Want to have 2 crores in 10 years

Blogger Prathibha Mahesh asked :
Please review my portfolio and advice on my next financial move.

Age 30

Looking for a retirement kitty of 2 Crores by 40.

Current Investments:

SIP 25 K per month ( Current Value : 5.75 Lakh )

Fidelity Equity Fund - Gr 2500
HDFC Equity Fund - Gr. 10000
HDFC Prudence - Gr. 10000
Reliance Vision Fund Gr 2500

ICICI Life Time ( 30k Per Year Started in 2003 ) Current Value 1.9 Lakh

PF 2.9 Lakh
PPF 1.04 Lakh
401 K : 1.07 Lakh ( will be investing here for next 2 years to get company match as I am in US right now )
NSC : 10 thousand
Flat in Bangalore bought in 2004 for 15 Lakh. Current Price is around 35 Lakh. Loan Amount left 5.9 Lakh 13.5% interest

Fixed Deposit : 8 Lakh
Emergency Fund : 2.3 Lakh
Stocks : 30K

I want to invest another 10 K per month through SIP. Pls suggest some funds.

Thank you,
Pratibha Mahesh



SRIKANTH SHANKAR MATRUBAI advised :
Dear Pratibha Mahesh,
You seem to be on the right track to accumulate 2 crores in about 10 years time. Your present sip investments are all very good, a tad conservative I feel. However, because of this, you have been saved the pain of the BIG downturn other funds had to face. Going forward, you should consider switching your 10000 sip of HDFC Equity into two sips of 5000 each in
Sundaram Select Focus Fund
Birla Sunlife Equity Fund.
Since your goal is 10 years, you do have sufficient time on your hand to allow your fund to grow. Your 25k sip should at a conservative estimated return of 15% easily give you 65lakhs.
You intend to invest another 10k per month, so your investment of 35k per month should give 92 lakhs in 10 years time at a conservative return assumption of 15%. So, you are on the right track.
You also need to rejig your existing 25000 sip. So, ultimately your 35000 sip should go to the following funds, in the manner explained:
Birla Sunlife Equity fund -- 5000
DSPML Top 100 Fund -- 5000
HDFC Prudence Fund -- 7500
HDFC Top 200 Fund -- 5000
Reliance Growth Fund -- 5000
Reliance Natural Resources Fund -- 2500
Sundaram Select Focus -- 5000

These funds should over a period of 10 years give you Good Returns and help you in accumulate your retirement kitty of 2 crores very easily.
Best of luck,
Srikanth Shankar Matrubai

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