Team-BHP - The Mutual Funds Thread

Quote:

Originally Posted by faustus77 (Post 2872006)

I want to invest some money for my daughter in debt mutual funds to diversify her assets.Holding period longer than a year and growth option.
I am a total novice as far as this category goes.I checked with somebody and he recommended SBI dynamic and SBI income funds.He mentioned that returns are more than 11% whereas a financial website shows 9.68 for dynamic.The other options he suggested HDFC short term(returns 9.14) and Canara robeco(returns 9.23)Can somebody please help.

If you really need the money after one year for a "particular goal" think of putting the money in the short term debt fund. Otherwise build a portfolio for her keeping in mind her and your age having equity/gold/debt. If your tax implications are less than 10% you can go for a FD in a bank.

Quote:

Originally Posted by alter.e.go (Post 2872075)

An FD will give you 9.5 - 10 % per annum. 'HDFC short term(returns 9.14) and Canara robeco(returns 9.23)' are less than that.
And you run the risk of not even getting that if market conditions are not 'favourable' .

This would hold good for someone in the 10% tax bracket. For someone in higher tax brackets a mutual fund would give better returns due to tax implications

Gautam Misra/alter.e.go
Hi and thanks for your reply
The reason I am looking at debt funds is that if held for more than one year they are more tax efficient.That is the reason I would like to invest in an open ended scheme.Cant be certain when she would need her money.Also if she holds on for a longer period than april 2014 then the post tax returns are still better.
For the time being gold is out and FD rates are 9.25 for one year
My agent told me SBI dynamic and SBI income give annual returns of more than 11 %.Does anybody hold them?
Thanks a lot once again and regards

Quote:

Originally Posted by faustus77 (Post 2872606)

If you are planning to hold more than a year, then you can also look at gilt funds. A few of them are giving pretty decent double digit returns currently.

Exploring FundsIndia.com before putting down any money.
A nice feature is that it picks some SIP's for you based on your risk profile, period of investment and age.
For age, 32 and 'Moderately aggressive' risk profile, it picked the following SIP's for me:
Note: Total SIP per month Rs. 10000.

Asset Allocation:

Equity Large Cap: 50%
Equity Multi Cap: 30%
Equity Mid and Small Cap: 20%

Funds:
DSPBR Top 100 Equity-Reg(G) 2500/-
ICICI Pru Focused Blue Chip Equity-Ret(G) 2500/-
HDFC Equity(G) 1500/-
DSPBR Equity-Reg(G) 1500/-
IDFC Premier Equity-A(G) 2000/-

Sounds good?

There is NO entry load, NO exit load (since I will be investing for more than 12 months)

The only cost I see is the Expense ratio which is around 1.88 to 2%.

Quote:

Originally Posted by sgiitk (Post 2873292)

@S_U_N; The mix looks good, very much in line with what I may have done. Only I may prefer Franklin Templeton Blue Chip to the ICICI one.

@sgiitk: What I am amazed is that anyone can pick the best performing funds without any knowledge of the market or financial jargon. This is much better than some pestering agents who keep calling for an appointment to show their latest guaranteed income plans.

I would like to thank chennai-indian for pointing me to the portal.

There are so many options to choose from, that I am still exploring all options. :)

Why I will prefer FT is that ICICI is a relatively new fund. Also, their Large Cap fund - Power is not doing that great. If you are lazy like me and do not want to churn every 2-3 years then the ratings may not be that reliable. I find their horizons a bit too short term for my taste. I also look at fund houses based on my experience and perception. For example I will avoid all funds of PSU banks since they learnt treasury management only not that long ago.

Ultimately all rules are for the guidance of wise men and obedience of fools.

Quote:

Originally Posted by yosbert (Post 2873033)

If you are planning to hold more than a year, then you can also look at gilt funds. A few of them are giving pretty decent double digit returns currently.

Yosbert
Hi
Thanks your reply.
After reading your mail I checked gilt funds returns and it is in the range of 8% + so today I invested in SBI dynamic bonds.Their last 12 months returns were more than 11%.What happens in the future is anybody's guess.Incidentally this scheme manages around 1250 crores.
Thanks once again and regards

Hi,

I have 7k distributed into following 4 funds
FIDELITY EQUITY FUND GROWTH 1k
HDFC PRUDENCE FUND GROWTH 2k
HDFC TOP 200 FUND GROWTH 2k
ICICI PRU FOCUSED BLUECHIP 2k

I am planning to increase SIP from 7k to 10k and I was wondering whether I should buy another new fund or should I just add 3k into two existing funds.

Please suggest.

Quote:

Originally Posted by hondafanboy (Post 2873795)

Hi,

I have 7k distributed into following 4 funds
FIDELITY EQUITY FUND GROWTH 1k ....

At this point I will steer away from Fidelity. They have been (or are being) taken over by L&T with Fidelity shipping out of India, I will not invest any more till things stabilise. I hear that many Investors have cleared out of Fidelity. I do not plan / suggest anything as drastic at this time.

Aditya 101
Hi
Last week I invested for my daughter in a pure debt fund SBI Dynamic Bond fund
Crisil has rated it as a strong buy.Last years returns were 11.3 % in the dividend option.(I opted for the growth option)
These are taxable and subject to market risks.
Please recheck and decide
Regards

Quote:

Originally Posted by faustus77 (Post 2879901)

Thanks! In fact I am not aware of any fixed income security or investment mechanism where the Dividend pay outs are tax free (is there any?)