Good Solid Large Cap Funds. Stop your sips in all the existing funds IMMEDIATELY!!!!!.
Birla Midcap Fund, as the name suggests, is a Mid Cap Fund, which had a good run in the bullish times but now as with the case of all Mid Cap Funds, had a horrendously poor run. Mid cap funds do not look attractive even with a 3 years perspective. Stop your sip and for your existing investment, think about switching to Birla Sunlife Equity Fund.
DSP Tiger Fund and Sundaram Capex fund are both Thematic Funds. Both funds are heavily invested in Infrastructure stocks. With the economy taking a breather and Infrastructure Sector's future not looking rosy, you need to look elsewhere. Stop your sip in both the funds. Stay invested in both the funds for now.
SBI Magnum Global Fund is a Diversified Fund, but had a terrible past and a very poor track record. Stop your sip immediately and switch to SBI Bluechip Fund.
You can look at investing your 5000 * 4 sip into these funds, with different dates in each fund to take maximum advantage of NAV volatility.
1. Fidelity Equity Fund.
2. HDFC Prudence Fund
3. Reliance Growth Fund
4. Sundaram Select Focus Fund
All these funds have had a good track record both in bull and bear markets. Split your sip investment into different dates.
Review your investments every 6 months or so.
Best of luck,
Srikanth Shankar Matrubai.

Safest Buy Now is BOC INDIA

Dear all,
BOC India which is quoting at 124 is one of the Safetest Buy in the Indian Stock Market today. The Company is Buying Back shares at 200. The Promoters hold a staggering 89.6% stake in the Company!!!
BOC india is a part of Linde Group which is the world's leading gases & engineering company with a turnover of Euro 12.3 billion & presence in over 100 countries.
In these times of tight liquidity the Company with a Capital of 85 crores, is sitting on a mountain of Cash in Hand of above 275 crores!. And Book Value of the Company is above 50.
The Company is already providing over 1290 tonnes per day of gases to TISCO which will go up substantially on TISCO's huge expansion programme. Similarly 1800 tonnes per day project to Jindal Vijaynagar too is being completed by end of 3rd Quarter of current year. Reflection of which will be in year 2009's result. 700 tonnes per day requirement is from Jindal Steel. Further big orders are expected from SAIL & Raourkela Steel. Thus company's gases production will increase substancially in near future & expected to go upto 5000 tonnes per day in next 3 -5 years.

Company is growing in its Medical gases segment & has restructured its hospital care business.

Solar Cell, photo Voltaic industry is offering a potential for gases industry. BOC India has won order from Moser Bear & has established a clear lead in this segment also. Tata Power, Reliance, videocon etc. has planned to make investment of Rs. 1,00,000 Crores in this sector, which too will provide oppurtunity to BOC.

The company will also trade in Helium Gases.

It has gained orders over 450 Crores in Engineering segment which would increase further in near future.

Hydrogen Fuel could be a big trigger in this counter. Linde is agressively pursuing in the field of Hydrogen as an alternative fuel. It may take many years to materialise but will be very positive factor for long term investor.

Company has projected a growth @ 50 % in one of its meeting.

The company is expected to reopen its buyback offer at 200 in about 6 months time. Buy now and submit the shares in buyback, and make a cool profit of about 60%.
Best of luck,
Srikanth Shankar matrubai

Buying Opportunities Galore!!!!

The current fall is an excellent opportunity for long-term investors to build up a portfolio of good, stable stocks/funds.
Cast your mind back to the market crash of 1992 or the dotcom bust of 2000. At that time, these seemed to be major crises for stock markets. But if we look at the historical chart of the Sensex versus time today, they appear to be minor blips in an otherwise upward trending graph.
It is a natural human tendency to attach disproportionate importance to current events which have had a major impact on them and ignore all other factors which they would otherwise take into account as rational investors.
The world is not coming to an end, but the way the stocks are getting hammered 70% down from the top, it gives you a feeling as if the world is going to end
But contrary to investor perception, this is the best time to (buy more and) average out,And SIPs are an ideal vehicle to do that. SIPs should be continued to benefit from the lower prices prevailing now. And, I am sure, it is a great time to buy. Somebody putting his money at this point of time, is sure to get amply rewarded over the next 24-30 months. During market lows, human psychology plays a strong role. Fear takes over greed and people undertake panic selling. SIPs help to keep emotions away from your investment decisions and are a great vehicle to build long-term wealth. So keep your cool and take a long term view.
Equities are long-term investments. A short term blip creates fluctuations in prices but sooner or later, fundamentals will kick in.With India expected to grow at an average of 7% over a 5-year period, Crude down by 43%, nobody is taking note of these bright spots, BUY before others do, otherwise you will regret for a lifetime.
THIS IS A ONCE IN A LIFETIME OPPORTUNITY. BUY AND SIT TIGHT FOR 3-5 YEARS, YOU WILL BE AMPLY REWARDED.
Best of luck,
Srikanth shankar Matrubai.