[sindabad.sailor]

With the way stock market is going now and possibilities of the Nifty touching 5200 or around, should ULIP holders make a switch to debt fund till the times the direction is clear?
I am investing in ULIP under monthly premium payment and right now investing in Tata AIA mid cap fund. I intent to continue investing in ULIP for now but evaluating pros and cons of Debt fund for now.

[S_U_N]

Originally Posted by sgiitk

You have a good portfolio. Only I may not have gone in for Ultra Short Term but rather for the Medium Term or Investment Plans. In the Equity both Top 100 and 200 seems a bit odd. Let me give a short summary - Premier - SME with a large cap component, FIBCF- Large/Giant Cap, Top 100/200 Mid cap bias but may be similar to the PEF. I am myself in all but the Focussed BCF and HDFC Top 200.

You can stick to there for your own investments as well. You may also consider TIEIF. I am coming to like FT more and more, conservative and solid.

Replying to this after more than a month.
When I looked at where my MF managers are investing, I realized that all of them are investing in companies such as Infosys, SBI, Reliance, etc.

In short, the diversification based on fund houses does not really result in any diversification at all, since the final (majority) investments are still made in the same 5-10 companies.

As a result, all the funds go down at the same time.

Yes, I know that less than a year is very short to make any changes in strategy, but this is my observation so far.

[sgiitk]

Originally Posted by S_U_N

When I looked at where my MF managers are investing, I realized that all of them are investing in companies such as Infosys, SBI, Reliance, etc.

In short, the diversification based on fund houses does not really result in any diversification at all, since the final (majority) investments are still made in the same 5-10 companies.

Exactly. Not much point is multiple funds of the same kind. Only when you have a large amount having two or three fund managers may make sense. This is why I say diversify in terms of emphasis - mid and small cap, diversified and large cap. I do not like sectral funds. At this time I an lying low with regards to equity. I needed some money for my son, pulled out of Equity rather than draw from PPF, something I would not have done in say, 2005!

[S_U_N]

Originally Posted by sgiitk

....... This is why I say diversify in terms of emphasis - mid and small cap, diversified and large cap. .

This brings me to your earlier post.

Originally Posted by sgiitk

I prefer the IDFC Sterling or Premier Equity, or FT Equity Income for Small/Mid cap. Realistically assuming that yesterday was an aberration expect about 10-15% over a year.

I somehow liked
* Franklin India Prima-G
* Templeton India Equity Income Fund
This is for investment for say a year.

How about pharma industry based fund? e.g. SBI Pharma Fund


Secondly, I will put 50% money in liquid funds (say for 3-6 months).

[S_U_N]

HDFC Equity based MF's are really doing badly.
I am around 7% loss after I started in October last year - others are around 3-3.5% down.

I am going to stop the HDFC Equity and HDFC Top 200 SIP after I complete 12 installments.

[sgiitk]

Originally Posted by S_U_N

I somehow liked
* Franklin India Prima-G
* Templeton India Equity Income Fund
This is for investment for say a year.

How about pharma industry based fund? e.g. SBI Pharma Fund

I am into Prima Plus and TIEIF myself.

Originally Posted by S_U_N

HDFC Equity based MF's are really doing badly.
I am around 7% loss after I started in October last year - others are around 3-3.5% down.

I am going to stop the HDFC Equity and HDFC Top 200 SIP after I complete 12 installments.

At the moment after the FII pull-out debt is also doing badly. The interest rate hike was totally unexpected. I am just staying put. Both HDFC-Eq & DSPBR Eq are not doing well. As per Dhirendra Kumar the issue with the DSPBR is more endemic.

Just an example, I needed to pull out some money for my son to buy a new car. I did not touch his PPF but exited funds like DSPBR-Eq and a couple of others. At least PPF is giving us 8.6% stable and tax free.

[S_U_N]

Originally Posted by sgiitk

Both HDFC-Eq & DSPBR Eq are not doing well. As per Dhirendra Kumar the issue with the DSPBR is more endemic.

Yes DSPBR is doing bad even with debt.
Consider this. I invested in IDFC Ultra Short Term Fund-Reg(G) and DSPBR MIP Fund-Reg(G), on the same day in October 2012.

IDFC is giving me 6.6% and DSPBR is giving 2.76%.
So, it is obvious that DSPBR is doing something wrong.


The equation in Equity is reverse.
IDFC Premier Equity Fund-Reg(G) is -5.7% and
DSPBR Top 100 Equity Fund-Reg(G) is -2.5%


HDFC has given me -7.5 and -10% for the two equity funds.

The most surprising thing for me is that ICICI Pru Focused BlueChip Eq Fund-Reg(G) is at -2.2% (least hit/ best performance, though negative).

So, perhaps ICICI is not really a bad option like I thought earlier.

[sgiitk]

I am going to try out FT India Feeder Franklin US Opportunities since I am pulling out of DSPBR Eq from one of my folios. Since my SB A/c is the buffer I do this very gradually. Also, the AIR menace. I have two folios in most MFs one with my wife and the second with my wife and son. The former set are being closed gradually.

[S_U_N]

Originally Posted by sgiitk

I am going to try out FT India Feeder Franklin US Opportunities

Very interesting. 1 year return is 40%.

Is income generated through this type of investment handled differently since this is investment in overseas equities (indirectly)?

[S_U_N]

Invested in Franklin Asian Equity Fund(G) and FT India Feeder - Franklin U.S. Opportunities Fund(G) both last week.
So far the graph is going upwards which is in contrast with the Indian context where figures are red since last 3 months.

So, I am happy to see some green (albeit it is too early for me to celebrate - I have invested just one week ago.)

[sgiitk]

@S_U_N; the return FT India US Feeder is due to the nose diving rupee. If we assume the rupee will sink, say 10% a year (at the moment it is going far faster) and the US returns will be about 3% then we are looking at 13% or so, hencewe are still kosher. Remember this attracts taxation at par with debt and no STT.

[S_U_N]

Ah... I did not know this is treated as debt MF in terms of taxation (10% tax or 20% with indexation). Still not a bad deal if they give me 20% returns.

[MaxTorque]

Need some inputs from MF experts,

I had SIPs in L&T Equity Fund, HDFC Top200 and DSPBR Small and Mid Cap fund. I stopped the SIPs as I wanted to invest directly. But due to some issues my plans did not take off, now I am in the process of starting it again. But all three funds are not doing good. So what should I ideally do? Should I redeem the amount or stay invested? I am not in urgent need of money.

Right now I am planning to reshape my portfolio with FT Bluechip (ongoing), UTI Opportunities (Ongoing), BNP Paribas Dividend Yield, SBI Emerging Business and Reliance Pharma (ongoing). Any suggestions?

[JMaruru]

Originally Posted by MaxTorque

Need some inputs from MF experts,

I had SIPs in L&T Equity Fund, HDFC Top200 and DSPBR Small and Mid Cap fund. I stopped the SIPs as I wanted to invest directly. But due to some issues my plans did not take off, now I am in the process of starting it again. But all three funds are not doing good. So what should I ideally do? Should I redeem the amount or stay invested? I am not in urgent need of money.

Right now I am planning to reshape my portfolio with FT Bluechip (ongoing), UTI Opportunities (Ongoing), BNP Paribas Dividend Yield, SBI Emerging Business and Reliance Pharma (ongoing). Any suggestions?

The LnT, HDFC n DSPBR are all decent fund houses. The MFz are all reflecting the current market conditions. The SIPz are there to capture these low cycles of the market. You need to be invested in SIPz at these times, as when the cycle turns you would be in green.

The whole idea of SIPz is to ride the ups n downs of the market cycles and average out your purchase. If you invest only in up cycles, it defeats the purpose. As some one said, 'Be greedy when others are fearful, and be fearful when others are greedy'.

[MaxTorque]

Originally Posted by JMaruru

The whole idea of SIPz is to ride the ups n downs of the market cycles and average out your purchase. If you invest only in up cycles, it defeats the purpose.

Yeah I understood your point. Actually I stopped the SIPs for a different purpose. I wanted to invest directly (not through broker). But it got prolonged due to issues. Now again I want to start them. But now the funds are in bad shape so I prefer to go for some better funds. I prefer to stay invested in those three funds for some more time.

Somehow I feel, the performance of L&T, HDFC and DSPBR funds have fallen a lot. But same time Franklin, UTI are able to make positive returns.