sip query

Hi Shri,

have a query.... you had mentioned that to go for 250*2 SIPs for Reliance growth.

my query...

for funds other than ELSS the first minimum purchase is 5000 and there inafter comes the sip of 500 or 1000....

pl let me know how to go for 250 sips without first minimum purchase..

thanks

September 9, 2008 4:16 AM

Sharesher said...

Dear,
For sips, 5000 is not the Minimum purchase price. Reliance Mutual Fund and Lotus Mutual Fund allow sip of even 100 per month.
And for your information, Some Fund Houses like Sbi allow 1000 as Minimum Purchase price and Even Reliance in its Reliance Regular Savings Fund has only 500 as Minimum Investment amount.
Regards,
Srikanth Shankar Matrubai

September 10, 2008 12:36 AM

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

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. Instead 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.
dear babani,
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 Shanka








Best of luck,
Srikanth Shankar Matrubai

Best ELSS

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