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Why such an affinity towards Tax savings funds. You already have done in 3 and I am sure that must have covered the tax savings part. I hope you have done SIP in these funds and are aware that 3 funds are locked for 3 years,

I would suggest to skip the ELSS funds and diversify in Multicap, Large cap and Midcap funds. I assume you would want to do SIP in these funds or would it be a lumpsum investment.

My suggestions:
Large cap - BSL MF Frontline Equity
Multi Cap - Franklin Prima plus
Midcap - HDFC Midcap opportunities.

Yes, I have invested. It should be considered as a diversification option.

Returns may not be great. In fact, it has been negative for me for my investments done last year since gold rates have since come down. One cannot predict gold rates so that risk is downside always there. Don't believe anyone who says gold at least gives returns matching to inflation. Not true.

But if you are convinced about gold, then this is the best option to invest in it.

Thanks, taking further queries through PM. Please check and respond.

With a rating upgrade from Moody's thinks are quite rosy. Exchange rate improving, shares improving, and debt becoming cheaper. Let us se how it sustains.

Yes, i am aware that the funds are locked for 3 years, i have just started for this year and wanted to diversify (trying different fund houses) as much as possible (have tried searching if these funds overlap, but couldn't get exact data)

Will start with these funds sometime next year (had exhausted my emergency fund and have to rebuild that).

I would suggest to invest on goal based. Do not invest randomly in different mutual funds just for the sake of diversification. Keep a goal, calculate the amount to be invested, target corpus to be achieved, years required and then scout for good funds and invest.

Please do not mix investment and tax saving. My sincere suggestions only.

1) It’s not advisable to invest lump sum especially in the current market comdition in any fund
2) It is not advisable to invest in NFO and recommend to invest in established and funds with proven track record. There is no real advantage you are getting by investing in NFO.

Hi,

Someone i know has around 1 Cr to invest. No need for the money for the next 10 years or so. He is planning to invest the entire money into equity via either PMS ( Portfolio Management Services ) or AIF ( Alternative Investment Fund). Do you think this is a smart move. Or should he split his investment in debt as well for safety. Or he should use some other instrument to get into equity. He is also worried about a potential war triggered by North Korea. Should he wait for some time, so that their is some clarity on the North Korean situation.

My suggestion would be to invest via SIP over a period of 2 years in 4-5 funds with solid track record. May be one each from the types (Large, Multi Cap, Mid Cap, Small Cap and Balanced).

Are we heading for a sub-64 rupee at last. We have gone below 64.05 at least twice in the past fortnight.

Which will be the best fund (liquid/debt/bond) to park a few lakhs for a period of 6 months or so? My friend, in spite of so much cajoling, is scared to invest at this stratospheric heights (his words) of the market !

Looking at your time horizon, you may want to look at a short term fund - Franklin India Low Duration Fund.

For that amount of money, better to take professional help. PMS is also a good option if time horizon is long enough. Spread across PMS, MF, Debt is ideal.

Hi Jediknight,

This 1 Cr can further be split in to various heads/Investment avenues as the saying goes "don't park all your eggs in one basket".

Some of the options that I can recommend here from my little experience , he/she can look at options as mentioned below;

1.Mutual funds
2.PMS
3.Govt.bonds
4.Direct equities
5.FD'S
6.National Savings Certificate (NSC)


Aside mentioned above there are avenues like ULIP's, National Pension Scheme(NPS) and the likes.We first need to understand the age of the investor, plus the risk appetite and then we can decide upon the proportion for debt & equity.


Coming back to Mutual funds we can pick from the large caps, mid caps, small caps, balanced funds depending on how much risk he can take while his money is invested in to equities.

Furthermore in MF, we have gamut of debt based funds with decent returns. Funds like Money Market Funds, Income Funds, Liquid Funds, Monthly Income Plans (MIP) , Fixed Maturity Plans(FMP), New Fund offerings (NFO) and the likes.

PMS is another brilliant option that one can look up to for making meaty returns, this is one is my personal favorite and have recommended this to many of my clients in past. There are several players in the market however Motilal, Birla & ASK remained my all time preferred..

Govt.Bonds are the safest of the lot as they are backed by the govt.securities. These can be purchased by the Demat way or can be picked in the form of mutual funds via "Gilt Funds".These types of funds are abundant in market.

Direct Equities/Stocks, one must have Demat & Trading account to get in to purchase and selling of direct equities. Buying "Blue Chip" stocks and keeping them for 10 years will surely give the investor best of the returns on investment made.

Fixed deposits are must when one has to diversify his/her portfolio, they are the most loved by an average Indian citizen ,FD's are most convenient of the lot when it come to encashment of the funds, liquidity is the best trait of FD. In case of contingencies they are always handy because of their easily en-cash feature.

National Savings Certificate is part of the postal savings system of Indian Postal Service, these can be purchased from any Post Office in India by an adult (either in his/her own name or on behalf of a minor), a minor, a trust, and two adults jointly. These are issued for five and ten year maturity and can be pledged to banks as collateral for availing loans. Returns of NSC are not superlative but yes they are safe in nature.

Coming to the concern raised by the investor on the "North Korea" unrest, there is no precise time to get in to the market and neither we can time the market. There will be some or the other unwanted event keep on occurring across the globe so this should not bother him while making a decision to enter into the market. Yes, had there been a news/rumor in financial sector we surely would have waited for that to transcend.

All the above mention can be advised to the investor bur before that Age, time horizon and risk appetite need to be ascertained, accordingly we can decide upon the proportion of the amount to be placed. Do let me know if any further clarification is required, would be glad to help.

Hi freinds, need an information related to KYC requirements for an NRI. Recently my residence status changed to NRI and I have already redeemed all my previous investments.

Now I would like to restart mutual fund investments, to enable this, what is the KYC requirements? Should I submit the KYC documents to individual fund houses, CAMS and Karvy separately or I can complete the formality by submitting the documents to anyone?

Also, I have an account with Fundsindia with residency status as resident Indian. So if I submit the documents to Fundsindia, will my residency status will get update automatically with all fund houses?